Can Injective (INJ) make Money from Decentralized Finance?

Injective (INJ)?is yet another protocol trying to make money from decentralized finance (defi). Predictably, many people will be skeptical of Injective because of the ongoing FTX debacle.

?

FTX’s collapse is generating enormous publicity?because?of Superbowl?ads and founder Sam Bankman-Fried’s political donations. Consequently, many people?wonder how stable defi protocols like Injective are.

?

Injective?is?an Inter‐Blockchain Communication protocol (IBC) built?for defi.?To?elaborate, they call an IBC an end-to-end, connection oriented protocol.?They build IBCs on?the Cosmos blockchain. Yet they?claim?Injective is Ethereum compatible?because the Injective Chain Ethereum Virtual Machine (EVM) operates?Injective.?To explain, an EVM is the digital computer that runs an?Ethereum blockchain. They?plan to implement the Injective EVM as a?custom?Cosmos software development kit?(SDK) module.?

?

A Fully Decentralized Finance Solution?

?

They built the Injective Protocol to?create?a fully decentralized exchange and finance solution. To explain,?the Injective team thinks most defi?protocols are not truly decentralized?because they?operate?the central limit overbooks and require Know Your Customer (KYC) protocols.

?

Instead, they built Injective as a fully decentralized finance solution. They?achieve full decentralization by?offering?out-of-the box interoperable orderbook primitives?that?create mainstream decentralized?apps?(DApps).

?

Injective?also offers cross-chain interoperability. They claim Injective offers frictionless communication between?blockchains.?A Tendermint-based proof-of-stake (POS), consensus?offers secure transactions with instant?finality.

?

A flexible?environment powered by?the?Rust?and Go?programming?languages offers an intuitive developer?experience. Horizontal?scalability enables lightning fast transactions across?parallel?chains and dynamic scalibility. They claim developers can swiftly modify any?parameter on the Injective Ecosystem.

?

Finally, they claim Injective offers vastly?lower fees for financial products because it?passes Ethereum gas fees onto developers. For?example, relayers pay gas fees on Injective Pro trades.?This includes claims, delegation, auctions, underwriting, and other costs.

?

Injective Trading and?Staking

?

Financial institutions?can?use Injective by using Injective’s application?programming?interface (API). A financial?institution can use the?API?to use a Dedicated Market Maker (DMM) Program.?A?DMM?gives institutions negative maker fees and monetary benefits.

?

Injective is?a decentralized autonomous organization (DAO) run by stakers.?Anybody?who stakes the Injective Token?(INJ) can receive?rewards and help run Injective. Interestingly, INJ is not an ERC-20?(Ethereum Request for Comment) token.?Instead, it’s a native token built with Cosmos.

?

The Injective Ecosystem?supports many DApps including Avalanche,?Aexlar,?Binance, Aurora,?Audit.one,?Alpha?Finance Lab, AllianceBlock, API3,?Acala, Axie?Infinity,?the Band Protocol, BAYC,?the Big?Data?Protocol, Binance?Chain, Bitpie, Burnt?Finance, Tokyocrypto, TomoChain, UniLend, Woo, Uniswap,?Sushi Swap, StafFi, Terra, Tether (USDT), Polkadot, Tidal, Polygon, SafePal,?and many more.

?

What Value Does Injective?(INJ) Offer?

Mr.?Market has some interest in?Injective (INJ). For?example, Injective was CoinMarketCap’s 16th?most trending cryptocurrency on 14 November 2022.

?

Conversely, Injective was CoinMarketCap’s 151st?ranked cryptocurrency with a $1.74?Coin Price on 16?November 2022. CoinMarketCap gave Injective a $126.874?million Market Capitalization, a $173.962?million Fully Diluted Market?Cap, and?a $13.486?million 24-Hour Market Volume?on 16?November 2022.

?

Plus, CoinMarketCap gave Injective a $13.360?million Centralized Exchange (CEX) Volume and a $196,363.03?Decentralized?Exchange Volume on 16November 2022. They base numbers on a Circulating Supply of?73.006?million INJ, and a Total?Supply of 100 million INJ.

?

In comparison,?CoinGecko named?Injective (INJ)?its 182nd?ranked cryptocurrency with a $1.74?Coin Price, a $135.806?million Market Cap, a $174.098 million Fully Diluted Valuation, a $10.376 million 24Hour Trading Volume, and a Total Locked Value of $9.629?million?on 16 November 2022. They base those?numbers on a Circulating Supply of 78.006 million INJ and a?Total Supply?of 100 million INJ.

?

If you are seeking a?FTX alternative, Injective is worth examining.?This protocol is offering financial solutions?and working?with some of the biggest names in DeFi.?However, it?is unclear if anybody?is making any money on Injective.