GAINS Associates
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GAINS Associates

Injective Labs — Telegram AMA — November 30

On Tuesday, November 30, we had the pleasure to welcome to our Telegram channel

Eric Chen, CEO

We asked him questions about the development of Injective Labs.

Some sentences have been slightly edited for readability but the meaning has been conserved.

Summary

Injective Protocol is an end-to-end decentralized protocol that creates a platform for decentralized perpetual swaps, futures, margin, and spot trading. Every component of the protocol has been built to be fully trustless, censorship-resistant, publicly verifiable, and front-running resistant.
The protocol itself is principally comprised of the Injective Chain, the Injective Exchange, and the Injective Futures platform. Injective is a custom interoperable layer one protocol for building powerful exchange, DeFi, derivatives & Web3 applications.

The Injective Chain is a layer-2 sidechain and Cosmos Zone connected to Ethereum. It leverages verifiable delay functions (VDFs) to enforce a fair transaction ordering consensus that reflects real-world time via proof-of-elapsed-time. Unlike traditional exchanges which serve as gatekeepers to the crypto industry, Injective transforms an exchange into a decentralized public utility. What truly differentiates Injective is that it brings every component of a decentralized exchange to the public. Everything — from the front-end exchange interface, back-end infrastructure, smart contracts, to order book liquidity — is provided openly and for free. The Injective Futures protocol is a decentralized peer-to-peer futures protocol that currently supports decentralized perpetual swaps, contracts for difference (CFDs), and many other derivatives! The protocol allows individuals to create and trade on arbitrary derivative markets with just a price feed.

Injective was created using the Cosmos SDK and is able to achieve instant transaction finality while sustaining lightning-fast speeds. INJ is the native deflationary scarce asset that powers the Injective Protocol and its rapidly growing ecosystem. Injective is incubated by Binance and is backed by Pantera Capital.

Injectives' mission is to create a more free and inclusive financial system through decentralization. By providing the unrestricted and unprecedented ability to express diverse views in the decentralized financial markets, they are striving to empower individuals with the ability to more efficiently allocate capital in our society.

Introduction

Q — Ayeley from GAINS: Eric, please introduce yourself. What did you do before crypto and did you have any other previous venture in crypto?

A — Eric from Injective Labs: i everyone! I’m Eric Chen, co-founder of Injective Labs. My passion for crypto and blockchain started back in high school when I mined bitcoins for the first time. After a career as a researcher at NYU Blockchain Labs and Innovating Capital, in 2018 I founded Injective together with Albert Chon (CTO). The idea behind the project was to improve DeFi usability and security, eliminating problems related to high latency, poor liquidity, and UX. The ultimate goal was to give DEX users the same flawless experience they have with CEXs, eliminating the gap between the two.

About Injective Labs

Q — Ayeley from GAINS: Let’s learn more about Injective Labs. What is the project about in detail?

A — Eric from Injective Labs: Injective is a universal DeFi protocol for cross-chain derivatives trading across a plethora of financial products such as perpetual swaps, futures, and spot trading. Everyone can access unlimited DeFi markets on Injective’s fast, cross-chain, low fee, and secure decentralized exchange protocol.

Injective recently just released the Canonical Chain mainnet, which marks the beginning of a new chapter for Injective. I would love to share more about the Injective mainnet with you guys. There are two bridges on the Canonical Chain: Injective Bridge and Injective IBC Bridge.

Injective bridge enables lightning-fast transfers and is one of the cheapest solutions on the market today. The average transaction cost is only around $0.02 when transacting on the Injective Chain. It also provides the fastest withdrawals compared to any other Ethereum scaling solution. Popular solutions in the market today typically take several days for withdrawals, whereas on Injective it takes under five minutes.

Plus, all transactions are confirmed instantly due to the Tendermint-based Proof-of-Stake (PoS) consensus utilized by the Injective network. So in one sentence, the Injective bridge is fully decentralized, highly secured, cheap, and fast.

Through the Injective IBC bridge, IBC protocol to be integrated into Injective. The idea is simple, but the impact of this integration is huge. IBC allows these disparate chains to become part of a robust interconnected ecosystem where users can transfer assets and arbitrary messages across different blockchain networks.

Any assets in the Cosmos ecosystem can be bridged to the Injective Chain. Anyone can create IBC-enabled markets. It moves the whole cosmos ecosystem and growing projects forwards to a new height. IBC-enabled chains currently have a market value exceeding $30 billion, bringing new value and opportunities to Injective.

The integration with decentralized oracle provides is crucial for cross-chain exchange. Because it provides secure price feeds for the decentralized derivatives market. We have been working closely with Band Protocol and Chainlink for our mainnet oracle integrations. Users will be able to create new markets with Band oracle price feeds transmitted through IBC and Chainlink’s OCR 2.0 (off-chain reporting) protocol.

The integration with band protocol is completed. Injective is ready to release fully decentralized derivatives markets with price feeds stemming from the Band IBC oracle. Users can launch crypto, exotic, index, and synthetic asset markets in an entirely decentralized manner. Of course, since Injective has been custom-built to support derivatives, anyone can create spot or perpetual markets

We decided to build a custom integration for Chainlink’s OCR model from scratch for the Injective Chain. No previous implementation of the OCR model has existed on a Cosmos SDK-based chain. This integration is expected to be live soon. Once live, Injective and any Cosmos SDK-based chain will be able to integrate Chainlink’s diverse array of price feeds seamlessly.

