The DeFi ecosystem, mainly populated by Ethereum based protocols, is fast spreading across multiple sectors. With several experiences spotlighting the serious weakness in the traditional global financial system, DeFi is emerging as a tangible solution to provide an alternative future to the traditional financial sector.
As DeFi applications widen across diverse sectors and industries, more and more investments are steadily spilling into the DeFi ecosystem. Given that there are numerous inefficiencies in the existing financial system, Defi tools offer an easy solution that can increase liquidity and reduce costs. These protocols are capable of providing everyone access to quality financial services, regardless of their status or location.
What is InstaDApps?
InstaDApp is a smart wallet with an automatic interface built on top of prominent DeFi projects like Compound, MakerDAO, Uniswap, and several others for managing crypto assets. It is optimized to make decentralized finance easier for users who are not tech-savvy nor familiar with financial terms to be able to navigate around the blockchain with less hassle.
InstaDapp launched on the Ethereum main net in December 2018 and released its v2 update in April 2019. In the Q1 of 2020, InstaDapp rolled out Defi Smart Accounts, which would operate as a single point of integration to access all the DeFi protocols including MakerDAO, Compound, Kyber, Aave, Uniswap, and the rest. In a similar way to a banking portal, InstaDApp allows users to manage crypto finances more efficiently.
The interface seeks to provide a simple-to-use layer in order to interact with other DeFi Protocols and simplify users’ banking needs, whilst continuing towards its goal of becoming a decentralized bank and driving mainstream adoption in DeFi.
In order to interact on an InstaDApp portal, a user needs to have an Ethereum web3 wallet like MetaMask or TrustWallet. With this, they can manage all their assets from the InstaDApp dashboard. All transactions are carried out using smart contracts. The interface leverages the power of smart contracts to interpret simple instructions from a user on where to move their assets into the series of complicated steps necessary to actually move them. It then carries out those steps making the experience of managing assets considerably easier for users.
Crypto assets are stored in users’ contract wallets to make sure they keep total possession over their assets. Having over $200 million locked into their platform currently, InstaDapp is one of the largest DeFi platforms globally.
Features of InstaDapps
The InstaDApp product goes above and beyond the traits of regular cryptocurrency wallets. InstaDApp performs four specific functions; lending and borrowing, token swap, and Uniswap pooling. It currently allows users to interface with MakerDAO (collateralized loans), Compound (an algorithmic lending tool), and Uniswap (a liquidity reserve).
Lending and borrowing
Money lending is a fundamental principle of any economy. However, blockchain technology has the potential to fully upend the way loans function in today’s world. InstaDApp integrates with Compound finance to simplify the experience of lending and borrowing. Compound finance is an open-source protocol whose functionality is to establish market short-term loans that algorithmically set interest rates on those loans depending on demand and supply. Rates for borrowing and lending varies and can be found on Compound finance markets.
There are several financial protocols. MakerDAO is one of the most popular protocols which allows a user to generate DAI (a USD pegged stablecoin) by collateralizing ETH. On InstaDApp, users can lend their crypto to earn interest.
Another significant feature InstaDApp delivers is the ability to port a loan between protocols like Maker and Compound. This is known as Instabridge. Instabridge ensures that a user can always port from a bad interest rate. With Instabridge, users can easily refinance their loans to ultimately obtain a better rate.
Uniswap – liquidity pools
Uniswap protocol is another feature offered within the InstaDApp interface. Uniswap protocol facilitates three major activities, anyone can easily swap tokens, add tokens to a pool to earn some fees, token listings is also allowed and has since become a more popular marketplace that facilitates liquidity pooling.
This protocol gives users the ability to trade between a variety of cryptocurrencies instantly within the wallet. Uniswap is a decentralized ERC-20 exchange that also supports ethereum. The exchange protocol enables users to trustlessly exchange ERC-20 tokens
The Uniswap protocol also permits users to participate in liquidity pools. Anyone can become a liquidity provider by depositing tokens into a smart contract to receive pool tokens in return. Multiple cryptocurrencies can be swapped within this protocol, including BAT, USDC, AUG, wrapped BTC and OX.
Leverage and swap tokens
InstaDApp also uses the Kyber network to power its leverage and swap functionalities. Kyber Network is a protocol that aggregates liquidity from a wide range of sources. Due to its liquidity reserves, the network has a wider range of cryptocurrencies and allows InstaDApp users to swap their crypto with almost any other, as long as it’s supported by Kyber.
Beyond the surface, Defi has the potential to increase innovation as well as improve operational efficiencies in the financial sector. Clearly, money will ultimately go digital. Decentralized finance can reshape how the existing market functions, and transform the course of how the world connects.
In this current world, finance is gatekept by institutions that operate on opaque conditions. Considering how these institutions aim to obtain a significant slice of every transaction and control customers, Defi is crucial to fulfilling finance’s true objective.
Ultimately, InstaDApp considerably simplifies the experience of asset management in the Defi world. It maintains the purposes of decentralization by operating as non-custodial, securing users’ 100% control of their assets while remarkably improving comfort for users by providing them with a single point platform that can help visualize their overall assets positions.