Infinity Capital AMA session with Injective Protocol

Infinity Capital
10 min readDec 8, 2020


AMA Infinity Capital will have an AMA session with Injective Protocol

On December 8, 2020 at 19:00 (GMT+7) or 12:00 PM (UTC)

Harry Dũng: Hello guys. Today , Mr. Eric Chen , CEO of Injective Protocol will directly answer questions from members of Infinity Capital group and sharing information plan, upcoming Injective targets. 😉

So before starting our AMA, So could you please introduce yourself as well as about the Injective to everyone, Eric ?

Eric Chen: Hey guys!

I’m Eric Chen, CEO and Co-founder of Injective Protocol. Prior to Injective, I was working at hedge funds and spent a lot of time in cryptographic research at a blockchain-focused fund. Most of my time was also spent on developing new types of trading strategies and researching blockchain protocols. Before that I was also part of the NYU Blockchain Labs.

Injective Protocol is the first layer-2 decentralized exchange protocol that unlocks the full potential of DeFi. It enables fully decentralized trading without any restrictions, allowing individuals to trade on any market of their choosing such as with crypto, synthetics, and NFTs. Injective allows various forms of decentralized trading such as futures, perpetuals, spots, etc. We have built every component of our protocol to be fully trustless, censorship-resistant, publicly verifiable, and front-running resistant.
We have recently launched our Solstice testnet and we can’t wait to share what’s more to come!

Harry Dũng: Okay, so cool sir 👍

So in order not to lose any more time, we will get into the session 1.
The 10 best questions have been selected by Eric Chen.

@ericchen Are you ready for those 10 best questions ?

Eric Chen: lets do it!

Harry Dũng: Okay, I like your enthusiasm 👍👍

Harry Dũng: Question 1

1. You say that “Injective Protocol provides traders unparalleled access to new decentralized derivatives markets without any restrictions”. Can you explain to us and mention what kind of restrictions you are referring to?

Eric Chen: We’re mainly referring to restrictions such as region block or limitations on their products. We are in a better spot in terms of regulatory flexibility because our protocol is fully decentralized and permissionless.

Harry Dũng: Thanks for your answer, we will continue to question 2 now

Harry Dũng: Question 2

2. Lots of exchanges have fiat gateway, even binance has fiat gateway as of now and they have trust of the community and everyone, how does Injective protocol plan to earn trust of the community and the crypto space and have its own fiat gateway?

Eric Chen: We don’t have a fiat gateway. But we do have future plans to partner with fiat gateway providers so that you can convert your crypto without leaving the client.

Harry Dũng: Sound great, hope that functionality will be established soon for the Infinity Capital community to use 😊

Okay so now is question 3

Harry Dũng: Question 3

3. What are the biggest challenges you and the Injective team are facing? It seems that the strategic relationship building has been done very well,as Ramp DeFi, Findora, Frontier, Kava ..So what are the advantages they bring to Injective? Is that the first step in the DeFi market

Eric Chen: The biggest challenge will always be liquidity and user experience. It’s a good thing that we are already working with top market makers in the space to ensure liquidity and optimizing our user experience to ensure it gets the best of both world from CEXs and DEXs.
We’ve already partnered with a bunch of prominent DeFi projects and will announce more. In general, these projects have been building rapidly with many exciting developments in DeFi over the past few months, and we’re extremely excited about what will the community make out of this when the ecosystems meet and benefit the DeFi industry as a whole!

Harry Dũng: Well, this is a pretty cool strategy because it can reach a wide range of communities and generate a huge prop for Injective.

Eric Chen: Yes! I can’t wait haha

Harry Dũng: So Question 4

4. why Injective Protocol Use the PoS consensus mechanism? how is this mechanism better than pow or other?

Eric Chen: When we were picking consensus mechanisms, we optimized for instant finality, low blocktime, and non UTXO. Amongst all consensus families, we find that tendermint PBFT fits our needs perfectly.We did not want to tie ourselves down by going the layer-1 direction since many face issues with speed and scalability in the long-run. Layer-2 enables us to bypass certain costs and retain a magnitude of speedup for transactions. So, it ends up being faster and cheaper for users to trade on our DEX!

