One of the limitations of today’s decentralized finance (DeFi) protocols is that you need different platforms to perform specific functions instead of putting them all in one place. And that’s the problem Instadapp is trying to solve.

Instadapp is a DeFi platform that provides users and developers with a single point of integration to access all DeFi protocols. As we are in the early days of the decentralized web, Instadapp aims to be a window into many DeFi services – tools that make trading crypto assets easier.

What is InstaDapp?

Instadapp is a DeFi application that provides a user-friendly interface that can interact with other DeFi protocols. The protocol also acts as a software wallet with an intuitive design built on top of popular DeFi projects like Compound, Uniswap, and more. for crypto asset management.

The platform aims to promote interoperability between protocols for proficient users and simple development. In addition, it also allows developers of all stripes to begin taking advantage of DeFi’s full potential.

The application seeks to provide an easy-to-use layer to interact with other DeFi protocols. Instead of using four different apps to perform specific functions like lending and borrowing, InstaDApp provides an interface that allows you to do it all in one place. It can be considered similar to a banking portal that allows you to manage your crypto finances more efficiently.

How Does InstaDapp Work?

To use InstaDApp, users need to have an Ethereum web3 wallet like MetaMask or Trust Wallet. With this, users can manage all their digital assets from the app dashboard.

The protocol uses smart contracts to translate simple instructions from users about where to move their assets into a complex series of steps. It then takes those steps, giving users a significantly easier asset management experience. They charge no fee for any of these actions.

The user only needs to provide money to pay the gas price for moving the property.

In addition, the platform is completely unattended and stores all transactions and assets in one contract wallet. Smart contracts oversee all assets. All data is publicly available and InstaDApp holds no user assets, preserving the security benefits of decentralization while adding the convenience of a centralized asset management platform.

Main activities include:

Lending – Deposit your assets and earn interest on it
Borrowing – Borrow assets directly from the InstaDApp dashboard
Leverage – Maximise the capital you’re able to trade with
Swap – Instantly exchange tokens with respective web3 wallet

Lending and Borrowing

Instadapp acts as a bridge to lend or borrow your crypto and earn or pay interest by plugging into another popular DeFi protocol, Compound Finance. Compound is an open source protocol that allows developers to create DeFi applications on it.

It aims to have an efficient money market on the Ethereum blockchain. The platform sets interest rates on loans based on supply and demand.

Note that lending on the DeFi protocol is subject to risk. You may only use the amount that you can afford to lose by engaging in these activities.

Leverage & Swap

InstaDApp uses Kyber Network, a protocol that aggregates liquidity from multiple sources, to enhance its leverage and swap functions. For example, if a user wants to make a leveraged trade with ether, InstaDApp connects to Kyber to grant them additional ether to execute the transaction. With swaps, since Kyber has access to more cryptocurrencies due to its liquidity reserve, it allows InstaDApp users to swap their crypto with virtually any other cryptocurrency for free. is supported by Kyber.

Uniswap Pools

Another protocol that Instadapp is integrated with is Uniswap.

Uniswap is a decentralized exchange with a configuration of two smart contracts. The platform is hosted on both the Ethereum blockchain and a public open-source front-end client. It is a compatible on-chain market maker that allows swapping of ERC-20 tokens.

All in all, Uniswap is a protocol on Ethereum for swapping ERC-20 tokens. It is built for the community to trade tokens with no platform fees or middlemen. Furthermore, unlike other exchanges that match sellers and buyers to determine prices and execute trades, Uniswap uses a simple mathematical equation and a token pool to do the same job.

But how does this relate to InstaDap? The V2 version of Instadapp has the ability to access decentralized liquidity pools through Uniswap.

CDP

A Collateralized Debt Position (CDP) is a smart contract that runs on the Ethereum blockchain via the Maker platform. It is a variant of the financial market derivatives established by MakerDAO in 2014. A CDP is a representation of a debt position backed by an underlying asset class.

CDPs allow users to deposit assets into smart contracts as collateral for loans on the Maker platform. After you deposit the asset, the CDP holds the asset and allows the user to generate the equivalent USD value in the radio they want to borrow. Once issued with these tokens, users can then trade them just like any other cryptocurrency.

How does Instadapp fit into all of this? It allows users to derive CDPs from two different protocols: Maker and Compound. Furthermore, there are also plans to integrate with other platforms such as Fulcrum, Dharma, and Nuo.

InstaSwap

InstaSwap is powered by Kyber’s on-chain liquidity protocol to provide the fastest and easiest method to buy and sell tokens in an easy, decentralized way. When you connect your respective wallet address to Instadapp via Trezor, Ledger, or Metamask, you can swap tokens seamlessly.

Follow the steps below to swap tokens on InstaDapp:

Before buying or selling any token on InstaDapp, you must provide an allowance. A grant is merely the permission that a user needs to grant to a decentralized exchange (InstaDApp) by the token holder (you) before those smart contracts can be executed.
After you provide the allowance, click “Buy” or “Sell,” then add the number of tokens you want to swap. You can swap with ETH or DAI, which are the quoted currencies.
Next, click “Make a Transaction” to verify the purchase or sale. You will receive a metamask message confirming your transaction. Click submit to secure the transaction.
It’s always a good idea to set the lowest conversion rate. The dashboard guides you during times of volatility by showing the Minimum Acceptable Rate percentage.
Note that setting a high value may result in a failed transaction, and you will be charged for gas. It would be better if the minimum acceptance rate was set at 97%.
You should now be able to view your transaction on Etherscan.
After the transaction is withdrawn from the blockchain, the balance will be updated.

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