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DeFi and Credit Risk

Injective (INJ), a decentralized finance (DeFi) technology, has teamed up with Wormhole to add "ten additional blockchains" to its network.

Injective is a layer-2 decentralized exchange (DEX) powered by Cosmos that provides derivatives, token swaps, and sports betting prediction markets. It also prioritizes interoperability through cross-chain bridging, and it now supports digital assets from Ethereum, Polkadot, and IBC-enabled networks like Cosmos.

The protocol's creators, Injective Labs, stated in a May 25 release that the cooperation will allow users to transfer and exchange assets across any Wormhole-integrated chain.

"The Wormhole integration will substantially improve Injective's interoperability capabilities." Wormhole will soon be incorporated into the backend of the Injective Bridge, allowing users to move assets between other EVM chains or Solana with a single click," according to Injective Labs.

Wormhole is a general communications protocol that works with a variety of blockchains to provide services like cross-chain application compatibility and token bridges.

Not all of the "ten new blockchains" are given names. Solana, Terra, Ethereum, Avalanche, Oasis Binance Smart Chain, Polygon, Fantom, and Aurora are among the nine chains listed on Wormhole's website.

With Terra collapsing and Ethereum already being supported, it's uncertain which of the other ten chains will be supported.

Injective's capacity to "act as the principal gateway for cross-chain native assets from Solana and other significant Layer 1 chains" into the ecosystem has been noted by the project.

"Users' options can also extend well beyond asset transfers. DApps on Injective, for example, might allow for smooth cross-chain trade between the Cosmos and Solana ecosystems, as well as offering returns on Solana (or any other Wormhole enabled asset)."

"Builders using chains like Avalanche, Algorand, or Polygon may use Injective to access assets across the Cosmos ecosystem," it noted.

So far, the news has had no impact on the value of Injective's native token INJ, which has dropped 2.6 percent in the last 24 hours to $2.21 at the time of writing. According to CoinGecko statistics, the coin has dropped 91.1 percent from its all-time high of $24.89 in late April 2021.

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