DeFi is a short form of “decentralized finance,” an umbrella term for a variety of financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries. DeFi is recognizably different because it expands the use of blockchain from simple value transfer to more complex financial use cases.
Injective Protocol is a decentralized derivatives project that offers fast transaction speeds, deep liquidity, and front-running protection. The project is a part of growing DeFi ecosystem that is being built outside of Ethereum.
Unlike many of the DEXs previously covered, Injective’s architecture isn’t an automated market maker (AMM)that is it is not operated by largely automatic equipment. Instead, it leverages a key feature from 0x protocol and is order book-based.
Why Injective Protocol is better in comparison with other Defi projects and DEX
Injective protocol offers security that will make users feel safe. The network is protected from hacking and manipulation of trade and exit scams. With a truly decentralized platform, users really have full control over their funds and can trade p2p in full. Sidechain in real-time will show orders made by traders.
Recently, Injective Protocol launched the very first synthetic commodity market and the addition of gold on the Solstice testnet. Users can now trade gold perpetual markets with up to 20x leverage.
Injective protocol is fully decentralized. With an ecosystem like this, it strongly supports derivatives trading, which is not fully supported by CEX because it requires strict rules and restrictions. Other Injective advantages are: you have the opportunity to get trade-mining prizes, insurance funds, censorship resistance, and revenue sharing. Injective Protocol allows users to trade in the derivatives market freely. This is a large market that has not yet been exploited and has a great opportunity to serve unmet needs even by CEX.
Injective Protocol has established a truly decentralized ecosystem so that users do not need to do KYC. Related to market taker and market maker fees will be announced soon by the Dev team. Injective Protocol is a layer-2 scale, this allows users to make deposits/withdrawals for trading as often as possible. In addition, you can enjoy order cancellations for free and almost instantly using the decentralized Injective trade execution coordinator. Another advantage is The 1-round settlement model, in general, is about how Injective Protocol can complete order transactions in 1 block using VDF (Verifiable Delay Function).
Injective Protocol is taking different key portions of crypto technologies to recreate a better DEX experience.
Injective protocol has several advantages as DEX compared to CEX and other DEX. With a truly decentralized platform, privacy, identity and funds are entirely in the hands of users. Many profitable offers, including the derivative market and cross-chain trading.
The mission of Injective Protocol is to create more free and inclusive financial system through decentralization.
By providing the unrestricted and unprecedented ability to express diverse views in the decentralized financial markets, Injective Protocol is striving to empower individuals with the ability to more efficiently allocate capital in the society.
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