Injective Protocol AMA at Shin Chan ICO/IEO community recap summary

On 14th Oct, we held a live AMA with Eric Chen the CEO of Injective Protocol.

The response is overwhelming and here’s the recap for those who miss it.

Intro

I’m Eric Chen, CEO and Co-founder of Injective Protocol. Prior to Injective, I was working at hedge funds and spent a lot of time in cryptographic research at a blockchain-focused fund. Most of my time was also spent on developing new types of trading strategies and researching blockchain protocols. Before that, I was also part of the NYU Blockchain Labs.

Injective Protocol is an end-to-end decentralized protocol allowing decentralized perpetual swaps, futures, and spot trading. It is the first layer-2 fully decentralized protocol that enables fast, secure, and most importantly, fully decentralized trading on top of Ethereum. We’re built on top of Cosmos and Ethereum and every component of our protocol is fully trustless, censorship-resistant, publicly verifiable, and front-running resistant.

AMA begins

Q1: How do you attract Content Creators or Users to develop on Injective Protocol? What moves has Injective Protocol made to encourage Content Creators to come?

Great question!
We reward relayers who originate orders into the shared order book. The node that first discovers an order will receive 40% of the exchange fee of each order discovered by them.
In a practical manner, influencers can work with nodes and create referral links to the platform. If a solid agreement is made between the two, influencers and content creators can earn 40% of the trading fee for each user they refer!

Q2: When will users stop being afraid to use DEX?
How will Injective want to be a leader in the mass distribution of DEX?

Given that Uniswap daily volume has surpassed Coinbase on a few occasions, I would like to think that the masses are waking up :). Now it’s just a slowly but surely process!

Q3: Why is Injective Protocol using Chainlink oracle data?

What is the role of on-chain and off-chain sources to help increase derivative offerings further?

We have an oracle interface contract that everyone can implement to fit the market creator’s needs. So any oracle can be supported! We’re working on out-of-the-box integration with chainlink and some other oracles (TBA ;) ) so that the market creators don’t have to spend a lot of time setting up the contracts

Q4: I am a professional hacker in the internet network. Projects around the world can still make mistakes, so what makes #Protocol sure it won’t be? #Protocol is there an exchange that pays rewards for 1 hacker? What is a safe mode for users?

we have a lot of bug bounties and auditing program in place before we release the main net. Generally, we try to make sure that the bounty hunters are well compensated :D

Q5: As the first incubated project by Binance Labs to debut its public sale via Binance Launchpad. How excited are you about this? Can you share the next step of your journey with us?

Absolutely excited! There used to be rumours that Binance Labs incubation does not mean listing, launchpad, or integration with the greater ecosystem. I’m glad to be the first project amongst our batch mates to disprove it :D. Moving forward, there are actually a lot of exciting things that we are working on with the Binance team. But I’m going to have to keep a secret for now. But a small tip, we have a portion of the token issued as BEP20 ;)

Q6: Liquidity mining, Yield farming has been a very popular concept and a strategy for DeFi projects to bootstrapping nowadays, does Injective Protocol has similar planning to incentivize protocol adoption?

Yes, we do! We don’t have a lending or AMM pool so we had to get creative.
We plan to distribute a fixed number of INJ tokens daily over a predetermined period of time. Each day, a snapshot of all account profit-and-loss in selected markets will be taken. An aggregate profit-and-loss for the address will be calculated and used as the weight for token distribution. In practice, an avid Injective participant with high notional profit will receive more INJ than another participant with lower notional profit, even if he or she has a higher profit-and-loss percentage.
Basically, if you’re a good market maker, you can practically earn unlimited APY with minimal capital needed/at risk!

Q7: Why does Injective protocol still use Ethereum blockchain while it has a slow speed and high gas fee? Do you have any plans to launch your mainnet or convert to other blockchains in the future?

Yep! We will do a token swap for mainnet. But even after the swap, we will support for ERC20 token via our peg zone

Q8: I am new and first time about Injective protocol, can you explain what kind of service that Injective protocol provides and other platforms don’t?

• fast secure and fully decentralized
• Zero gas fees when trading
• Create and trade on any derivative market using only a price feed, thereby opening up limitless opportunities for trading on markets not found on other exchanges
• Earn cross-chain yield generation for a multitude of assets via staking derivatives

Q9: At the moment, all tokens go down in price even with great partnerships, hype, marketing, and working products, etc. So, what the challenges do you have and the plan to make your project strong popular? Are you see it as an opportunity while the current market decline?

I see this as a perfect opportunity to build and grow the ecosystem :). Our friends over at band gave us a perfect case study on this. Their token price has been lacklustre during the bear market, but they never stopped growing the community and building! And now I think they might be one of the best performing Binance IEOs out there. I’m sure the long term holders of Band tokens are properly compensated, to say the least

Q10: Which infrastructures can you connect to via Inter-Blockchain Communication (IBC)?

Can the Injective protocol be seamlessly integrated into different infrastructures? For example KAVA?

IBC is not live yet so we have been building bridges on an al la carte basis. Our partner Kava is a great example of this!

Q11: In the bad situation of the Covid-19 epidemic, every industry was heavily affected. Does it affect the growth of your project team and its?

It made us stronger than ever! Since our team is semi-remote, to begin with, it allowed us to continue building and growing the team regardless of the macro environment. As a matter of fact, we are Pantera Capital’s first deal after Covid

Q12: Why do you think $INJ token is necessary for your project? What is the main role of $INJ in your project? What are the benefits of holding $INJ in the long-term?

Protocol Governance: The INJ token can be used to govern various components of Injective’s sidechain including the DeFi protocol, exchange parameters and protocol upgrades via a DAO structure.

Exchange Fee Value Capture: After the relayer reward distribution, the exchange fee will undergo an on-chain buy-back-and-burn event to accrue value for INJ.

Collateral Backing for DeFis: INJ will be utilized as an alternative to stablecoins as collateral for Injective’s DeFi markets. In some DeFi markets, INJ can also be used for collateral backing or insurance pool staking where stakers can earn interest on their locked tokens.

Exchange Participation Incentives: The foundation plans to incorporate a liquidity mining scheme and distribute a fixed number of INJ tokens daily weighted by the liquidity each network participant provides.

Tendermint-based Proof-of-Stake (PoS) Security: To ensure the security of Injective’s chain, Injective will incentivize nodes to stake INJ and participate in the sidechain’s network consensus with block rewards.

Needless to say, the deflationary nature of the token will surely be a strong incentive to hold and utilize.

-End-