Injective has unveiled iAssets, a unique financial tool that allows for the use of real-world assets on-chain. This solution promises to address existing inadequacies in both TradFi and DeFi.
Challenges of Traditional and Early DeFi Systems
Traditional financial systems are still centralized and inefficient, relying on intermediaries and slow processes. This results in high costs, settlement delays, and restricted access for investors. Early DeFi tried to solve these issues with synthetic assets, but overcollateralization and systemic fragility made them inconvenient for mainstream adoption.
iAssets: The Future of On-Chain Real-World Asset Derivatives
iAssets are programmable financial instruments that eliminate the need for overcollateralization and enhance liquidity. Based on a three-part system, they use Oracle for price sourcing, a decentralized exchange for market creation, and a shared liquidity network for liquidity management.
Key Advantages of iAssets
iAssets offer significant advantages: no overcollateralization, 24/7 trading access, seamless composability across financial applications, on-chain transparency and security, and reduced costs with faster settlements. Injective recently announced Nvidia stock being brought on-chain as the first iAsset.
The launch of iAssets by Injective marks a new era in on-chain finance, promising to resolve existing inadequacies of traditional and early DeFi systems.
