What is Injective?

Injective Protocol (INJ) is a blockchain project focused on decentralized finance (DeFi), particularly in decentralized exchanges (DEXs). It enables fully decentralized trading of spot, futures, and derivatives markets directly from users' wallets. The protocol utilizes a layer-2 scaling solution on the Ethereum blockchain, and it is designed to be interoperable with multiple blockchains.

A key feature of Injective Protocol is its speed and efficiency, enabled by its layer-2 structure, which allows for lower latency and reduced transaction costs compared to traditional Ethereum transactions. This enhances accessibility for a wide range of users, from retail to institutional traders.

Injective Protocol operates in a permissionless and trustless trading environment, giving users complete control over their funds, unlike centralized exchanges. It uses a decentralized order book and a Tendermint-based Proof-of-Stake (PoS) consensus mechanism to support scalability and security.

The protocol's governance is driven by its native token, INJ, which is used for governance, staking, and liquidity mining. Token holders can participate in the governance process, ensuring that the platform remains decentralized and community-driven.

What is INJ?

The native token of Injective Protocol, INJ, is used for governance, staking, and liquidity mining among other functionalities. Holding INJ gives users the power to participate in the governance process, proposing and voting on changes to the protocol. This ensures that the platform remains fully decentralized, with all changes being made in a transparent and community-driven manner. The Injective Protocol (INJ) has a total supply of 100 million tokens, with a circulating supply that has been reported to range from approximately 88.9 million to 93.4 million tokens as of the most recent data. The protocol was launched in December 2020.

Risk statement

Before trading any crypto assets it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

No securities regulatory authority or regulator in Canada has evaluated or endorsed the Crypto Contracts or any of the crypto assets made available through the platform.

Wealthsimple has performed an assessment of whether INJ can be supported by Wealthsimple’s platform, including whether INJ is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.

We evaluated INJ based on publicly available information, including (but not limited to):

• The creation, governance, usage and design of INJ, including the source code, security and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that first created INJ;
• The supply, demand, maturity, utility and liquidity of INJ;
• Material technical risks associated with INJ, including any code defects, security breaches and other threats concerning INJ and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them;
• Legal and regulatory risks associated with INJ, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of INJ; and
• Statements made by regulators or securities regulatory authorities in Canada and other jurisdiction regarding whether INJ, or generally about whether the type of crypto asset, is a security and/or a derivative.

Wealthsimple monitors ongoing developments related to crypto assets available on its platform for significant changes that may affect Wealthsimple’s original assessment of those assets, including Wealthsimple’s assessment of the application of securities and derivatives laws. Any significant changes relating to INJ may result in changes to this Crypto Asset Statement and/or Wealthsimple’s ability to support INJ.

Like all other crypto assets, there are some general risks to investing in INJ. These include short history risk, volatility risk, liquidity risk, demand risk, forking risk, cryptography risk, regulatory risk, concentration risk, electronic trading risk and cyber security risk. Please review the Wealthsimple Crypto Product Risk Disclosure for additional discussion of general risks associated with the crypto assets made available through the platform.

We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading INJ. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.

Wealthsimple is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Investments Inc. dated December 18, 2023 (the Decision).

The statutory rights of action for damages and rescission in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under securities legislation of other jurisdictions of Canada, do not apply in respect of this Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.

Last updated: September 4, 2024