Injective is integrating with Avalanche to create a diverse array of interoperable derivative products and will also be integrating with the Avalanche-Ethereum Bridge (AEB) to create a two-way flow of assets between the Injective Chain and Avalanche (integration set for completion by Q2 2021).
Injective will launch derivatives that use the native Avalanche token (AVAX) as well as other native Avalanche assets. Injective will also explore the addition of entirely new derivative products.
Last week, relayers launched a long-anticipated bridge connecting Avalanche and Ethereum. Within hours of its release, millions of dollars in assets transferred across AEB.
The Injective Chain was built using the Cosmos SDK and is fully interoperable with the Ethereum Virtual Machine (EVM). It’s prioritizing the cross-chain capabilities, which is an increasingly important application as the crypto ecosystem is managing the congestion, high gas fees, and slow transaction times on Ethereum.
Avalanche solves many of these issues at the protocol level and has seen increasing levels of developer activity since the launch of its mainnet in September of 2020. In that time, over 30 projects have announced work with Avalanche, and Injective’s commitment to interoperability can help accelerate the adoption and growth of the crypto ecosystem.
Injective’s integration with Avalanche will involve two discrete phases. During the first phase, its team will be integrating with the AEB.
The second phase will involve the creation of entirely new interoperable derivative products, including the creation of derivatives that utilize the AVAX token itself, such as new indices that track a basket of popular digital assets.
Moreover, Injective plans to use new products built on Avalanche, such as Initial Litigation Offerings (ILOs), to explore new derivative products to users on Injective. ILOs for instance hold tremendous potential as it is currently a $10 Billion asset class out of reach for most retail investors.
Injective shares Avalanche’s vision of bringing forth a new era of decentralization that democratizes access to financial services. The interoperability frameworks underpinning Avalanche and Injective were created are a testament to that fact as both projects seek to bridge together the disconnected ecosystems that currently exist within crypto.
The Injective and Avalanche integration will help unlock a new age of interoperability that will fundamentally shift the trajectory of DeFi towards a much more equitable future.