EXPLORE THE TEZOS ECOSYSTEM WITH INSTARAISE
The wide adaptation of the blockchain industry over time has witnessed more people leaning towards the blockchain industry and cryptocurrency as they are digital and not counterfeited. The blockchain industry is also immutable and transparent attracting more users. Cryptocurrency projects have been on the rise, each with their own unique utilities.
There are a number of blockchains available including the Ethereum, Solana, Polygon, Binance smart chain and of course the Tezos blockchain which recently turned 4 years. I find the Tezos ecosystem to be quite a unique one. The Tezos ecosystem is one that is built to evolve and in that regard, they recently launched the latest upgrade — Jarkarta 2 which will help in providing scaling solutions amongst other great features. when compared to its counterparts like the ethereum blockchain, Tezos offers a versatile smart contract with a self amending nature, fast transaction speed, low gas fees and is very scalable. As it stands, there are currently over 100 Dapps built on the Tezos ecosystem and seven decentralized exchanges. A lot of projects have found their way to get established on Tezos and one of such projects is Instaraise.
WHAT IS INSTARAISE?
Instaraise is the first ever decentralized initial DEX offering (IDO) platform built on Tezos. An IDO is short for Initial DEX Offering. It involves the launching of a digital asset on a decentralized exchange (DEX). Instaraise is designed to provide crypto projects with a quick way to raise and exchange capital at very low cost overheads, all from within a completely decentralized environment. It features some unique services which include a decentralized launchpad, pools, farms amongst others. One of the outstanding services Instaraise offers is InstaDEX — a unique DEX on the Tezos ecosystem that allows for single asset liquidity provisioning and impermanent loss protection.
Liquidity providers that use automated market markers are often exposed to the issues of involuntary token exposure and impermanent loss. Impermanent loss happens when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them. The bigger this change is, the more you are exposed to impermanent loss. With involuntary token exposure, LPs must be exposed to the price movements of multiple tokens in a pool, thereby losing their long positions on their favorite tokens.
How InstaDEX is solving these issues
InstaDex aims to solve these issues and stands out from other AMMs as it offers these great features;
- Single asset liquidity provisioning
You can avoid worrying about involuntary token exposure. InstaDex reduces liquidity provider liability by allowing liquidity providers to contribute and maintain 100% exposure in single token. You also get to earn from fees paid in the token staked as well as liquidity mining rewards when they’re active.
- Impermanent loss protection
InstaDex is designed so that LPs can always get back the same value originally deposited plus trading fees and rewards through Impermanent loss insurance. Impermanent loss insurance increases by 1% everyday as long as the stake remains live and matures fully to full coverage after 100 days. As long as no withdrawal was made during the 100days, the protocol will cover fully for IL. If withdrawal is made before the 100days is reached, the protocol will only cover partially for IL. For withdrawals made within the first 30days, the protocol will not cover whatsoever for IL.
What I think about InstaDex in the Tezos ecosystem
I believe the wonderful features offered by InstaDex combined with the great advantages Tezos has over other blockchains as already mentioned above, Instaraise is going to be the face of DeFi on Tezos.
Instaraise is a completely decentralized fundraising and Incubation platform. Instaraise aims to empower projects with fundraising ability while developing loyal users, at the same time, allowing retailer investors and potential users to access early investment deals. Instaraise offers an all-round support for the projects from Private Fundraising to IDO.