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DeFi tools Dev updates Events

Falcon- InstaDEX public Testnet release

Instaraise is beyond thrilled to release the Pubic testnet version of our Decentralised exchange on Tezos. Falcon has just landed on earth and anyone from Tezos community can now experience the new innovation that has come in Tezos DeFi ecosystem.

Falcon is the public testnet version of our upcoming InstaDEX which is the closest to the mainnet version of the DEX.

We proudly present the Tezos community our Public testnet version of InstaDEX which is packed with features that are never seen before in Tezos Defi.

  • The Impermanent loss protection in InstaDEX, will ensure that the community is encouraged for their efforts and not penalized by forcing them to accept impermanent loss under volatile market conditions.
  • Single asset liquidity provisioning will attract more liquidity into Tezos DeFi ecosystems allowing LPs to make greater sums. As liquidity increases, users across DeFi protocols can swap for needed tokens easily with no worries of slippage and interact with plenty more use cases and applications.

Dive deep into the inspiration and technical aspect of InstaDEX.

InstaDEX Lightpaper ➡️https://docsend.com/view/xag2x6m7t7ehi5vy

InstaDEX Overview➡️https://blog.instaraise.io/introducing-instadex/

At Instaraise, the security of our users is our number one priority. As such, we strive to provide the most secure platform possible.

Although our Devs are doing their best to find every possible vulnerability on our platform, there is always a slight possibility that a few of them could have been overlooked. Thus, we decided to introduce a bug bounty program.

Any Tezos community member can take part in the program and earn rewards by reporting the bugs they find in our public testnet version of our DEX.

Falcon Bug Bounty program

This section will give you an overview of the InstaDEX Bug Bounty Program. Please make sure you keep the ruleset in mind before investigating any issues

We will evaluate reported security issues based on the security impact to our users and the Instaraise ecosystem.

As a Bounty hunter, you will also be the early adopters of InstaDEX and a part of the Instaraise’s effort to improve Tezos DeFi. In this program you will be helping us in testing ins and outs of the DEX.

Eligibility

Since this is a public event, anyone who is willing and interested to help in building and bringing new innovation to Tezos Defi is welcome to come forward and help us on the same journey.

Scope

Our DEX has 4 main features that will be your focal points while testing which are:

Swap, Tokens, Liquidity and Faucet.

As a Bug hunter, you will be required to test Skywalker and hunt down any bugs or security concerns that might be critical for the development of the DEX

Apart from this, you are welcomed to provide your valuable suggestions and ideas that can further improve DEX functionalities. Your suggestions and feedbacks can range from UI/UX improvements, your experience with the whole DEX etc.

How to begin?

To kickstart with the testing of our DEX please visit:

 ➡️ alpha.instaraise.io

Load the testing tokens to your wallet with the Ghostnet Network via our Faucet feature. You can refer to this Video for reference: faucet

Your main objective post loading the tokens will be to test out the Swap Tokens and Liquidity features in our DEX.

(Don’t forget to toggle the Day/Night mode of the website according to your convenience)

Rewards

Total 5 winners will be selected on the basis of the criticality and the vulnerability of InstaDEX due to the bug. All the winners will share prize pool of 2000$ worth of XTZ equally ($400 each)

The distribution of the rewards will be done right after the Mainnet launch of InstaDEX

Bug Reporting

Submitting the bugs and feedbacks is as easy as posting a tweet!

After testing the ins and outs of the Falcon, you can report the bug or your feedback by simply sharing them via individual tweets or a tweet thread on Twitter with proper screenshots/videos supporting your report.

If, anyhow you are unable to find any bugs, you can even share your review about the Falcon via tweet which will be equally significant.

Make sure that you tag “@instaraise” in your tweet along with the hashtag #InstaDex and #Tezos for us to find your tweet easily.

TIP- The more elaborated and well explained is your tweet, the higher is your chance of winning!

For any other queries related to the program, contact us directly on the Instaraise official telegram community channel where our admins are always ready to help you.

Criteria for Rewards

Winners will be selected on the basis of

  • The criticality of the bugs and issues found out during your testing
  • Significance of your feedbacks for the development of the DEX
  • The level of deep testing done by the testers which will be interpreted by the quality of your bug and feedback tweets

Good luck, happy testing and many thanks to you all for ensuring that our DEX goes out smoothly with all the best of feedbacks and suggestions incorporated.

