INTRODUCTION
Injective is a layer-2 decentralized exchange, implemented as a Cosmos SDK module, using Tendermint-based PoS to provide cross-chain derivatives trading. It is supposed to allow interoperability between Cosmos and Ethereum networks (with ETH and ERC-20 tokens included), through token bridge with Ethereum and EVM execution environment, via peg-zone implemented on Cosmos blockchain.
Company is supported by Pantera, Hashed, QCP Capital, Binance, CMS, StartX and actually in development process for two full years now, before launched on Binance launch-pad.
TECHNICALITIES
This implementation should provide support for Ethereum execution environment, that provide execution of smart contracts from Ethereum directly within Injective protocol. Direct implementation enable PoS functionallity and one second block finality for all Ethereum based smart contracts deployed on Injective protocol, which is in-line with what is expected from ETH2.0.
It is foreseen to be fully decentralized exchange, with decentralized orderbook, without any centralized components and governed by Injective governance token.
Since implemented as layer-2 on Cosmos, it is promised to have low fees compared to Ethereum based DEX, namely Uniswap and faster settlement.
Developers can create their own derivates and markets to trade, which is already possible on several competing Decentralized Exchanges for markets.
INNOVATIVE
Important feature that improves trading experience compared to Ethereum based DEX is TEC (Trade Execution Coordinator) implementation, that should disable front-running users on their transactions, through verifiable delay function.
Front-running is fairly dengerous practice on Ethereum, where advanced users can front-run your transaction and make a profit from that.
MARKET
Regarding Tokenomics, INJ token shall have few functions on the network, namely Protocol Governance, Exchange Fee Value Capture, Collateral For The Derivatives, Exchange Participation Incentives, and Proof of Stake Security, whereas PoS protocol will enable staking, with yearly inflation for PoS set to be on 7%, with a goal to reach 2%, as could be seen from Token release schedule.
FUTURE DEVELOPMENT
Injective Exchange client shall be implemented on IPFS, although still in progress.
Plan for the future include tokenized stock offering on Injective with Tesla, AirBnB, Amazon and Google as first available stocks, to be announced.
Test-net is activated today, and could be accessed through https://testnet.injective.exchange/, but without much to do at the moment, and one can receive test-net token airdrop, as on the image below
Price already gone up at the moment, with market capitalization on total supply already above 300 million, and it is probably too late to jump in this train, but could have potential in case of a dip.
Do not take this as a financial advise, as this is review and not recommendation for the project.
Literature for further reading:
https://medium.com/coinmonks/injective-protocol-inj-the-next-generation-dex-5b81facd18d2
https://docs.injectiveprotocol.com
https://www.coindesk.com/decentralized-stock-trading-launches-on-defi-platform-injective-protocol
https://techcrunch.com/2020/12/03/as-crypto-comes-back-binance-backed-injective-protocol-launches-testnet-for-its-defi-trading-platform/
https://daomaker.com/socialmining/injective-protocol