Injective Deploys Volan Upgrade, Enhancing Connectivity with Cosmos Chains

Injective, a layer-1 blockchain built on Cosmos infrastructure, has recently released a mainnet upgrade named Volan.

Injective Deploys Volan Upgrade, Enhancing Connectivity with Cosmos Chains. Photo: Project Website

The focus of this upgrade includes integrating software modules to support Real World Assets (RWA) on-chain, which encompass tangible assets like commodities, real estate, or artwork, tokenized on the blockchain.

The platform aims to provide structured financial products for both retail users and large organizations. This product line can be used as an alternative to direct investments, as part of asset allocation to minimize portfolio risks and align with current market trends. According to the roadmap, Injective plans to support RWAs such as fiat currencies, collateralized debt obligations, and exclusive credit products.

RWAs represent a nascent narrative with significant growth potential in the future. For instance, tokenized securities saw considerable growth in 2023, with the market size estimated at over $500 million USD, according to data from Dune Analytics. This is the driving force behind Injective's initiative to lead this wave through the Volan upgrade.

As part of the update, Volan also focuses on expanding the Inter-Blockchain Communication (IBC) protocol of Cosmos on Injective, enhancing interaction capabilities between Injective and other chains within the Cosmos ecosystem.

Additionally, Injective has updated inflation parameters on the chain, aiming to transform INJ into a deflationary coin over time. Moreover, the upgrade introduces a new oracle platform, integrating off-chain price data directly into the blockchain.

The price of INJ seems subdued ahead of the new upgrade. In fact, it has decreased by nearly 5% over the past 24 hours, amidst overall market corrections.

1-hour chart of INJ/USDT pair on Binance as of 10:15 AM on January 12, 2024

Alongside refreshing existing mainnet capabilities, Injective is also developing a layer-2 solution compatible with Ethereum called inEVM. Unlike other EVM solutions for layer-1 like NEAR Protocol's Aurora or Solana's Neon, inEVM is a direct-linked rollup with Injective, leveraging the security features of the parent blockchain.

Founded in 2018, Injective is a blockchain development project based on the Cosmos platform and was incubated by Binance Labs, launching its INJ token IEO on Binance Launchpad. In August 2022, the project successfully raised $40 million USD from Jump Crypto and deployed a $150 million USD protocol development fund in early 2023.