Time to Gamble: A Longtail Bet on the Injective Ecosystem Repricing

Ecosystem Reviews
March 25, 2024

Good morning scrubbers. Today we are mainlining alpha and swan diving skull first into the Injective ecosystem. Let’s put our little brains together and think of a way to make some permissionless money. All T&Cs aside, not financial advice yada yada yada, time to get busy. Time to gamble.

Thesis: Jumping into the lacuna first

The bull market is ripping, and you want to be furthest out on the risk curve first. Devil take the hindmost and all that jazz. Put the pedal to the metal now, and you don’t have to go stupid later on in the cycle when its knives drawn in a great churn of greed.

Source: https://twitter.com/GCRClassic/status/1621989687878369282

Good old GCR delivered us this beautiful wisdom. Do yourself a favor and take it. We are already firmly into the bull market and a little late. With this piece, we are making time. It is all about spotting value gaps, and this entire thesis rests on one premise: Value gaps have to close. Injective has a market cap of $3.2 billy and an ecosystem of $170 million. This gap has got to close, and when gaps close, people who arrive early make money. The thesis hinges on the capital and value chasing $INJ spilling into the ecosystem and the whole thing being repriced as a result. This is where we stake our chips. Without further ado, let’s get after it.

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Good morning scrubbers. Today we are mainlining alpha and swan diving skull first into the Injective ecosystem. Let’s put our little brains together and think of a way to make some permissionless money. All T&Cs aside, not financial advice yada yada yada, time to get busy. Time to gamble.

Thesis: Jumping into the lacuna first

The bull market is ripping, and you want to be furthest out on the risk curve first. Devil take the hindmost and all that jazz. Put the pedal to the metal now, and you don’t have to go stupid later on in the cycle when its knives drawn in a great churn of greed.

Source: https://twitter.com/GCRClassic/status/1621989687878369282

Good old GCR delivered us this beautiful wisdom. Do yourself a favor and take it. We are already firmly into the bull market and a little late. With this piece, we are making time. It is all about spotting value gaps, and this entire thesis rests on one premise: Value gaps have to close. Injective has a market cap of $3.2 billy and an ecosystem of $170 million. This gap has got to close, and when gaps close, people who arrive early make money. The thesis hinges on the capital and value chasing $INJ spilling into the ecosystem and the whole thing being repriced as a result. This is where we stake our chips. Without further ado, let’s get after it.

Injective: The blockchain built for finance

Injective markets itself as ‘the blockchain built for finance.’ Built using the Cosmos SDK and Tendermint consensus engine, it throws up some impressive numbers. Self-reported to execute 25,000 transactions per second (TPS), possess instant finality, an average block time of 0.8 seconds, and an average transaction cost of $0.0003. Not bad bucko, not bad. Developers get a bunch of out-of-the-box financial primitives, including an on-chain order book, and Injective is interoperable at the beginning:

  • Natively integrated with Ethereum via the internal bridge.
  • IBC-enabled ticks the box for the entire Cosmos ecosystem.
  • Wormhole lays the tracks to and from several chains, most notably Solana.

On-chain MEV-resistant order book is a sheer buzzword. But that’s good for us. Injective shares liquidity across all its DeFi applications, and this aggressive drive has helped foster capital-efficient markets (ironic that we are planning to snipe an inefficiency).

Lads, do not get distracted. Remember we are bidding protocols in the Injective ecosystem. What follows is due diligence in understanding the land upon which you are buying your hotels.

Injective has been built from the ground up to serve the financial vertical. Its on-chain order book based exchange leverages the Frequent Batch Auction (FBA) model and eliminates front-running, MEV, and sandwich attacks. Defining the FBA: orders are accepted over a discrete period, they have a uniform clearing price, and all bids are sealed. This model is genuinely an improvement even on the Continuous Double Action (CDA) used by the majority of centralized exchanges (CEXs). These auctions happen every block, and Injective is really out there doing the lord’s work for on-chain traders. There is no concrete attempt to become an island. Rather, Injective’s broader philosophy comes from serving utility-based native dApps. It boasts:

  • An Oracle module, which allows any application to tap into all of the integrated Oracle solutions.
  • A custom smart contract environment (CosmWasm) that allows the auto-execution of smart contracts at the start of each block. Essentially, DeFi applications auto update which is another big boon for liquidity provisioning strategies.

