Injective has unveiled iAssets, an innovative system enabling the integration of real-world assets like stocks and commodities onto the blockchain. Unlike previous tokenized representations, iAssets provide full programmability, capital efficiency, and deep liquidity.
The Problem with Traditional and Early DeFi Systems
Traditional finance, being centralized, suffers from intermediaries, slow settlement processes, and restricted access. This leads to high costs and delays in capital deployment, limiting market accessibility. Early DeFi attempted to solve these issues through synthetic assets but faced problems of excessive collateralization and systemic fragility.
iAssets: The Future of On-Chain Real-World Asset Derivatives
iAssets are characterized by their programmability and capital efficiency, eliminating the need for over-collateralization. They are built on three main components: the Oracle Module ensures accurate price data, Injective's decentralized exchange creates markets, and liquidity management is handled via Injective's shared liquidity network.
Key Advantages of iAssets
iAssets offer advantages such as no over-collateralization, allowing for better capital efficiency. They provide 24/7 trading access without market restrictions and integrate into Injective's ecosystem for leverage trading and automated risk hedging. On-chain transparency and security reduce counterparty risks and lower costs.
iAssets represent a significant advancement in integrating real-world assets onto the blockchain, offering unmatched flexibility and liquidity compared to traditional and early DeFi systems. This opens new opportunities for investors and users of financial instruments globally.
