Injective (INJ) is yet another protocol trying to make money from decentralized finance (defi). Predictably, many people will be skeptical of Injective because of the ongoing FTX debacle.
FTX’s collapse is generating enormous publicity because of Superbowl ads and founder Sam Bankman-Fried’s political donations. Consequently, many people wonder how stable defi protocols like Injective are.
Injective is an Inter‐Blockchain Communication protocol (IBC) built for defi. To elaborate, they call an IBC an end-to-end, connection oriented protocol. They build IBCs on the Cosmos blockchain. Yet they claim Injective is Ethereum compatible because the Injective Chain Ethereum Virtual Machine (EVM) operates Injective. To explain, an EVM is the digital computer that runs an Ethereum blockchain. They plan to implement the Injective EVM as a custom Cosmos software development kit (SDK) module.
A Fully Decentralized Finance Solution
They built the Injective Protocol to create a fully decentralized exchange and finance solution. To explain, the Injective team thinks most defi protocols are not truly decentralized because they operate the central limit overbooks and require Know Your Customer (KYC) protocols.
Instead, they built Injective as a fully decentralized finance solution. They achieve full decentralization by offering out-of-the box interoperable orderbook primitives that create mainstream decentralized apps (DApps).
Injective also offers cross-chain interoperability. They claim Injective offers frictionless communication between blockchains. A Tendermint-based proof-of-stake (POS), consensus offers secure transactions with instant finality.
A flexible environment powered by the Rust and Go programming languages offers an intuitive developer experience. Horizontal scalability enables lightning fast transactions across parallel chains and dynamic scalibility. They claim developers can swiftly modify any parameter on the Injective Ecosystem.
Finally, they claim Injective offers vastly lower fees for financial products because it passes Ethereum gas fees onto developers. For example, relayers pay gas fees on Injective Pro trades. This includes claims, delegation, auctions, underwriting, and other costs.
Injective Trading and Staking
Financial institutions can use Injective by using Injective’s application programming interface (API). A financial institution can use the API to use a Dedicated Market Maker (DMM) Program. A DMM gives institutions negative maker fees and monetary benefits.
Injective is a decentralized autonomous organization (DAO) run by stakers. Anybody who stakes the Injective Token (INJ) can receive rewards and help run Injective. Interestingly, INJ is not an ERC-20 (Ethereum Request for Comment) token. Instead, it’s a native token built with Cosmos.
The Injective Ecosystem supports many DApps including Avalanche, Aexlar, Binance, Aurora, Audit.one, Alpha Finance Lab, AllianceBlock, API3, Acala, Axie Infinity, the Band Protocol, BAYC, the Big Data Protocol, Binance Chain, Bitpie, Burnt Finance, Tokyocrypto, TomoChain, UniLend, Woo, Uniswap, Sushi Swap, StafFi, Terra, Tether (USDT), Polkadot, Tidal, Polygon, SafePal, and many more.
What Value Does Injective (INJ) Offer?
Mr. Market has some interest in Injective (INJ). For example, Injective was CoinMarketCap’s 16th most trending cryptocurrency on 14 November 2022.
Conversely, Injective was CoinMarketCap’s 151st ranked cryptocurrency with a $1.74 Coin Price on 16 November 2022. CoinMarketCap gave Injective a $126.874 million Market Capitalization, a $173.962 million Fully Diluted Market Cap, and a $13.486 million 24-Hour Market Volume on 16 November 2022.
Plus, CoinMarketCap gave Injective a $13.360 million Centralized Exchange (CEX) Volume and a $196,363.03 Decentralized Exchange Volume on 16November 2022. They base numbers on a Circulating Supply of 73.006 million INJ, and a Total Supply of 100 million INJ.
In comparison, CoinGecko named Injective (INJ) its 182nd ranked cryptocurrency with a $1.74 Coin Price, a $135.806 million Market Cap, a $174.098 million Fully Diluted Valuation, a $10.376 million 24Hour Trading Volume, and a Total Locked Value of $9.629 million on 16 November 2022. They base those numbers on a Circulating Supply of 78.006 million INJ and a Total Supply of 100 million INJ.
If you are seeking a FTX alternative, Injective is worth examining. This protocol is offering financial solutions and working with some of the biggest names in DeFi. However, it is unclear if anybody is making any money on Injective.
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