Moving pieces include Injective Labs and the Open DeFi Foundation. Injective Labs keeps building core modules for developers and sometimes turns its hands to building dApps such as Helix. The Foundation manages the purse strings (it drives adoption and development by turning the money tap on). Bruv what about token? $INJ is the native token and is used to secure all financial activity occurring on the Injective chain. Staking rewards are decent, and best of all, it is fully diluted. All tokens are already circulating and there are no supply overhangs or anything nasty to worry about. What you see is what you get, and $INJ exists in a state of fully-discovered pricing.

Technically, this is only half true. $INJ’s annual inflation rate began at 7%, with plans to steadily reduce to 2%. The initial supply is fully released (100,000,000), with the Treasury holding a good chunk for incentives, and the current supply of $INJ is 82,284,6181. It is a game of cat and mouse between inflation and auction burning, but the net picture is positive.

Source: https://hub.injective.network/auction/

The big hitter value accrual mechanism is the auction and burn mechanism. Get ready for some schizo math, lads - little buggers are pulling levers in the background.

  1. The exchange module charges trading fees (to prevent spam) and comes with a fee contribution model.
  2. dApps leveraging Injective’s shared order book get 40% of the fees they create, and the remaining 60% goes to auction.
  3. The highest bidder buys a wad of stablecoins, pays in $INJ, and the proceeds get burnt.

Nearly a quarter of a billy has been burnt using this mechanism, and this is the big economic lever for token holders outside of the classic “I believe somebody else will be willing to pay more for this token than I will pay today” thesis. Co-founder Eric Chen calls this a ‘‘value link with platform activity.’’

$INJ bull case

1) Sector-specific chain

Markets like the flavor of sector-specific environments (app-chains and custom execution environments) and Injective is fully specced out for finance. Its on-chain order book allows for symmetrical offerings to centralized platforms, and this raging hard-on for deep liquidity is genuinely superb. Have you ever traded on a dog shit tier CEX? I bet you money that this exchange is probably placing your bids on Binance on the back end. They can only do this because they have custody of your assets. And this is a large part of why CEXs have been essentially the Mongols of crypto alongside access to stupidly large liquidity pools. Injective’s on-chain order book is the higher level of this process except non-custodial, and in the future, we will probably witness a flip when centralized service providers start tapping into DeFi’s liquidity.

2) Modular connectivity

Injective is also ruthlessly pursuing dev dominance and lunging aggressively into the modular world. Its most recent addition inEVM is a rollup that is essentially language agnostic being Ethereum-aligned and enjoying composability across Cosmos and Solana. Injective partnered with AltLayer to build a staking security framework for on-chain inEVM applications and they are going for the jugular. Anybody who can code in Solidity gains access to Injective’s performance, and these deployments show that the team knows exactly what matters. Getting skilled devs deploying in the ecosystem. We are going to dive into this in more detail later, but for now, remember two things: Injective is cannonballing into the modular space and gunning to bring all the most talented devs into its ecosystem.  

3) A bulltarded team & capital-efficient environment

As we wander through this piece together you will start to understand another meta element of the Injective bull case that cannot be easily replicated. The team puts in a crazy amount of hands on effort into building up the ecosystem and plugging the whole thing together. Bullish on metrics that cannot be falsified- literal proof of work being done in the trenches by the Injective squad.

The central bull case for Injective rests on its liquidity proficiency and more and more dApps or service providers tapping into these deep wells of Benjamins. And the team is pushing this envelope every chance they get. Injective’s Open Liquidity Program (OLP) is a big financial incentive for market makers to deepen liquidity on-chain. It uses a bunch of nerd metrics ‘dual-sided liquidity, liquidity depth, bid-ask spread, market maker uptime, volume (maker and taker),’ but none of this matters. All we need to know is that Injective is shilling out $INJ tokens to big market makers to provide the best possible trading experience on the network. They are paying to develop their own bullcase. Bullish.

Supported by the shill gods (Binance, Pantera, and Jump) bullish again. Injective is also aggressively targeting horizontal scaling with its new modular plays and bringing all VMs (Virtual Machines) under one roof. And Injective has proven to be a black hole for funding. Listen to Eric Chen speak, and you understand why. He has that Web2 “give me unlimited funding” tone. That brings us nicely to the ultimate point. But why be truly bullish on Injective? Look at Eric Chen and Albert Chon (co-founders.)

