Injective Labs: Building the Future of Finance

Recorded: June 7, 2023 Duration: 0:34:39

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Can you feel it?
I want you to put your hands up.
We've been on a town searching for love
And never know where it's coming from And as soon as we get it somehow We speak the things that I work for And I love the same thing It took to get that love All the things that you have to do
Keep it. You gotta stay on your tail, oh thing. You gotta give a little take on that. Get it all you've got. Keep it all you've got. Keep it all you've got. Keep it all you've got. Keep it all you've got. Keep it all you've got. Keep it all you've got. Keep it all you've got. Keep it all you've got. Keep it all you've got. Keep it all you#
You gotta get it all you've got You gotta get it all you've got Get it all you've got Get it all you've got Get it all you've got Get it all you've got Get it all you've got Get it all you've got Get it all you've got Get it all you've got Get it all you've got Get it all you've got Get it all you've got Get it all you've got Get it all you've got Get it#
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Right we got to keep that fire burning. Thank you volume and greetings everyone welcome I hope you guys are down
It's midweek. This is the most awesome day of the week Wednesday June 7th and markets have recovered Everybody's back to their bags. It's a good day to be in crypto because it's the day after The day after and of course what better day
What better thing to do on the day after than to talk about the future because the future is amazing and today I want to welcome everybody to volumes weekly Twitter spaces and our awesome guests today are Injective labs and today we're going to be talking about building the future
a finance on Injective. So I just want to welcome everybody. I want to welcome the Injective Community. Welcome Erica. Are you here? Hey guys, how's it going? Rocketing, rolling, grooving and cruising. Amen. How are you doing? Good. How's everything? Yeah, it is great. It's been a busy week, huh?
I mean, which week is in Disney, right? It's right. Eric, thanks so much for dropping in. And we want to also welcome the volume community. We want to welcome all the folks from as well, the Paloma community.
This is a cosmos chain, love and love fest. And of course, we are super glad everyone to be here. And for folks who don't know, I mean, everybody knows who's been injected, but we're going to jump into injected, but just to give a brief overview, we are volume and our goal volume is really
about private key security and private key management. Our goals are about how to get more about your private key across multiple blockchains. And that's why we work in the Cosmos space. I'm seeking to continue unlock the promise of the interchange. And of course, what we want to do is make your private keys
do more stuff and of course your private keys need to be on injective because there is a lot of action there and a lot of opportunity and the goal of this this towarder spaces is to talk about it bring it to life from multiple communities, phoploma as well as for volume so that again
we start targeting injectives blockchain for development. So let's jump in my guest today, Eric. Eric, it is a pleasure to connect again. I think the last time we bumped into each other was at consensus a year or two ago and you guys were working the floors doing a
amazing work. Again, congrats on all of the successful wins so far. Injective has been non-stop, releasing, shipping, and building up news. Welcome. Please give us an intro and tell us about Injective.
Yeah, I'm really glad to be here. We've just been pretty busy recently, pushing out a company, things, and there's a lot of really exciting things that we can't wait to announce and show it to the public very soon as well.
In short, Injective is the blockchain bill for finance. It's a no open, interoperable, leo-worn blockchain, powering next generation, DeFi applications and general financial applications. Some of them includes decentralized cloud inter-rovings of six changes, prediction markets, lending protocols, and much, much more. Injective is truly special because it has
a lot of these powerful and self-evolving core financial and infrastructure primitives that applications can leverage, plug and play. Some of these include fully decentralized, NED resistant, launching a water book that's also gas-free user experience on application level, all forms of financial markets such as SPOT,
perps, futures and options or fully on chain. Whoa, whoa, whoa, oh my god. All right, hold on a second. Jesus, give me a break. I just want to let me catch my breath here. First of all, like you said something there that I want to go back a little bit and you'll hit me, cut you off when you when you drop some good alpha like that. I think injective was the first cosmos chain with an#
an order book or a decentralized order book. Am I right to think that? I mean, you guys have been doing this for some time. This is not new hash for you. You guys are like pretty much experts in this space. Yeah, yeah. Sorry, I didn't catch a very, very last sentence. That you guys are the experts.
