# Overview

Injective Protocol is a fully decentralized layer-2 DEX protocol built for the next generation of decentralized derivatives exchange. The Injective Chain is a Tendermint-based IBC-compatible blockchain which supports a decentralized orderbook-based DEX protocol and a trustless ERC-20 token bridge to the Ethereum blockchain.

It is the first layer-2 fully decentralized exchange protocol for decentralized perpetual swaps, futures, and spot trading that unlocks the full potential of decentralized derivatives and borderless DeFi. Every component of the protocol has been built to be fully trustless, censorship-resistant, publicly verifiable, and front-running resistant.

By providing the unrestricted and unprecedented ability to express diverse views in the decentralized financial markets, we are striving to empower individuals with the ability to more efficiently allocate capital in our society.

# Key Features & Highlights

  • Fully Decentralized: Injective transforms an exchange into a decentralized public utility by open-sourcing every single component of the exchange, from the front-end exchange interface to back-end infrastructure to orderbook liquidity.
  • Permissionless: Full decentralization turns the traditional business model of an exchange on its head, as we eliminate the technical barrier to entry for users by creating a permissionless and highly performant exchange for both spot and derivatives markets.
  • Censorship Resistant: Full decentralization combined with permissionless access ensures an open and unrestricted market, resistant to censorship.
  • Community Owned: Nodes on the Injective Chain are incentivized through token economics to act as order relayers, host a decentralized orderbook, and serve as a decentralized trade execution coordinator.
  • Scalable: Injective brings an order of magnitude speedup by scaling trade execution and settlement on layer-2.

Injective Protocol's infrastructure is comprised of three principal components:

  1. Injective Chain
  2. Injective Exchange Service
  3. Injective Ethereum Bridge

# Injective Chain

The Injective Chain is a layer-2 sidechain and Cosmos Zone connected to Ethereum. The chain itself is built on top of Tendermint and allows for the transferring and trading of Ethereum-based assets on the Injective Chain.

The Injective Chain's primary purpose is to power the Injective Exchange protocol, which is a decentralized peer-to-peer spot and derivatives exchange protocol. The protocol allows individuals to create and trade on arbitrary derivative markets.

# Injective Exchange Service

Unlike traditional exchanges which serve as gatekeepers to the crypto industry, Injective transforms an exchange into a decentralized public utility. What truly differentiates Injective is that we bring every component of a decentralized exchange to the public. Everything — from the front-end exchange interface to back-end infrastructure to orderbook liquidity — is provided openly and for free. This transforms the traditional business model of exchanges as we eliminate the technical barrier to entry for individuals to freely run a highly performative exchange.

Injective’s model rewards relayers in the Injective network for sourcing liquidity. By doing so, exchange providers are incentivized to better serve users as they compete amongst each other to provide better user experiences. Thus, this allows users from all around the world to access decentralized financial markets.