Instaraise: The First-Ever Single Asset Liquidity Provision DEX on the Tezos Blockchain
While DeFi created a BOOM effect in 2020, Tezos began attracting a massive number of DeFi players with a significant amount of increase in 2021 after its network upgrade that halved its average block times.
The Tezos DeFi BOOM began then, shooting up to around $1 billion in total value locked across every DeFi project on the blockchain in the summer of 2021 and surpassing $217 million in TVL in October of the same year.
That was recorded as its All-Time High (ATH) with over 100 dApps running on its chain. Among the many DeFi projects, Instaraise is one of the leading DeFi protocols to be launched on the Tezos blockchain.
What is Instaraise?
Instaraise is the first-ever Bancor-inspired decentralized Initial DEX Offering, launchpad, and incubation protocol built to support new projects on the Tezos blockchain.
Bancor is a protocol on Ethereum that uses automated market marker and liquidity pools to generate liquidity for small-and micro-cap coins and returns for liquidity providers. This protocol popularized the concept of “Single Asset Liquidity Provision”.
In the same vein, Instaraise is the Bancor of Tezos, helping to generate liquidity for new rise projects of the Tezos chain. And as mentioned earlier, Instaraise will provide liquidity for new projects, using Single Asset Liquidity Provision.
What is Single Asset Liquidity Provision?
The traditional liquidity provision system, which is the most popular type of LP, provides 2 tokens to be staked in the pool, and liquidity providers are meant to stake two tokens to provide liquidity, done at a value ratio of 50:50.
Thus, for a liquidity pool to become fully functional, users have to hold both assets that the pool should contain. If they do not own the token, they would have to buy it just to provide liquidity.
However, a single asset liquidity provision does not need a dual token provision. Liquidity providers only need one side of the pair.
By providing the tokens on this site, they get 100% exposure to the token they staked and earn yields from the share of the fees paid in the token staked.
Instaraise is the first-ever decentralized Initial DEX Offering, launchpad, and incubation protocol built to support new projects on the Tezos blockchain.
This protocol aims to give support to these projects and build a DeFi universe by helping them raise funds, and build a dedicated community of enthusiasts so that they can begin developing their products.
Through Instaraise’s services, startups can raise funds. The InstaDEX will be used to facilitate pre-sale, its on-chain transparency to guard against Rug Pulls, and its Fixed Swap Pools to maintain price throughout a sale.
The crypto space is an ever-increasing one with many projects that come up every day with fresh ideas, concepts, and very attractive utilities. Yet, the one thing they often lack to develop their ideas into full-bloom projects is a dedicated community and funding.
For the Tezos blockchain especially, the launch of projects is lesser than in other blockchains and this may be because of the scarcity of platforms dedicated to furthering the launch and sale propositions of protocols. Hence, Instaraise has come to the rescue.