like again, just by the depth of expertise you have, the injective order books on maybe the most advanced in the cosmos. Yeah, we're definitely first and certainly, you know, I think not just for cosmos, but for like any type of environment, it's definitely one of the most advanced because inherently, first of all, it's
is a MeV resistant because it utilizes frequent batch auction matching. What's that? Yeah, hold on, hold on. What's frequent batch? That's a big word there. Help us out. What's that? That's pretty cool. So basically frequent batch auction is a way to
match orders, that's different from a continuous double auction. Continuous double auction is like the typical order book that you see on Binance, et cetera, where it's first comes to serve. And obviously it comes with a whole host of issues when you're doing that within a blockchain environment. And even in a centralized environment, there's
HFT firms that people always complain about are far-running orders, etc. Whereas for blockchain, that's even worse because you get sandwiched attack and you have issues. And this is really resolved for like a pool model such as a unistwap, etc. Because people oftentimes get also sandwiched attacked.
For any type of like large size trace but for frequent batch options This is not the case because that's just all the orders together. So there's no you know ordering There's no you know priority in you know whatever order that comes in during that block and it basically ensures that you know all the Matching process is done in a very fair
and one bonus is that it's done in a very scalable way. So effectively speaking, this allows, first of all, you know, blockchain to scale into, you know, 25,000 plus, you know, trades, and also, more importantly, it also allows for it can really fair and
kind of like responsive or like environment where users don't have to complain. It's like, oh, like, you know, my order is supposed to match whether it didn't happen or, you know, why am I getting sandwich attacked or, you know, why is my fill? Yeah, like it basically makes front running completely impossible.
Sorry, whoops, did I drop out? Yeah, sorry about that. I think that was my time. Okay, so just a quick question. So this is a different philosophy from folks saying, hey, you know, let MEV thrive but then give something back to the users. You're saying, you know, with frequent batch auction, the users don't ever have to worry
about MEP? Is that a correct way to think about how you guys have approached this problem? Yeah, because the root cause of these issues, like users are suffering from all the sandwich types and stuff like that. And they're being effective in an asymmetrical way. So unless you manage
which completely fairly and accurately pinpoint all the users affected and pinpoint the specific value that they lost and to compensate them in the most accurate possible way. It's sure as hell is a lot easier to just completely remove a MEV on the exchange layer.
Wow, that's huge. All right. So that is massive. Essentially, let's not just end the discussion, I'm not a habit, and essentially make it easy for users to trade. So let's talk a little now about then injected on the developer's narrative.
So I'm a developer. I want to build. I I I'm attracted to this idea that you know, hey, users can now trade they can trade fast they can trade with out sandwich attacks You know frequent batch auctions are have been worked out. It's excellent. It's working. How do I as a developer now build on injected?
to take advantage of these features? >> Yeah, I mean, the great part about these kind of infrastructural primitives is that it's unimpedenuated and it's quite in play, right? And exchange modules is just one of them. It has this arching-ordinal layer, it has this MEV-resistant matching. It also has perpetual spot, futures, options, et cetera.
Right. But there's also a lot of other infrastructural primitives, right? There's also the Oracle module, there's also the binary options module, there's also the chain native Peggy Bridge, which allows for very, very seamless, up to five minute transfer between
objective in Ethereum and the ability of all assets very natively. That's awesome. And there's also other modules that are being developed right now, which one of them that's relatively more new, which is what the developers are extremely excited about, is the cause of was in
module which is kind of that's the one I want to talk about I want to talk about that one right so you know what gets me going okay yeah tell us about cosmos and module on injective when when hotness when awesome yeah so so so cosmos and this kind of like this smart contract later that's you know
or widely adopted by chains, it might be a shadow of this path, but the tarry ecosystem and also a lot of the other hospital space ecosystems. But on top of that, we also implemented a very cool feature, which is the auto executing smart contracts, which allows
Spark Contracts to be executed at the beginning of every single block. And what this means is that it allows for smart contracts to kind of negate the need for a crank. So generally, you know, the way smart contract works is that you can use a creator transaction to update the state of smart contract. And oftentimes that
is fairly annoying and difficult and there are design barriers that make some more difficult for specifically DeFi applications to be viable. For example, it's a lot easier to automatically liquidate a running position, so it's a lot easier to automatically update
like the prices and leverage etc. And for injectives case one of the most important applications is obviously the on-chain liquidity provisioning and also the on-chain strategy component that these smart contracts are leveraging the auto executing feature. So what will slow them?