Categories
DeFi tools

Introducing InstaDEX- An overview

The leading decentralized fundraising and incubation protocol on Tezos, Instaraise has been preparing itself to launch the much-awaited InstaDEX, marking its successful transition into a full-fledged end-to-end DeFi solutions provider on Tezos protocol.

Operating alongside the existing offerings of Instaraise, InstaDEX is a decentralized exchange that incorporates revolutionary features that are new to the Tezos ecosystem.

The features that make InstaDEX stand apart from its counterparts include

        Single Asset Liquidity Provisioning
–         Impermanent Loss Protection

These features are a step away from legacy AMM DEXs, which have been following the practice of liquidity provisioning in token pairs and absolutely zero protection against impermanent loss for liquidity providers.

By protecting the interests of investors, InstaDEX encourages more users to join the ecosystem as liquidity providers, supplying much-needed liquidity to small and mid-cap assets belonging to latest projects on Tezos.

In return, liquidity providers will be rewarded handsomely for their contributions to the growth of the Tezos ecosystem.

InstaDEX is the perfect stepping stone for innovative projects vetted by Instaraise for fundraising and incubation on the platform.

With InstaDEX, the offerings of Instaraise come full circle, from incubation, fundraising and community building to conclude with listing on a high-quality DEX.

Problems Solved by InstaDEX

Is there a need for one more AMM DEX on Tezos, a question asked quite often, and the answer to which lies in the existing problems that are being addressed by InstaDEX.

The most common issues faced by any participant in DeFi protocols are involuntary token exposure and impermanent loss.

In its current state, all AMM DEXs require liquidity providers to make paired deposits corresponding to the token-pairs supported by the liquidity pool. It forces investors to expose themselves to price movements of multiple tokens in a pool, leading them to lose their long positions on their favorite tokens.

Similarly, due to price movements and the pool composition, liquidity providers are at times faced with a situation where the value of the tokens withdrawn from the pool ends up being less than that of the current value of the actual deposit if held on, without contributing to the protocol.

While the situation tends to correct itself over time, any withdrawal made during that period ends up making those losses to liquidity providers permanent.  Both issues raise apprehension among users regarding participation as liquidity providers in DeFi ecosystems.

Both these prevailing problems are solved by InstaDEX with two features – Single Asset Liquidity Provisioning and Impermanent Loss Insurance.

What’s Single Asset Liquidity Provisioning?

Deviating from the practice established by first generation AMM DEXs, InstaDEX allows users to contribute a single asset to the liquidity pool. By doing so, liquidity providers can overcome involuntary token exposure and continue to earn yields from swap fees charged by the DEX.

Whenever a single asset contribution is made to the liquidity pool, InstaDEX will compensate the pool with an   equivalent deposit of corresponding token. Meanwhile, single asset liquidity providers also get an opportunity to participate in yield farming activities using LP tokens issued against their contribution to the pool.

The Single Asset Liquidity Provisioning on InstaDEX is applicable for both Network tokens ($INSTA) and Base tokens (tokens other than $INSTA). Anyone can create a pool of Network and Base token pairs, provided they supply the initial liquidity at a 1:1 ratio in terms of token value.

Once the pool is established, anyone can contribute base token or network token as liquidity in which case, the protocol will contribute an equivalent value of network token ($INSTA) from reserves. In turn, the LP tokens thus issued will be shared between the protocol and the user, each receiving 50% of the LP tokens.

While users can provide liquidity in network tokens, the number of tokens one can contribute is directly related to the amount of LP tokens held by the protocol following its matching contributions towards base token liquidity provisioning.

During the process, the LP tokens held by the protocol will be issued to the contributor in exchange for replenishing the network token reserves.

Impermanent Loss Insurance

Any user providing liquidity to a DeFi pool does so to earn returns for their contribution towards the DEX operation. However, the impermanent loss experienced at the time of withdrawal from the liquidity pool can be a downer.

At times, the extent of impermanent loss can stretch beyond the total deposited value and share of swap fee accumulated over time, which is a cause of concern for many investors.

The impermanent loss insurance on InstaDEX ensures that every liquidity provider always gets back the same value originally deposited into the liquidity pool at the time of withdrawal.

The IL coverage accrues at the rate of 1% per day, effective after a minimum duration of 30 days. The coverage ranges from 30% to 100%, depending on the number of days the user stays invested in the liquidity pool.