Getting into the gaps early: A look at the ecosystem

This entire thesis hinges on a repricing event and a value gap closing. Before jumping in, we need one quick caveat. DeFi in Cosmos has always been a bitch. No other two ways around it. Huge staking APRs are a natural disincentive to risk-taking and the rewards have got to be juicy to force people away from the Keplr dashboard. Plugging your $INJ bag into a validator and walking away with more or less 13.5% annually is not bad. But this is for pussies. We are betting big on the ecosystem.

If you are happy with 13.5% annually pack it up and go buy some TardFi stocks. You are not ready for where we are going. Injective has a disgraceful amount of liquidity, speculative appetite is trending up like my package after popping a cialis, and a massive pile of capital chasing few options is a schmoney setting.

Source: https://dojo.trading/

DojoSwap: Team shipping like crackheads

DojoSwap is absolutely lethal. This decentralized exchange (DEX) is the one; a market cap of $100 million is FUD. The DEX playbook has forever been golden, and these tokens are the central beta plays for leveraged exposure to the native asset. Have a read of Viktor’s piece to understand this better. This team is shipping like crackheads and is a driving force on-chain.

DojoSwap Offerings

  • Traditional swaps
  • Airdrops
  • Launchpad
  • Farms
  • Pools (single-sided)
  • Vaults built on top (NinjaVault)
  • Token factory
  • Liquid staking

Swapping is pretty standard; nothing to write home about. Airdrops in almost all instances are worth peanuts - but great narrative for new buyers (wink wink). The launchpad is a zinger and similar to the Ordinals thesis (crazy amount of wealth and nothing to speculate on) launches on Injective are where you want to glue your little peepers. Overflow method is kind of gay but also genius. Everybody gets a piece of the action and is incentivized to deploy more DOJO/INJ LP, which means more buying pressure. All participants are entitled to participate up to 2X their Dojo net worth, but the last launchpad xNINJA only allowed a 1:1 ratio.

Moving forward DojoSwap has announced that $DOJO will be the main liquidity token and the gatekeeping tokens will be $SUSHI and $DOJO. Total holdings of $SUSHI and $DOJO dictate future launchpad allocation at a 1:1 ratio and please observe how the team always turns the capital hosepipe back onto existing tokens - elite level flywheel operational efficiency.

Worth noting that Farms paying scandalous APRs still, pools solid but better to leverage vaults. Token factory lets any spazmoid spin up a token and deploy it, and liquid staking is liquid staking, but the team encourages a 50/50 split and to form an LP token to juice the yield.

Crackhead Shipping

The team delivered the first CW404 (ERC-404) token standard in the Cosmos ecosystem and collaborate heavily with Injective to integrate these models as standards across the ecosystem. This was a launchpad project on DojoSwap called Sushi already up basically 7X up from the ICO price. Now Injective has the CW20 token build (reflection token/ run those old ponzi-like tokens back turbo), and all assets held on the platform entitled users to the BabyDojo airdrop - the first instance of this new standard. What is a reflection token? A token that has a ‘parent token.’ They have taxes, and a portion of revenue generated from trading activity is used to buy this parent token and distribute or ‘reflect’ it to those holding the reflection token. Word to the wise: never hold the reflection token and dump it for the main token as soon as possible unless you’re jeet-level early and only plan to hold for several hours. They have no sticking power and are not good beta plays on the principal token. Reflection tokens are a straight up mid-curve play. Look at the $BABYDOJO chart for proof.    

Source: https://dexscreener.com/injective/inj17ufy5gqw33t0prwhkwa6ensv0jpj3xfvylgx8j

BabyDojo launched at a $25 million valuation, and this reflection token has been designed and launched to pump the bags of $DOJO holders. Yes, let that sink in. The devs at DojoSwap are doing everything they can to pump their holders' bags. I smell money. $BABYDOJO has a 10% tax per transaction: 8% to reflection rewards, 1% to burn $DOJO, and 1% to liquidity pool. This token thrives on volume, and more trading means more burning and higher reflections. All 4.2 billion tokens were issued to community with devs holding 0%. Those who received this airdrop had two options. Cash in your chips and walk away with a decent airdrop, or receive daily $DOJO airdrops. I jeeted this fucking hard. When I read $0.42 of $BABYDOJO per $1 of $DOJO, the math was not mathing, and when the math aint mathing, you gotta get to jeeting.