So let's talk about auto executing. So what changes did you guys make into the interactive layers on the protocol to make auto execution safe and something that developers can depend on? Tell us a little bit more about how it all comes together, how it works. >> Yeah, it's simply, you know, kind of like this.
This is this module level feature where at the beginning of every single block these smart contracts the set of smart contracts are called to be able to perform their necessary updates, etc. And that kind of allows for or supports an auto XZN feature and you know, thank you.
It's obviously dependent on the adaptive development of the self, the build like a secure application. And thanks to Cosmolism and the space environment, it's a lot harder to exploit compared to solidity because everything is very much strongly defined and parameterized.
This is like a very, very important feature for developers to build groundbreaking applications that are impossible on other chains. And I think on top of that, it also allows them to build safer from a financial perspective application because they know that the price fees or whatever tools that they're using is always going to be reflecting the latest state.
Got it. So here's a question. Given where, so where are you now in the Cosmossum module deployment on Injective? Is it, is it something developers can access now and and and can developers, you know, developers have to go through governance in order to deploy their Cosmossum contracts on Injective?
Or is it, hey, you know what, like Tara come deploy run and go? Yeah, so currently, you know, it's a governance gated because you know, what a core feature for interactive is, you know, tapping into the modules exclusively. So it's meant to be, you know, like a sector specific on the D5 verticals.
So, you know, governance wants obviously and the stakeholders in community obviously wants the applications suite and most important to gas economy to be centered around financial applications. But it doesn't mean that there's no permissionals, environments, etc.
time there can be like a permissionless cosmocontrary environment in like a chouching or you know via rollerbladers like the very exciting like cascade launch which has a sea level virtual machine which is used by Solana. But yeah like the coaching itself is governs Kateddor has already been a lot of really really exciting
projects deploying on top of objectives by the co-consum layer. I think off the top of my head there's an astroport, there's a couple dozen winners of the injective hackathon that happened. That announced
a couple of weeks ago. And then on top of that, every other week there's a new deployment from a very, very respected existing player from other ecosystem for cross-employment and a new project every day for deployment. So developers, I mean,
evidence of these new deployments is that developers have a path by which governance is not, you know, for deploying their smart contracts. It's not too much of a hurdle. And there are success and case stories in which folks have, you know, bringing great apps to injective. So developers do have that path. And so they should be encouraged. That is that
We want to make sure that developers know that so that we'll take that. Next one we want to talk about is you mentioned a few dApps. Which are the dApps that you think we should be looking out that we'll be launching on Injective and that are appearing in ecosystem. I know you talked about, I mean you mentioned a few. So give us your top five or top three.
that are like, hey, these are the daps really we should be looking at on Injective. - Yeah, I've come into deployments wise, couples are pretty exciting ones, Island, which is an on-chain money market protocol. - Mm-hmm. - Let me think. I think Bonfieta is also deploying and there may be, you know,
building something very, very exciting as well. Also, there's going to be a couple of ecos in projects that are also actively deploying. I think I'll defer to marketing on the specific exciting projects that they're when they're ready to announce. But I think the most exciting thing is certainly project. I actually--
Tell us about Project X, who is Project X? I'm liking it. Yeah, I think Project X is basically this platform and this protocol to aggregate and to synergize and to combine all the amazing, daunting strategies.
that are being developed on top of Injective. Basically, it has this full primitive, it has this full primitive where users can join specific vaults and deploy launching strategies. But what's more exciting is that on top of that, there's already a couple of strategies that are out of box, for example.
