Injective has unveiled iAssets, a new financial technology simplifying the trading of real assets such as stocks and commodities on the blockchain, ensuring greater liquidity, capital efficiency, and composability.
Problems with Traditional and Early DeFi Systems
Traditional finance, despite its dominance, suffers from high centralization and restrictions, relying on intermediaries, slow settlement processes, and capital constraints. These lead to high costs and settlement delays. Early DeFi attempted to solve these issues using synthetic assets, requiring excessive collateralization and introducing new inefficiencies.
iAssets: The New Era in Asset Trading
iAssets created by Injective are programmable financial instruments eliminating the need for over-collateralization. These assets provide capital efficiency and seamless composability. The iAssets system includes three components: price sourcing through the Oracle Module, market creation via the decentralized exchange, and liquidity management and market making.
Advantages of iAssets Over Traditional Models
iAssets eliminate the need for over-collateralization, provide 24/7 trading access, offer composability in financial applications, ensure on-chain transparency and security, and reduce costs while accelerating settlements.
Injective's introduction of iAssets represents a leap forward in the trading of real assets, offering innovative solutions to address inefficiencies in traditional and early DeFi systems.
