Injective is Set to Launch the World's First Fully Decentralized Derivatives Markets with the Band IBC Oracle

Injective is ready to release fully decentralized derivatives markets with price feeds stemming from the Band IBC oracle! The milestone is especially groundbreaking since it marks not only the first time that a Cosmos IBC based oracle is being used by an exchange but also the first time that fully decentralized derivatives markets can be created.

Behind the scenes, both the Band Protocol and Injective Labs teams have been hard at work to ensure all parameters of the integration run smoothly. The Band team enabled IBC (Band Improvement Proposal #4) and later IBC-based transfers (Band Improvement Proposal #5). It was a collaborative effort between the two teams since Injective Labs core engineer Venkatesh Mankena (ex-Polygon) helped discover a missing parameter required for enabling the IBC oracle service on Band.

The Injective community also voted to enable IBC transfers with Band specifically via Injective Proposals 66 and 67. Previously markets could only be created with the Coinbase oracle which although known to be quite secure is nevertheless centralized in nature. Now, users can launch crypto, exotic, index and synthetic asset markets in an entirely decentralized manner. Of course, since Injective has been custom built to support derivatives, anyone can create spot or perpetual markets.

Seamless Market Creation

The beauty of this integration lies in how easy it will now be for anyone to create flexible decentralized derivatives markets on Injective.

Using the Injective Hub, community members can propose new spot or perpetual markets for a wide array of assets such as crypto or perpetuals. The IBC oracle feature in BandChain allows injective users to custom request data natively. This means that when the Injective Chain requires a new data feed, the protocol can simply just send a new request and receive a data result guaranteed to have come from BandChain’s decentralized oracle by the IBC core architecture.

Of course, the technology behind the scenes is novel in every sense; even more so since it has never been done before. However, all aspects on the frontend level are kept intuitive so the end user can utilize Injective to create and trade markets with just a few simple clicks.

Strengthening the Band and Injective Collaboration

The launch of the Band IBC-enabled Oracle on Injective is a monumental feat that further cements the Injective community’s collaboration with Band Protocol.

In the past, Band Protocol alongside Injective, Terra, and Mirror Protocol launched the world’s first decentralized stock futures trading for traditional synthetic stocks such as Tesla, Airbnb, GameStop, Twitter, Amazon, and more.

With this latest integration of using IBC infrastructure to receive decentralized oracle data in production, Band and Injective are creating a new paradigm of cross-chain interoperability for crypto exchanges.

About Band Protocol

Band Protocol is a cross-chain data oracle platform that aggregates and connects real-world data and APIs to smart contracts. Blockchains are great at immutable storage and deterministic, verifiable computations — however, they cannot securely access data available outside the blockchain networks. Band Protocol enables smart contract applications such as DeFi, prediction markets, and games to be built on-chain without relying on the single point of failure of a centralized oracle. Band Protocol is backed by a strong network of stakeholders including Sequoia Capital, one of the top venture capital firms in the world, and the leading cryptocurrency exchange, Binance.

About Injective

Injective is a lightning fast interoperable layer one blockchain optimized for building the premier Web3 finance applications. Injective provides developers with powerful plug-and-play modules for creating unmatched dApps. INJ is the native asset that powers Injective and its rapidly growing ecosystem. Injective is incubated by Binance and is backed by prominent investors such as Jump Crypto, Pantera and Mark Cuban.