which is called, which is in permanent loss, mark making, which allows users to earn yield and mark make for their favorite pair. On top of that, you'd always think like the same underlying imperative. There's also a token launch, fault or strategy that allows for direct listing.
and different types of auction mechanisms for a specific asset to be, you know, first of all listed and then freely trade it immediately following. So this is really going to kind of like rock the existing D file landscape because this is for first time where, you know, sophisticated market making and sophisticated
and easily initiated and instantiated by general users. >> Right. Right. Right. Right. Got it. So more DeFi functionality that is not permissionless and users can come in any century launch it. You mentioned a project before that
past two things we want to talk about. Want to talk about more about Cascade? That's pretty cool because you guys have essentially created this Salana SVM roll up and that's not very easy to do. How does Cascade work? Who wants it? How's it going? Give us a deep dive into Cascade.
Yeah, so so we primarily work with Eclipse on making this happen and Eclipse has been doing a wonderful job of building out the role of the player and making it, you know, connected and secure by, you know, the injective stakeholders. Yep. And then the way Cascade works is that it's a role of environment.
that operates a Solana virtual environment that's also composable and kind of enroperable with the injector chain. So this means that the massive number of Solana developers, billions of billions of developer ecosystem, and for the first time
deploy cross-employ on top of the cascade layer, again, touch with the Injective ecosystem. And then, more importantly, people can also create highly scalable computationally intensive general applications that interrupts with the Injective core applications and primitives.
So should I think of this as cascade as a a Solana virtual machine that is an L2 to injective so I can bring my Solana DApps and essentially run them on injective or as or on its own it's run roll up how do I think about
me as a Salana dev or me as a dev from the outside thinking, oh cool, how can I take advantage of it? For the Salana dev, I get it. We bring our Salana apps to run on Injective. Is that a good way to think about it? Yeah, of course. Cool, cool, cool. That's a really great starting.
point to understand what Cascades is. I think I'm not a really interested point is that as the ecosystem develops or maybe a lot quicker than we thought. It can also serve as a real player or like a L2 solution for Solana's up. Because if they create Apple. That's hot. Check the point. That's hot. That's hot. That's Solana has. Yeah. That's really possible.
That's right. And that will be secured by, so for that roll up, will it be secured by the injective validators or another set of validators for the roll up? Yeah. It will be secured by the injective validators. I think, you know, it's just working, you know, over time on creating like the best possible, like, economic
model for this, but yeah, like in essence, I'll be secure by like injective value. That's very cool, very, very cool. And I think, you know, one of the things we're thinking is that you mentioned also Peggy. So you guys have a Peggy bridge to Ethereum. Tell us what does that look like? Is the bridge active?
How can developers interact with the bridge from within the Injective system? >> Yeah, I think it's, bridging is always like a scary experience because you're trusting a specific bridge and injective it wants to be as interoperable as possible with all the ecosystem
out there. So, you know, currently, you know, injective is integrated with most of the major operating solutions out there like wormhole, like, you know, um, um, um, is wormhole deployed on injective? Yeah. With wormhole with I will see with, um, you know, cellular with, uh, uh, apps large. Yeah.
But basically, initially, one of the most important part is to have a very much native and composable experience with the largest smartphone tracking system, which is Ethereum. And the internal bridge, which is Peggy, achieves exactly that. It's symmetrical and security.
The brain is as strong as the brain itself. And then on top of that, more importantly, basically all the acids on Ethereum, as soon as it's purchased over, it becomes an acid on top of an injective and it's unwrapped between them.
And you can see that you have a URC 20 token. It can be immediately virtual to injective and utilize or create a market around. And as a matter of fact, most of the TV on top of injective is coming from that bridge. And then on top of that, it allows for arbitrary data passing.
and send instructions, you can send any type of things for a DAPS on Injective to leverage right away. And that is something really exciting because the mean set, you know, that is excellent. Ethereum user consent and transaction to Injective. Let's say, I just want to buy a rat the theory and because the liquidity is far better there. I can just send
transaction on top of the Ethereum and an application or a dab on top of the Injective will pick up that kind of bridging transaction from Ethereum. Execute a trade from the half the user and bridge back to the user. So in a user eye it's like, "Hey, I made a transaction on Ethereum. I don't know what Injective is." But I got it back in a few minutes.
