The core contradictions of the industry have gradually become clear over the past two years
The on-chain market size is rapidly expanding
But the risks on the chain are fragmented
Depth is fragmented
Prices are fragmented
The liquidation path is also fragmented
Each chain, each protocol, and each asset is like an island
There is no unified liquidation framework
There is also no risk alignment mechanism
This means a very dangerous thing
Any pressure from any part of the on-chain will spread into systemic risk
And the system itself has no ability to handle this transmission
That is why the multi-chain ecosystem has frequently appeared in the past year
Price gap
Liquidation congestion
Cross-chain premiums have long existed
Structural assets cannot be effectively priced
Perpetual markets experience long-term fluctuations that overshoot
These are not issues of individual protocols
But rather the entire chain-level market lacks a 'unified liquidation structure'.
The core value of Injective has undergone a qualitative change here.
It is not trying to piece together more markets on-chain
But it is the first time to integrate liquidation logic into a system structure
Allows the entire system of perpetuals, indices, portfolio assets, cross-chain price differences, depth networks, risk buffers, etc.
Sharing a unified liquidation framework.
Without this layer
On-chain can never become a true financial market.
I have systematically dismantled the unified liquidation structure of Injective from five professional perspectives.
First, the liquidation of Injective is driven by price structure, not by single-point events
On most chains
Liquidation is price-triggered
Is an event
Is a point in time
Is discrete
But the liquidation logic of Injective is not triggered by a certain price point
Is triggered by price structure
Price structure includes
Depth distribution
Order density
Transaction path
Index deviation
Cross-market price differences
Thus, liquidation has continuity
The pressure of positions is not accumulated instantly
But is gradually absorbed as the structure changes
This allows Injective to bear more leverage
And can also avoid systemic踩踏.
Second, the liquidation pressure of Injective can be dispersed across assets
The liquidation path of traditional chains is isolated
A certain perpetual market exploded
There will be no other structures to bear the pressure
The structure of Injective allows risk to migrate between assets
The risk part of perpetuals is absorbed by the index
The deviation of the index is diluted by the portfolio
The tail pressure of the portfolio is smoothed by structured tools
Cross-chain perpetuals also pass this part of the risk back to the external market
This means that the liquidation logic of Injective is not a single-market solution
But rather the entire system bears it together
This is the core feature of the unified liquidation structure.
Third, the liquidation path of Injective has predictability
Most chains cannot predict the path of liquidation
Caused by
Chain explosion
Depth is instantly drained
Price gaps exceed model expectations
The liquidation of Injective is path-based
Pathway means
You know the pressure will first enter perpetuals
Then remap to the index
Then spread to the portfolio
Then enter cross-chain price differences
Finally compensated by arbitrage
This path-based liquidation
This is the first time on-chain that a modelable risk release process appears
This is crucial for institutional strategies.
Fourthly, the liquidity of Injective will actively participate in liquidation absorption
In traditional chains
Liquidity is just the result
Liquidation occurs
Liquidity exposure
Liabilities expand
The liquidity of Injective is structural
Depth will automatically encrypt in the direction of pressure
Orders will redistribute according to risk
Cross-chain arbitrage will compensate for price deviations
Portfolio rebalancing will weaken tail volatility
Liquidity is no longer passively bearing risks
But rather actively participate in the liquidation process
This is the capability most needed for a unified liquidation structure.
Fifth, the liquidation of Injective possesses cross-market calibration capability
This is also the core advantage of Injective
On chains without cross-market calibration capabilities
Liquidation will amplify market deviations
The more the price deviates, the clearer it becomes
The more clear, the more deviated
Injective is the opposite
Perpetual basis will calibrate direction
The index will calibrate trends
The portfolio will calibrate weights
Cross-chain perpetuals will calibrate external markets
Arbitrage will calibrate the overall pricing system
Liquidation does not amplify deviations
But rather correcting deviations
This is a characteristic of mature financial markets
And Injective is bringing it on-chain.
Summary
The value of Injective far exceeds trading depth and ecological expansion
It is building the first 'unified liquidation structure' on-chain
Including
Price structure
Risk structure
Liquidity structure
Cross-market structure
Execution structure
These structures are integrated into a liquidation system
Allows Injective to not only bear transactions
Can also bear risks
Can also bear market synergy
Can also bear cross-asset structures
Can better bear a true on-chain financial market
The industry has always lacked a market foundation layer
Injective is making up for this most difficult cornerstone
And to make up for this layer of the chain
Only then is it possible to become the center of future on-chain finance.
