What is InstaDApp?

What is InstaDApp?

InstaDApp is a decentralized application (a “Dapp”) within the world of Decentralized Finance (DeFi).

So what does that mean?

Speaking in broad terms, every new cryptocurrency will have its own set of rules and platforms from which transactions can happen – this is called a DeFi protocol. The DeFi protocol is developed using a blockchain, eg. Ethereum.

As a person just joining the crypto community, this might be quite overwhelming and complicated in and of itself. In addition to this complexity, every unique protocol has its own special protocol which the newcomer will have to get acquainted with.

In order to make it easier for the average person to enter the crypto community, InstaDApp was introduced to the market to make different protocols compatible with each other. More precisely, InstaDApp developed a protocol (‘DSL’) that connects numerous DeFi protocols in a smart and easy-to-use dashboard.

Liquidity pools allowing lending, borrowing, leveraging and swaps

InstaDApp liquidity pools

In short, InstaDApp makes it possible for the average person to perform the most basic financial transactions; such as lending, borrowing, leveraging, and swapping using InstaDApps liquidity pools. This is done by connecting to the Kyber Network or Uniswap protocol that has a lot of token liquidity at disposal.

People using InstaDApp may choose to put up their crypto tokens in the InstaDApp liquidity pool – thus making it possible for you and me to get our hands on those tokens (either through lending, borrowing or swaps).

The most crucial feature of InstaDApp, however, is the fact that a basic transaction can be done somewhat automatically though the smart contracts. These types of transactions would usually entail a lot of individual transactions, which in turn requires a vast amount of gas.

By automating a big part of the transactional processes the energy consumption needed is significantly reduced. In short, InstaDApp makes crypto transactions less energy intensive and thereby money and resources are saved on gas fees.

What does InstaDApp do?

In order to enter the InstaDApp system you will need to have a web3 wallet – like Coinbase Wallet or MetaMask.

Connecting this wallet to the InstaDApp system will allow the user to manage their crypto assets from the InstaDApp dashboard – all in one place.

As mentioned above, the integrated dashboard connects a bunch of different DeFi protocols enabling the user to:

  • Lending | Lend your crypto to other people and earn interest

  • Borrowing | Borrow tokens from other users

  • Leverage | Leverage the value of your tokens to maximize investment gains

  • Swap | Exchange tokens

  • Collateralized debt positions (CDPs) | Take out loans with tokens (ether) as collateral

  • Do more complicated transactions like automatic leverage or margin on lending and borrowing protocols.

Lending and borrowing

InstaDApp connects to the AAVE protocol in order to enable lending and borrowing. In other words, InstaDApp acts as a user-friendly interface for the Compound Finance protocol, which allows users to lend and borrow tokens.

Leverage and swap

InstaDApp connects to the Uniswap or Kyber Network protocol (decentralized exchanges, DEX) in order to enable leveraging and swapping.

This means you are able to swap between different types of tokens within the InstaDApp system. If you want to swap your Bitcoin tokens for Ethereum tokens this can be done through InstaDApp utilizing the Uniswap or Kyber Network protocols.

Collateralized debt positions (CDPs)

InstaDApp connects to the MakerDAO protocol from which the user can create collateralized debt positions, using tokens as collateral.

A CDP is an overcollateralized loan where you are able to deposit your crypto as collateral.

This means you are able to take out a loan through InstaDApp’s interface based on MakerDAO’s protocol. This also means that the loan is based on DAI stablecoin (the MakerDAO stablecoin).