Instadapp launches governance token and presents “DeFi Smart Layer”


Key points to remember

  • Instadapp launched a single-layer DeFi protocol, integrating governance and layer 2 solutions.
  • The protocol will soon launch its own governance token, INST.
  • INST will be phased out to Instadapp users in the second quarter.

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Instadapp, one of DeFi’s most popular wallet management tools, has announced plans to launch a token.

Instadapp ready for token launch

INST will be used to govern the Instadapp protocol, which the team described as a “DeFi smart layer”.

The protocol aggregates DeFi into a single layer and introduces layer 2 integrations, as well as decentralized governance. Since the DeFi Smart Layer was announced in February, smart contracts have been audited and deployed on Ethereum, the team’s blog post confirmed.

The revamped Instadapp offers several major extensions, including flash loans, collateral optimizers, authority management, market making, automation, and Layer 2. According to the blog post, the protocol will soon be able to migrate. Debt positions from the Ethereum mainnet to Aave on Polygon in one click.

Like many other tokens launched by nascent DeFi projects, the INST will be used to govern the future of the protocol, essentially improving its state of decentralization. It will initially be launched with an offer of 100 million euros at the genesis and will borrow the same governance standard developed by Compound.

The first batch of tokens will be distributed to Instadapp shareholders, including the core team and investors, to form the Micro DAO. The team will manage the protocol until the launch of chain voting and contract upgrade. At this point, INST will be distributed to Instadapp users.

The blog post says governance will have a “very important role” in the protocol, including tokenomics and future Instadapp extensions.

The full criteria for INST recipients have not yet been revealed, but full details will be released this quarter. Many projects like Instadapp have distributed governance tokens through airdrops to reward early adopters. Airdrops are a popular phenomenon in DeFi, and governance tokens adopted by protocols have sometimes been compared to corporate actions.

Hinting at Instadapp’s decentralized future, the team wrote:

“This is just the start as these features are infinitely extended with future proposals from the community and token holders via governance proposals – we look forward to shaping the future of the Instadapp protocol with you!”

The INST token contract can be viewed here.

Disclosure: At the time of writing, the author of this feature owns ETH, AAVE, COMP, and MATIC. They had also deposited AAVE in Instadapp.

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