Injective Protocol(A layer-2 decentralized trading solution)
The injective protocol is a fully decentralized exchange which features major centralized feature including spot, perpetual and futures trading with a live order book in a fully decentralized way with the help of smart contracts.
The injective protocol is built on top of the Ethereum Network implemented on Cosmos SDK on Tendermint based Proof Of Stake Consensus algorithm.
So Why Injective Protocol?
Current Decentralized exchanges comprise of various problems. They claim to be decentralized but they aren’t because the actual infrastructure of the exchange is operated by a centralized team of developers.
Injective Protocol has created an exchange structure that is a public utility, with the network of users personalizing their own derivatives market, alongside having governance and voting rights when holding the INJ token, for future protocol updates.
The Injective protocol is already integrated with Chainlink and PolkaDot networks which provides more exposure to cross-chain derivatives trading. The injective protocol also got partnered with Kava, Findora, Frontier, Wootrade.
Features of Injective Protocol
- Layer-2 Decentralized Derivatives trading (Injective Chain): The Injective protocol is implemented on Cosmos SDK hence it provides high trading speed and comparatively zero gas fees even for Erc-20 tokens because of ethermint.
- Derivative Trade Pair Creation By User(Injective Futures Protocol): On injective protocol traders/users can create their own derivatives trading pair just by using the price feed. Hence it increases the trading variation.
- Cross-Chain Trading: As the Injective protocol is implemented as Cosmos SDK module, built with Ethermint, it provides cross-chain trading with cosmos, ERC-20, and other layer-1 protocols.
- OrderBook Trading: Generally order book is not seen in decentralized exchanges but injective adds a feature of order book where users can create a desired bid for trading on a particular pair.
- Injective Governance: Injective protocol has an inbuilt governance feature where stakers play a vital role in deciding the platform upgrades and governance proposal by voting using staking power.
- Liquidity Mining: Users are incentivized by the native token for providing liquidity on the injective protocol platform.
Taking part in the injective ecosystem
Users can be an integrated part of the injective protocol in 4 ways:
- Staking Pool Participants: If you don’t have enough delegated stakes or the infrastructure to become a validator, you can simply delegate your tokens and join a staking pool. Most staking pools will allow you to earn the same yield as a validator.
- Act as a witness for non-core bridges: Users can act as a witness for POA bridges to other chains.
- Running full nodes: Users can work with influencers to create referral links to bring new traders to the injective protocol trading platform and earn fees from the trading fees the trader pays.
The $INJ Token
The injective protocol has a native token known as $INJ which is a governance token with a total supply of 100 million and a current circulating supply of 15.2 million(as of now).
Usecase of $INJ Token
- Governance: Being a decentralized community-focused platform, governance-related issues are decided by the Injective community. However, to participate, members have to hold INJ.
- Staker’s Reward: Since the platform supports staking, rewards to stakers are paid using INJ.
- Transaction Fee Discounts: Traders on the platform are charged less when paying their transaction fees using the network’s native currency.
- Collateral Backing for Derivatives: INJ will be utilized as an alternative to stablecoins as margin and collateral for Injective’s derivatives markets.
- Sidechain Security Reward: To ensure the security of Injective’s sidechain, Injective will incentivize nodes to stake INJ and participate in the sidechain’s network consensus with block rewards.
- Incentivizing market makers – Market makers or liquidity providers are key Injective Protocol roles. Therefore, to attract more liquidity, the platform uses its native token to incentivize liquidity providers.
How to trade $INJ on WazirX ?
As of now, I think all of you have a piece of good knowledge about the Injective Protocol project and what it mainly focuses on.
Now if you are interested in INJ token here is a quick guide on how you can trade it on WazirX an Indian exchange.
Here’s a listing giveaway on WazirX check here
- Register an account with WazirX click here, if you already have an account skip step 1.
- After registering login into your account.
- Navigate to this page to trade click here.
- Happy Trading
With the ongoing controversies with centralized exchanges and undergoing hacks of centralized exchange there is a need of a fully decentralized trading platform like injective protocol but it only can provide a good trading experience if there is a sufficient amount of liquidity on the exchange.
Hence if Injective protocol provides a great user experience then many centralized users will migrate to decentralized exchange like injective protocol.