Injective Protocol, an incubatee with Binance Labs that has created a decentralized derivatives trading protocol and platform, recently raised $2.6 million in a seed funding round led by Pantera Capital. Participants in this funding round included Asia-based QCP Soteria, Axia8 Ventures and Boxone Ventures, Bitlink Capital and others.
The protocol aims to target the pain points that most decentralized exchanges (DEXs) are facing, such as poor liquidity and lack of compelling products. These DEXs are usually operating in a centralized manner as well. Injective Protocol allows for perpetual swaps, futures, margin and spot trading and its Injective Chain, a layer-2 sidechain and Cosmos Zone connected to Ethereum, was designed to solve the challenges that traders face when using applications built on Ethereum, such as with scalability.
“We leverage verifiable delay functions (VDFs) to enforce a fair transaction ordering consensus that reflects real-world time via proof-of-elapsed-time, solving critical race conditions and miner extractable value issues present in Ethereum,” the team wrote.
According to Coindesk, Injective will be working on a liquidity solution with its investors. The funding will be directed towards its efforts to launch the Injective Protocol mainnet and its proprietary token before the year ends, while also ramping up developments on the business and marketing aspects as well.
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