Elixir Protocol is expanding to the Injective ecosystem. For the first time ever, users on Injective will be able to easily supply liquidity to Injective’s on-chain orderbook module. This would in turn lead to a far more capital efficient environment while also allowing for a superior trading experience on native exchanges built on Injective, enabling end-users to capture yields.

Elixir Protocol is excited to formally announce its collaboration with Injective. With this upcoming integration with Elixir, the Injective ecosystem will be able to unlock far more liquidity for algorithmic market making on its orderbook. This integration enables users to passively supply liquidity to the pair(s) of their choosing, similar to how they’d supply liquidity to a Uniswap v2 pool, while also earning designated market maker rewards.

Injective will mark the first announced integration of the Elixir Protocol into an on-chain orderbook, opening up a new source of yield for users, democratizing access to market making, and creating a better experience for users trading on DEXs native to Injective.In turn, this would bring lower slippage, tighter bid-ask spreads, and deeper liquidity across Injective’s orderbook environment.

How Elixir Will Onboard Liquidity to Injective’s On-Chain Orderbook Module

Injective uniquely deployed the industry’s first truly on-chain central limit orderbook (CLOB) orderbook. This means trading settlement and execution all occurs on-chain. Developers can utilize the orderbook to rapidly build DEXs on Injective, vastly reducing the time required to launch. As an added benefit, all DEXs built on Injective can tap into the same liquidity environment which means a trade executed on DEX A can be matched with an order on DEX B, engendering a more capital efficient environment.

Elixir Protocol aims to take Injective’s on-chain orderbook ecosystem to entirely new heights. Elixir is decentralized infrastructure enabling projects to bootstrap liquidity to their orderbooks. The Injective integration marks the first of many for Elixir.

In the coming months, users on Injective will be able to passively supply liquidity to its orderbook. After supplying 50% of an asset and 50% of it’s denominating pair, their liquidity will be algorithmically deployed on the orderbook via our decentralized infrastructure, and enable users to tap into rewards provisioned by Injective. Thereby, opening up a potential delta neutral source of yield for all users.

Much like Uniswap V2’s x*y=k mechanism for making markets on a bonding curve, the Elixir protocol utilizes an industry-standard algorithm for deploying liquidity with a primary goal of keeping the user’s initial inventory balanced.

Typical yields for sophisticated traders on the Injective orderbook range from 50–200% for providing liquidity. The distribution of these yields to a broader base of liquidity providers will create a free market, normalizing yields to a healthier level while potentially distributing rewards across thousands of community members.

In the long run, this integration can allow DEXs building on Injective to further close the gap with centralized exchange venues, by providing everyone with the same robust experience but completely on-chain.

Elixir’s Injective Integration Timeline

Elixir is currently in its public testnet v2, boasting 10,000+ validators participating in our DPoS consensus, placing orders across three exchanges.

The technical components of Elixir’s Injective integration are currently in the works, and we expect to release a first version of the integration in the coming weeks. This version will be smart contract audited and fully functional, with Elixir running the backend infrastructure in a “trusted mainnet” release of the protocol. Through the rest of the year, we will progressively decentralize the protocol, until mainnet release (enabling the full decentralization of the network).

Elixir’s Participation in Injective’s 2023 Demo Day

Elixir is proud to be presenting our native integration with Injective in their 2023 demo day. We will be running through the details of Elixir Protocol’s integration with Injective, as well as answering questions during the forum.

This is a chance for the Injective and Elixir communities to dive deeper into the integration, ask questions, and gain a better understanding of how they can use Elixir to further democratize financial access, while creating a more capital efficient environment for the Injective ecosystem.

We hope to see you all there. In the meanwhile, feel free to jump into our community channels, interact with the Elixir Protocol in testnet v2, and learn more about Elixir by reading our docs via the links below:

Docs: https://docs.elixir.finance
Website: https://elixir.finance
Testnet: https://dashboard.elixir.finance
Discord: https://discord.gg/elixirprotocol
Telegram: https://t.me/elixirprotocol