Injective Protocol AMA Recap
CryptoDiffer team
Hello, everyone!😁
We are glad to meet here
Eric Chen (CEO and Co-founder of Injective Protocol)
CEO and Co-founder of Injective Protocol, Eric Chen
Hey Everyone!!
CryptoDiffer team
Let`s start from introduction:
Q1.Can you introduce yourself to our community?
CEO and Co-founder of Injective Protocol, Eric Chen
Hey Everyone! I’m Eric Chen, CEO and Co-founder of Injective Protocol. Prior to Injective, I was working at hedge funds and spent a lot of time in cryptographic research at a blockchain-focused fund. Most of my time was also spent on developing new types of trading strategies and researching blockchain protocols. Before that I was also part of the NYU Blockchain Labs.
CryptoDiffer team
Q2: Can you briefly tell us what is Injective Protocol in 3-5 sentences?
CEO and Co-founder of Injective Protocol, Eric Chen
Injective Protocol is the first layer-2 decentralized exchange protocol that unlocks the full potential of DeFi. It enables fully decentralized trading without any restrictions, allowing individuals to trade on any market of their choosing such as with crypto, synthetics, and NFTs. Injective allows various forms of decentralized trading such as futures, perpetuals, spots, etc. We have built every component of our protocol to be fully trustless, censorship-resistant, publicly verifiable, and front-running resistant.
CryptoDiffer team
Q3: Let`s now talk about the milestones you have achieved and about your upcoming plans?
CEO and Co-founder of Injective Protocol, Eric Chen
We launched the initial version of the Injective testnet back in 2019. After seeing impressive development in layer-2, we decided to skip our v1 and work on our planned v2 for mainnet. For this version, we moved from an on-chain settlement model to a full layer-2 model and completed it by the end of 2019. After that, we focused on developing our derivatives protocol and developed intricate incentives to bring them all together, making it what Injective is today! We have been internally testing our testnet since June and adding cool features to make sure our public testnet is as robust as possible. We plan to release the testnet later this year and the mainnet soon after.
Here is a short graphic showing our upcoming plans:
CryptoDiffer team
Q4: How is Injective Protocol different from the other DeFi projects?
CEO and Co-founder of Injective Protocol, Eric Chen
Injective allows any individual to create and trade arbitrary DeFi instruments with just a price feed. Users are empowered to create their own markets within Injective Protocol. Our DEX is based on the Cosmos-SDK and Ethereum network that integrates a verifiable delay function (VDF) to prevent transaction fraud and front-running. We use a Tendermint-based Proof-of-Stake (PoS) to facilitate cross chain DeFi trading across Cosmos, Ethereum, and many other layer-1 protocols.
Our protocol features zero gas fees when trading, the ability to earn cross-chain yield generation for a multitude of assets, and the opportunity to create and trade on any market using only a price feed. In addition, we are the first DEX to introduce on-chain referral via which any user can earn 40% of exchange trading fees as a reward for referring their friends.
Injective is fully open and permissionless, allowing you to freely trade, and even create new markets on the Injective Protocol exchange. Injective Protocol is the first universal DeFi protocol for cross-chain DeFi trading across a plethora of financial products.
CryptoDiffer team
Q5: How do you plan to grow in the exchange space?
CEO and Co-founder of Injective Protocol, Eric Chen
Well, we have the most popular exchange Binance globally backing us. We are the first project to be incubated by Binance Labs to debut on Launchpad. Binance has supported us since 2018 and is our biggest investor. They want us to be the best derivatives DEX, or dare I say it, the “Binance” of derivatives DEX. We plan on leveraging the Binance ecosystem to reach new user bases over time.
We also outperform every other derivatives DEX in the market today. We are faster, have zero gas fees, enable anyone to create any market on our platform and have cross-chain trading capabilities. We retain the robust infrastructure of a fully functional DEX while having a user-friendly frontend such as Binance or a centralized exchange would have.
