Injective Rating Report

5 min readNov 16, 2020

TokenInsight has recently published the rating report for Injective，which has received a exchange rating of B with a outlook Positive.

1. PROJECT INTRODUCTION

Injective Protocol is committed to creating a fully decentralized Layer-2 trading platform that can process cross-chain assets, with a particular focus on derivatives trading. Injective uses the 0x orderbook model, and utilizes the Injective Trade Execution Coordinator (TEC) to gather and maintain a unifed orderbook.

Many projects use the 0x protocol to develop DEXes, and the relayer of a single order to collect and match orders. Unlike those projects, Injective’s TECs maintain an orderbook together. In addition, the Injective TEC applies Verifable Delay Functions (VDFs) to help prevent front-running of any order collected by a coordinator.

1.1 Components

Injective Protocol consists of three parts:

① Injective Chain: A layer-2 sidechain of Ethereum built using Cosmos-SDK. As the main chain of Injective, Injective Chain is a zone of Ethereum’s sidechain and Cosmos, which can interact with other assets on Cosmos in the future. Injective Chain will theoretically have a comprehensive and unifed orderbook, which will be jointly maintained by different TECs. At the same time, Injective Chain utilizes Tendermint consensus to increase the transaction processing speeds and to rapidly update the orderbook;

② Injective Exchange: An exchange based on Injective Chain;

③ Injective Futures: Decentralized derivatives trading agreement, allowing users to create various derivatives trading markets on their own in the future, and supporting fnancial derivatives for functions such as arbitrage, hedging, and leveraged contracts.

1.2 Project Development Stage

Injective is now preparing the frst version of the test network, which will be released in Q4 of 2020. According to Injective’s offcial introduction, Injective will support spots and derivatives such as futures contracts. However, apart from the general types, there is not much offcial information about the details of derivatives and spot exchange products.

Regarding the details of transaction rules and fees, the offcial only disclosed some relevant information available as of now. Regarding transaction fees, Injective Exchange will charge 0.1% for Markers and 0.2% for Takers with potentially. To stimulate transactions, Makers and Takers will receive a certain amount of INJ as a reward.

Rewards are both calculated and sent on-chain. The transaction fees collected in the network will be returned to the ecosystem participants in two parts, one is to the participants who provide relay/routing services in the network; the other part will be repurchased for INJ, and the repurchased INJ will be permanently burned.

2. TEAM ANALYSIS

The current team size of the Injective Protocol project is 15 people, of which 8 are technical personnel, accounting for 53%, a relatively high proportion; the remaining team focuses on business and marketing. The team structure is reasonable. The overall team is relatively young. The technical team members have about 2 to 12 years of work experience, and most of them have experience in blockchain-related technical work. The management team has a relatively short formal working life, while the technical product managers have relatively rich management experience. The background of the founders is as follows:

3. ECOSYSTEM ANALYSIS

3.1 Application

The project has not yet been offcially launched. There are plans for spot and various contract transactions in the future, and users are allowed to independently create derivatives trading markets.

3.2 Token Economy

The total amount of INJ is 100 million. At the IEO sale stage, the total circulation should be 15,222,222, accounting for 15.22% of the total supply. The circulation part is composed of two aspects. The frst aspect is the sale of Binance Launchpad, which is 9% of the total. The other 6.22% is part of community growth.

According to the design of Injective Protocol, the application scenarios of INJ Tokens include:

① Market Making Incentives

② Order Relay/Routing Rewards

③ Exchange Fee Repurchase INJ

④ Sidechain Governance (listing of trading assets, modifcation of some parameters in the network)

⑤ PoS, Staking

⑥ As Margin Trading Derivatives

⑦ Liquidity Mining

3.3 Community Analysis

The Injective Protocol project party has relatively stable updates on its Medium platform and social media, releasing information on project progress and project dynamics. As of November 15, 2020, the Injective Protocol’s offcial Twitter account has 28,625 followers and 152 posts[3]. There are 2 offcial Injective Telegram communities[4][5] with 14,022 people in the main channel. There are also three unoffcial groups, including for Indonesia[6], South Korea[7], and Vietnam[8] group with a total of 6,084 group members. The Weibo account[9] has 535 followers and 64 posts. According to the project team, there are about 2,500 members in the Chinese WeChat group. There is still room for improvement in the overall number of community followers and community activity.

Source：

[1] https://www.linkedin.com/in/ericchenmelt/

[2] https://www.linkedin.com/in/albertchon/

[3] https://twitter.com/InjectiveLabs

[4] https://t.me/joininjective

[5] https://t.me/injectiveann

[6] https://t.me/JoinInjectiveID

[7] https://t.me/Injective_Korea

[8] https://t.me/injectiveprotocolvietnam

[9] https://weibo.com/7452104340/profle? rightmod=1&wvr=6&mod=personnumber&is_all=1

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