Injective, a layer 1 blockchain built for finance applications, has announced a new $40 million round of funding led by Jump Crypto.
Injective is the first fully decentralized smart contracts platform optimized for building decentralized finance applications such as exchanges, derivatives, prediction markets, and options. Finance dApps, such as Injective Pro and Frontrunner, leverage Injective's interoperable blockchain alongside its out-of-the-box cross-chain primitives, such as an on-chain order book and binary options module, to power a new ecosystem of connected DeFi applications.
The new capital will allow Injective to increase utility for the native INJ token, provide liquidity to existing dApps built on Injective, and support new dApps on Injective via investments. Jump has previously engaged in similar comprehensive deals with popular blockchains such as Solana and Oasis.
Injective is built with Cosmos SDK and utilizes an Ignite (formerly Tendermint) proof-of-stake consensus mechanism. It is compatible with other Cosmos IBC-enabled chains, but is uniquely interoperable with multiple layer 1s, such as Ethereum. Injective has already processed over 90 million transactions, surpassing popular blockchains such as Solana despite only being live for a few months. dApps built on Injective generated over $7 billion in cumulative volume, becoming one of the fastest growing ecosystems in the industry today.
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"We are excited to collaborate with our partners, including Jump Crypto, which we expect will be a major boon for the broader Injective ecosystem," said Eric Chen, co-founder and CEO of Injective Labs. "With Jump as a major force in the crypto ecosystem, the partnership will be focused on expanding Injective's network and further providing shared liquidity across the Injective ecosystem."
Multichain Smart Contract Layer
With a major mainnet upgrade last month, Injective introduced a multichain smart contract layer that can be executed automatically at every block, making it the first automated smart contract capable blockchain. This has allowed a number of popular dApps from other blockchains to begin migrating over to Injective. Aperture, for instance, has initiated the process to begin building its automated yield strategy dApp on Injective. Aperture had previously been one of the most popular dApps on Terra, quickly eclipsing $100M in TVL.
"Businesses and financial institutions have already begun to participate in DeFi in a big way and the natural next step will be building personalized decentralized applications. Injective offers these institutions an out-of-the-box solution that can be leveraged to build any finance app. We look forward to building together with the Injective community and are optimistic about the ecosystem's future growth," said Kanav Kariya, President of Jump Crypto.
The collaboration with Jump solidifies Injective's work with prominent institutions emerging from traditional finance. Injective has also previously acquired investments from Cumberland and other renowned financial institutions.