Money markets like USD and EUR will soon be available on the Injective Protocol. Users of decentralized exchange can trade forex futures contracts for the first time in DeFi.
Injective adds Forex futures
Injective Protocol - DeFi derivative exchange built on top of the Cosmos SDK - is launching foreign exchange trading.
This is the first example of a DeFi exchange allowing access to the foreign exchange market. Announcing the update, the exchange's CEO Eric Chen said:
Injective is specially designed from day XNUMX to support any and all markets. This means that this unique platform allows all users to create and trade with any new market of their choice. With our novel architecture and overall design, we are able to support a wide range of forex markets on Injective, (a single market) that has so far remained inaccessible to many of us. gender.
Forex trading is ubiquitous in traditional finance, but complexity makes it difficult to emerge in decentralized finance.
But with the benefits of Injective's flexible design allows users to access more markets. They work differently from the Automated Market Maker (AMM) popular as UniswapThe platforms often experience slippage and high transaction fees.
Forex futures contracts will be available on Injective's Solstice Pro Network, and users will be able to trade in perpetual swaps with leverage up to 50x.
That means traders will be able to take advantage of arbitrage opportunities and hedge the risk of currency fluctuations in a decentralized way.
With the addition of 50x leverage, Injective users can borrow capital for greater returns, but this also comes with greater risks. Margin trading is usually only recommended for professional traders.
DeFi "hunts" for traditional markets
The launch of forex trading isn't the only major update Injective has made in recent times. Last month, the project was widely acclaimed when it announced it would add aggregate stock trading (crypto stocks that have never been in DeFi before).
Among the supported stocks are big tech giants like Facebook, Amazon, Netflix and Google.
This group of companies is often referred to as FANG, and they have been known to offer investors attractive returns in recent years. The move is made possible thanks to a partnership with Terra and Band Protocol, which will provide stock encryption and price feeds.
While other cryptocurrency exchanges like FTX have pioneered traditional financial products in the form of derivatives, recently tokenizing Coinbase and Airbnb before Nasdaq, Injective Protocol was the first to experiment Traditional markets in DeFi.
If successful, the crypto space could see significant growth in the coming years, as decentralization gradually merges with traditional finance.