Following the recent announcement of Elixir’s native integration with Injective, we’re excited to provide further updates on the integration and details on the user flow.
Elixir will allow users to easily supply liquidity to pairs on Injective and earn rewards from Injective’s new Open Liquidity Program (OLP).
Through OLP, liquidity providers can earn a share of 60,000 INJ tokens per epoch. Injective’s native integration of the Elixir Protocol will enable users to supply their capital to the orderbooks on Injective, deepening liquidity on the exchange while also allowing users to take advantage of the OLP rewards.
Elixir re-imagines market making via the industry’s decentralized, algorithmic market making protocol – for both centralized and decentralized exchanges.
Injective is a prime example of how decentralized orderbooks can integrate Elixir to unlock user liquidity for algorithmic market making, showcasing a simple way for anyone to supply liquidity to orderbook pairs.
Elixir also brings a familiar and easy-to-understand risk profile to liquidity providers, with a risk/return profile nearly identical to that of provisioning liquidity via x*y=k bonding curves (e.g. Uniswap V2).
The process flow for users looking to deploy liquidity to a specific pair on Injective is straightforward:
Users can supply liquidity to pairs either via Elixir’s Injective page, or via clicking the link on the pair within the Helix front-end (directing users to supply liquidity to the pair via Elixir).**
Users either deposit 50/50 of the pair assets for spot-trading pairs, or deposit stablecoin collateral for perpetual swaps.
Users will receive an LP token representing their position, enabling them to track the value of their INJ token rewards (claimable weekly) with each epoch.
At any time, users can redeem their LP positions for either the core assets or perp collateral.
Through Elixir, users will be able to easily supply liquidity to orderbook pairs and access the rewards provided by exchanges (like Injective) that have historically been reserved for white-labeled market makers. This unlocks a new source of yield for users and enables deeper liquidity for those looking to trade on orderbooks.
The smart contracts are currently in development, and we are looking forward to releasing this native integration with Injective in the coming months.
To learn more about the integration or ask any questions, keep an eye out for our upcoming Twitter Space with the Injective team on June 28th at 10am ET.