Injective has introduced iAssets, a product designed to tokenize real-world assets. This innovative solution addresses the drawbacks of traditional and early DeFi financial systems.
Problems with Traditional and Early DeFi Systems
Traditional financial systems are centralized and inefficient. They rely on intermediaries, slow settlement processes, and capital restrictions, resulting in high costs, settlement delays, and restricted access to financial instruments. The first wave of DeFi attempted to solve these issues through synthetic assets, but due to high collateralization and systemic risks, these attempts were ineffective.
iAssets: The Future of On-Chain Derivatives
iAssets offer more than just tokenization of stocks and commodities; they are programmable and capital-efficient. They leverage Injective’s specialized infrastructure for dynamic liquidity provisioning and real-time trading, including oracle modules and a decentralized exchange for market and liquidity management.
Advantages of iAssets Over Traditional Models
iAssets eliminate over-collateralization, offer 24/7 access, and ensure capital efficiency. They integrate into Injective's financial ecosystem, supporting leveraged trading, yield generation, and risk management. The on-chain transparency and security eliminate counterparty risks, reducing costs and speeding up settlements.
Injective's iAssets represent a significant advancement in tokenizing real-world assets, providing high liquidity, 24/7 availability, and the elimination of intermediaries.