The biggest structural flaw in on-chain finance
Not high volatility
Not clearing too much
It is also not liquidity fragmentation.
but rather the market lacks a 'steady state'.
Steady state is the most fundamental system property in financial markets.
This means that when the system is subjected to external disturbances.
Can it naturally return to the operational range?
but rather not diverging infinitely, not detaching infinitely, and not amplifying risks infinitely.
The market structure of traditional public chains does not have a steady state.
They can only operate in low volatility environments.
Once the volume increases
Deep collapse
Clearing accumulation
Price gap
Strategy failure
Cross-chain inconsistency
The system enters an irreversible state.
This is the reason why on-chain markets cannot access institutional-level applications in the long term.
The fundamental difference between Injective and the entire industry is
It is building the first 'steady-state market structure' on-chain.
A system that can absorb disturbances
Rebalance
Realign
Repricing
Replenish depth
Redistribute risks
And automatically returns to the operational range of the financial system.
The following five dimensions explain how Injective achieves a steady state.
Point one: The price path of Injective has convergence
Most chains' price paths are divergent
The more biased, the more biased
The greater the volatility, the less controllable it is
The price path of Injective has an endogenous convergence mechanism
Perpetual basis provides directional constraints
The index provides mean reversion
Portfolio assets smooth out drastic shifts
Cross-chain price discrepancy calibrates external deviations
Arbitrage structure adjusts the trajectory in real-time
Price does not drift freely
But has structure, anchors, and reversion
This is one manifestation of a steady state
Prices will not become increasingly absurd.
Point two: The risk of Injective presents controllable dissipation
Traditional chains accumulate risks
The more crowded, the more it accumulates
The more it accumulates, the more it explodes
Ultimately manifested as a liquidation waterfall
The risk of Injective dissipates naturally through a multi-layered framework
Perpetuals bear short-cycle shocks
Index dilutes trend deviations
Portfolio diversification structures risks
Structured assets weaken tail pressure
Cross-chain perpetuals transfer residual risks to other chains
Risk is not cumulative
Is constantly being dissolved
Will not form a unified explosion point
This is the most important feature of a steady-state system.
Point three: The liquidity of Injective has self-replenishing properties
A major misconception about on-chain liquidity in the past is that
More transactions = more depth
In fact
Most chains experience high volatility
Liquidity will rapidly diminish
The liquidity of Injective has self-replenishing properties
When a certain structure bears significant pressure
Deep networks will automatically gather at corresponding positions
Portfolio rebalancing brings real structural buy and sell orders
Cross-chain arbitrage fills the gap
Perpetual orders redistribute risk
Liquidity is not passive
Is systemic resources
Able to perfect itself through structure
This is a capability that traditional DeFi lacks.
Point four: The execution path of Injective maintains determinism
Can the market form a steady state
It largely depends on whether the strategy can maintain consistent execution under pressure
Most chains in extreme market conditions
Execution logic will fail
Strategies become random
The execution path of Injective is not disturbed by market noise
Price is fast
Transactions are fast
Liquidation does not queue
Cross-market synchronization
Portfolio adjustment stabilizes
Index updates continuously
The determinism of the execution layer allows strategy participants to continue operating
The system will not further deteriorate due to policy failure
This is a key condition for steady states.
Point five: The feedback system of Injective has a closed-loop nature
Markets without feedback cannot form a steady state
Deviations will continuously accumulate
Depth will continue to decline
Risk will continuously amplify
The market feedback of Injective is closed-loop
Deviations generate arbitrage
Arbitrage adjusts price discrepancies
Price discrepancy adjustment index
Index adjusts the portfolio
Portfolio adjustment of structured assets
Structural layer stabilizes perpetuals in reverse
Ultimately returning to the entire price system
The system completes self-correction internally
Does not rely on external intervention
This is the ultimate standard of a steady-state market.
Summary
The real moat of Injective is not product diversity
Not just speed
Nor is it about ecological expansion
But it is becoming the first on-chain
Infrastructure with 'steady-state market structure'
Steady state means
Price can revert
Risk can be dissipated
Liquidity can be self-replenished
Execution can be determined
Feedback can be closed-loop
Only chains with steady states
It may carry the volume of future on-chain capital
Density of strategies
As well as the complexity of a multi-layered asset structure.
From this dimension
Injective is not just leading
It is building the underlying model that the industry must rely on in the future.
