A closer look at DeFi management interface Instadapp
It launched a one-click, one-transaction solution that enables users to increase the COMP tokens they can earn from using the Compound borrowing and lending dapp four-fold.
A well-timed feature for sure, but this sort of simplification is exactly why Instadapp was created.
Its goal is to create a simple interface into multiple DeFi dapps running on the Ethereum blockchain and then automate complex interactions in a way that enables users to maximize their earning potential while minimizing transactions and Ethereum gas fees (the latter being a big issue right now).
In order to use Instadapp, you’ll need an Ethereum wallet and you’ll also have to create what Instadapp calls a smart wallet into which you deposit the tokens you want to use. Currently, that costs about $2.50 in gas fees.
The smart wallet is also non-custodial so only you have access to your tokens in Instadapp and can withdraw them at any time.
Currently, Instadapp supports the MakerDAO and Compound DeFi dapps, allowing users to add collateral, borrow, payback and leverage their collateral on each dapp, as well as refinancing debt positions between the two.
However, one word of warning about Instadapp’s approach.
While all DeFi dapps are experimental and have their own potential vulnerabilities, combining activity between them has the potential to create additional problems beyond those inherent in each individual dapp.
So, while the advantages of the increasing number of DeFi products such as Instadapp are real, exciting, and worth playing around with, remember to never lock up more value than you’re prepared to lose if something unexpected happens.
As always we will continue to watch this space. Make sure to bookmark DappRadar.com and sign up for the newsletter to receive all the latest news!