Perpetuals are now live on the Injective Canary Chain! Users can start trading decentralized perpetuals with zero gas fees, lightning fast transaction times, and instant finality.
The trading infrastructure of Injective is supported entirely by a decentralized limit order book that integrates the user-friendly interface and speed of centralized exchanges with the transparency of decentralized exchanges. As an added benefit, Injective is compatible with Ethereum native tooling so wallets such as MetaMask can be seamlessly used with the Injective Chain. Lastly, Injective has a unique Ethereum scaling solution that is custom made for derivatives trading while retaining robust interoperability across sovereign blockchains.
Background: Solstice Testnet, Surging Usage, and Mainstream Media Coverage
Derivatives were first available on the Injective Solstice Testnet through a golden ticket early access period towards the end of 2020.
The Injective exchange saw a surge in usage and community members from around the world rushed to gain access. In only a few short weeks, the network crossed over $1B in volume and facilitated millions of trades for perpetuals and futures. A number of structured products were also released for testing such as decentralized stock futures for Tesla and synthetics such as gold.
A number of new improvements have helped to significantly upgrade the trading experience for users while further decentralizing the protocol itself. This includes the introduction of the Frequent Batch Auction (FBA) which helps to sustain rapid transaction times while tightening spreads with higher liquidity closer to the market price. The FBA model is both technically sophisticated and readies Injective to offer an experience that removes any type of front-running which is a major issue for other decentralized exchanges today.
The Injective community and validators have taken an active role in creating new markets on the mainnet Canary Chain and approved the launch of the perpetual markets as well. The Injective DAO now helps govern Injective Protocol in an entirely decentralized manner.
Perpetuals on the Canary Chain
Earlier this week Injective Proposal #56 to enable derivatives trading on the Injective exchange went live. The proposal was passed with a landslide governance vote where over 8.3 million locked INJ ($100M+ at time of writing) were used to vote “Yes”.
Perpetuals on the Canary Chain bring a number of upgraded benefits for users which include the following:
Unlimited Market Creation
Users can use the Injective Hub to propose a plethora of new markets. This can include not only perpetuals but also spots and expiry futures. The entire process is decentralized and governed by the larger Injective community. To ensure that the process is fair, since the launch of spot markets, the Injective Labs team has been, and will continue to abstain from voting and give the community full authority over which markets are listed on the Injective Protocol network.
Community Owned and Fully Decentralized
Injective has built the first fully decentralized orderbook-based derivatives exchange protocol in which all transaction occur on-chain. By doing so, Injective is able to be entirely community governed from day one. Any parameter of the protocol such as which price oracle to use, market listings, and much more are all determined by the community.
Injective was built with Ethereum compatibility in mind so that users can have access to he same tooling and products used by the vast majority of DeFi users today. Users can access the Injective Chain and all of its fine tuned trading benefits with Ethereum-native wallets such as MetaMask. Anyone can move into the Injective Chain and broader Injective ecosystem while being able to access Ethereum-native assets and tools. As a result, Ethereum users will not even feel as if they haven’t even left the Ethereum network and are gaining all the benefits of Injective such as zero gas fees.
Lightning Fast Speeds
Injective’s scaling solution allows the protocol to process thousands of transactions per second with instant finality. The unique infrastructure built by the Injective community also enables fast withdrawals, providing everyone with additional flexibility when switching in and out of trades.
Cross-Chain Transactions and IBC
The Peggy bridge facilitates seamless transactions across Ethereum and the Injective Chain. IBC compatibility will be enabled after it is put to a governance vote which would allow Injective users to interact with other Cosmos based chains within the Injective ecosystem such as Band Protocol and Terra.
Zero Gas Fees
Users can carry out transactions with zero gas fees. Injective is able to avoid both the congestion and high gas fees when trading. As EVM compatibility goes live, a wide array of Ethereum native applications can interact with Injective and scale transactions without being stopped by gas fees.
Next Steps: Canonical Chain and Trading without Limits
Over the coming weeks new perpetuals and futures will likely be added by the Injective community. Proposals will also be submitted to gradually ease the current Canary Chain trading limits as the platform is tested in a more robust manner.
As always, the feedback from the community is invaluable as Injective enters a new phase in its journey. Everyone is welcome to join the Injective Discord server where they can directly chat with community members worldwide and help shape the future of the protocol.