Harry Dũng: Thank you for the very detailed answer. We will come to question 5 now. 😊

Harry Dũng: Question 5

5. Smart contracts are vulnerable to bugs, and even recently three big new DeFi projects were victims of this, costing users funds. How efficient and secured is your smart contract, and did you ever audit it via any external party?

Eric Chen: Our chain along with the EVM module is secured by proof of stake consensus. Also, verification during propagation is continuous and the consensus process only need to perform verification on the proof with the highest iteration. Since we are a stateful exchange, EVM state transition verification under our current setup will not impact the matching process. The end result is a DEX with front-running and collision resistance with no trust or centralization required, making trading on DEXs much more secure.

We can’t talk about which auditing firms we’re actively working with until their report is out. But fun fact, Albert used to be part of Open Zeppelin, which I consider to be one of the best smart contract auditing firms!

Harry Dũng: So great and I firmly believe that Eric Chen will handle this as smoothly as possible so users won’t have to worry.

Harry Dũng: Question 6

6. What important milestones does Injective aim to achieve by the end of this year and in the future? How will it help you and how will Injective be successful in 2021 and beyond?

Eric Chen: Prior to our mainnet on Q2 next year, we have many events and competitions for users to get to know how Injective works. Right now we just released the launch of our Solstice testnet v2.

We also plan to launch the Incentivized Testnet Trading Competition soon so stay tuned!

Harry Dũng: And when it is officially announced, I will forward it to Infinity😉

Eric Chen: can’t wait!

Harry Dũng: Okay, now is Question 7 for you

7. Injective Protocol community is growing, SO how can we user help you and How can we contribute your quota towards your success?

Eric Chen: Community has always been the most crucial element of our exchange and mission. we are always working on growing a global community base, from users, traders, stakers, delegators, liquidators and much more. We plan to release incentivized staking, liquidity mining and exchange referral rewards soon. We have a lot in store and can’t wait to hear what our users think and how we can bring a better exchange that’s truly decentralized and trustless to the community.

Harry Dũng: Cant wait for it !!

Harry Dũng: Now is Question 8

8. I was reading your whitepaper and it was very complicated! Can you explain these interesting features to the public in more understandable words: 1-Round Settlement Model and Front Running Proof model?

Eric Chen: 1-round settlement model talks about how we can resolve transaction ordering within 1 block utilizing VDF. In case the integrity of VDF is compromised, traders can always fall back to front-running proof model where the transactions will be settled in 2 blocks via commit-reveal. We also did some neat tricks in the paper to make it non-interactive 😉 So far we haven’t seen fundamental security compromises on decentralized or non-custodial exchanges. That being said, there are some DEX models that is vulnerable to hacks with loss of user funds (we’re not one of them!). As for the futures product, we do plan to create an insurance pool to mitigate clawbacks.

Harry Dũng: Yes, I always believe in the quality of security that Injective’s team makes up. It’s totally reputable guys 😉

Harry Dũng: Question 9 for you Eric ^^

9. How can Injective Protocol solve the scaling problem? And how to overcome the threat of Exchange Centralization?

Eric Chen: We scale ethereum transactions on our own chain to ensure that users can enjoy fast block-time and more importantly finality brought by Tendermint consensus. So, the overall user experience for an average trader will feel just as nice as a centralized exchange.

Harry Dũng: Now is the last question of part 1, this also a pretty good question.

10. The total supply of Injective Protocol is 100.000.000 INJ . Does the Injective Protocol team plan to increase or decrease the supply? And how will that be done to manage the supply of Injective Protocol ? Also in this year, does you plan to buyback INJ on the market?

Eric Chen: We introduce inflation through the proof of stake reward, we anticipate that this will start off with 7% inflation and slowly decrease to 2% over the course of 5–6 years. The deflationary mechanism directly ties to the buyback and burn mechanism. The more volume the exchange produces, the stronger the deflationary force will impose on the token. The goal is to thanos snap our initial token supply.

