What is InstaDApp: A Platform for Easy DeFi Asset Management
Launched in 2019, InstaDApp (INST) is a decentralized application (DApp) built on Ethereum (ETH) that connects multiple different decentralized finance (DeFi) protocols. It integrates other DApps and provides a one-stop platform where users can manage all of their funds. INST trades at $6.35 per token with a circulating supply of under 18 million, for a total market cap of $121 million.
What Services Does InstaDApp offer?
To use InstaDApp, a user needs to have a Web3-enabled Ethereum wallet like MetaMask and connect it to InstaDApp via the dashboard. After the connection, users can access a platform containing all the features that InstaDApp has in its arsenal. InstaDApp calls the platform “DeFi Smart Accounts (DSAs)”. With DSAs, users can manage, delegate, and optimize funds from different protocols. Additionally, developers can build on top of the DSAs to enable more cross-protocol transactions for account holders.
Prior to InstaDApp, users would manually track their assets and identify optimal interest rates, collateralization ratios, and other parameters on each platform. Users may find that manual monitoring requires a lot of effort due to the complexity. The introduction of InstaDApp’s DSA into the DeFi space simplifies this by linking the various protocols, obtaining the relevant data, and summarizing all the information into one view on the dashboard. As a result, users can easily manage their cross-protocol assets.
Additionally, before InstaDApp, users would also need to perform various steps on each platform to transfer assets. The complexity of the steps can confuse and frustrate users, resulting in mistakes and losses. InstaDApp automates this process through smart contracts where users only need to adjust the parameters and execute the transfers through a few clicks.
InstaDApp does not charge users fees for the transfers. Users only need to prepare some funds for the gas fee to move assets over the Ethereum network. The DApp utilizes non-custodial wallets to store assets, meaning that users are in control of their funds at all times, and InstaDApp has no way to access those funds. Moreover, like all blockchain-based applications, InstaDApp transparently stores immutable records about transactions and assets on the blockchain.
InstaDApp introduced the DeFi Smart Layer (DSL), which is the underlying infrastructure that allows the aggregation of DeFi protocols from different platforms. The DSL consists of three components, which are:
- Smart accounts that users trustlessly own. Users also utilize the accounts to store assets and execute transactions across connectors.
- Connectors refer to standardized modules that interact with DeFi protocols and give smart contracts access to DeFi services. Smart contracts are written by developers then execute the DeFi transactions across protocols.
- Authority is given to users to set guardians, managers, or automation bots to manage their DSAs. Users can set customized permissions depending on the standardized modules so the addresses under those modules can execute specific functions and nothing else.
The DeFi Smart Layer allows users to access DeFi services of other platforms on InstaDApp. (Source: InstaDApp)
What Are InstaDApp’s Platform Integrations?
The current platforms in collaboration with InstaDApp include MakerDAO (DAI), Compound Finance (COMP), and Uniswap (UNI). By integrating these platforms onto InstaDApp, users can lend, borrow, swap, manage liquidity pools, and create collateralized debt positions (CDP) via the dashboard. The specific functions enabled by the integrations are as follows:
- Compound Finance: InstaDApp acts as an interface for Compound Finance, the lending and borrowing DeFi protocol. Thus, users can lend cryptocurrency supported by Compound to earn interest or borrow funds and using any supported crypto asset as collateral on the InstaDApp dashboard.
- Uniswap: InstaDApp integrated Uniswap, a decentralized exchange (DEX) with liquidity pools consisting of token pairs, into its network. Therefore, users can swap tokens with each other after choosing their token pair of choices without a third-party entity through InstaDApp. Additionally, InstaDApp users that provide liquidity to Uniswap pools can easily manage their existing pools from the InstaDApp dashboard.
- MakerDAO: Similar to Compound, the integration of MakerDAO enables the creation of collateralized debt positions. As a result, InstaDApp users can lock supported crypto assets as collateral and generate DAI, the platform’s stablecoin, on the dashboard.
What Is InstaDApp’s INST Token?
InstaDApp recently launched INST, its governance token on the Ethereum mainnet. Rather than an immediate switch from team to decentralized governance, there will be a phased governance rollout where InstaDApp gradually distributes the tokens to its community. At first, InstaDApp will allocate part of the token supply to the team members and investors, thereby forming the Micro Decentralized Autonomous Organization (DAO). InstaDApp’s core team will manage the network governance until the on-chain voting and contract upgradability functions operate as intended. Afterward, they will hand over the management of the protocol to the DAO, where the INST token holders will govern the following:
- New features: Token holders can propose new protocol integrations, features, and use cases around the idle assets in DSAs.
- Protocol upgrades: INST token holders can vote on code changes such as system upgrades and platform parameter adjustments.
- Liquidity and bridges: Token holders can vote on managing the bridges that connect InstaDApp with other protocols and the liquidity sources the DApp uses for refinancing and cross-chain asset management.
