578% APY on Instadapp by DefiDad

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.