All contributions surpassing 100 days receive 100% coverage against impermanent loss. The IL Insurance coverage is funded by InstaDEX using the yields from co-investment of $INSTA in pools against single asset liquidity provisioning and in an event of shortfall, drawn from $INSTA reserves maintained by the platform.

Getting Technical

Technical Overview of InstaDEX Architecture

Liquidity providers maintain the liquidity pool by contributing supported pairs of base and network tokens. In an event of single asset liquidity provisioning, the protocol reserve will match the base token contribution with network tokens.

With a balance of network and base tokens maintained in the pool, users can swap one supported token with another while paying a swap fee.

A portion of swap fee generated by InstaDEX operations go towards paying rewards to liquidity providers while the remaining goes into the IL protection reserve used to provide IL Protection insurance coverage to liquidity providers.

If the IL protection fund is not enough to cover the losses, the shortfall will be covered by funds from $INSTA reserves to ensure all eligible liquidity provider’s interests are covered.

Single side liquidity provisioning, swap dynamics, impermanent loss, compensation eligibility and amount in an event of impermanent loss are all calculated using mathematical equations.

If you wish to dig deeper and decipher each equation, we suggest you refer to the InstaDEX lightpaper here.

While you are at it, we will continue preparing InstaDEX for its upcoming launch, the date of which will be revealed soon. Until then keep tracking our official announcement channels.

Categories
DeFi tools

A Dex designed to boost and re-shape Tezos Defi – InstaDEX FAQs

Instaraise, the first of its kind decentralized fundraising and incubation protocol on Tezos protocol, has been preparing the ground for a full-fledged DeFi offering on its path to introduce Instaraise v2.0.

Some of the prominent products and features included in the upgrade includes the InstaDEX decentralized exchange platform and a cross-chain bridge connecting Tezos ecosystem with other blockchain protocols.

The future roadmap for Instaraise v2.0 has garnered a lot of community interest. InstaDEX has stood out with prominent features like Impermanent Loss protection insurance and single asset staking.

The combination of a decentralized exchange platform along with existing infrastructure and a strong community following will turn Instaraise into a comprehensive incubation and fundraising platform that can cater to projects in various stages of development while offering all the required support until they gain sufficient adoption.

Meanwhile, the cross-chain bridges, once introduced, will open the Tezos ecosystem to a much larger community, attracting more users and liquidity.

Lots of curious eyes following InstaDEX

Yet to be officially launched, InstaDEX has already attracted a lot of attention, especially the impermanent loss protection and single sided liquidity provisioning parts.

As a result, a lot of queries regarding the benefits of InstaDEX over its peers, and how these new features, introduced for the first time on Tezos will help, continue to float around on internet forums, AMA sessions and even Instaraise’s social media and communication channels.

Questions surrounding AMM DEXs and Impermanent Loss

There are many AMM (Automated market makers) DEXs operating in the crypto industry and they are all plagued by one small issue that affects liquidity providers- Impermanent Loss (IL).

So, what is Impermanent Loss?

Impermanent loss is a reduction in the value of crypto assets in a liquidity pool experienced by the liquidity provider at the time of withdrawal as compared to the present-day valuation of the actual contribution made to the pool.

The fluctuating value of assets combined with demand and available liquidity in the pools play a significant role in causing impermanent loss.

Can impermanent loss be ever completely neutralized?

It is one of the most common questions asked by many. Unfortunately, the answer is no. But one can minimize exposure to such losses by timing the withdrawals right as any losses due to impermanent loss turns permanent only after the withdrawal from liquidity pool is initiated.

How can one avoid Impermanent Loss?

Apart from ensuring the right timing for withdrawal, the next best option to avoid losses is through IL Protection. Impermanent Loss Protection acts as an insurance that gets triggered automatically whenever an eligible user is at the risk of incurring a loss while withdrawing from the liquidity pool.

In case of InstaDEX, the platform will have an IL Protection insurance in place to ensure the liquidity providers on the platform are not affected by the pool conditions that could force them to face losses during withdrawals.

With IL Protection, InstaDEX encourages more users to join the ecosystem as liquidity providers, without worrying about losing money unnecessarily.

The InstaDEX IL protection insurance policy is a result of in-depth research as well as a case study of Bancor, the first DEX to offer such a program.

