Injective has introduced iAssets, a financial primitive aimed at bringing real-world assets like stocks and commodities on-chain. These fully programmable financial instruments offer capital efficiency and deep liquidity, addressing the issues of traditional and early DeFi systems.
The Problem with Traditional and Early DeFi Financial Systems
Traditional finance remains highly centralized, leading to high costs, settlement delays, and restricted access. A similar issue was present in the first wave of DeFi, where synthetic assets required excessive collateralization and were inefficient.
iAssets: The Future of On-Chain Real-World Asset Derivatives
iAssets are programmable, capital-efficient instruments eliminating the need for over-collateralization, allowing more efficient capital deployment. The system includes three main components: price sourcing via the Oracle Module, market creation via the Exchange Module, and liquidity management.
Key Advantages of iAssets Over Traditional Models
iAssets offer trading without excess collateralization, round-the-clock access without market restrictions, and integrate into Injective's ecosystem. This allows them to be used for leverage trading, yield generation, and automated risk hedging, providing transparency and enabling instant settlements, reducing costs.
With the launch of iAssets, Injective ushers in a new era in trading real-world assets on-chain, removing existing barriers and providing a more efficient way of capital usage.
