Injective has unveiled iAssets, a new financial instrument designed to bring real-world assets like stocks and commodities on-chain. These fully programmable instruments aim to increase capital efficiency and liquidity on financial platforms.
Issues with Traditional and Early DeFi Systems
Traditional financial systems (TradFi) rely on intermediaries, leading to high costs and settlement delays. Meanwhile, the first wave of DeFi attempts to create synthetic assets faced problems with over-collateralization and limited accessibility for retail traders, resulting in constrained efficiency and accessibility.
iAssets: The Future of On-Chain Derivatives
iAssets are not just tokenized versions of stocks or commodities. They are programmable instruments with high capital efficiency and integration across financial applications. Unlike traditional synthetic assets, iAssets use Injective's specialized infrastructure, allowing dynamic liquidity management and real trading. They ensure precise market movement mirroring via the oracle module, market creation, and liquidity management, making them a flexible and accessible tool.
Advantages of iAssets Over Traditional Models
iAssets eliminate the need for over-collateralization, significantly improving capital efficiency. They offer 24/7 trading access, bypassing traditional market restrictions. iAssets' seamless integration into Injective's financial ecosystem enables their use in various applications, from leveraged trading to automated hedging. On-chain transparency provides real-time liquidity movement visibility, security, and instant settlement without intermediaries, lowering costs.
The launch of iAssets by Injective opens new possibilities for integrating real-world assets into on-chain finance, offering a more flexible and efficient system for managers and investors.