In DojoSwap’s recent medium article they are quoted as saying ‘‘The goal of what we do is to create a spirit of WAGMI that transcends into the strongest wealth effect for all our most loyal of holders. We will always strive to ensure to build value for all the Dojo believers…. It is barely the beginning of the largest bull-run backed by BTC ETF after all — we’ve much more to give.’’

The team are bulltards. Perfect.

Source: https://docs.dojo.trading/introduction/usddojo-tokenomics

$DOJO Tokenomics

$DOJO still has a stonking inflation rate and a max supply of 800,000,000. Look at the breakdown.

Liquidity Incentives: 85.5%

Launchpad: 2%

Liquidity Forming: 0.5%

Marketing & Ecosystem Grant / Airdrop: 6%

Platform / Dev Expenses / Treasury (vested over 12 months): 6%

Basically you’re getting absolutely cucked if you’re not farming. Thank god we are in a bull market where bullish flows (new holders) have the upper hand versus bearish flows (token emissions). The change of using straight $DOJO in launchpads instead of DOJO/INJ does make a difference. Now, instead of suffering impermanent loss or having to swap in and out of positions to participate in launchpads, you can take your whole stack and dump it in the $DOJO Ninja Vault, currently yielding 118%.

All projects that launch on DojoSwap become part of the ecosystem and are incubated to feed the larger flywheel. Plans to introduce vote-escrowed $DOJO will provide a token sink (please do not be this guy; keep everything liquid) - another boon to flows.

$DOJO Bull Case (Hopium Smoking)

Napkin hopium math: PancakeSwap peaked in early May 2021 at a market cap of roughly $7 billion when Binance Coin had a give or take $100 billion market cap. DojoSwap trading at a similar ratio to Injective’s current valuation would be a market cap of $224 million. Fucking lol. Imagine the smell. A more contemporary comparison comes from the relationship between Solana and Jupiter. Solana is roughly 48X larger than Jupiter, and currently, Injective is 106X larger than DojoSwap (hold tight the napkin math). Let the value gaps close, and the long tail risk bidders enjoy, baby.

What do you think comes next, young padawan? DojoSwap is the prominent and leading DEX on Injective and a one-stop-shop for anything speculative you want to do on-chain. The DEX’s success to date has led to the creation of Dojo Labs, and the access to deal flow prompted the team to start participating in seed rounds. Logistically it looks like this:

  1. provide seed funding for tokens
  2. project launches
  3. profits realized
  4. tokens locked in multi-sig for further investment or distributed to $DOJO holders (in future)

Shipping rate is something that cannot be manufactured or falsified. Blood, sweat, and tears turning into dollars before your very eyes. Which way will you go western man?

Observing DojoSwap’s rate of progress has been like watching the birth of a monster.

Rating: Market bid with high slippage no fucks given.

Source: https://app.hydroprotocol.finance/

Hydro: Pulling money away from validators?

Hydro is the most promising liquid staking solution on Injective to date and the best bet for pushing huge amounts of liquidity into the ecosystem, pulling it away from in-house wallet delegation programs. $hINJ is Hydro’s liquid staking token (LST), and users mint hINJ on a 1:1 basis with $INJ. This 1:1 ratio is always honored, and anybody can redeem following the unbonding period (21 days). The broad rule of thumb is always swap into LST positions and unbond out. Snag any arbitrage where you can brother man. Unless you’re near the back of the queue and things look shaky, then just eat the basis points and swap out. This is the greatest advantage of LSTs - they are liquid. LSTs remain criminally underappreciated. They boast the best product market fit (PMF) of any DeFi primitive, and you get to eat your cake while leveraging it for lending, farming, or trading. Base strategies include pairing equal parts of LST and the underlying asset (one of the only times yield farming actually works with assets that behave similarly.) But the real gangsters take their LST as base collateral and leverage up their exposure to the ecosystem on lending protocols.

Option 1: Loop base asset aka collateralize hINJ borrow stable, swap into hINJ, deposit, and loop until you feel the cold fingers of fear cupping your gonads (relatively safe depending on number of loops).

Option 2: Use LST as collateral and buy more speculative assets in the ecosystem.

$HDRO token: Flop or not?

