Injective Protocol (INJ)

The firm behind the DeFi Injective Protocol platform is Injective Labs, via the Binance incubator.
Injective Labs was founded by :

• Eric Chen.
  He has strong experience as a crypto researcher, trader and investor in leading blockchain companies such as 0x, ChainLink and Cosmos.
  He holds a degree in finance from New York University.
• Albert Chon.
  Before embarking on the Injective adventure, Albert Chon was a software development engineer at Amazon.
  He holds a master’s degree in computer science from Stanford University.
  He is also in the cryptosphere for having worked on a new Ethereum standard.

Key dates in the history of Injective Protocol are :

• 2018: Injective joins theBinance Labs incubator;
• 2019 : Launch of the first on-chain order book and derivatives products;
• 2020 : Injective successfully raises funds from Pantera Capital.
  The project is launched to the public via the Binance launchpad.
• 2021 :
  • Second quarter: Injective raises additional funds from Pantera Capital and billionaire Mark Cuban.
  • Third quarter: Injective Hub is launched in the third quarter, along with its API and bridge to ensure compatibility with other blockchains.
  • Fourth quarter: Launch of the Injective mainnet and its inter-blockchain communication (IBC) module.
• 2022 :
  • First quarter: Release of Bridge V2 and launch of the CosmWasm layer dedicated to smart contracts on the testnet.
  • Third quarter: Further successful fund-raising with Jump and Brevan Howard and mainnet launch of CosmWasm bridge.
  • Fourth quarter: Connection of the Wormhole bridge to Injective.

Recently, theInjective Protocol team launched the Volan update, eagerly awaited by the community.
Volan is the result of Injective Improvement Proposal 314, which was accepted by over 95% of voters.
Volan willimprove the scalability and interoperability of the Injective blockchain.
In addition, this upgrade introduces new burn mechanisms, easier wallet access to decentralized applications (dApps) and other improvements.
Coincidentally (or not?), the Volan upgrade was launched on January 11, 2024, the same day as the approval of the first spot Bitcoin ETFs.

Discover some of Injective Protocol’s special features below.

One DEX and one CEX at a time

Injective Protocol enables the development of DEX or decentralized exchanges.
These applications are used to exchange, buy or sell cryptos without intermediaries.
The difference between a decentralized exchange (DEX) and a centralized exchange (CEX) lies mainly in the way orders are managed.
CEXs use order books to manage purchases and sales.
An order book is a file that lists, in real time, all orders to sell (called “requests”) and to buy (called “offers”).
Thanks to the order book, CEXs can match buy and sell orders for the same asset.
With order books, market makers are remunerated via the spread, which is the difference between the price asked by the seller and that paid by the buyer.
Order books are widely used in traditional finance.
DEXs operate on a decentralized, i.e. automatic, basis.
That’s why they generally use algorithms rather than order books.
They are therefore known as Automatic Market Makers (AMMs).
Simply put, AMMs adjust prices automatically via algorithms linked to liquidity pools, traders and smart contracts.
AMMs originated with Uniswap, the first DEX to be launched.
What’s special about Injective Protocol is that it’s a DEX without being an AMM.
In fact, the platform is based on the order book technique, which is very much in vogue on CEXs.
These order books are shared by all the protocol’s decentralized applications, providing real-time information on market activity and liquidity levels.
The strength of Injective Protocol lies in its ability to offer the advantages of a DEX, while operating on a recognized and transparent technology derived from traditional finance.
To ensure a high level of liquidity and prevent large-scale orders from impacting market prices, Injective has set up the OLP (Open Liquidity Program).
The aim is to encourage users to provide liquidity by remunerating them.

The Injective Protocol ecosystem

The Injective ecosystem comprises the following elements:

• Injective Hub:
  • A wallet which allows you to store your INJ tokens as well as cryptos from other blockchains via bridges.
  • Bridges for compatibility with other blockchains.
    With the development of these bridges, tokens can be transferred from the Injective Chain to other blockchains (and vice versa).
    Currently, blockchains compatible with Injective include Ethereum, Solana, Cosmos layer 1, Osmosis, Evmos, Axelar, Moonbeam, Persistence, Secret Network, Stride, Crescent and Sommelie.
    Injective also features the Wormhole bridge.
    Instead of converting tokens between different blockchains, Wormhole locks tokens on the starting blockchain and creates (mint) a wrapped version of these tokens on the destination blockchain.
    Injective also features the Peggy bridge, which converts ERC-20 tokens into native Cosmos ecosystem coins.
  • Staking to generate passive income (see below).
  • Governance.
    Like many DeFi protocols, Injective Protocol has a DAO.
    All INJ token holders can participate in the governance of the DAO by making proposals and taking part in votes related to the operation of the protocol.
  • An auction module.
    Auctions are held for INJ tokens collected via transaction fees.
    On Injective, 60% of transaction fees are collected in a separate account (basket).
    Every week, an auction takes place.
    The person who submits the highest bid (in INJ tokens) wins the basket of tokens, which is then burnt (withdrawn from circulation).
  • An insurance fund.
    This fund protects users against financial loss.
    In concrete terms, a user can create or participate in an insurance fund.
    By doing so, he or she is guaranteed to recover his or her stake or part of it (depending on the percentage of the fund) if he or she loses money while trading.
  • An oracle that extracts real-time data such as crypto prices, interest rates and other indicators for the operation of smart contracts.
• Injective Exchange, the order book-based trading platform.
  Injective offers crypto and Forex trading, as well as other derivative products such as futures.
  For greater transparency, DEX’s user interface, smart contract functionality and order book management system are open source.
• Injective Chain, the layer 1 blockchain (see below).

INJ is Injective Protocol’s native token.
In addition to paying transaction fees, the INJ token is used to :

• Participate in auctions;
• Participate in protocol governance. To launch a proposal, a user must deposit an INJ token.
  For this proposal to be put to the vote, 500 INJ tokens must be deposited.
  Once the token has been deposited, the vote is launched over a period of four days.
  For the proposal to be adopted, at least 33.4% of INJ token holders must participate in the vote, and at least 50% of votes must be positive.
• Encouraging application development.
  40% of transaction fees are used to motivate new developers to build projects on Injective.
• Ensuring Tendermint’s security through staking (Proof-of-Staking).

1. Go to your Coinhouse application and log in to your personal space or create your account.
2. Go to the buy/sell section.
3. Select the amount you wish to invest, and the currency of your choice (in this case INJ).
   If you haveUSDC, you can exchange these tokens for INJ.
4. Once your transaction has been validated, you ‘ll find your INJs in your portfolio.

Injective Protocol is a layer 1 blockchain that aims to revolutionize decentralized crypto trading.
Using order book technology, the trading platform combines the advantages of centralized and decentralized exchanges.
A winning combination!
What’s more, its integration into the Cosmos ecosystem and its compatibility with EVM and other blockchains via bridges make Injective a blockchain that shines through its interoperability.
Injective Protocol is one of the flagship products of decentralized finance (DeFi).
In addition to offering crypto spot trading, Injective enables users to trade Forex and derivatives such as Perpetuals and Futures.
In addition to being the platform’s native token, INJ has a number of useful features, including participation in governance and the possibility of staking to earn passive income.
Like any financial investment, buying INJ comes with risks.
As a reminder, cryptocurrency is an area where prices are highly volatile.
We recommend that you find out about these risks and act accordingly.