Didn’t Bancor suspend its IL protection cover recently?

Bancor has temporarily suspended IL Protection due to evolving crypto market conditions which are not favorable at the moment. There is a high possibility the coverage will be reinstated in the future.

Even though the Instaraise team has drawn inspiration from the Bancor model, they have carefully designed the gamification element of the InstaDEX IL insurance in such a way that a repeat of a similar market scenario after launch does not impact the protection offered to liquidity providers.

How does InstaDEX differ from Bancor and other DEXs in terms of IL protection?

Gamification on InstaDEX is designed to be self-feeding and self-securing to attract both traders and LP providers.

An increase in trade results in better treasury building and wider, complete insurance coverage. For e.g., whenever the market fluctuation is high, traders tend to execute more traders on the DEX which in turn contributes towards a healthier treasury capable of offering better insurance coverage to LPs.

IL coverage on InstaDEX begins from Day 30 for LPs with a 30% coverage. The coverage continues to increase each day until Day 100 to reach 100% coverage from that day and beyond.

The self-incentivizing and self-insuring structure in InstaDEX diverts a portion of platform revenues generated from transaction fees in $INSTA to a compensation vault.

The $INSTA holdings in the compensation vault act as the treasury to cater to any IL insurance liabilities incurred during the operation.

The 100% IL protection for LPs active for 100 days or more will be available only on InstaDEX, creating a safer environment for the LPs to participate in the ecosystem.

The extent of coverage on other platforms is limited to a certain extent and doesn’t compensate for the full extent of losses incurred by an LP at any time.

All these factors make InstaDEX stand apart from Bancor and other AMM DEXs that are currently out there in the market.

What is Single-Sided Liquidity provisioning offered by InstaDEX?

Most DEXs allow users to provide liquidity in pairs. The LP must deposit an equivalent value of both tokens comprising the exchange/trading pair supported on the platform.

The Single-Sided Liquidity provisioning championed by InstaDEX allows LPs to provide liquidity in any supported token of their choice instead of token pairs specific to each liquidity pool and continue to earn rewards.

Each such contribution will be countered with an equivalent of the corresponding token in the liquidity pool by InstaDEX from the protocol reserves.

For e.g., in an $XYZ-$INSTA liquidity pool, the LP can choose to provide liquidity either in terms of $XYZ or $INSTA without having to worry about securing and depositing an equivalent value in other token, which allows them to go bullish on a single token while generating fees from them.

InstaDEX to become the driving force behind $INSTA and the entire Tezos ecosystem

Like all blockchain ecosystems, Tezos protocol is also a home for multiple AMM DEXs. With so many AMM DEXs, some with cross-chain compatibility available in the crypto industry, the crypto community is interested to know about the benefits InstaDEX as a new entrant will offer over its peers.

There are few obvious questions regarding InstaDEX in the Instaraise and Tezos context that need to be addressed as well.

How does InstaDEX differ from other AMM DEXs? How does Tezos ecosystem benefit from it?

InstaDEX is not just another AMM DEX on the Tezos protocol. In fact, it is part of a much larger ecosystem driving value to Tezos by providing a secure and lucrative avenue for crypto investors to contribute towards the growth of DeFi on Tezos.

With IL protection, single-sided liquidity and cross-chain compatibility, investors can be assured of their interests being protected on a much larger, flexible playground.

Meanwhile, projects that are part of Instaraise incubation and fundraising platform get ready access to a trusted AMM DEX with high liquidity and a diverse investor base that could potentially differentiate between success and failure. All these factors contribute towards increased adoption of Tezos.

What Impact will InstaDEX have on Instaraise’s $INSTA utility tokens?

Meanwhile, $INSTA as the base token for swaps on InstaDEX and an ecosystem token of Instaraise has a strong utility which translates to a strong valuation.

With more people providing liquidity to InstaDEX pools in $INSTA, the demand for Instaraise’s native token will soon outstrip the supply.

The increase in importance of $INSTA on Tezos is only augmented further by increased arbitrage opportunities across multiple DEXs, all painting a promising picture for $INSTA holders and members of Instaraise and Tezos communities alike.

Wait coming to an end soon…

It is just a matter of time before InstaDEX is officially launched. Amid turbulent market conditions, the platform is being constantly battle-tested to ensure there are no surprises in any scenario.