The $HDRO token is currently live. Hydro ran a massive farming campaign allowing anybody to earn points that are steadily unlocking and exchangeable 1:1 for $HDRO. Clever fuckers slid in a cheeky clause that states that users farming forgo the staking rewards. ‘‘When using the Farm Feature, users are rewarded ‘Farming rewards’ in exchange for LSD yields. Farming rewards are distributed at a standardized 00:00AM UTC, and calculated according to share ratio. Rewards are claimable after 14-days (i.e. Day 1’s rewards are claimable on D+15, Day 2’s rewards are claimable on D+16 etc.) The Farm feature is available for a limited time.’’

Source: https://app.hydroprotocol.finance/farm

What does this mean in human speak? You win if $HDRO trades above the value of $INJ staking rewards. You lose in any other scenario. Any $hINJ in the Hydro Farm is forgoing $INJ-denominated returns in favor of $HDRO. But when everybody expects everything to go up you want to be yield-maxing. Become the yield maximizoooooor.

On Hydro you stuff all your $HDRO tokens into governance to mint xHDRO (netting some yield here), then slam this into the farm to jack up your rewards (turbo-charging). Farm and dump baby - play the game until things start to look dicey. If you want $INJ-denominated returns, do not stake your $hINJ in the farm, or if you are not a smooth brain (and dependent on size of stack if juice is worth the squeeze) stake in the farm and swap rewards into $INJ. Where is the yield coming from? This is classic liquidity incentivization, and the counterparty is schmucks buying and betting on $HDRO (don’t let this be you).

Are the tokens of LST protocols cursed? Lido is the leading example, but $LDO holders get jackshit. Lido charges a 10% fee, 5% to validators, and 5% to the DAO. Holding $LDO is owning a say so small that you’re irrelevant in how somebody else spends money. Will $HDRO be different? The three main functions of Hydro’s token are Liquid Staking, Auto Compounding, and Farming (liquidity bootstrapping). But the most interesting component is Hydro’s in-house structured earning product - Real Yield Asset (RYA). Hydro charges a 10% annualized fee on core features, and $HDRO holders will receive up to 30% of these rewards. $hINJ holders additionally have the option to receive their staking rewards denominated in $HDRO instead of $hINJ. Other use cases include amplified yield boosters on farming and governance rights for users who stake their $HDRO for $xHDRO.

Source: https://twitter.com/hydro_fi/status/1756974233782272153

Wrapping Hydro Up

The total raise amount is undisclosed, but all a raise means is that airdrop receivers eat well. This highlights another net bullish reason for $INJ. The Injective Venture Group does everything it can to foster nascent products. But the devil is in the details, and one small fact tells us everything we need to know.

Source: https://hydro-finance.medium.com/about-hdro-airdrops-6310c03445d4

Anybody staking $INJ on the 4th of January would have been included in the snapshot. Airdrop will be split into two rounds, with the second round exclusively for $HDRO stakers and $hINJ holders. Hydro has massively favored $INJ stakers in the first distribution of the token. The telling fact? This team wants to get tokens in the hands of people and build a network effect.

Listen up goon squad. Time to cut through the noise.

$HDRO will be used to incentivize liquidity on the platform. It has enough plausible use cases to get people to buy it. Plus, Hydro obviously has plans to expand its revenue base through its RYA strategy. Happy to be wrong, but you do not want to be betting big on this token. It is a nice side burner you will get for free via using the platform. Roll it all up, farm the death out of it, and dump it in the ninth innings.

Rating: Certainly worth farming and dumping. Bullish on Hydro and pulling liquidity into Injective’s DeFi ecosystem. Not bullish on being a $HDRO bagholder.

Source: https://app.nept.finance/

Neptune Finance: Injective lending primitive

Neptune Finance launched on mainnet in late January this year and is the largest lending protocol on the Injective network. Still a tokenless protocol, and if you don’t know what that means, you’re NGMI this cycle. But because I’m a stud, I’ll tell you. If you start tagging ecosystem activity, you put yourself on Santa’s list for future free internet money. There are literally 3,000 wallets currently active on the dApp. It ain’t hard to make yourself known to the planet furthest from the sun. Interest rates are determined by a ‘PID Controller,’ and I had no idea what this was. Turns out PID stands for ‘‘Proportional-integral-derivative controller.’’ Bruv, that’s a ten-dollar word to say when market utilization rates are high, you have to pay more. Neptune has its grubby mitts on the same economic levers all lending protocols use to financially incentivize market equilibrium.

