Injective Protocol — Whale Army AMA session
Injective is the first layer-2 DEX that unlocks the full potential of decentralized derivatives and borderless DeFi.
You can find more info by the links:
https://injectiveprotocol.com/
https://research.binance.com/en/projects/injective-protocol
https://coinmarketcap.com/currencies/injective-protocol/
Guest of the AMA session:
Eric Chen, CEO & Co-Founder of Injective Protocol
Q
Regarding this press release “ The Financial Crimes Enforcement Network Proposes Rule Aimed at Closing Anti-Money Laundering Regulatory Gaps for Certain Convertible Virtual Currency and Digital Asset Transactions “
Do you see a switch regarding CEX’s to slow down and DEX’s to become the engine of crypto space?
Eric Chen
Actually I saw the draft a while ago but I didn’t have enough legal background to make any comments. But it seems like the community don’t believe that this is going to pass, or at least this version.
Q
Is there any min cap for staking??
Eric Chen
Joining a staking pool has no minimum. But becoming a validator does. The purpose of the incentivized staking is to test whether the min stake requirement for validator is good enough to incentivize communities to participate. It’s no easy feat and we’ve been doing analysis on current holding to see what’s the sweet spot 🙂
Q
Hey Eric, lets first tell you that you and your team doing great work with this amazing project, Congratulations 👏 I’m assumed how hard is for you to work so hard for the success, thank you for your patience, for that you delivery to us great features and amazing project.
In the past months you work really a lot and fast, we saw that Testnet was delivered early, can we expect the same with other planned features, for example mainnet/staking if everything going well?
Eric Chen
Yes 🙂 The hint is in the testnet name
We haven’t exactly been sleeping haha
Q
Will Injective support stop-limit features?
Eric Chen
This is something that we’ve been working on, for a decentralized orderbook it’s a lot more tricky to implement than CEXs. Right now we’re more focusing on further optimizing the matching process with a TEC model to increase efficiency by an order of magnitude. We used to go with the traditional 0x order matching model, which means that take orders have to submit a lot of make orders and make optimistic assumptions on successful fill.
Q
When the mainnet starts in Q2 2021 that will very likely increase the marketcap and INJ price, with a supply of aproximately 30 million by that time according to the roadmap. After that there will be a big gradual increase in supply up to 100 million tokens by 2023. Do you expect a substantial decrease in the INJ price after mainnet because of that increase in supply? If you don´t, how will you prevent that decrease in price? How much could the supply decrease with the buyback and burn?
Eric Chen
I can’t comment on the token price but I can comment on the token economics.
1. Most INJ will be staked as the inflation rate for INJ is the highest during the first year. I believe that most people will want to capture this in a deflationary economic structure.
2. So far Injective has the highest buy-back-and-burn ratio compared to other exchange models (60% of exchange fees). 40% isn’t wasted but is instead contributed to the growth of the exchange via node rewards (almost like referral bonus). So I believe that this will create a lot of incentive to further grow the Injective ecosystem 🙂
Q
earlier this year FCA announced to ban the sale of crypto derivatives in uk for retailers from Jan 2021, since crypto derivates have caught the eye of authorities, how does injective plan to break the ice with law makers and regulators
Eric Chen
Really interesting question! And really wish I could answer it on the record haha.
Injective is fully decentralized 😉
Q
First off, thanks for taking the time to join us. What are your plans to market/drive awareness and adoption of the exchange once mainnet launches? Will Binance contribute to marketing as a stakeholder?
Eric Chen
Short answer is yes but we can’t reveal it until the plan is final.
Q
What is the meaning behind the name Injective? Will you add privacy features on your dex? If so how will the approach be? How can your dex be hack proof. What kind of tech will be applied?
Eric Chen
Injective is always focused on the sole purpose of building the best ecosystem for decentralized derivatives trading. Prior to Injective I’ve done research on privacy perserving computation and needless to say it’s quite complicated for derivatives trading. But it is something I’m passionate about and we’ve teamed up with some researchers to look into it long term.
The name Injective came from the math function. It’s a function that has no collision, much like our exchange
Q
How injective advance to other? What are the hidden key?
Eric Chen
Developers will find out during our third phase of testnet when we open source everything. The vertical stack of Injective is really expansive and we could be a standalone L2 solution with everything that we built haha.
1. We tinkered with the consensus to make it more friendly for orderbooks.
2. We refactored a lot of components of Ethermint to make it more prod ready. Also fixed some of their bugs along the way 😂. We also tinkered with the EVM itself to resolve the TEC issue so users don’t have to sign a transaction twice like Will Warren described in his frontrunning medium piece.
3. The ETH pegzone we built is a unique one that ties to the validator’s responsibility with all slashing in place. But Injective chain’s consensus does not rely on Ethereum!
4. The orderbook module is off evm and highly optimized at this point. It can support much higher throughput than EVM transactions with much more efficient matching. All while being fully decentralized.
5. Oh and our smart contracts are more complex than almost all defi projects. But it’s a low bar to compare haha
Q
What MC do you realistically aim for on INJ. Any airdrops planned for holders like XRP did?
Eric Chen
We do have liquidity mining. But this is a mechanism design that we researched carefully to ensure that it’s net positive to the token economics. It’s an intricate balance between liquidity mining and buyback and burn
Q
What was your biggest learning from the testnet launch
Eric Chen
Thegraph sucks😂.
In all seriousness, the testnet launch made us focus on node infra to make sure that anyone running a node can handle the load we encountered during testnet launch.
Q
Hi sir , you really have an inspiring story!!!
What would you like to suggest us
How to meet both crypto and blockchain interests along side what we do in our professional life
Eric Chen
Why not both? haha
In the previous fund I worked at, I pushed the team to engage in more crypto activity in both trading and investing. I think we can all make an impact to crypto adoption no matter where we are in our professional life.
Eric Chen
We already have gold as an experiment, worked out really well!
Eric Chen
There’s an oracle solution that we’ve been working with for a while on real world price feeds
We’re not going to make any public announcement on who it is until the market utilizing that oracle is launched. But fun fact, this oracle solution is the first to deploy smart contracts on Injective Chain outside of our team!
Thank you Eric and the Injective team for all their hard work and thank you Eric for joining us today. It has been an absolute pleasure.
Let’s all make INJ great and so many things to look forward too. I am excited by this project and as you have seen from our videos we are extremely bullish on price.
Good luck for the rest of the year and beyond. I know you guys have been working non-stop and we all appreciate the efforts.
Have a happy Christmas and New year — Eric and the team and all guys here. Make sure you get some rest then for sure.
Thank you guys for participating in the questions. We will announce winners shortly.
Thanks again and stay safe!
This is an edited version of AMA session — full version you can find by this link:
https://t.me/whalearmy/49311
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