With over $50M raised, the next bull run will be huge for the Injective Ecosystem.

In this article, I will be sharing a detailed review about Injective protocol and it's ecosystem

Understanding Injective Protocol (INJ)

Injective is a fast, interoperable Layer - 1 blockchain founded by Eric Chen and Albert Chon in 2018 for building decentralized finance Applications.

Injective Protocol enables developers from Ethereum, Solana, and Cosmos to collaboratively build seamlessly, offering unique primitives like high-performance on-chain capabilities.

From its inception It has supported 325 Million + on chain transaction with an average transaction cost of <$0.01 and blocktime of 0.8S with a TPS of 25k

Injective Protocol and Labs is backed by key partners like Binance, Pantera,Mark Cuban & jump.

So far the blockchain has raised a total of $57.1Million for its ecosystem

Key Innovations:

• Enabling cross-chain support for Ethereum, Solana, Cosmos, and Moonbeam through IBC protocol and bridges.

• Enhancing user experience with seamless cross-chain trading capabilities.

• Mitigating frontrunning issues in DEXes through the use of frequent batch auctions (FBA).

• Ensuring protocol governance and fostering a fair trading environment for all users.

Injective utilizes the IBC protocol to facilitate direct asset exchange between independent blockchains, promoting cross-chain interaction and instant transaction finality. This commitment to interoperability and cutting-edge technology positions Injective at the forefront of the DeFi revolution.

INJ Token: Functions and Use Cases

The versatile INJ token is integral to the INJ ecosystem, serving essential roles in staking, governance, and deflationary mechanisms.

Staking and Network Security

In Injective, users earn passive INJ rewards by staking for transaction validation. INJ, serving as collateral, boosts network security. Validators and delegators benefit from staking rewards, engage in governance, enhance network security, and may experience reputation and growth.

Governance and DAO

INJ token holders engage in the Injective DAO, voting on submissions and proposing governance changes. By staking tokens, they enhance network security as validators or delegators and earn rewards in insurance pools.

Deflationary Mechanism

Injective employs a unique deflationary mechanism, auctioning 60% of protocol fees weekly and burning the winning bid's INJ tokens. This reduces excess tokens, potentially increasing the value of Injective per token over time, distinguishing it with a deflationary nature.

Injective's Technological Infrastructure

Injective's robust technological framework, incorporating a consensus mechanism, smart contracts, and a cross-chain bridge, forms the foundation for its functionality and expansion. This synergy ensures a seamless and secure user experience, underpinned by Injective's resilient infrastructure.

Consensus Mechanism

Injective uses a Tendermint-based consensus mechanism with Proof of Stake (PoS) to boost security. This ensures consistent transaction recording, prevents double-spending attacks, and safeguards against malicious activities. The PoS algorithm, randomly selecting nodes, ensures instant transaction finality for a reliable and secure user experience.

Smart Contracts and CosmWasm

The INJ Protocol incorporates CosmWasm smart contracts for cross-chain functions and automated execution. Using the secure CosmWasm platform in Rust, developers deploy smart contracts on the Injective chain, enhancing the DEX with programmable features. This integration improves convenience for developers and users, strengthens cross-chain capabilities, and provides a robust toolset for innovative DeFi applications.

INJ Market Performance, TVL, and Tokenomics

Current Price: $17.68

MarketCap: $1.335B

Total Supply: 100M

Circulating Supply: 83.76M

ATH: $25.3

Total Value Locked (TVL): $10.02M

24h Volume: $4m

Token Distribution and Supply

The Injective Ecosystem

The INJ ecosystem fosters innovation and expansion in the DeFi space by backing cross-chain trading, lending protocols, and developer tools. It serves as a robust platform for developers to create imaginative DeFi solutions and for users to avail themselves of diverse financial services, contributing to the overall growth and success of Injective.

Recent Developments

Injective on 8th October, 2023, announced the launch of 4 DApps in its ecosystem

Gryphon - Liquid Staking, Leverage and Lending protocol

Aeroscraper - Decentralised lending and borrowing platform

Ninji wallet - Crypto Wallet for Injective Ecosystem

Nextbit network - a betfi platform

Top DApps/ Projects

• HelixApp: https://helixapp.com

An advanced decentralized crypto exchange with zero gas fees, facilitating the trading of crypto assets and derivatives.

• Talis: https://injective.talis.art

Pioneering the Native NFT marketplace on Injective.

• BlackPanther: https://blackpanther.fi

An innovative protocol for asset management, aiming for superior returns on users' assets.

• MitoFinance: https://mito.fi

A groundbreaking protocol reshaping automated trading, launchpads, and yield generation.

• iLendorg: https://i-lend.org

The first native Money market protocol on Injective, enabling users to earn interest, borrow assets, and build applications.

• NeptuneFinance: https://neptunefinancial.ie

Optimize DeFi savings with Neptune—lend tokens, earn interest, and use collateral for borrowing.

• Hydro: https://hydroprotocol.finance

The first and only Native Liquid Staking Derivatives (LSD) on the Injective Network.

• frontrunner:

https://frontrunner.app.link/download

Engage in a number-based fantasy game and win real prizes.

• Dagora: https://dagora.xyz

Easily discover, collect, and trade NFTs with Dagora.

Others are Astroport and White Whale Dex (both dex), Eris protocol (liquid staking platform), Levana perps (derivatives trading platform) and more.

How to bridge to Injective

Injective, a blockchain designed specifically for financial applications, excels in seamless cross-chain transactions with various popular blockchains. The Injective Bridge supports connections with Wormhole, Peggy for ERC20 tokens, IBC for Cosmos chains, and Axelar for cross-chain communications.

The Injective Bridge facilitates asset transfers between Injective and blockchains such as Ethereum, Solana, Cosmos Hub, Osmosis, Evmos, Axelar, Moonbeam, Persistence, Secret Network, Stride, Crescent, and Sommelier.

Injective Wormhole Bridge

The Injective Wormhole Bridge allows you to bridge tokens across different chains. Instead of swapping or converting assets directly, Wormhole locks your source assets in a smart contract and mints new Wormhole-wrapped assets on Injective.

All source chains have the same steps to bridge (transfer and redeem), but the experience and the time it takes to confirm transactions can differ based on the source chain.

For example, Ethereum to Injective will be slower than Solana to Injective and will show a different UX to guide you through the process.

Step by Step Procedure

i. Access the Injective Hub through the link - https://hub.injective.network/ and select "Bridge" located in the top-left corner.

ii. Select "Connect" and choose "Metamask" from the available options.

iii. Choose the network under "From." For this example, we'll pick Ethereum. You have the flexibility to select any of the EVM chains listed below.

iv. Paste your Wallet Injective chain address (e.g., Leap Wallet) into the "To" field below. Please refrain from using the address automatically generated after connecting to the Metamask wallet, as it is derived from your Metamask seed phrase.

v. Choose the asset and input the desired amount you wish to bridge to the Injective Network.

vi. Select the "Set Allowance" button..

vii. Input the custom spending cap. Enter an amount slightly higher than the funds you intend to bridge to account for fee deductions..

viii. Click the "Confirm" button and authorize the transaction from your Ethereum Wallet (Metamask in this case).

ix. Transaction completed

Thoughts: Do you think the Injective ecosystem might change the narrative of the defi industry? Let's hear your thoughts

Sources:

https://injective.com/ecosystem/

https://twitter.com/InjectiveNow/status/1723053052947480826?t=e-Yoa9z8sytLsffweNZDVQ&s=19

https://images.app.goo.gl/XU86qww5RRbdh8nG6

https://images.app.goo.gl/ngN6XLwcfaHoEcRp6