Injective Protocol is a decentralized exchange (DEX) platform composed of multiple components designed to provide a transparent and efficient trading environment. This article will take an in-depth look at the core components of Injective Protocol and how they operate, and introduce the key role of the INJ token in it.
Injective Exchange
Injective Exchange is an order book model exchange based on the popular 0x protocol. All components of the exchange are open source, including the user interface, smart contract functionality and order management system, aiming to build a transparent and accessible platform. The existence of these open source components allows anyone to review and participate in the development of the platform.
To solve the problem of running the trade front, Injective Exchange implemented the Trade Execution Coordinator (TEC). TEC creates a delay to ensure that new orders cannot be placed before old ones, preventing some market makers or bots from using advanced information to trade unfairly.
Injective API
The main purpose of the Injective API node is to act as the data layer of the protocol and provide transaction relay services. Each Injective API node indexes data from the Injective blockchain in real time and provides high-performance, low-latency APIs that are compatible with a variety of use cases, including exchange user interfaces, programmatic trading, and high-frequency market making.
In addition, Injective API nodes can also choose to provide transaction relay services, allowing applications to send zero-Gas fee transactions through Injective's fee delegation mechanism.
Injective Chain: Injective Chain is a decentralized trading protocol based on Cosmos that allows the transmission and trading of Ethereum tokens. The chain is designed to address the scaling and throughput limitations encountered by many layer 1 blockchains, while still allowing developers to use the Ethereum development suite they are familiar with.
Traders can access multiple modules in Injective Chain DEX:
Auction: Allows token holders to bid on a basket of tokens accumulated from exchange transaction fees. INJ tokens paid by the highest bidder will be destroyed by the protocol or eliminated from circulation.
Exchanges: Help traders create and trade new spot and derivatives markets. Order book management, trade execution, order matching and settlement are all managed programmatically on-chain.
Insurance: Provides support to underwriters supporting exchange-managed derivatives markets.
Oracle: Gets real-world price data (such as traditional stock market data) to set asset prices on the INJ exchange.
Peggy: Connects Injective Protocol to the Ethereum blockchain, allowing ERC-20 token holders to convert their tokens into Cosmos native tokens.
Injective Bridge
Injective Bridge provides decentralized cross-chain bridging infrastructure with Ethereum and any blockchain that supports IBC. Injective's Ethereum Bridge is secured by the Injective chain's validators and powered by Injective's custom Page Bridge system. In addition to supporting standard ERC-20 transmission, Injective also supports the transmission of arbitrary data, enabling novel cross-chain execution and smart contract interoperability capabilities with Ethereum.
As an IBC-enabled blockchain, Injective supports cross-chain bridging with any other IBC-enabled blockchain, allowing developers and users to access assets from hundreds of other blockchains.
Injective Hub
Injective Hub is a dashboard that provides users with the overview and functionality they need to get the most out of Injective Protocol. Users can stake their INJ on Injective Hub to become a network validator responsible for maintaining the security of the proof-of-stake blockchain. INJ holders can also choose to delegate their tokens to network validators and receive a percentage of the rewards in return.
The Injective Hub is also a place where community members can submit and vote on proposals that will shape the future of Injective. Examples of proposals to be voted on include new trading pairs, platform features, and governance programs.
The role of INJ token: The INJ token plays multiple roles in Injective Protocol. First, INJ tokens are used to pay transaction fees and participate in auction events. Second, INJ token holders can stake their tokens, become a network validator or delegate their tokens to other validators, thereby earning rewards. In addition, INJ tokens are used for governance, allowing holders to vote on the future development of the platform.
Summarize
Injective Protocol provides an efficient, transparent and decentralized trading environment through its multiple components. The INJ token plays a key role in this, providing users with multiple ways to participate and profit. As Injective Protocol continues to develop, the application scenarios and value of INJ tokens will continue to increase.
By deeply understanding the operating mechanism of Injective Protocol and the role of INJ tokens, users can better participate in this decentralized exchange ecosystem and gain more benefits and opportunities from it.