Injective is integrating with Avalanche to create a diverse array of interoperable derivative products.
Injective will integrate with the newly released Avalanche-Ethereum Bridge (AEB) to create a two-way transfer zone between the Injective Chain and Avalanche.
With this integration, Injective will launch derivatives that utilize the native Avalanche token (AVAX) as well as other native Avalanche assets. Injective will also explore the addition of entirely new derivative products, such as products related to Initial Litigation Offerings (ILOs), that can greatly aid in expanding the reach of DeFi and derivatives globally.
Avalanche is an open-source platform for launching decentralized applications and enterprise blockchain deployments in one interoperable, highly scalable ecosystem. Avalanche can process 4,500+ transactions/second while retaining instant finality.
Avalanche was co-founded by Emin Gün Sirer who is a veteran computer scientist researching Bitcoin scalability and other innovative decentralized networks. Avalanche consensus allows transaction volumes significantly higher than other decentralized networks and is even competitive with traditional, centralized financial infrastructures.
The Injective family holds a close relationship with the Ava Labs team building Avalanche and recently hosted a live panel featuring Sirer. Behind the scenes, both teams collaborated over the past few months to find the most seamless fit for how Injective and Avalanche can work with one another. In the end, a perfect path towards creating new, interoperable derivative products was found.
Injective’s Integration with Avalanche
Last week, relayers launched a long-anticipated bridge connecting Avalanche and Ethereum. Soon after the release, millions of dollars in assets had flown across AEB.
The Injective Chain was built using the Cosmos SDK and is fully interoperable with the EVM. Contributors have built a novel version of Ethermint which allows assets from Ethereum to easily transfer into Injective. Over the past few months, they have also started to delve deeper into integrating a number of other layer one blockchains such as Polkadot and Binance Smart Chain (BSC).
The vision of the community has always been to create a fully decentralized cross-chain derivatives exchange that is able to work across all blockchains. This has become an increasingly important need within the crypto ecosystem after seeing firsthand the congestion, high gas fees, and slow transaction times offered by Ethereum. Avalanche aims to solve many of these salient issues at the protocol level and has seen increasing levels of developer activity since the launch of its mainnet in September of 2020.
However, most DEXs today only work with Ethereum so assets built on chains such as Avalanche would previously have been inaccessible by the broader crypto ecosystem. This leads to an unfortunate scenario in which the adoption and growth of the crypto ecosystem are both greatly hampered due to the lack of interoperability.
This integration with Avalanche will involve two discrete phases. During the first phase, Injective will be integrating AEB which will allow for Avalanche-based assets as well as the native Avalanche token (AVAX) to be brought over to Injective. This will help enable the creation of a robust transfer zone, whereby traders can seamlessly navigate across the Injective Chain and Avalanche.
The second phase will involve the creation of entirely new interoperable derivative products. The second phase will also include the creation of derivatives that utilize the AVAX token itself, such as new indices that track a basket of popular digital assets.
Moreover, new products built on Avalanche will be utilized, such as Initial Litigation Offerings (ILOs) to provide new derivative products to traders on Injective. ILOs for instance hold tremendous potential as it is currently a $10 Billion asset class out of reach for most retail investors.
A New Age of Interoperability
Injective shares the Avalanche vision of bringing forth a new era of decentralization that democratizes access to financial services. The interoperability frameworks underpinning Avalanche and Injective are a testament to that fact as both communities seek to bridge together the disconnected ecosystems that currently exist within crypto.
Injective’s integration with Avalanche is meant to help unlock a new age of interoperability that will fundamentally shift the trajectory of DeFi towards a much more equitable future.
Avalanche is an open-source platform for launching decentralized applications and enterprise blockchain deployments in one interoperable, highly scalable ecosystem. Avalanche is able to processes 4,500+ transactions/second and instantly confirm transactions. Ethereum developers can quickly build on Avalanche as Solidity works out-of-the-box.
Injective is the first cross-chain protocol built for decentralized finance applications. On the Injective exchange, anyone can access, create, and trade unlimited DeFi markets such as futures and perpetuals. Developers can also build cross-chain Ethereum-compatible projects that are lightning fast and achieve instant transaction finality. Injective is backed by a prominent group of stakeholders including Binance, Pantera Capital and Mark Cuban.