This will allow us to employ the uncollateralized assets in the CDP to some other cashflow generating protocols like Compound Finance, Stacking, UniSwap Pool etc.

Here’s how it looks in practice:

Bob deposits $100 worth ETH on InstaDApp contract and takes 10 DAI as a loan which equates to 10% issue-to-collateral ratio.

InstaDApp contract internally draws 10 DAI as a loan from MakerDAO and keeps $30 worth ETH as collateral, which is 3x of the collateral, so Bob is safe to proceed with it.

The $70 worth leftover ETH is used to generate interest out from Compound Finance or UniSwap Pool or Stacking all in contract-to-contract fashion without letting Bobs funds access the addresses with private keys.

And as a result of this process, InstaDApp has just utilized $70 ETH collateral to generate cash flows to reward Bob for keeping his assets partially idle and to build a sustainable business around it.

Open Finance. No Privacy.

One of the biggest challenges right now is the “No Privacy” with public blockchains. Nobody would like to publicly announce their financial status to the world. We are keenly tracking the progress of projects which facilitates private transactions on ethereum blockchain like AZTEC Protocol.

Also, with the privacy enabled platform, it’s not OK to become a medium of facilitating illicit financial activity in the name of privacy — this is still a big differentiator for the vision of InstaDApp providing banking services on blockchain while complying with all the regulatory requirements.

What next for InstaDApp?

In the near term, we have plans to launch:

Ethereum explorer oriented towards how financial activities are being performed on blockchain i.e. DEFI protocols (thanks to TheGraph).

“Giant CDP” experiment demonstrating the mashup of protocols. Like using the MakerDAO uncollateralized assets to generate cash flows on Compound Finance.

experiment demonstrating the mashup of protocols. Like using the MakerDAO uncollateralized assets to generate cash flows on Compound Finance. We will keep introducing pretty interesting use cases and our full fledge rigid plans are hugely dependent on MCD launch.

At InstaDApp, we are committed to growing Decentralised Finance ecosystem and building innovative products around protocols to bring the mainstream adoption of the overall #DEFI industry. If you have any questions, we can get in touch on Twitter. Would love to have your feedback & suggestions.