How to Invest in Instadapp on Notum

Today’s DeFi market offers a great variety of crypto investments — from liquid staking to yield aggregation. Many protocols specialize in one type of investment and offer strategies for generating income from it. However, there are platforms that unite various services, allowing users to choose the one that suits them without leaving the site.

Instadapp is a platform that combines numerous DeFi opportunities in one place to provide the user with the simplest and most comfortable user experience. This platform is aimed at both experienced users and novice crypto investors and offers various DeFi products for any need.

Notum will tell you about the main features of the Instadapp platform, and also draw attention to its advantages and risks. In addition, we will look at Instadapp investment strategies you can explore on Notum’s app to try investing without delay.

Instadapp: the Essentials

• TVL: $2,4B
• Risk Level: Medium
• Blockchains: Ethereum, Polygon, Avalanche, Arbitrum, Fantom, Optimism
• Average APY: 4.93%
• Foundation Date: 2018

Instadapp is a platform that gives users and developers access to the full potential of the decentralized finance world. The Insta dapp protocol (DeFi Smart Layer or 'DSL') operates as the middleware, combining several DeFi protocols into one upgradable smart contract layer. A feature of DSL is account extensions (DeFi smart accounts) and upgradability, which means that upcoming new extensions will be managed and maintained by INST (Instadapp token) governance.

Source: Instadapp docs

In addition, The DSL has a new operability layer that works as an ‘Account Extension’, allowing users to access numerous new features. These extensions allowed the platform to become a DeFi hub where new use cases and extensions can be created.

«Instadapp is a middle ware protocol your DeFi Smart Account is a non-custodial smart contract wallet and interacts directly with the underlying protocols» - Instadapp Docs.

Instadapp Ecosystem

As a single platform for all DeFi, Instadapp.io platform offers users to manage different decentralized finance protocols and positions using a DeFi smart account or Avocado wallet. Thus, the platform offers an extensive DeFi experience with a fairly wide range of products:

• Instadapp Lite. This product allows users to simply deposit their assets and receive rewards from them. All you need to do is invest in one of the most popular assets on the market in the chosen Strategy Vault, after which Instadapp Lite will maximize your profits. Instadapp Lite not only reduces the number of transactions but also saves on gas and automates fee collection. Read more about Instadapp Lite here.
• Instadapp Pro. For experienced users, the platform offers Instadapp Pro, which allows them to use DeFi using advanced strategies on the best blue chip protocols aggregator. As The largest lending and borrowing platform across networks, Instadapp Pro offers lending on Morpho, Morpho Blue, and Spark. Besides, it allows users to swap, optimize yields, and explore new strategies with such DEXs as 1 inch, ParaSwap, and others. More details about Instadapp Pro are here.
• Avocado. The platform has its own crypto wallet which transacts anywhere and offers personal and multisig support. Avocado app has 2FA protection, which allows you to protect your assets even if the seed phrase is stolen. Also, the wallet is non-custodial and offers advanced account abstraction for complete asset control. With Avocado wallet, users can complete cross-chain transactions and instantly connect to the best DEXes and bridges without switching networks. Thus, this crypto wallet allows you to seamlessly swap, bridge, send, and receive cryptocurrency and eliminate native gas tokens. More detailed information can be found here.
• Fluid. Instadapp Fluid is a constantly evolving DeFi protocol and aims to become the basis for the future financial system. It offers users advanced portfolio management with optimized capital efficiency, additional security, and low liquidation penalty. Fluid also has quite favorable borrowing and lending rates, which increases the profit on invested assets. Explore Fluid here.

Why Invest with Instadapp?

Pros

The unified platform for everything

Instadapp brings together numerous DeFi features in one place, thereby giving the user access to everything they need on one platform. Utilizing DeFi smart account, users can manage multiple DeFi protocols and positions.

Multichain availability

To provide diversified and efficient asset management, Instadapp offers users seamless portfolio management across Mainnet, Optimism and Arbitrum networks.

Products for everyone

The platform has created user-friendly opportunities for people with different experiences, offering products for both beginners and experienced investors. Thus, users can explore Instadapp Lite, Instadapp Pro, Fluid, and Avocado, the platform's own crypto wallet.