- Ecosystem funds: INST token holders vote on allocating funds for the InstaDApp ecosystem’s development and DAO’s treasury. They decide how InstaDApp should use the funds for the DAO, the community, partnerships, liquidity, and integrations.
Who Is Behind InstaDApp?
Sowmay Jain and Samyak Jain are the two brothers that founded InstaDApp in India. They are college dropouts that found entrepreneurial success. Sowmay Jain, the older of the two, was on his way to becoming a chartered accountant before he left school. His younger brother, Samyak Jain, who was a first-year computer science student at the time, followed suit.
The two shared a passion for finance and a belief in the power of the internet which led them to a hackathon in Bengaluru, India, in August 2018. The hackathon was ETHIndia, an event where participants develop Ethereum-based products. It was here where the two first unveiled the initial version of InstaDApp and emerged as winners of the hackathon. The project took off from there as the two refined the application, added more features, and fixed encountered issues.
Sowmay Jain is currently the Chief Executive Officer (CEO) of InstaDApp. Prior to InstaDApp, he served as the Managing Director in Fintrig Technologies for around two years. Samyak Jain is currently the Chief Technology Officer (CTO) of InstaDApp. Before co-founding InstaDApp, he worked for Moatfund as a Front-end and DApp developer for six months.
InstaDApp, the DeFi startup, attracted multiple investors and investment institutions. The company raised $2.4 million in a seed round held in 2019 from entrepreneur investors, such as Naval Ravikant and Balaji Srinivasan, and institutions like Pantera Capital and Coinbase. In June 2021, InstaDApp raised $10 million in its latest funding round from Standard Crypto, a venture capital firm, and strategic partners such as Andre Cronje, founder of Yearn, DeFi Alliance, and Longhash Ventures.
INST Price History
The network recently launched INST, its governance token, in mid-June 2021. The initial hype boosted INST’s price from $9 to its historic peak of $14 on June 20. As interest waned, the price plummeted to almost $3 before it rebounded on July 5. INST’s price surged more than 150% and reached $8 two days later as the overall cryptocurrency market showed signs of recovery. As of the time of writing, INST’s price hovers at around $6.
INST price chart from June 19 to July 28, 2021 (Source: CoinMarketCap)
INST is ranked #256 by market cap. InstaDApp minted 100 million INST tokens at genesis, which the company will distribute over four years. The company allocates 55% of the token supply to community members and the remaining 45% to investors, partners, advisors, and team members. InstaDApp has distributed the tokens in three different ways during launch – through DeFi positions on Maker, Compound, or Aave, liquidity mining, and Uniswap V3 staking. Currently, there are about 18 million tokens in circulation.
What Is the Outlook for InstaDApp?
As the DeFi field grows, new and existing platforms will offer new DeFi applications and services through their custom protocols. In addition, different platforms will offer their own interest rates, collateralization ratios, liquidity pools, and other parameters. The number of choices may confuse users and might even deter participation. InstaDApp manages to solve this issue by offering a centralized platform for easy asset management while maintaining blockchain technology’s security and decentralization benefits.
InstaDApp’s partners have helped it achieve tremendous growth. Compound, MakerDAO, and Uniswap are leading platforms in the DeFi space in which each of these protocols has a total value locked (TVL) of billions of dollars. With such strong collaborations, InstaDApp itself achieved a TVL of about $8 billion and is ranked third by TVL, above Compound, MakerDAO, and Uniswap.
With the introduction of its governance token, InstaDApp recently opened its community forum for users to discuss proposals, bounties, governance, and application developments. A few proposals are currently in discussion, such as the introduction of a revenue model, RAI Protocol, and B.Protocol integration. The proposal about the revenue model is particularly interesting as the proposal submitter describes a monetization model for InstaDApp. For revenue, the proposal suggests that InstaDApp charges fees to protocols that want to be featured, users who make transactions, or developers using the platform’s developer-based products.
InstaDApp is a DApp built on the Ethereum network that integrates DeFi protocols into one platform for easy asset monitoring and management. Through the InstaDApp dashboard, users can track their assets across protocols, identify optimal DeFi parameters, and execute transactions via the underlying smart contracts. Additionally, InstaDApp users can lend, borrow, and swap crypto assets and provide liquidity, monitor liquidity pools, and collateralize assets through the dashboard.
InstaDApp manages to combine the secure and decentralized aspects of blockchain with a centralized platform for asset management. Due to its strong partnerships with the leading DeFi platforms, such as MakerDAO, Compound, and Uniswap, InstaDApp has seen incredible growth with billions of dollars locked in its smart contracts. Moreover, with the launch of its governance token, token holders gained the ability to submit and vote for proposals. As a result, InstaDApp may grow even further as it implements the proposed features and integrates new protocols.