DeFi aggregation platform Instadapp announces a major upgrade and launches the governance token INST

This article is an original piece by Chain Catcher, authored by Echo.

Recently, the DeFi aggregation platform Instadapp announced its upgrade plan on its official blog, upgrading the DeFi smart account to an open DeFi Smart Layer (DSL), allowing users to perform different interactions across various accounts, while also announcing the launch of its governance token INST and gradually implementing decentralized governance in the second quarter.

It is understood that Instadapp's upgrade focuses mainly on account expansion, decentralized governance, and Layer 2 integration, significantly enhancing the platform's composability and user experience.

In terms of account expansion, the new DSL accounts have a higher degree of modularity, adding features such as flash loans and permission control. For example, users can assign account management permissions to different addresses and create limit orders across multiple protocols.

Regarding decentralized governance, Instadapp will achieve this by issuing the governance token INST. Specifically, the ownership of the Instadapp protocol will be distributed incrementally, with a portion of the INST tokens initially allocated to existing shareholders of Instadapp (including the team and investors), forming a Micro DAO. Once on-chain voting and contract upgrades are functioning as expected, the core team will transfer protocol ownership to the governance layer and activate on-chain voting, allowing token holders to propose changes, vote, and delegate.

During this process, Instadapp will airdrop tokens to existing users, although specific details have not yet been announced.

It is reported that the initial supply of INST is 100 million tokens, with 45% of the Instadapp governance tokens allocated to the team, investors, and new team members; 55% will be used for ecosystem growth, including liquidity mining and new ecosystem partners.

"Token holders will determine which protocols are enabled and which use cases will receive funding and support. We believe that as the platform evolves and more integrations and applications are utilized and built on the Instadapp framework, the community will be incentivized to integrate valuable products and establish meaningful collaborations with other communities, shaping the protocol for their interests," said Instadapp community manager Steven Zapata.

In terms of Layer 2 integration, Instadapp will allow users to seamlessly migrate their assets across different Layer 2 protocols while aggregating various lending and swapping protocols to help bridge the liquidity of Layer 2 protocols. Next, users will only need to click once to migrate their Ethereum mainnet debt positions to the Polygon-Aave protocol.

It is reported that InstaDApp was launched in December 2018, aiming to eliminate the complexity of DeFi products by aggregating assets and liquidity into a single layer, making DeFi more accessible to everyone.

Compared to other applications, InstaDApp's main feature is the use of smart wallets and bridging protocols to integrate major DeFi protocols. Users need to first activate a smart wallet by registering with MetaMask on the website and transferring funds to use it. All user wallets are uniformly controlled by Instadapp smart contracts, and users do not own private keys or mnemonic phrases.

According to public information, Instadapp currently has over 20,000 "smart account" wallets, with deposits exceeding $2.6 billion, currently ranking 7th in DeFi projects, ahead of Synthetix and Balancer.