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Bitcoin DeFi: Injective Protocol To Leverage Stacks For Fully Decentralized Bitcoin Derivatives
by Mitchell Cuevas on June 10, 2021
What Is an Expiration Date? (Derivatives)
An expiration date in derivatives is the last day that derivative contracts, such as options or futures, are valid. On or before this day, investors will have already decided what to do with their expiring position.

Before an option expires, its owners can choose to exercise the option, close the position to realize their profit or loss, or let the contract expire worthless.
DeFi for Bitcoin takes another step into the limelight today as Injective Protocol announced they’ll be integrating with Stacks to give users access to new Bitcoin-based derivatives. Dubbed a ‘DeFi Robinhood’ by TechCrunch, Injective is hot off a $10 million fundraise from the likes of Pantera Capital, Mark Cuban, Blocktower, and is also backed by Binance.

Derivatives created on Injective, such as expiry futures, synthetics, and perpetuals, are fully decentralized and accessible for everyone. Until now, these types of products have remained largely reserved for institutions or other large players. By integrating Stacks, Injective enables users to create both perpetual contracts and expiry futures markets for unique Bitcoin derivatives that are actually tied to the Bitcoin network itself. Through the Injective ecosystem, traders will be able to freely take part in new forms of market creation such as expiry futures and perpetuals across distinct networks. An example would be derivatives combining BUSD and STX, tapping into both Binance Smart Chain (BSC) and Stacks.

In addition to Stacks, the team has begun working on integrations with other top blockchains such as BSC, Polkadot, Avalanche, and NEAR. With Stacks, they will be able to launch derivatives based on the Stacks token (STX) alongside native assets built on the Stacks blockchain, effectively creating a bridge that allows for both market creation and trading for STX, as well as other tokens based on the Bitcoin network.

Injective says their model will allow them to combine the advantages of decentralized exchanges, such as resistance to front running and hacks, with those of centralized exchanges, such as low transaction fees and no gas fees.

The Stacks Foundation is dedicated to ensuring the unique aspects of Stacks are utilized to expand possibilities and use cases. Supporting Injective’s integration is a perfect example of this in action and reaffirms the notion that DeFi’s future is open, collaborative, and includes Bitcoin in a major way. Follow Injective for updates on the integration or connect with them to provide feedback or to get more involved.

About Injective Protocol
Injective is the first decentralized multi-chain exchange protocol that unlocks the full potential of decentralized derivatives and borderless DeFi. Injective enables access to unlimited decentralized markets for futures, perpetuals, spots, synthetics, and much more. Injective is backed by a prominent group of stakeholders including Mark Cuban, Pantera Capital, and the leading cryptocurrency exchange, Binance.


Mitchell Cuevas leads growth and marketing efforts at Stacks Foundation. He's spent the last decade working in community-driven high-growth startups.