Integrations & Utilities.
Its been a while and we sure have some catching up to do!
InstaDApp is “Your Bridge to Decentralized Finance”. You can interact with a variety of decentralized protocols in one place, you can create DAI by locking Ether, you can trade with on-chain liquidity and the ability to make interest on your crypto assets.
Along for a stalled update! First, we want to thank everyone who is utilizing InstaDApp and our small, yet active community, we appreciate your feedback and take your suggestions seriously.
For those of you that have missed us for some time, our new dashboard brings you access to multiple decentralized protocols with perfect visualization of your net worth on blockchain.
For those of you who still have your CDP in previous iterations of InstaDApp, they can directly import it on the new dashboard after creating a contract wallet.
Integrations & More Utility.
InstaDapp v1 integrated with MakerDAO CDP & Kyber Network liquidity with its smooth order matching to provide quick convenient on chain swaps. Our v2 includes some additional functions, we have added the ability to participate in decentralized liquidity pools by integrating Uniswap, borrow cryptos on Compound Finance and utilize Kybers liquidity for leveraging your MakerDAO’s CDP.
Borrow & Lend on Compound.
Compound Finance is an open-source protocol for algorithmic, efficient Money Markets on the Ethereum blockchain. On Compound you can lend/borrow your cryptos and earn/pay interest. Last week we launched our revamped Dashboard which includes integration with Compound. It allows you to manage your Compound’s lending and borrowing. In the simplest way possible. Bop it, Twist it, and tell us how you like it.
Manage Uniswap Pools.
Uniswap is decentralized on chain protocol for token transfers that also allows anyone to provide liquidity. Here is a brief description of Uniswap: Uniswap utilizes liquidity reserves in a pooled structure; to provide liquidity to Uniswap, you deposit your ERC20 token as well as an equivalent value in ETH. You then receive a portion of the liquidity pool which grows through small fees (0.3%) that are incurred when traders trade from your liquidity pool. We seriously encourage you to read more about Uniswap. Users can now easily manage their liquidity pools on InstaDApp.
Let's explain this from a bottom-up approach, and for simplicity let’s just ignore the upcoming Multi-Collateral DAI. The principals are the same in Multi-Collateral DAI except that there would be other assets backing DAI besides Ethereum.
The bedrock of MakerDAO, a CDP is also known as a Collateralized Debt Position. It’s simply a debt against the value of your Ether, this debt allows you to create DAI. At the time of writing, you can withdraw up to 2/3 of Ether’s current market value in DAI, but 0.01% higher and your CDP is liquidated. Liquidation of your CDP also comes at a 13% penalty.
You can always borrow less DAI to create a small buffer for market changes to the price of Ether. MakerDAO runs on Ethereum so the system is up 24/7, and runs on math, if your CDPs ratio becomes too risky, you can adjust your ratio at any time by adding more Ether or by wiping some of the DAI you withdrew.
You can take a more proactive approach by monitoring your CDP. You can use Makerscan to monitor your CDP in real time. Makerscan also has some tools to help you, you can get email updates on any CDP or even better, use the companion Telegram Bot.
As you owe DAI against your Ether, your CDP incurs an interest-type fee that MakerDAO calls a ‘stability fee.’ The stability fee is voted on by the holders of MKR.
With your freshly minted DAI, you can use it for whatever you like, without having to sell your Ethereum, refinance a personal loan against your Ether, or you could take that DAI — swap it for some more Ether. That’s where Loop / Save comes into action.
Loop and Save CDP.
You could swap your DAI for Ether, and then add it to your existing CDP increasing its collateral, which would allow you to draw more DAI thus create leverage. This is also called ‘longing’ because you are betting on the long term growth of the underlying asset, ETH.
This process is pretty simple to do with the decentralized protocols that are currently available, you would just need to complete a series of transactions to create DAI, swap for Ether and add additional collateral.
This process can be called a ‘Loop’ — The most difficult and cost ineffective part of this process is the multiple transactions you would need to complete in order to this.
InstaDApp makes this process easy by utilizing multiple decentralized contracts as well as on chain liquidity to accomplish leverage in one simple transaction.
InstaDApp also includes this utility in a reverse manner to save your CDP. You can use the ‘Save’ to convert part of your remaining free Ether into DAI and wipe debt from your CDP, protecting your ratio for becoming too risky.
With the rise in Maker’s stability fees, we’ve seen CDP users shifting to different lending protocols like Compound, Nuo, dydx, Dharma, etc. This showed us how the change in one good DeFi protocol can affect every other protocol.
Interoperability between bring efficiency between protocols. We are soon launching the very first bridge decentralized between MakerDAO & Compound Finance. You can learn more below:
InstaDApp is Autonomous Banking Portal on Emerging Blockchain based Financial Protocols with a seamless experience. We are committed to growing Decentralised Finance ecosystem and building innovative products around protocols to bring the mainstream adoption of the overall DEFI industry.