To further boost the mass adoption and attract users after the launch of the Injective mainnet, we’ve proposed to the Injective community. After the approval of these proposals, we’ve launched the VIP Fee discount program and Injective Astro, a $120 Million liquidity incentive program to bring liquidity and traders to Injective Protocol. Injective Astro liquidity incentive program is so far the largest liquidity incentive program in the cosmos ecosystem and has been covered by global mainstream media. The initial two sub-programs that make up Astro are Trade & Earn and DMM.

Trade & Earn Program: A total of 7,000,000 INJ (90 million) is proportionally allocated to all trading participants for their maker and taker orders every week. All users of Injective can benefit from this reward pool. Dedicated Market Makers (DMM) Program: A total of 3,000,000 INJ (40 million) is proportionally allocated to all qualified direct market-making program participants, based on the individual market-making scores calculated every four weeks.

Q — Ayeley from GAINS: These put Injective way over and above the existing competition in the market.

A — Eric from Injective Labs: There’s more!. The VIP Fee discount program is live on the Injective Canonical mainnet already. It is the first-ever fully on-chain fee discount program rewarding traders and market makers who make a long-term commitment to Injective Protocol. This program provides network participants with trading fee discounts based on their Tier which is determined by the trailing 30-day trading fee contribution as well as staked INJ amount.

Staking and fees generated are both vital for the growth and security of the protocol. This is exactly why these two parameters were selected for determining the fee tiers. Users are thus incentivized to contribute to the protocol via both staking and fee generation on the exchange in order to earn the lower fee tiers which can be quite lucrative especially for high volume or institutional traders.

The program is designed to enable everyday users to attain the first few ranks rather quickly. The basic requirement to achieve Tier 1 to stake 1 or more INJ which already provides traders with a 10% discount across both maker and taker fees. Of course, the tiers become increasingly harder to achieve in order to incentivize larger traders, holders, and institutions to contribute more to the protocol.

One of the many features new to Canonical Chain is the robust token economics of INJ. So we plan that every two weeks, 60% of fees collected on the protocol will undergo a buyback and burn process. This will allow Injective to have the highest token burning ratio in the entire exchange industry. The first token buyback and burn is coming soon. To get started on the Injective Chain, you can go to Injective Hub

Earn rewards with every trade through the $120 Million Injective Astro incentive program. Here’s a handy guide for you to get started.

Q — Twitter user AMA4eper: Currently which networks have supported Injective bridge. How about the fees? Will it be the same for each network?

A — Eric from Injective Labs: Currently, Injective Bridge supports Ethereum and IBC enabled chains. The fee is extremely low, from $0.02 to $0.2

Of course, the bridging fee will be set by each validator at currently around $10 to withdraw to Ethereum. Depositing is subject to network standard gas cost, of course.

Q — Telegram user Ms: Is there any Android application available for trading or exchanging assets? If not then when it will be available for Android users?

A — Eric from Injective Labs: Trying using Injective from mobile, it works! The app is on the roadmap as well

Token

Q — Ayeley from GAINS:Tell us more about the $INJ token. What is its utility?

A — Eric from Injective Labs:

1. Every two weeks, 60% of fees collected on the protocol will undergo a buyback and burn process
2. INJ is utilized for proof of stake security that can earn stakers 5% APY at the moment
3. Staking INJ will also be vital to attaining VIP tiers and a plethora of other rewards
4. INJ is also utilized for governance. There are currently 76 proposals total!

Security

Q — Twitter user @Tuan_iker: Security is so important with all of us nowadays. How does Injective ensure that the assets of your users are safe and secure? Do you have insurance for users?

A — Eric from Injective Labs: All perpetual markets are secured by insurance funds, currently, there’s a 5300% yield from staking in the insurance funds! The Injective Peggy bridge has also secured more than 100 million dollars!

Business Development

Q — Ayeley from GAINS: Injective Labs has been around for over a year. Are you on track with respect to your roadmap? And are there any events and campaigns you have in store that your supporters and community should be excited about?

A — Eric from Injective Labs: A lot! Astro reward is doubling today. There are also a few major campaigns and integration this week, so stay tuned. It will address all gas issues, stablecoin integrations, and growth incentives!

Injective processed $100 million in volume in the first 5–6 days of launch. We did that again in 3 days!

Q — Telegram user Maximar: It has been a long time since you launched the $INJ token last year on Binance. How can you describe your growing process in these months? What are the changes have you made and what is the news upcoming?

A — Eric from Injective Labs: 120 million incentive program, 20x volume growth since canonical, 10x growth in liquidity, and a burn + countless campaigns/integrations coming up.

Eric, thanks for coming into our community, and taking the time to answer our questions. Do you have any final words for us? — Ayeley Commodore-Mensah from GAINS Associates 🐋
Appreciate the enthusiasm! Follow our Twitter for the latest updates and definitely check out injective.exchange to start earning rewards! One of our community members posted a nice guide for this! — Eric Chen from injective Labs

Join us now! Enjoy quality articles, daily curated news, insightful infographics, and enter a vibrant, fun, and knowledgeable community!

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