Will start the buyback and burn once we launch our mainnet on Q2 next year.

Harry Dũng: And now we will get to Part 2 after I count to 3.

Eric Chen: Are you ready ? @ericchen 😊

Harry Dũng: let's go

Jessica: 1. Although ETH 2.0 is delayed to next year, but it will solve all exist problem of ETH and become the best choise for dApps in future, so do you think this is a threat for your project and how could you overcome this barrier?

Eric Chen: Not at all! ETH2.0 creates substantal upgrade in throughput but it has limited improvement in blocktime. So an on-chain orderbook on Eth2.0 is still subideal.

Alisa Crypto: 2. As far as I know, Injective Chain is a layer-2 sidechain powered by Tendermint connected to Ethereum network. So why did you choose to partner with Tendermint and build layer-2 on the Ethereum platform?

Eric Chen: Tendermint’s PBFT consensus is great for decentralized orderbooks. It enables 1 second blocktime along with instant finality to prevent unexpected forks. It also has a lot more safety guarantees than other fast blockchain infraustructures

Kalina Cafe: 3. Why is Injective Protocol using Chainlink oracle data?
What is the role of on-chain and off-chain sources to help increase derivative offerings further?

Eric Chen: We plan to integrate a variety of oracle data to empower market creators with the most price feeds at their disposal! This allows for a much more diverse derivatives offering that you guys will see very soon!

Ross: 4. Injective Protocol is ‘collision resistant’ what is the meaning of that in the blockchain enviroment?

Eric Chen: When there’s an intrablock conflict in take orders for the same make order counterparty, this is when collision occurs. We have written a whitepaper about our protective mechanism to prevent this 🙂

Kim AI: 5. I’m a developer, and I’m interested in contributing to your project alongsides earning, Do you have any Bug Bounty to check for vulnerabilities ?

Eric Chen: Yes! Please stay tuned as we will be opening this up very soon 🙂

Jesus Freites: 6. Besides Ethereum and Cosmos, which other chains include Injective Protocol to generate performance? Since they are Binance Smart Chain partners, is this network not included?

Eric Chen: Stay tuned! Fun fact, INJ is also on BSC at this moment 🙂

Angelo: 7. A few days ago Injective Protocol launched its first synthetic market with the addition of gold trading to its platform. Why did you specifically choose to include gold? Do you also plan to add silver, which is the other metal often used as a store of value?

Eric Chen: We did that as a showcase of the strength of Injective’s derivatives offering. Gold is the most heavily traded precious metal so it’s no surprise that we decided to go with them first. We will be releasing more futures markets with interesting underlying very soon 🙂

Hoi lam: 8. Why did you choose to list and IEO Injective Protocol on Binance instead of Kucoin , Okex or Houbi ? What’s your next plan after list ?

Eric Chen: We’re incubated by Binance so we’re part of the Binance family since day 1

Alisa Crypto: 9.What are the benefits of providing liquidity at INJECTIVE? What are the incentives at the moment?

Eric Chen: We will have liquidity mining and market maker rebate incentives coming out on mainnet!

Linda Elizabeth: 10. Do the token holders have right to participate in the governance of the project? On what kind of decisions can they vote on about the project??

Eric Chen: Everything 🙂 There’s governance on the EVM layer that enables you to vote on futures contract changes. There’s also more interestingly PoS consensus/governance that allows token holders to vote on a hard fork

Harry Dũng: Alright, you guys are on fire. So i think most of the important questions have been already answered and we are very happy for your enthusiasm. 👍👍

Harry Dũng: So before we officially end this session. Do you have something to share into the community, Eric ? 😊

Eric Chen: That’s all for me, I wish I could stay longer to answer more questions! But please check out Injective’s socials for the latest update:

Our testnet is also live on
Feel free to check it out! We also launched a new version recently and will be going live with v2 in a few hours 🙂

Harry Dũng: Our community will check it soon , Eric.

So thank you for spending your time with us. Today it is really a fun session.

______________________AMA END______________________



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