Injective Protocol

Injective Protocol is a sidechain built on the Cosmos SDK that is EVM compliant and will in the allow interaction with Ethereum through the Peg Zone, thereby creating the ability to move liquidity in the Injective Protocol <> Ethereum. At its core, Injective is not 100% Layer 2, as the security guarantees by the validators of their network.

The Injective DEX Protocol is a set of smart contracts written in Solidity, which are a fork of 0x V3 contracts for matching the spot and derivatives markets. The coordinators of all transactions (a matching mechanism) are the Injective Protocol stackers. Also, to protect traders from the potential of front-running, which currently poses a threat to the security of Ethereum, VDF (Verifiable Delay function) is used. As we know, part of the matching logic happens off-chain (as in 0x), so the Injective orderbook and matching can be called partially decentralized and does not require trust.

Injective DEX is an implementation of perpetual swaps with an order-book model. Funding mechanism and assets collateralization allow creating any financial contracts. An essential part of the functioning of any decentralized derivatives exchange is the correct pricing and funding rate, which in turn affect the safety and reliability of the trading. For example, derivatives exchanges on Ethereum 1.0 have several problems due to scalability limitations. But since Injective is a separate sidechain, this problem is less relevant.Blockchains on Tendermint can provide speeds of up to 1000 transactions per second. These solutions can be Band, Chainlink and DIA.

Injective Protocol is a blockchain built with the Cosmos SDK.