Injective Protocol - What DeFi Should've Been (Bonus: Major News In Coming Days)

By Cryptocomrade | Comrade Reviews | 15 Jun 2021

Injective Protocol: True Spirit of Decentralised Finance

Uniswap, Pancakeswap, Sushiswap and a hundred of other swaps that are basically forks of each other deal solely with cryptocurrencies. This isn't at all a negative, however "Be Your Own Bank" was a dream much grander than that. The crypto-space has simply lost the plot, as it seems nowadays the entire purpose of DeFi is to yield farm, swap coins at high gas fees, or purchase microcap shitcoins unavailable at centralised exchanges.

Enter Injective Protocol, with its native coin - INJ, 146th by marketcap as of writing this post. It's still in development and thus you have a chance to acquaint yourself with the project before it has the chance to conquer new all-time highs. Aside from the usual DEX functions that the reader is most likely aware of, INJ introduces entire dimensions of new utilities. Let's have a closer look at what makes the project stand out!

Way Beyond Trading Crypto

The largest market today is not crypto, it is the FX - after all, the whole world is still dependent on that dirty fiat. To exchange from one fiat currency to another one must be continuously humiliated by banks and the fees they wish to set. Injective Protocol is set to revolutionize the foreign exchange market, allowing one to trade one currency for another without hidden fees, artificial exchange rates, or tight regulatory oversight. But Injective is not limited to FX, as the team works on allowing derivative trading in general (stocks, bonds, crypto, commodities like oil, etc), all in permissionless fashion. Theoretically, anyone can create a marketplace for anything. Now THAT is Decentralised Finance!

ZERO Transaction Fees

Yes, you heard that right. Transaction fees are zero. Contrast it to any other DEX you know and perhaps this should be sufficient to display just how promising the project is. Does that mean that apart from governance INJ will not have any use-cases? Not really, there are still transaction fees - 0.1% Maker and 0.2% Taker fees. Liquidity providers will be rewarded with a part of the fees, the rest being burned, thus keeping the incentives in place. Note however that this doesn't mean INJ is strictly deflationary (at least right now).

Fully Decentralised 

"Decentralised" is a label thrown around for almost every coin out there, no matter how centralised it is. Shameless behaviour. Fret not though, Injective Protocol is completely permissionless, requires no KYC, with INJ coins to be used for governance (voting on proposals, etc) and thus project's future will be entirely controlled by the community. There is however a wallet that holds 70%+ of all tokens, but it was explained that this wallet is a token distributor as per the vesting schedule to investors, team, community, et cetera.

There's more to the story, for instance how Injective seems to have all the advantages of a CEX while retaining its decentralised nature, which deserves an entire review of its own. 

Layer 2 and Interoperability

Injective Protocol is a Layer 2 DEX with high interoperability with other chains, meaning it is not anchored to a particular ecosystem and its token, thus offering flexibility to its users. Since it is Layer 2, Injective will not suffer from the drawbacks of e.g. Ethereum's scalability issues, maintaining its speed and security. Over time, Injective Protocol has amassed a large number of partners in the space to further improve Interoperability.

The Big News 

This month Injective Protocol is planned to launch on mainnet - a highly anticipated event that is rumoured to lead to a price hike as Injective Protocol solidifies itself as a project that's here to stay. Whether it does affect the price or not remains to be seen, however the general sentiment of the community, traders and tech-enthusiasts alike, is that of overwhelming excitement. 

*If you're curious about INJ Tokenomics or a more detailed overview of certain aspects, do say so in the comments! 

*P.S. This is not financial advice, do your own research. The author does not hold meaningful amounts of INJ, nor it is his intention to "hype up" any coin, nor was he paid or otherwise incentivised to write this article. On this channel you'll find projects the author considers underrated and worthy of awareness. Stick around!

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Friendly neighbourhood comrade who looks forward to the decentralised future (and will tell you about it in the meantime). Contact: [email protected]

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