Community governance

Instadapp platform is completely decentralized and is completely managed by users who hold the INST token.

Bug Bounty program

Since September 19, 2021, Instadapp has a running bug bounty program that rewards users for discovering vulnerabilities and problems on the platform.

Full access to the DeFi world

Since Instadapp operates as a middleware that combines multiple DeFi protocols into one upgradable smart contract layer, this structure allows to get the full potential of the decentralized finance world.

Instadapp: Investment Strategies

The easiest way to receive investments from Instadapp is to deposit assets on Instadapp Lite, which offers “the best DeFi yields in 1-click”.

Interesting fact! Instadapp Lite uses A Strategy Vault, which is a smart contract based on Instadapp that allows you to implement DeFi strategies to receive rewards. Thus, using popular protocols, users can earn income through interest, yield farming, or other new ways. With Instadapp Lite, anyone can deposit their funds and earn money on DeFi strategies without active involvement.

Today we will look at two strategies for generating income on Instadapp Lite with Notum in 2024:

https://app.notum.ai/investments/e72916f7-a2d1-47ad-a4b9-2b054337cfd6

This low-risk, high-liquidity vault has a TVL of over $87.2M and allows users to invest their ETH assets on the Ethereum network. This strategy will convert ETH to stETH and leverage it against ETH. Thus, this earns additional ETH POS staking rewards. The total APY for depositing ETH on Notum is 6.64%.

https://app.notum.ai/investments/9df5043c-ec4a-4362-b1c4-e7e3137d8645

Another Instadapp ETH Vault on Ethereum with TVL of $865.7K offers users to invest their assets and receive a total APY of 2.82%. As with the previous strategy, ETH assets are converted into stETH to earn additional ETH POS staking rewards. Since this vault uses both ETH and stETH assets, when withdrawing you will receive one of them, depending on which is more valuable at the moment.

Source: Instadapp Lite

Instadapp: Risks and Disadvantages

Although Instadapp is a unique and innovative platform that offers users numerous DeFi opportunities in one place, it does have its drawbacks that are important to note.

Cons

Platform complexity

While Instadapp offers product options for both newbies and experienced investors, understanding the difference between the two can be challenging. Moreover, since the platform combines a huge number of features and functions, inexperienced users may find it difficult to understand which strategy to use.

Smart contract bugs

Since Instadapp operates on smart contracts, their errors and vulnerabilities can lead to negative consequences, such as loss of funds.

Oracle or price manipulations

The protocol may also have other vulnerabilities related to oracle or price manipulation, which could also affect its operation and lead to the partial loss of funds.

Market volatility

As known, the cryptocurrency market is famous for price fluctuations, which means the value of assets deposited on the platform can change and lead to some losses.

Multiple protocol usage

Since Instadapp uses multiple protocols to create one strategy, this increases the internal risks associated with its components.

Instadapp fees

Before using Instadapp Lite, it is important to know that it charges a 20% performance fee on vaults. In addition to this, the user needs to pay a 0.05% exit fee to prevent spamming.

Notum’s Verdict

Instadapp is undoubtedly a unique platform that provides users with access to numerous DeFi features in one place. With Instadapp’s TVL of over $2.4 billion, the platform has the proper level of trust among users and the crypto community as a whole. The platform’s investment strategies allow Instadapp users to earn an average APY of 4.93%.

What makes Instadapp unique is its design, combining several DeFi protocols into one upgradable smart contract layer, allowing users to access numerous new features. Moreover, the Instadapp platform offers various DeFi products suitable for both beginners and experienced crypto investors. Currently, the platform provides users with access to Instadapp Pro, Instadapp Lite, Fluid, debt and collateral swap, and Avocado crypto wallet.

Despite some shortcomings such as platform complexity, smart contract bugs, and potential oracle or price manipulations, Instadapp is a proven fighter in the DeFi world, offering reliable income opportunities from crypto assets in 2024.

Disclaimer: Notum does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Cryptocurrency is subject to market risk. Please do your own research and trade with caution.