If you’ve ever opened a DeFi loan with Maker, Aave, or Compound, you know firsthand they all present different approaches with their own unique UIs. What also distinguishes these lending protocols is the borrowing rates derived from protocol mechanics and how utilized lending pools are. Often, DeFi investors will find that they can borrow at a lower rate on one of the three platforms or possibly lend assets at higher rates. The borrowing rates on Maker are decided upon by governance votes but the Compound and Aave variable rates fluctuate according to how much lenders supply and how much borrowing demand there is.
The key takeaway is it can be advantageous to be able modify DeFi leverage positions among these platforms by performing complex actions such as:
- Migrating loans between Maker, Aave, and Compound for better rates
- Swapping debt to an asset with lower borrowing rates
- Swapping collateral to an asset with higher lending rates or preferred exposure
- Quickly creating leverage positions or deleveraging positions using flashloans
Because Maker, Aave, and Compound are different protocols built on Ethereum (and now Aave on Polygon), DeFi investors normally would have to manually pay back loans and reopen them on other lending platforms to take advantage of better borrowing rates–which costs money, time, and gas.
Thankfully, there is a better way to manage these leverage positions with Instadapp! Since 2019, Instadapp has provided an interface for managing DeFi assets on Maker, Aave, and Compound, one that’s optimized for non-technical users with tools such as flashloans for complex actions like leveraging or swapping collateral/debt in a single transaction. Today, Instadapp boasts about $5.4B in liquidity deposited into its smart contracts.
What’s new is that Instadapp recently introduced a new governance token INST, to decentralize ownership of the protocol and better enable a future that can outlast the core team and co-founders who have supported Instadapp until now.
Here’s the TLDR on the INST token:
- 100,000,000 INST have been minted at the genesis and will become accessible over the course of 4 years.
- 55% (55,000,000 INST) will be distributed to Instadapp community members.
- Since launch on June 16, 2021, there’s been 10,000,000 INST immediately available to claim by 312,000 Instadapp users that manage DeFi positions on Maker, Compound, or Aave on Mainnet.
- Similarly there is 1,000,000 INST available to claim by 50,000 users with Aave positions on Polygon
Whether you already manage a position in Instadapp or you have a position in Maker, Aave, or Compound, you may qualify to claim INST tokens.
Here’s all you need to do:
1 – Do I quality for INST and should I import? Go here to check whether you have a position that can be imported into Instadapp and qualifies for INST. Notice it shows in my screenshot example that I qualify for 0.15 INST if I import the Compound position.
- Before importing, please be sure you understand that this will expose you to risk in Instadapp smart contracts (despite how battle-tested and audited their code is).
- Once imported, there’s no easy 1-click export out of Instadapp, which means you’ll have to manually pay back a loan to unlock and withdraw you position.
2 – How to Claim INST: To import a position and claim INST, it’s necessary to first…
Hi! My name is Lark Davis!
I’m a cryptocurrency investor with years of experience and I’ve been making consistent profits in the crypto space.
I’m passionate about helping others do the same, so I run multiple educational channels on crypto investing.
