InstaDEX, Instaraise’s innovative DEX to push the boundaries of DeFi in the Tezos ecosystem
NEW YORK, NY / ACCESSWIRE / October 10, 2022 / Tezos is gaining popularity as one of the preferred blockchain protocols for DeFi applications. With a vibrant community of project creators, developers, and token holders, the Tezos ecosystem will only get better with the upcoming launch of InstaDEX. InstaDEX, a product of Instaraise – the first decentralized fundraising and incubation protocol of its kind on Tezos – is a decentralized exchange that adds some 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-changing nature of the Tezos blockchain combined with the Liquid Proof-of-Stake (LPoS) consensus mechanism places it on the list of versatile, fast, and cost-effective options for developing next-gen DeFi applications.
Today, the Tezos chain is home to almost every type of DeFi product and solution 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 dedicated dApps. While more and more projects continue to choose Tezos as their chain of choice, most of them are legacy DeFi applications, leaving very little room for innovation.
Driving innovation on Tezos
To realize the full potential of Tezos, the frontiers of innovation in the dApps space must be pushed. Projects like Instaraise actively contribute to this end by encouraging project creators and developers with innovative ideas to turn them into full-fledged projects. Instaraise’s fundraising and incubation protocol allows projects to develop their strategies, organize token offerings to raise funds and build a strong relationship with the community within the Tezos ecosystem. Now, with the launch of InstaDEX, it has taken another significant step to strengthen its offering, marking an entry into the DeFi space.
InstaDEX represents a breakthrough in DeFi innovation on Tezos as the platform offers revolutionary features such as fickle loss protection insurance and unilateral liquidity staking of assets. Additionally, with the new DEX, Instaraise will improve the discoverability and adoption of projects by giving them a platform to list their tokens.
Features that make InstaDEX stand out from the rest
Temporary loss and involuntary asset exposure are two main issues faced by participants in legacy DeFi ecosystems. Liquidity providers on an old AMM DEX always face the possibility that at the time of withdrawal they will suffer a fall in the value of their wagered assets compared to the current value of the original wager if they had kept it in their wallets without wagering. Temporary loss is usually caused by different market conditions and supply-demand situations for an asset pair in question.
Meanwhile, staking in a legacy AMM DEX liquidity pool requires users to deposit an equivalent value of both tokens supported by the pool. As a result, anyone interested in being a liquidity provider on any AMM DEX cannot deposit just one asset, but must do so in pairs, regardless of whether they hold both assets or not. By forcing them to provide liquidity in two assets instead of one, AMM DEXs force participants to have exposure to both assets, leaving them with no choice but to either comply with the requirements or abandon plans to participate in the DeFi ecosystem .
Impermanent Loss Protection Insurance on InstaDEX
Inspired by a similar concept implemented by Bancor on the Ethereum protocol, InstaDEX insures its liquidity providers against volatile losses through an insurance fund. For this purpose, the platform has set up its own treasury pool with a portion of trading fees generated by users. The Insurance Vault is designed as a self-feeding and self-securing pool with advanced gamification. Insurance coverage accrues at a rate of 1% per day from the first day of staking. From 30% loss coverage starting on day 30, total coverage reaches 100% on day 100 and beyond.
Unilateral provision of liquidity
Single Side Liquidity Provisioning allows users to deploy any token of their choice into any supported liquidity pool on InstaDEX. If the participant stakes only one asset, the InstaDEX platform deposits the corresponding value in a corresponding token in the pool to maintain balance. Single Side Liquidity Provisioning offers an unprecedented level of flexibility for a liquidity provider not found in any other DEX, allowing them to choose the crypto asset and the desired level of exposure of those assets to DeFi protocols.
InstaDEX aims to drive the adoption of DeFi in the Tezos community
InstaDEX redefines AMM DEXs with its features. Both Impermanent Loss Protection Insurance and Single Side Liquidity Provisioning protect participants’ interests by helping them minimize losses while giving them well-deserved flexibility to choose what and how to invest their wealth. By addressing long-standing concerns about DeFi, InstaDEX encourages more people to provide liquidity and participate in DeFi features without worrying about potential risks.
As more liquidity flows into InstaDEX, the number of people using the platform is expected to increase. Increased usage also opens up opportunities for projects of all sizes, including new projects incubated by Instaraise to be discovered by the community. Throughout all of this, Instaraise’s native $INSTA tokens will experience increased utility and demand, which will continue to push their value higher. All of these developments will eventually lead to increasing popularity of Tezos and $XTZ.
InstaDEX Testnet v1 version
Last month, Instaraise released the first private testnet for InstaDEX called “Skywalker” which received a lot of interest and support from the community. The Skywalker beta testing program has received more than 1000 applications from around the world. The beta testers test the ins and outs of Skywalker to provide valuable feedback and suggestions for the DEX and to help us create a DEX that serves the interests of every Tezos community.
About Instarraise
Launched as the first decentralized fundraising and incubation protocol of its kind in the Tezos ecosystem, Instaraise is focused on growing its role in the Tezos ecosystem by building a suite of products and services to make DeFi projects easy to create and operate in enable Tezos protocol. Instaraise is building the DeFi universe on Tezos by supporting projects to raise funds, build communities and turn their ideas into reality.
social connections
Telegram Community Channel: https://t.me/Instaraise
Official Telegram announcement channel: https://t.me/Instaraise_Ann
Follow us on Twitter: https://twitter.com/instaraise?s=21
Follow us on LinkedIn: https://in.linkedin.com/company/instaraise
media contact
Brand: instar-raise
Contact: Dibyo Majumder
E-mail: [email protected]
Website: https://www.instaraise.io
SOURCE: instar-raise
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