What is the Injective Protocol?
The Injective Protocol is the name of the Binance Labs backed project which aims to create fast, secure and fully decentralized trading. The project will implement the first front-running resistant, layer-2 exchange protocol, with the ultimate goal to unlocks the full potential of border-less finance by supporting margin trading, derivatives, and futures.
What means "backed by Binance Labs"?
Binance Labs is the name of the venture arm of Binance, established to incubate, invest, develop and empower block-chain and cryptocurrency entrepreneurs and communities. The mission of Binance Labs is to support industry projects that help grow the larger block-chain ecosystem, realizing the full potential of block-chain technology and its social impact, while increasing cryptocurrency adoption globally. Being backed by Binance Labs means that the project was analyzed by experts and has a high rate of success. The Injective Protocol obtained the support by providing revolutionary ideas for the decentralized exchange (DEX), which will help the growth of the block-chain ecosystem and will simplify the transactions.
In the Injective Protocol whitepaper is stated that the DEX's order-books should have high amounts of liquidity in order to match the user experience of centralized exchanges. To solve the issue, DEX's coordinated, worked together and created shared liquidity pools, using liquidity aggregation, which by nature, is a centralized process. The Injective Protocol will not use liquidity aggregation, therefore will not act dishonestly, remaining decentralized end-to-end.
The Injective Protocol will be introduced and used to resolve front-running, collisions and cyber-attacks. The novel on-chain settlement logic scheme will enable sharing of liquidity in fully decentralized and trust-less way by establishing a fair sequence of income orders. The protocol is solving the issues by using publicly verifiable proof-of-elapsed-time construction, doubled by verifiable delay functions. The measures will protect the assets and the sharing of liquidity from side-chain attacks, even when malicious traders will flood the network with false encrypted orders or random cipher-texts (Sybil Attacks).
Key features and benefits for the ecosystem
- Unlike many other decentralized exchanges, the Injective Protocol is 100% decentralized. It takes back control of funds and trade through peer-to-peer client. The orders are posted and matched in real time, on the side-chain. The Injective Protocol is decentralized end-to-end, from order discovery to settlement.
- Cryptographically secure by using Verifiable Delay Functions (VDFs) and selective delay. The Injective Protocol blends edge cryptography and decentralized finance, to achieve trading experience with ultimate security, being the only DEX that secures all trades against any attack using both VDFs and selective delays. The clients are protected by the network from hacks, trade manipulations, exit scams, and front-running.
- Modern and mature platform. The world of margin trading or tokens and derivatives is fully opened to users through the modern interface. The full potential is unlocked by the decentralized lending platform, which allows Injective traders to access assets with leverage. The platform will support ETH, TrueUSD, Injective, DAI, MKR, Elrodn Gold and many more.
Elrond + Injective Partnership
Injective Protocol and Elrond will work in partnership to create new derivative markets for Elrond Gold (EGLD). The partnership will open Elrond to new markets while giving Injective's users the opportunity to trade Elrond Gold, creating the first derivatives exchange to adopt Elrond derivatives. The Injective DEX will add Elrond Gold (EGLD) as a wrapped token, and Elronds Network technical capabilities will be integrated into the Injective development. The interoperability between the two projects will provide access to a secure derivatives platform and will improve Injective speed by sharing the innovative smart contract capabilities.
Meet the team
The Injective Protocol Team gained respect and trust because of the high profile members. Eric Chen, protocol researcher at Innovating Capital, is the CEO. He is assisted by Albert Chon, consultant at OpenZeppelin and softwere engineer at Amazon. The engineering team is leaded by Max Kupriianov and Bojan Angjelkoski is the frontend engineer. Ivan Paskov, with MIT Mathematics PhD, and Vighnesh Iyer, with Berkeley PhD, are leading the Research.
Every year, many platforms and exchanges are taken down by hackers, many clients are losing their investments, and all involved in the crypto-market are affected. If the Injective Protocol will make the DEX more secure, the direct result will be an increased trust in cryptocurrencies, which will lead to a global acceptance for crypto-coins and transactions. The collaboration with Elrond is just a step towards global implementation, and definetly more partnerships will be forged by the end of 2020. Injective and Elrond will work towards their common vision, the lightning quick and unbreakable DeFi trading platform.
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