We are thrilled to announce the commencement of the first phase of the Injective mainnet launch.
The piece here will outline all of the details associated with our mainnet release and its three phases.
After nearly three years of hard work, our team is ready to begin deploying the initial phase of the Injective mainnet.
Over the course of this time, we created the first entirely decentralized exchange protocol to support both derivatives creation and trading. Along the way, we have also achieved a number of major milestones that have helped catapult Injective to the forefront of the burgeoning decentralized finance paradigm.
Towards the end of last year, we showcased the public version of our Solstice testnet which allowed users trade on our protocol for the first time. The Solstice testnet was met with tremendous demand with thousands of new users onboarding on a daily basis and daily trading volume regularly eclipsing $500 Million.
During this time we also revamped our protocol a number of times in order to further improve performance and enhance the user experience. New markets were added over time such as synthetic gold, Tesla stock futures, GameStop stock futures, Forex futures, and yield farming derivatives. Both the release and the listing of these assets were covered by the likes of TechCrunch, CoinDesk, and CoinTelegraph.
Earlier this year, we released Equinox Staking which allowed real life INJ holders to stake on our incentivized testnet as well as actively participate in governance. We rapidly saw an uptick in Equinox Staking with over $50M staked by the INJ community. During this period, many global leading institutional staking providers also joined as validators and gained critical operational knowhow on securing the consensus of the Injective Chain.
The testnet phases thus far have given us invaluable feedback and preparation for a successful mainnet launch. Moving forward, we will launch our mainnet in three discrete phases as depicted in the illustration below.
Phase One: Peggy Bridge and Initial Deployment
Phase one of the Injective mainnet will begin with the release of the native Injective Peggy bridge which is a decentralized, highly gas-efficient bidirectional bridge for transferring ERC-20 tokens from Ethereum to the Injective Chain.
The initial transfer process itself is quite simple and will consist of depositing INJ into the Peggy bridge contract on Ethereum.
In addition to the Peggy bridge, Phase One will include the initial protocol governance setup so that our community can help set the initial genesis state parameters such as which markets will be first deployed, validator rewards, exchange fees, etc. By doing this we can help to ensure that our protocol is community governed from day one.
Phase Two: Canary Chain and Exchange Launch
Before delving into the specifics of the canary chain, it is important that we explain the common phrase “canary in a coal mine”. The expression refers to birds called canaries that coal miners in the past brought into mine tunnels with them. If dangerous gases such as carbon monoxide were present in the mine, the gases would kill the canaries first before killing the miners, thus warning them to exit the tunnel immediately.
The story illustrated above is perhaps a dark analogy but in many ways is apt for the crypto ecosystem as it stands today. We have seen a number of major protocols suffer from malicious attacks from bad actors. In order to prevent any such case with Injective, we will launch our mainnet with a canary chain approach.
While we have strong confidence in our ability to operate a secure and robust chain, we can never be too sure. We are working with multiple auditors in the background as well to ensure the security of our protocol.
The canary chain will allow users to begin trading with real funds. In addition, everyone will now have the ability to bridge over any ERC-20 token onto the Injective Chain.
On a frontend level, we will be implementing restrictions such as trading cap limits in order to mitigate against any potential threats. We will also be rolling out features such as new markets step by step in order to ensure that all components of the chain are stable.
In the unfortunate scenario that the security of the canary chain is ever compromised, we can always deploy a new canary chain. In fact, by design we have created the canary chain to serve this very purpose so that any losses due to outside attacks or threats are minimized as much as possible. Any instability of the canary chain will allow us to simply hit “restart” and launch a new canary chain with the added fixes.
Phase Three: Canonical Chain Release
After a canary chain runs stably for a few weeks, we will make that canary chain canonical. The canonical chain will function exactly the same way as the canary chain but without any form of limitation.
The canonical chain will include unrestricted trading for a plethora of new markets with full-fledged governance capability held entirely by the community. It will mark the official start of a truly free and decentralized financial system.
Since day one, it has been our mission to create a more free and inclusive financial system through decentralization. With our mainnet launch, we will take our first step towards empowering individuals with novel, transformative abilities to express themselves freely.
We are incredibly excited for the journey ahead and look forward to together building a new financial paradigm that is more free and more decentralized.
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 Mark Cuban, Pantera Capital, and the leading cryptocurrency exchange, Binance.