Once the team is assured of the robustness, security and versatility of the platform, and the market stabilizes a bit, InstaDEX will be made available to the public.

Categories
Dev updates

InstaDex Private Testnet V1 “Skywalker”- Participate Now!

Instaraise team is thrilled to inform the whole Tezos community that the ”Skywalker” (InstaDex version 1.0) is now live on Testnet. This update signifies our hard work and the commitment towards our mission of building a Defi universe on Tezos.

InstaDex is going to be the first “Single asset liquidity provisioning” DEX on Tezos.

With InstaDex, we aim to solve the problem of Involuntary Token Exposure and Impermanent Loss by creating a system where INSTA holders i.e the liquidity providers will not only manage the risk, but also participate in the upside via swap fees collected by the protocol.

By diversifying the risk of impermanent loss across a wide array of pools, we could potentially deploy a system where the revenue from swap fees exceeds the network-wide cost of Impermanent loss insurance.

Skywalker Beta tester program

Tezos has always been an ecosystem of a highly talented crowd of developers, artists and crypto lovers who collectively work towards the upliftment of the whole ecosystem.

As InstaDex is built for the community, what’s better than every member contributing towards building the First DEX on tezos with impermanent loss protection?

Therefore, we introduce you to Skywalker Beta tester program with an aim to build together on Tezos

To apply for the program, signup by filling a small form given below
➡️ https://bit.ly/SkywalkerBetaTesterApplication

We hereby call upon all developers to help join our team to further develop the InstaDex which will ensure that we develop a product that the community truly loves. The tez army in the Beta tester program will be working closely with the Instaraise team to test the Skywalker version of InstaDex and be instrumental for the success of the same.

What’s in it for the Beta testers?

The Beta testers in the Skywalker Beta testing program will be entitled to various perks and opportunities that will be coming soon during our Public testnet release and Mainnet launch. Few of them will include

  • Work with highly skilled developers and test the private ‘Skywalker” version of InstaDex before anyone else
  • A reward pool of $2,000 worth XTZ token will be airdropped to our top 5 Beta testers on the mainnet launch (Read section “Rewards distribution” to know more)
  • A chance to be seen by the wide Tezos and crypto community for sharing your views and opinions on our DEX which will also help you in ensuring brand value and exposure to many bigwigs in the industry.
  • Beta testers can also become the early liquidity provider on InstaDex and earn Tx fees
  • Exclusive access to upcoming Instaraise events

Your role as a Beta tester

The Beta testers will be the first one to get exclusive access to InstaDex private testnet “Skywalker” and will be able to play around with the testnet before anyone else.

As a tester, you will be required to test Skywalker and hunt down any bugs or security concerns that might be critical for the development of the DEX

Apart from this, you are welcomed to provide your valuable suggestions and ideas that can further improve DEX functionalities.

How to apply for the program?

Fill out the small form below to apply for the Skywalker Beta testing program.

➡️ https://bit.ly/SkywalkerBetaTesterApplication

Submitting your feedbacks

Submitting the feedbacks, bugs and suggestions is as easy as posting a tweet!

While testing the ins and outs of the Skywalker, you can provide feedback and suggestions by simply sharing them via individual tweets or a tweet thread on Twitter with proper screenshots/videos supporting your feedbacks.

If, anyhow you are unable to find any bugs, you can even share your review about the Skywalker via tweet which will be equally significant.

Make sure that you tag “@instaraise” in your tweet along with the hashtag “#InstaDex” for us to find your tweet easily.

TIP- The more elaborated and well explained is your tweet, the higher is your chance of winning!

For any other queries related to the program, contact us directly on the Instaraise official telegram community channel where our admins are always ready to help you.

Reward distribution

This Beta tester program will consist of 20 individual Beta testers who will testing the ins and outs of the Skywalker. However! to spice things up, only 5 winners will be selected out of those who will share $2,000 worth of reward pool of XTZ equally.

Winners will be selected on the basis of

  • The criticality of the bugs and issues found out during your testing
  • Significance of your suggestions for the development of the DEX
  • The level of deep testing done by the testers which will be interpreted by the quality of your feedback and suggestion tweets

Result Announcement

The results announcement and airdrop for the private beta tester program winner will be done soon at the time of InstaDex mainnet launch!

Join our Instaraise community channel for instant updates about the program and upcoming developments➡️  https://t.me/Instaraise