According to the company’s announcement, Injective will launch derivatives that use AVAX, Avalanche’s native token, as well as other native Avalanche assets. Injective is a Layer-2 decentralized exchange protocol built on the Cosmos SDK and is fully interoperable with the Ethereum Virtual Machine (EVM).
The integration will involve two phases, with the first phase being the integration with the Avalanche-Ethereum Bridge (AEB). The second phase will involve the creation of entirely new interoperable derivatives, including indices that track baskets of popular digital assets.
The new products Injective builds on Avalanche, such as Initial Litigation Offerings (ILOs), will also be used on Injective.
“ILOs for instance hold tremendous potential as it is currently a $10 Billion asset class out of reach for most retail investors,” the company said in the release.