Injective Protocol (INj) is a decentralized exchange offering advanced features like cross-chain margin trading, derivatives, futures, etc. The Injective Protocol is the first dedicated interoperability protocol built for DEXs. Its aim is to create a free and inclusive financial system with the aid of decentralization. The Ampleforth (AMPL) cryptocurrency is a project that is focused on providing a lot of flexibility in the supply of gold, real currencies, and commodities. The flexible supply also adds to the reliability of the Ampleforth Governance Token (FORTH). In this post, we will find out more about both. Let’s get started.
Injective Protocol (INJ) And Ampleforth Governance Token (FORTH): All You Need To Know
Injective Protocol (INJ)
Created as a high-performance exchange protocol, Injective uses the Cosmos-supported layer-2 sidechain infrastructure. In this way, it provides speed, accessibility, and decentralization using optimized connections to the main Ethereum chain (based on the Ethereum code). Ethereum-based tools can quickly create new cross-chain DApps using instant precision via Injective.
What is the mission of the Injective Protocol?
The main goal of Injective is to remove barriers to accessing DeFi markets. It also aims to be a decentralized platform that eliminates gas fees without reducing transaction speed. There are several important features implemented in line with these goals:
- Completely decentralized network structure
- Layer-2 protocol rate
- State-of-the-art decentralized order book
- Unlimited market creation and use
- Low network latency and no gas fee
What is the Role of INJ Tokens in the Injective ecosystem?
The native token of the Injective Protocol is called INJ. We can list some of the areas where INJ is used, which is used in different areas, especially in governance:
Protocol and Ecosystem Management:
INJ enables users to participate in ecosystem management by voting on proposed changes in futures protocol, exchange parameters and other protocol upgrades through the DAO structure.
Margin Support for Derivative Products:
The INJ token can also be used as a stablecoin alternative to provide margin trading and collateral for the use of Injective’s derivatives market.
Tendermint-Based Proof-of-Stake (PoS) Security:
The Injective Protocol is secured by a PoS consensus based on Tendermint. The ecosystem encourages nodes to participate in network consensus by providing staking rewards. This mechanism inflates the supply of the INJ token, which starts at 7% per year at the start of its formation and drops to 2% over time.
Market Maker Incentives:
Injective DEX charges an initial exchange fee of 0.1% for market makers and 0.2% for buyers. Fee discounts are available to market makers who help to restart liquidity on the DEX trading platform.
What are the features of Injective?
Injective DEX is a highly technical device designed to be censorship resistant, unreliable and verifiable by anyone while providing a good user experience for users. To make all this possible, the technical architecture of the Injective Protocol is built on four different layers within the software development stack.
Injective Protocol Smart Contracts
The core protocol interactions and token economy of the Injective ecosystem are made possible through the following types of Ethereum-based smart contracts:
Injective Coordinator Contracts
Injective coordinator contracts facilitate the use of Injective’s derivatives on Ethereum and the Injective chain.
Staking contracts are designed to manage the core functions of stakers in the Injective Protocol through rewards, slashing, delegation and governance mechanisms.
Injective Futures Contracts
Injective Futures contracts are smart contracts that allow traders to create, execute and use decentralized perpetual swaps in any arbitrary market.
Injective Bridge Contracts
Injective Bridge contracts are smart contracts that manage two-way fixing between Ethereum and the Injective Chain.
Injective Token Contracts
Injective token contracts are ERC-20 contracts designed for different uses used by the INJ token.
What is the vision of the Injective Protocol?
The Injective Protocol pioneers a new decentralized economy to create a more free and inclusive financial system. Injective has created a solution that allows crypto exchanges to become a decentralized public service, enabling users and their communities to capture much-needed value in the exchange environment. Injective technology allows anyone in the world to participate in cross-chain Blockchain-based derivatives, futures and forex trading.
By leveraging technological innovations that accelerate settlement and trade execution in a truly decentralized, permissionless, and censorship-proof manner, Injective Protocol is building a model of change that has the potential to transform the industry as we know it.
