Hello Ninjas,
The Injective community alongside DojoSwap (#1 DEX on Injective currently) will be collaborating to build Injera and USDi, the Injective Synthetic Dollar powering the Web3 ecosystem.
The aim is to build a decentralized synthetic dollar token that is fully backed by the power of Injective and its custom infrastructure for finance.
One core design principle of the Injera protocol and USDi is that everything is built around the Injera money market. Built as a collaterised debt position (CDP) market, the market optimises capital efficiency for the USDi synthetic dollar as it allows us to sensibly leverage USDi to borrow market making assets to create more delta neutral positions. Our market makers are able to utilize a flywheel loop to mint USDi, borrow assets with USDi, and hence borrow more assets to market make. Being a CDP market, it ensures that all USDi being used to borrow assets are always over collaterised.
USDi is a native synthetic dollar that will be governed by the Injera token (ERA). USDi serves as a synthetic USD that is created through delta neutral positions guaranteeing stable yields (10% to 90%) to holders of USDi. This works particularly well on Injective because:
- There is a native battle-tested on-chain perpetual exchange: Helix with over $30 billion USD traded so far
- Fast block times, with cheap gas fees to allow for mainstream usage
- Enables the next era of Injective dApps by integrating USDi as a key stable asset of use on-chain
- Strong integrations with major Web3 institutions and strategic investors to boost USDi adoption
Why USDi?
For every chain and dApp — Liquidity is king.
The birth of USDi will bring about a new era of deep liquidity within the Injective ecosystem. For DojoSwap, this will be key in ensuring that the community can continuously boost TVL and volume to generate an optimal amount of fees for our ecosystem holders.
More importantly, the DAOJO treasury will also aim to accumulate as much USDi as possible — an interest bearing asset with high returns. Accumulating and providing USDi liquidity provides for the creation of an endless flywheel where more liquidity equates to more fees, which further incentivises LP provisioning, which generates even more fees. All of these fees go back to Dojo ecosystem holders via buybacks and value accrual through avenues such as the operation of the DAO.
At time of writing, the DAO has $7M in the treasury. Buy backs of more than $1M have been executed to accrue value via DAO operations.
At the same time, DojoSwap will prioritize liquidity pools that utilize USDi; e.g. INJ-USDi, or USDT-USDi etc. Increasingly, we will aim to work with the Injective ecosystem to proliferate the use of USDi.
How does USDi work?
USDi is a synthetic dollar that is minted when a delta neutral position is opened up against native crypto assets. These crypto assets could include BTC, ETH, INJ, SOL etc. When such assets are sent into the protocol, the asset is used as collateral to take on a short on perpetual markets to create a delta neutral position, with the corresponding size being minted as USDi. The earned funding rates are then funnelled back as yields to USDi holders who stake it for a yield. At the same time, staking pools are set up to allow USDi holders to receive the ERA airdrop OR potentially earn DOJO by providing liquidity.
The Development of USDi
The DojoSwap community has been hard at work in building the Injera protocol.
To date, a number of institutional providers have been engaged to aid in executing the delta neutral strategies.
A protocol beta is already underway and will be released publicly in the near future when the proper rails have been set up. In the meantime, do continue monitoring Injera socials as we will be preparing multiple campaigns to reward early adopters of USDi.
The USDi execution plan
The crypto market is filled with uncertainty with constant volatility across all assets. As a result, prime execution is key. We have therefore prepared several execution plans that will lead to the success of Injera protocol. See below:
As we navigate the launch of Injera protocol, we prepare for the eventuality of the ERA token being distributed into the hands of tens of thousands of users. With our strong relationships recently forged with institutions, we are primed to ensure that the ERA token is eventually distributed to more users through various formats such as Airdrops, GEM farming, exchange listings etc. All of these will run in congruent to the utilities that we will be setting up for USDi.
With the advent of the USDi synthetic USD token, users now gain access to a yield bearing asset regardless of overarching market conditions. With the ability to farm USD yields, GEMs (for ERA airdrop), and also trading fees on DojoSwap, the possibilities are endless, and will serve users well through all market conditions. The final sequence of events for launch will be released soon.
Benefits for Dojo ecosystem holders
As USDi needs to be governed by the ERA token, the DojoSwap community will work to set aside allocation as an airdrop for Dojo ecosystem holders. At the same time, a portion of ERA will also be added into the DAOJO treasury as an asset to accumulate as well.
These assets will directly benefit Dojo ecosystem holders in more ways than one. The ERA token will be airdropped to key stakeholders to guarantee optimal governance. These are the qualifying criteria:
- INJ holders who stake into DojoSwap’s validator
- Users of dINJ liquid staking
- DojoSwap ecosystem holders
Conclusion
It is high time a major Cosmos chain with a strong user base, great TVL and rapidly growing community, is able to fulfil the role of creating a synthetic dollar backed by the power of a chain and everything it has to offer. We believe that Injective (chain & community) stands perfectly as the ones to realize this vision — with a state of the art chain, on-chain derivatives, huge userbase, and strong developer support (us at DojoSwap!).
Today, the launch of the Injera protocol marks the beginning of a new era for Injective, a beginning we all look forward to with anticipation!
With love,
From the Injera team
Stay Updated with us
Telegram: https://t.me/injeraofficial/
Twitter: https://x.com/InjeraOfficial
Medium: https://medium.com/@Injera
