Injective unveiled iAssets—an innovative financial instrument that bridges the real world of finance with blockchain technologies, addressing existing issues in both traditional and decentralized financial systems.
Problems with Traditional and Early DeFi Systems
Traditional financial systems are often centralized, dependent on intermediaries, and are characterized by slow settlement processes and capital restrictions. This leads to high costs, delayed settlements, and restricted access to financial instruments. Early DeFi projects attempted to address these issues with synthetic assets but faced challenges such as excessive collateralization, systemic fragility, and limited accessibility.
iAssets: The Future of On-Chain Derivative Tools
iAssets offer programmability, capital efficiency, and easy integration with financial applications. They eliminate the need for over-collateralization, enhance liquidity, and enable new financial innovations. The system comprises three main components: price sourcing via the oracle module, market creation through a decentralized exchange, and liquidity management. This structure ensures efficient trading of real-world assets on-chain.
Key Advantages of iAssets
iAssets eliminate the need for over-collateralization, enabling more efficient capital deployment. They offer 24/7 trading access without restrictions, seamless composability with financial applications, on-chain transparency and security, as well as lower fees and faster settlement. Recently, Injective announced the first implementation with Nvidia stock, allowing users to trade the stock without geographic restrictions or intermediaries.
Injective's iAssets represent a significant step forward in finance, bridging the gap between real assets and blockchain technologies while providing high efficiency and accessibility to users worldwide.
