Injective: An Overview

Injective: An Overview

June 12, 2024

Overview

Injective Protocol (INJ) is a DEX on the Cosmos blockchain offering cross-chain trading and derivatives. It uses an order book model and INJ tokens for governance, staking, and fees.

3 min. read

3 min. read

3 min. read

What is Injective?

Injective Protocol (INJ) is a decentralized exchange (DEX) built on the Cosmos blockchain, offering cross-chain margin trading, derivatives, and forex futures trading. 

Unlike popular DEXs like Uniswap or Bancor that use automated market makers (AMMs), Injective follows the order book model used in traditional finance, aiming to match efficiency with decentralized transparency. It utilizes cross-chain bridges to access cryptocurrencies from chains like Ethereum and Polkadot. Instead of gas fees, traders pay standard maker and taker fees using the INJ token, which also serves as the governance token and staking mechanism for Injective's Proof of Stake blockchain.

Important Metrics of the Project

INJ is the native utility token of Injective, serving multiple roles within the ecosystem such as governance, utility, and staking. One of its core purposes is to secure the network through staking, where INJ acts as collateral to encourage validator behavior, and participants who stake INJ receive rewards for contributing to the network's security.

The INJ token has two main functionalities within the crypto ecosystem:

Utility: INJ serves as collateral in DeFi lending platforms, you can lock up INJ tokens to borrow other cryptocurrencies. They are also used to pay for transaction fees during Injective network interactions.

Governance: INJ holders have a say in the future of the Injective network by voting on proposals. This allows the community to influence how the network evolves.

Disclaimer: The information provided in this research paper is for educational and informational purposes only. It does not constitute financial advice, investment guidance, or any solicitation to buy or sell financial instruments. The views expressed herein are those of the authors and do not necessarily reflect the opinions of Kollectiv.

2024