Injective Introduces Their Insurance Fund as Mainnet Approaches

Injectives’ implementation of the insurance fund hints that the mainnet is approaching. The latest information regarding mainnet has also been released.

Injective Protocol’s Insurance Fund

Injective Protocol has released its insurance fund. This allows the liquidation process to run smoothly and ensures users’ trades are accurately reflected. Each derivative market has a unique insurance fund and specific capitalization on the Injective Protocol. If a position is closed below the bankruptcy price, this insurance fund distributes the difference. The reverse situation is also true when liquidation is successful; half of the liquidation is sent to the insurance fund while the remaining is used to incentivize the liquidator. 

One distinctive feature of the insurance fund on Injective is that risk for the insurance underwriting is specific to each market. Users can stake a collateral currency for a market to receive insurance pool tokens for that market. As the value of these insurance funds increases, stakers earn more profits.

Preparing for Mainent Launch

The Injective Protocol also announced that it has started the deployment of the first phase of the protocol’s mainnet. The mainnet has undergone several important updates over the last couple of years before this first-phase launch. 

Some milestones include the public Solstice testnet, a revamp of the protocol for enhanced user experience, and the addition of new markets. After releasing its equinox staking earlier in the year, the Injective team announced an upgrade of the Equinox on April 8, 2021. The Equinox staking allows $INJ holders to stake on its reward-based testnet and participate in governance. This post provides details of these phases and other details regarding the mainnet.

What Exactly is Injective Protocol?

The Injective Protocol allows limitless access to Defi markets without any barrier. It is the first layer-2 DEX protocol that maximizes the use of decentralized derivatives. Binance, Pantera capital, and Mark Cuban are some of the outstanding stakeholders in Injective Protocol. On May 15, 2021, Injective Protocol announced that Reflexer Finance will be integrating its RAI stablecoin with its protocol which makes the protocol the first decentralized derivatives exchange to support RAI (the first non-pegged, Ethereum-built stable asset).

A DEX protocol isn’t complete with user-governed insurance funds. Insurance fund stakers can look forward to more practical guides from Injective and updates regarding derivative market governance. The launch of Injective’s mainnet is an inclusive Defi system.

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