Operating on bare bones, Neptune has that boring UX that solidifies it as an ecosystem building block. No frills, no bells, nothing sparkly, just pure autistic capital-efficient lending and borrowing. I say that but the protocol is incentivizing activity with a points system and has a number of ‘accolades’ little trophies for completing specific tasks.

Source: https://app.nept.finance/leaderboard/

I’m a big supporter of gamification in any form, and with barely any players, getting points on the board is easy. But we are interested in the future of Neptune. Current functionality is like any stanny lending protocol. Supply assets and earn fees from borrowers. When you deposit you get nTokens (your receipt for deposited assets in the pool). You can then collateralize these nTokens and unlock lending functionality. One unsung feature currently available is the ability to set up multiple accounts under a single wallet. (Can you smell it? The constant background hum of professional financialization that pops its head up in all of these Injective protocols?) Yes lads. Cross-margin borrowing and isolated borrowing all from the same interface. Either use a basket of assets as collateral or if you want to go degenerately long via a leveraged loop on a single asset, you can set up a sub-account to do so.

Bullish Things That Don’t Exist Yet

Neptune is purportedly developing several things that excite me:

  • collateral swaps
  • flash loans
  • gasless swaps
  • vaults and
  • overleverage

The ability to do collateral swaps natively on a lending platform is elite. It does what it says on the tin: you can swap your collateralized assets without having to repay the loan. Currently only supporting $INJ, $ETH, $USDT, and $ATOM on the supply side (I told you broskis it was barebones autism), Neptune will have to integrate more assets to make this function exciting. Noteworthy that just before going to press hINJ has been added as collateral, but the cap has been reached, so you’ll have to be fast. Flash loans, yeah whatever, table stakes at this point. Gasless swaps basically swapping a bit of your asset for the gas token on the destination chain (actually hella useful in the IBC world.) Vaults will be great as a value accrual point, and overleverage lets you automatically loop up borrowing and exposure. Closing up, Neptune is already the premier lending protocol in the Injective ecosystem with a relatively pathetic $4 million TVL.

Unironically you are early to this one. My wallet does not like all the telegraphing of the airdrop because it means the likely distribution will be dogshit. However, I personally am a big fan of teams doing whatever they have to in order to bootstrap.

Rating: Frontpage tokenless lending protocol is easy money at this stage.

Source: https://helixapp.com/

Helix: Elite-Tier DEX  

I could jabber on about Helix all day but brother man. Do yourself a favor and just use it. You will save me many words and the chiefs a couple of bucks. Helix fucks. The trading experience is seamless and genuinely one of the best DEXs I have ever traded on. “But Pango, if so good, why so few words?” Injective Labs shipped Helix, and as such, the probability of a token is astronomically low (no desire to divert value from $INJ). This entire project is a value accrual vector for $INJ.

All you need to understand is that this is a professional trading hub built by professional traders and a great onboarding funnel into the broader ecosystem. Helix has one job in my eyes: get more poors and institutions trading spot and perps on the Injective blockchain.

Rating: No token nor hope for a token but Helix fucks and gets more liquidity on-chain trading, grooving, and a movin’. Sick primitive for larger Injective flywheel

Source: https://mito.fi/

Mito: Launchpad $GVNG

Mito is big, baby. Big, fleshy, voluptuous like the lovehandles of their based devs. Another dApp shipped by Injective Labs, and you already know it is pure like Uncle Jeff’s fish scale. Same rules as Helix: 0% chance of a token, but who cares when there is a launchpad. Who do you think has the best access to deal flow in the Injective ecosystem? Put two and two together and you already know the mission. Ape irresponsibly into every launchpad project. There are a bunch of protocol features, including vaults where you can automate earning and swaps, but all we care about is the launchpad. Each funding round has different criteria, and you can be sure as hell that Injective Labs has not missed the opportunity to build the flywheel. You know that staking $INJ will steadily become a more common criterion.

Source: https://mito.fi/launchpad/inj1cpwphh4zvehcd4vrvxrpn8zdve4sl8x69cpem2/

Stake more to make more. Projects can set their own eligibility, and the first launch on Mito, Quants only allowed those holding a Quant NFT to participate (gatekeeping to create post-launch demand- noice). Mito, similarly to Dojo, uses an overflow method. Everybody gets their little taste, and it encourages everyone to deposit way more than they should to get a decent-sized allocation, and that is all more green button clicking in the order books.

