Our team is hard at work to create a truly decentralized derivatives exchange. As we look to launch our testnet soon, we wanted to take some time to give the community an inside look into how they can participate in the Injective Ecosystem.
Whether you’re a trader, staker, or developer, there are various ways through which you can engage with Injective.
Traders on Injective are the ones who will drive the core value proposition for the greater ecosystem. That being said, we have segmented the general notion of a trader into multiple types and sub-groups.
By liquidating a position, the liquidator can earn half of the liquidation proceeds. The other half will be contributed towards an insurance pool. This is a strong incentive for market makers and liquidators to take over the position and market make for it to maximize extractable value while minimizing chances of clawback.
Most traders are drawn to derivatives markets due to their flexible leveraged exposure and diversified offering. Making the right bet on leverage will mean an outsized return that one would not have been able to acquire via traditional markets.
A properly hedged market maker can compete for liquidity while remaining risk-neutral. With the integration of liquidity mining and rebates, market makers can earn outsized returns compared to other exchanges.
Oftentimes there are limited avenues for an investor or protocol participant to gain short exposure on newly launched tokens. Our robust derivatives protocol allows anyone to create a market and hedge their positions. For example, an investor in a newly launched token can hedge their locked tokens by taking on the short side of a perpetual or quarterly future.
Beyond interfacing with Injective as a trader, there are many more ways to participate in the ecosystem. All ecosystem participants will directly benefit from the growth of Injective.
Here is a short breakdown of some of the ways in which our users can take part in the ecosystem.
Validators serve as the backbone of the Injective Ecosystem, powering everything from the back end. It is crucial that the incentives of these participants are properly aligned.
In order to become a validator, you need to accumulate enough delegated stake and meet the hardware requirements. As a validator, you will earn a sizable yield from block rewards while providing security to the exchange.
Staking Pool Participants
If you don’t have enough delegated stakes or the infrastructure to become a validator, you can simply delegate your tokens and join a staking pool. Most staking pools will allow you to earn the same yield as a validator. Given the deflationary nature of INJ, this will be the only outlet for someone to earn a yield on the token.
Act as a witness for non-core bridges
Our peg zone to Ethereum is secured by the validators themselves. However, you can also act as a witness for POA bridges to other chains. We have many bridges being built with top-tier layer-1 blockchains, so stay tuned!
Running full nodes
You don’t have to be a validator to run a node. By contributing and sourcing liquidity to the decentralized orderbook, you can earn a hefty percentage of the trading fees you bring to the ecosystem! Interestingly enough, you can also work with influencers and create referral links. This way, both you and the influencer can earn a percentage of the trading fees you bring to the exchange.
As a developer, you can contribute to the growth of Injective by building!
Here’s a glimpse into you can build with Injective.
Build specialized exchanges
You can use our open-source front-end client as a reference and build your own specialized exchange. If you host your own node for the client, you can also earn a percentage of all the trading fees that you bring.
Launch new markets
Injective Futures is highly parameterizable and allows anyone to create a derivatives market with simply a price feed. You can also specify a fee parameter to earn a small percentage from settlement.
Build out Injective ecosystem on the EVM
Injective chain has EVM integrated natively and allows any type of arbitrary smart contract to be deployed on top of Injective. For a solidity developer, the possibilities are limitless!