We are excited to introduce the first ever decentralized synthetic stock future lending products alongside our latest partner EasyFi. Now, users of Injective can take part in innovative lending and yield farming opportunities with the use of exclusive Injective synthetics such as the first ever decentralized Tesla stock futures. So, not only will you be able to purchase stock futures on Injective but you can also lend it out in order to earn an additional yield and thus accelerate your earning potential further.
Lending has quickly become one of the hottest trends within DeFi with more than $10B locked across platforms such as Compound and Aave. EasyFi is a DeFi lending protocol that enables undercollateralized lending, using Ethereum’s Plasma network to improve user experience. EasyFi is Ethereum compatible and blockchain agnostic, allowing cross-chain asset settlements. The project already works with some of our close partners such as Polygon and Binance Smart Chain (BSC).
The Injective ecosystem enables limitless access to DeFi markets. All of this is made possible by our robust and highly parameterizable protocol on which users can deploy novel applications. We became the first protocol to introduce synthetic stock futures for assets such as Tesla, Amazon, Twitter, and GameStop.
Our collaboration with EasyFi further expands the opportunities for users to access new markets that are currently not available anywhere else whether that be traditional or decentralized finance.
The First Ever Synthetic Stock Futures Lending
Until now, lending within the crypto sector has largely been focused on native crypto asset lending such as for Bitcoin and Ethereum. The idea behind synthetic stock futures lending can completely reshape the traditional mold of DeFi and introduce novel products altogether.
Traditional stocks represent a multi-trillion dollar industry but derivatives represent a multi quadrillion dollar industry. With Injective, traders can now have exposure to synthetic stock futures derivatives that gives them more access to this immensely valuable sector that has been out of reach for the rest of the DeFi world. For example, let’s say you purchase $100 of Tesla stock futures. Instead of just idly holding that asset, you can lend it out via a platform such as EasyFi in order to accelerate your returns and earn a yield on your holdings.
EasyFi will be adding new markets to their lending module with Injective’s tokenized derivatives acting as collateral markets. Users who hold these derivative tokens of stocks futures can add liquidity to the supply side of EasyFi’s lending protocol and borrow assets on the borrow side.
The specific collateralization ratios for each tokenized stock future will be determined based on its specific risk profile. For instance a tech stock future with a higher beta will have a higher collateral ratio versus a utility company stock future which would likely have a lower beta. This is because a tech company is likely more volatile and risky compared to a more stable utility company stock.
Note: The term beta in the world of finance is a measure of the volatility — or systemic risk— of a security or portfolio compared to the market as a whole.
We are excited to bring forth a new era in DeFi as a whole. Up until now, yield farming was largely restricted to more experienced crypto enthusiasts and normally included a number of issues that inhibited overall growth. In addition, only native crypto assets could normally be used in lending products. All of this changes with the introduction of our brand new synthetic stock futures lending products.
Injective aims to entirely democratize the financial sector. We believe that synthetic stock futures lending introduces an entirely new paradigm, whereby users can take part in new forms of yield farming and lending that are not possible on any other platform outside of Injective.
Easyfi is a layer 2 lending protocol built for defi focused on scalability, composability, and adoption. It has been designed as an open and inclusive financial network infrastructure to run on public networks to facilitate end-to-end lending & borrowing of digital assets and related financial products. Easyfi is being built upon the ethos of permission-less networks & automation of smart contracts.
About Injective Protocol
Injective Protocol is the first layer-2 decentralized exchange protocol that unlocks the full potential of decentralized derivatives and borderless DeFi. Injective Protocol enables fully decentralized trading without any restrictions, allowing individuals to trade on any derivative market of their choosing. Injective Protocol is backed by a prominent group of stakeholders including Pantera Capital, one of the most renowned venture capital firms in the world, and the leading cryptocurrency exchange, Binance.