Many DEXs today claim to be decentralized but are actually centralized in most aspects besides custody. From restricting access to certain user demographics, retaining proprietary control over exchange infrastructure, every central limit orderbook DEX that we have seen has centralized components that allow traders to be subject to the will of a some omnipotent authority. This is the fundamental problem that Injective solves.
CryptoDiffer team
Q6: How will Injective exchange solve the liquidity and speed problems many DEXes face?
CEO and Co-founder of Injective Protocol, Eric Chen
Injective has a strong incentive system for liquidity introduction like make order rebate, referral fee rebate, and market maker incentives. From day 1, we have multiple market making partners and investors who will be helping us provide institutional grade liquidity. Beyond the make order rebates, we also have a huge relayer incentive where people can host nodes and earn 40% of the exchange fees they route. In addition, individuals can refer other users to our DEX which would make them eligible to earn 40% of trading fees (we are the first ever DEX to have on-chain referral like this).
In terms of speed, we scale Ethereum transactions on our own chain to ensure that users can enjoy fast block-time and more importantly finality brought by Tendermint consensus. So, the overall user experience for an average trader will feel just as nice as a centralized exchange, but there is no server whatsoever!
CryptoDiffer team
Awesome, a lot of updates to come out!
Thank you for great answers!
I think it is time to start community questions round!
Cryptodiffer Community
Injective protocol claims to be the first fully Decentralized Exchange, so what features does Injective Protocol have that others DEX like Uniswap, BinanceDEX and TomoDEX don’t? Why can’t those competitors be considered fully decentralized?
CEO and Co-founder of Injective Protocol, Eric Chen
Tomodex and Uniswap are both fully decentralized with Tomodex arguably being a masternode network. Binance DEX’s validators are fixed so the consensus is arguably more centralized. We’re very special in that we’re one of the first to integrate derivatives while being Eth-native.
Cryptodiffer Community
Your platform claims to be “Zero Gas Fees”. In this case, who pays the bill in Injective? where are the costs of the platform concentrated?
CEO and Co-founder of Injective Protocol, Eric Chen
Instead of gas fees, we have exchange fees which are a fixed rate. Validators are also properly incentivized from block reward 🙂
Cryptodiffer Community
Truly, you’ve done AMA in many telegram groups, so what next, what other way will you make your project more popular?
CEO and Co-founder of Injective Protocol, Eric Chen
We have a lot of upcoming marketing events ready to be announced 😉 Stay tuned. But to give you a small glimpse, there are many ways such as trading competition, incentivized staking, and more to earn INJ token before mainnet launches.
Cryptodiffer Community
How do you think of other layer-2 dexs such as loopring? How will traders want to circumvent the Loopring and use Injective Protocol because they have the same infrastructure for avoiding trade collisions as well? What do you have a plan to grow rapidly in terms of users, global market and partners?
CEO and Co-founder of Injective Protocol, Eric Chen
We’re not centralized and our focus is derivatives, which loopring cannot do 🙂
Cryptodiffer Community
When will users stop being afraid to use DEX?
How will Injective want to be a leader in the mass distribution of DEX?
CEO and Co-founder of Injective Protocol, Eric Chen
The goal at Injective is to create the most user friendly interface where the trader will feel like they are trading on a centralized exchange! When in reality the entire backend is fully decentralized. We will also be a leader in DEX liquidity with all of partners and backers which includes the biggest market makers and exchanges in the world.
Cryptodiffer Community
Can anonymous transactions be performed on the Injective network to hide transaction details in order to protect the confidential information of owners and tokens?
CEO and Co-founder of Injective Protocol, Eric Chen
This is something we’re actually researching into and will be part of our roadmap! We’re actually partnering with findora to work on this exact problem 🙂
Findora partners with Injective Protocol
Cryptodiffer Community
What is the main motivation for developers to create unique derivatives markets? Is there a program to support Injective protocol developers?
CEO and Co-founder of Injective Protocol, Eric Chen
Not only do we have ecosystem fund supporting these developers, creators of unique derivatives markets can earn a small percentage of fees from the volume of those markets!
Cryptodiffer TEAM
Awesome!
Thank you. Appreciate your time, great answers.
Thank you everyone who took part today.