>> Yep. Quick question. So given that you have multiple bridges working on Injective, how does the dev choose which bridge to use? Do they choose Peggy on Injective or Wormhole or Axelolike? How do you guys, how do you look at the developer choice in trying to navigate these options on Injective? >> I think it's all powered to the device.
developer, it's up to them to pick whichever one they want to stick with. The most amazing thing here is that for Warm Hole, it still has a lot of dominance over a specific type of yours, a 20 asset to Ethereum. It's really self-evolving and
You know, self-solving ecosystem was like, hey, like, for a lab team, it's about working on these innovations, providing as much choice as possible for these developers. But on the other hand, you know, these developers have full self-solving teams to choose whatever asset that they prefer. Got it. Got it. So, so really,
Injective intends to be fully interoperable. It is open. It's like interoperable with out borders. Whichever bridge you want to use and it's deployed, use it. Whichever arbitrary logical system, use it. You guys just want to be open for business. And again, it's you're connecting with everyone. So is that how we should see it like injective being
really, really enabling and open. That's awesome. Next question. It's not meant to just be like this close ecosystem. It needs to be as interoperable as policy, because it covers really like the financial sector, right? The focus is on anything
financial application or D5 related. So this means that the chain itself, the community needs to tap into all the assets coming from all ecosystem and build a wonderful user experience around them to really realize injective potential. Here's the question. Let's talk about polygons.
back to interoperability. I hear you guys are doing some hot stuff with polygon. Share some alpha. I'll probably defer to marketing otherwise they're going to yell at me. Where is marketing? Good marketing in here. All right. Okay. Well, let's let's jump back into tech. Okay. Um, we're it's June mid year.
six months down, six months to go. What's good, where are we going? I can say that though, that recently the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the, the,#
You got to thumbs up. What is happening here? So, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so, so#
of multiple campaigns and rewards for doing so. Got it. And which bridge is the Madcasts going to be using to come over? Is it going to be the Peggy Bridge or another one? So Peggy is only for a theory. So in this case, it will be warm hole. Okay. God, it's just warm hole for him. Got it cool, cool, cool. Well, congratulations on bringing
further into the Cosmos ecosystem and bringing Matic to Injective. So now every DeFi dev building on Injective now has Matic assets that can play with. This is awesome. All right. Last question before we wrap up for time, we're a little bit over. We're at the six month mark, 2023, Eric, six months to go. What are we going to see from Injective as we head into 2024?
Yeah, I think there are so many exciting releases that we're working over time to push out and get in front of as many people as possible. Project X is a great example. I think already a lot of Ninja Pass user has already got their first try with it and test that. Can't wait to show it to the general
There's also a lot of really exciting development that we're working on to make sure that interactive is the best possible destination to create access and boost traffic markets. And yeah, like just so many upcoming integrations, projects,
and also a lot of feature improvements that I'm really looking forward to. And you guys have an incubator on a grant program, right? Yeah, that's correct. Yeah, we supported a lot of projects to get their best first step.
There's been a couple of grants given out to support developers along the way for infrastructure-focused efforts. But I think the most important one since the grant part is less active is the ecosystem group, which allows any type of developer to access
the hundreds of millions of dollars formed around the Injective Venture Group to be supported by top-tier investors. That's awesome. So devs can not only launch, they can deploy, they can get funding and support for introductions to investors to support
for the growth. Eric, thank you. Congratulations to the Injective team, continuing upward and onward. Injective.com, Injective.org, check out Helix and congrats on launching MATIC on Injective. The Pulumma community and the Vaughan community, we can't wait to start deploying and bring an interactive
further so great job well done hope we will see you again. Yeah appreciate thank you so much. Thanks guys thank you Eric thank you everyone cue the music. Cheers.
You gotta keep it up. You gotta keep it up. Don't let it get cold right? More than it.