Net bullish on Mito because it simplifies and encourages button clicking. Vaults have crazy APRs, and people love that shit. Please if Injective Labs sees this (editor's note: they won't) or anybody who knows them sees this, get them to ship a Zaps feature to add that creme de la creme user experience.

Overall Mito is winning. Launchpad participants get a 50/50 distribution meaning 50% raw tokens and then the other half as token/INJ pairing in the liquidity vault. These motherfuckers driving $INJ buy pressure at every corner. Basically, all projects get automatically enshrined into the protocol post-launch. It is a slick operation. Personal opinion yoink tokens out of the liquidity vault pairing asap. Bruv the set up is just so nice. Built by the team with elite-tier deal flow access. Vested interest in all projects launched on there succeeding for optics. And all tokens automatically engrained into the ecosystem. It is fucking free money. All you have to do is pick it up.

Rating: Ape launchpads like your life depends on it

Source: https://injective.talis.art/

Talis: NFT gang report  

Ya boy ain’t much of an NFT guy, but even I can see the value of Talis. The medium page yaps on about true ownership and ‘unlocking a world where ownership is decentralized, borderless, transparent, and accessible to all.’ Looks good eh? The central factor is that Talis is the front-page NFT marketplace on Injective, and you can either flip NFTs or buy $TALIS.

Source: https://blog.talis.art/revenue-share-module-has-officially-entered-audit-1b3fb1b72f34

The revenue share module has started its audit, and almost all actions taken on the platform feed value back to $TALIS stakers. The thesis is simple. Do you think there will be more NFT trading volume on Injective? Do you want exposure to this activity without having to buy a thousand spazzy jpegs? Shortcut the whole thing and bid $TALIS. Leading collections Sushi Fighters (guess who got one of these from the DojoSwap launchpad) and The Ninjas both have relatively low floor prices. The former has a 22 $INJ floor price (basically $1,000 and change), and the latter a 15 $INJ floor price (literally 3 figures), still chump change in the NFT space.

Rating: Easy play but dependent on whether NFTs take off on Injective

Memecoins: What’s cracking?

Memecoins have replaced NFTs as the primary speculation vehicles this cycle and are the perfect confluence between global, frictionless markets and human greed. No honest report could neglect to include these beautiful assets. Injective has a few figures worth mentioning:

Quants ($QUNT)- ‘the last $QUNT you’ll buy for wife changing money,’ enough said. MC $3.6m

Dogwifnunchucks ($NINJA)- the first and largest memecoin on Injective. MC $15.1m

Kira $KIRA- a ninja cat. MC $7.4m

BabyDojo ($BABYDOJO)- a reflection token launched by DojoSwap. MC $10.4m

Imma be straight-up honest with you lads. The memecoin juice is fully on Solana, and yeah you can fling some shit around on Injective, but the underlying financialization of the chain does not lend well to memecoin speculation. Sometimes you gotta feel this stuff in your gonads, and the hyper-efficient design philosophy has almost killed on-chain memecoin reflexivity. I don’t know how I know, and happy to be wrong, but I would take your capital elsewhere. If I was going to bid one, I would buy $QUNT because it sounds funny, and who doesn’t want wife-changing money. $NINJA also looks good as the leading meme token, which always carries a premium.

Shit I couldn’t put elsewhere

Hands On & Based Team

One massively underappreciated element of Injective and a net bull case for the growth of the ecosystem is the sheer amount of hands-on technical and financial support the Foundation provides builders. Rare to see an ecosystem taking such care to foster green shoots.

Modular Thesis Tailwinds

Omni Network (EigenLayer AVS built to unite rollups) has integrated $INJ into its Open Liquidity Network, allowing the token to be utilized across all layer two rollups. Bullish. In the event that architecture in crypto transitions towards using alternative data availability solutions and RollApps, the Cosmos ecosystem will attract a thick wad of capital and the rails are already built in for Injective. The RollApp thesis playing out on Dymension is a blatant broad bull case for Injective.

