Injective has unveiled iAssets, a financial primitive that enables real-world assets to move on-chain, providing capital efficiency and liquidity.
The Problem with Traditional and Early DeFi Systems
Traditional finance remains centralized with limitations in access and capital efficiency. High costs, delayed settlements, and access restrictions to accredited investors are ongoing issues. The first wave of DeFi also faced challenges, such as excessive collateralization (150%+), leading to low liquidity and restricted access for retail traders.
iAssets: An Innovative Approach to On-Chain Derivatives
iAssets are programmable, capital-efficient financial instruments. They leverage Injective’s specialized infrastructure featuring three core components: Oracle Module for price sourcing, Exchange Module for market creation, and liquidity management through a shared liquidity network.
Advantages of iAssets Over Traditional Models
iAssets eliminate the need for over-collateralization, offer 24/7 trading access, seamless integration with financial applications, and on-chain transparency. Lower fees and instant settlement enhance capital efficiency.
Injective's iAssets promise to transform on-chain trading of real-world assets, addressing the drawbacks of traditional financial systems and early DeFi generations.
