Injective has launched iAssets, an innovative tool that integrates real-world assets like stocks and commodities on the blockchain. This solution offers new possibilities for liquidity and capital use in financial applications.
Problems with Traditional and Early DeFi Financial Systems
Traditional financial systems, although dominant, suffer from high centralization, reliance on intermediaries, and slow settlement processes. This results in high costs and restricted market access. Early DeFi projects created synthetic assets that required significant collateralization, limiting liquidity and making them less accessible to retail traders.
iAssets: The Future of On-Chain Derivatives
iAssets are not just tokenized versions of real-world assets like stocks or commodities. With programmability and capital efficiency, they eliminate the need for over-collateralization and enhance liquidity. The iAssets system is built on three key components: price sourcing via the Oracle module, market creation via the Exchange module, and liquidity management.
Key Advantages of iAssets
The absence of the need for over-collateralization makes iAssets more capital-efficient. They offer 24/7 trading access without market restrictions and integrate into Injective's financial ecosystem, allowing for leverage, yield generation, and automated risk hedging. Additionally, iAssets provide on-chain transparency and security, reducing costs and accelerating settlements.
The launch of iAssets by Injective represents a significant advancement in on-chain finance, offering flexibility and efficiency that was not previously possible in traditional or early DeFi systems.