SocialFi dApps

Out is a new SocialFi project currently in beta on Injective and SocialFi is still yet to have its breakout moment. When friend.tech points turn into liquid tokens, expect another tidal crash of interest. Plus, there is the laughably obvious trend of larger Twitter accounts pushing anything that financially benefits them. Look at the modern world and the prevalence of social media. Add to this financial incentives for D-list celebrities. If you don’t get smashed in the face with a slug of certainty that SocialFi is inevitable, you might as well check out now. Out builds on top of Twitter but tailors the experience for CT by introducing ‘Trenches’ and a vouching system. In short, it makes providing alpha rewardable and allows users to judge/ vouch for the quality of this alpha - bookmarking with a financial incentive.

Source: https://blog.injective.com/en/injective-launches-inevm-on-mainnet-the-first-rollup-to-hyperscale-concurrent-vm-development/

Modular Thesis V2

Say hello to inEVM. Launched on mainnet in March, this rollup is, in a word, lethal. Ethereum developers have been let into the playground to code dApps in Solidity while accessing Injective’s performance. It has tagged in all the big dogs. Caldera (rollup provider), Celestia (data availability solution), Hyperlane (bridging), LayerZero (data & asset transfer), and Pyth (oracle provider). But this is where shit gets a little nutty. inEVM has composability across Cosmos and Solana and is the first rollup where builders are not siloed into a single virtual machine. Now the term omnichain apps (OApps) is getting thrown about thanks to LayerZero integration. This infrastructure stack is hyper-scalable thanks to Celesita’s DA solution and is eradicating barriers between VMs.

But there is more. Injective has partnered with AltLayer to create a staking security framework for on-chain inEVM applications. Instead of only leveraging Injective’s security, these inEVM applications can now leverage Ethereum’s $400 billion security budget. Injective’s constant commitment to horizontal scaling and making the experience for devs as seamless as possible regardless of background to plug in Injective’s features should not be faded. inEVM has full interoperability across the Ethereum, Cosmos, and Solana ecosystems. Why all this trouble? The bulk of human capital is Solidity flavored. You want shit hot devs? You gotta have hardcore EVM compatibility. And now inEVM is Ethereum aligned and is the first rollup to hyper-scale the different VMs that reside in the Injective ecosystem. This all sounds like super-nerd-level shit and hella technical because it is. All you need to take away is that this is a gambit to snap up all the best human talent in the space. Human talent means good dApps, and good dApps and button clicking means money.

Place your bets: Everything on red

Time to wrap it up. The bull case on Injective more broadly is that all its liquidity tooling drags more and more action on-chain. Our bull case is that this value overspills into the ecosystem, and it gets repriced.

The bear case is that everything goes directly to zero without passing go and collecting $200. Layer twos are cheaper than ever, and the manlets are up big style. Operating in the layer one space is becoming an increasingly congested race, and let’s face it. Ethereum is for boomers, Solana for the next generation and jeets, and Cosmos has the nerdy feel. Kid sat in the corner with a superiority complex and a face full of acne, who, despite being right, is somewhat insufferable. Even the recent inEVM rollup play could get absolutely FIFA-yeeted by Monad & Sei V2. Nothing is certain in this life except taxes and Jump Crypto dumping on you. (If you can’t FUD your own bags, you don’t deserve to hold ‘em.)

Gather around the fire ya gremlins. You’ve got a disgraceful amount of capital washing around on Injective the vast bulk trapped in validators. New liquid staking tokens are launching which will help push this money into the DeFi ecosystem, and shout out Injective Labs building elite-tier protocols and not pushing tokens. What does this mean? A frenzy of speculation on the limited existing options. Liquidity is literally getting forced towards a handful of protocols.

Listen up fuckos and listen good. I ain’t just writing a research piece. I am putting my sweet shekels on the line with the rest of you. I will be loading $DOJO ruthlessly (remember farm or get diluted/ Ninja’s Stake DOJO Earn DOJO Vault is the one), participating in all launchpads (Mito & DojoSwap), hyper-farming and hyper-yeeting $HDRO, farming Neptune and praying that it integrates support for any LST (this box is already checked - literally days before going to print), and looping aggressively. I will do all this and roll all profits in and out of $INJ until the music stops. Now get up, rub those fucking crusty eyes, and bid like a man.  

DISCLOSURES: The author of this report, PangolinK, holds positions in the following projects mentioned: $INJ, $DOJO, $SUSHI, $HDRO, $hINJ. Please be aware of this bias while reviewing this report.

1. https://explorer.injective.network/

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