How to Secure Your Aave Positions on InstaDApp

by Nov 9, 2022DApps0 comments

The Aave Protocol is an Ethereum-based open source, decentralized, non-custodial liquidity network that enables users to provide and borrow digital assets as well as generate returns on assets contributed to the protocol. Based on supply and demand in the system, yield on any provided Cryptoassets is automatically and algorithmically adjusted.

A user may borrow additional assets after providing Cryptoassets as long as they have provided enough collateral. The Aave Protocol further permits users to conduct one-block borrow transactions, sometimes referred to as “flash loans,” which are borrowed transactions in which a user must borrow and return in the same block (in these transactions, repayment of the borrow is near instantaneous and the borrow only occurs if the repayment occurs in the block).

The Aave Protocol is decentralized and is managed by Aave Governance, which is made up of more than 70,000 AAVE token holders. Members of Aave Governance can propose changes to the Aave Protocol and can vote on such changes.

How does Ave work?

Connect through any number of user interfaces or one of the other 100+ integrated onramps to begin using the Aave protocol. At aave.com or app.aave.com, you may learn which Cryptoassets are supported by the Aave Protocol.

Some Details on InstaDApp

A user must have a Web3-enabled Ethereum wallet, such as MetaMask, and link it to the InstaDApp dashboard in order to use InstaDApp. Following the connection, clients will have access to a platform that includes all of the services offered by InstaDApp. InstaDApp refers to the platform as “DeFi Smart Accounts (DSAs).” DSAs let users manage, delegate, and optimize assets from a variety of protocols. Developers can also build on top of DSAs to allow account holders to conduct additional cross-protocol transactions.

The current platforms that use InstaDApp include MakerDAO (DAI), Compound Finance (COMP), and Uniswap (UNI). Users may utilize the dashboard to lend, borrow, swap, manage liquidity pools, and construct collateralized debt positions after integrating these services into InstaDApp (CDP). The integrations make the following particular functions possible:

Compound Finance: InstaDApp provides the interface for the lending and borrowing DeFi protocol. Therefore, users may lend cryptocurrency supported by Compound to earn interest or borrow money using any supported cryptocurrency asset as collateral on the InstaDApp dashboard.

The decentralized exchange (DEX) Uniswap, which has liquidity pools made up of token pairs, is now a part of the InstaDApp network. Users may therefore utilize InstaDApp to trade tokens with one another without the use of a third party after choosing their preferred token pair. Users of InstaDApp may easily manage their current pools from the InstaDApp dashboard if they support Uniswap pools with liquidity.

Making use of MakerDAO makes it possible to create collateralized debt positions, much like Compound does. Because of this, customers of InstaDApp may generate DAI, the platform’s stablecoin, on the dashboard and lock compatible crypto assets as collateral.

Securing Your Aave Positions on InstaDApp

To import our existing debt position from Aave to InstaDApp, we must first make sure it exists on Aave before we begin.

STEP 1: Visit https://defi.InstaDApp.io/import-position to start importing our Aave Position.

If you’ve never used InstaDApp before, be sure to “Create an Account” before continuing on.

We can now use InstaDApp’s DSA Tools for one-click importing to import our Aave Debt Position.

STEP 2: Selecting “DSA Tools” — “Import Positions” from the left pane is how we proceed. This will show all of our open, import-ready Aave Positions.

Select “Give allowances and after the transaction is validated, we may move forward and Import” to complete the transaction.

When we go back to the Dashboard, we can see that InstaDApp has a new strategy. We will be securing this place as our Aave.

The costs on the Ethereum Mainnet are the same as the gas fee; on Polygon, they are equivalent to 0.1% of the swapped collateral.

Next, choose “Manage”:

To examine the recently introduced Protection Automation functionality on InstaDApp, go to the Strategies pane:

Simply choose “Automate” after entering the proper trigger and targeting ratios.

You have now successfully activated your Automated Protection after the transaction has been verified!

Visit Authority under the DSA Tools page at any time to monitor and manage the currently active Protection: https://polygon.instad.app/authority

Congratulations

With the help of this guide to secure Aave Positions on InstaDApp, we have now effectively prevented the liquidation of our Aave Debt Position.

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