InstaDEX, Innovative DEX by Instaraise to Push the Limits of DeFi on Tezos Ecosystem
New York, NY, October 10, 2022 – (SEAPRWire) – Tezos is increasingly becoming popular as one of the preferred blockchain protocols for DeFi applications. With a vibrant community of project creators, developers and tokenholders, the Tezos ecosystem is only going to get better with the upcoming launch of InstaDEX. A product of Instaraise — the first of its kind decentralized fundraising and incubation protocol on Tezos, InstaDEX is a decentralized exchange that introduces few unique features to the ecosystem.
A DeFi Heavyweight in the Making
Tezos has gained a strong foothold in the DeFi and NFT space due to its flexibility and efficiency. The self-amending nature of Tezos blockchain combined with Liquid Proof-of-Stake (LPoS) consensus mechanism places it among the list of versatile, fast, and cost-efficient options for the development of next generation DeFi applications.
Today, Tezos chain is the home for almost all types of DeFi products and solutions that are available in the crypto industry. These DeFi offerings include stablecoins, lending and borrowing platforms, staking and yield farming platforms and aggregators, AMM DEXs, and other specialty dApps. While more and more projects continue to opt for Tezos as the preferred chain, most of them are legacy DeFi applications leaving very little room for innovation.
Fostering Innovation on Tezos
To leverage the full potential of what Tezos has to offer, there is a need to push the limits of innovation in the dApps space. Projects like Instaraise are actively contributing to that end by encouraging project creators and developers with innovative ideas to turn them into full-fledged projects. The Instaraise fundraising and incubation protocol enables projects to devise their strategies, organize token offerings to raise funds and build a strong community relation within the Tezos ecosystem. It has now taken another significant step towards strengthening its offerings by introducing InstaDEX, marking an entry into the DeFi space.
InstaDEX represents a breakthrough in DeFi innovation on Tezos as the platform offers revolutionary features like Impermanent Loss Protection Insurance and Single-Side Asset Liquidity Staking. Further, with the new DEX, Instaraise will be enhancing the discoverability and adoption of projects by offering them a platform to list their tokens.
Features that Make InstaDEX Stand Apart
Impermanent Loss and Involuntary Asset Exposure are two key issues faced by participants in legacy DeFi ecosystems. Liquidity Providers on a legacy AMM DEX are always faced with the possibility of experiencing a loss in the value of their staked assets during the time of withdrawal in comparison to the current value of the original stake if they had retained in their wallets without staking. Impermanent Loss is usually caused by varying market conditions and supply-demand situations for an asset pair in question.
Meanwhile, staking in a liquidity pool of a legacy AMM DEX requires users to deposit an equivalent value of both tokens supported by the pool. As a result, anyone interested to be a liquidity provider on any AMM DEX can’t just deposit one asset, but have to do it in pairs, irrespective of whether they hold both the assets or not. By forcing them to provide liquidity in two assets instead of one, AMM DEXs compel participants to have exposure to both the assets, leaving them with no option but to either comply with the requirements or abandon plans of participation in the DeFi ecosystem.
Impermanent Loss Protection Insurance on InstaDEX
Deriving inspiration from a similar concept implemented by Bancor on Ethereum protocol, InstaDEX insures its liquidity providers against impermanent loss through an insurance fund. To serve the purpose, the platform has set up a dedicated treasury pool with a portion of trading fees generated by users. The insurance vault is designed to be a self-feeding, and self-securing pool with advanced gamification. The insurance coverage accrues at a rate of 1% per day, starting from day one of staking. From 30% loss coverage beginning on day 30, the total coverage will hit 100% on day 100 and beyond.
Single Side Liquidity Provisioning
With Single Side Liquidity Provisioning, users can stake any token of their choice into any supported liquidity pool on InstaDEX. With the participant staking just one asset, the InstaDEX platform will deposit the equivalent value in corresponding token to the pool to maintain the balance. Single Side Liquidity Provisioning offers unprecedented levels of flexibility for a liquidity provider which is unheard of on any other DEX, enabling them to choose the crypto asset and the desired level of exposure of such assets to DeFi protocols.
InstaDEX to Drive DeFi Adoption Among Tezos Community
InstaDEX redefines AMM DEXs with its features. Both Impermanent Loss Protection Insurance and Single Side Liquidity Provisioning safeguards the interests of participants by helping them minimize losses while offering them the much-deserved flexibility to choose what and how they wish to invest their assets. By addressing the long-standing concerns in DeFi, InstaDEX encourages more people to provide liquidity and participate in DeFi functions without worrying about potential risks.
As more liquidity enters InstaDEX, the number of people using the platform is expected to increase. Increased usage also opens opportunities for projects of all sizes, including new ones incubated by Instaraise to get discovered by the community. During all these, Instaraise’s native $INSTA tokens will witness increased utility and demand, driving its value further upwards. All these developments will ultimately result in increased popularity of Tezos and $XTZ.
InstaDEX Testnet v1 Release
Last month, Instaraise released the first Private Testnet for InstaDEX named as “Skywalker’ which received great community interest and support. The Beta testing program for Skywalker has received over 1000+ applications from all across the globe. The beta testers are testing the ins and outs of the Skywalker to provide valuable feedback and suggestions for the DEX and help us craft a DEX which serves every Tezos community’s interest.
Started as the first of its kind decentralized fundraising and incubation protocol on Tezos Ecosystem, Instaraise is focused on expanding its role in the Tezos ecosystem by building a suite of products and services to enable easy creation and operation of DeFi projects on Tezos protocol. Instaraise is building the DeFi universe on Tezos by supporting projects to raise funds, build communities and turn their ideas into a reality.
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Contact: Dibyo Majumder
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