It seeks to empower individuals with the ability to allocate capital more efficiently in our society, by providing an unlimited and unprecedented ability to express divergent views in decentralized financial markets.
What is the INJ Supply?
INJ is a mining cryptocurrency. Liquidity mining can be done, as well as the staking method. The maximum supply has been determined as 100,000,000 pieces. 43,655,554 of these are in circulation.
Ampleforth Governance Token (FORTH)
What is Ampleforth Governance Token (FORTH)?
Ampleforth (AMPL) cryptocurrency is a project that promises flexibility of supply for gold, real currencies and commodities. They claim to be reliable because supply is kept flexible.
Since the supply of metals such as gold and silver, which has an important place in real financial systems, is limited, these valuable assets are seen independently. Although they provide significant resistance to inflationary changes, they are ineffective against bursts of demand. Such increased demands leave valuable assets such as gold and silver vulnerable.
Ampleforth (AMPL) aims to counter these bursts of demand. Its founders say it is a synthetic currency that spreads instantaneous price changes to supply. With automatic supply, it is aimed to defend against inflation and high deflation.
Ampleforth (AMPL) is seen as a short-medium-long-term investment in cryptocurrency value. In the short term, it is shown as an alternative for crypto portfolios. In its medium-term plans, it is aimed to be collateral to decentralized banks for their reserves. In the long run, Ampleforth (AMPL) can be used as an alternative to central banks’ cryptocurrencies.
How does Ampleforth (AMPL) work?
Ampleforth (AMPL) is always looking for the best balance of supply and demand to stabilize the price. In order to achieve this balance, it intervenes directly, such as lowering or raising the price, if necessary. This intervention is aimed to fix the price.
Ampleforth prefers the method of changing the quantity of 1 AMPL instead of changing the price in case of demand change.
Here’s how it works:
Let’s say Amy pays $1 to buy 1 AMPL. When the AMPL price rises to $2 with the increase in demand, the system will automatically send 1 more AMPL to Amy and she will have 2 AMPLs instead of 1 in her wallet. At the end of the day, Amy has 2 AMPLs for $1 each.
Let’s say Anne pays $2 to buy 2 AMPL. As demand drops, the AMPL price drops to $0.5. The system automatically takes 1 AMPL from Amy’s hand, so she will have 1 AMPL in her wallet instead of 2. At the end of the day, Amy has 1 AMPL for 1 dollar each.
As we can see from the examples above, the system automatically changes the amount of AMPL to always make the value of 1 AMPL equal to 1 dollar.
How does the Ampleforth (AMPL) amount change?
In order to avoid too many sudden movements in quantity changes, the quantity and price balancing process takes place in 10-day periods.
Again, to go through an example, when the AMPL price on the exchanges is $1.5, the amount of AMPL that needs to be produced and distributed must be 50% more than the entire supply. Instead of giving it all at once, it divides 50 by 10, increasing the total supply by only 5%. The next day, it checks the price again and processes only one-tenth of the amount it needs to produce or withdraw. In this way, it prevents sudden fluctuations in price and supply and ensures that the price is balanced over time.
What is the Ampleforth (AMPL) geyser project?
Ampleforth (AMPL) distributes the AMPL cryptocurrency balances in the ecosystem fund with the Geyser project to the liquidity providers in Uniswap V2. As you increase your liquidity amount and for the duration you hold, your AMPL pool share increases.
The AMPL pools in the Geyser project are opened gradually. Those who provide liquidity can get their shares from these pools.
After the tokens are deposited, you can see your AMPL balance and rewards in the system from the Geyser interface. You can increase your AMPL balance at any time and receive your share when your reward occurs.
The aim of the Geyser project is to spread AMPL to the world and to reward those who trust this project.
How Is Ampleforth (AMPL) mining done?
Ampleforth (AMPL) is not a mineable cryptocurrency. All supply is provided by the company that created it. The total amount of Ampleforth to be supplied is 340,981,448 AMPL. The amount of Ampleforth currently in circulation is 130,810,619 AMPL.
The only way to earn Ampleforth is to join the Geyser project. Thanks to this project, you can earn AMPL with a method similar to the general staking system.