There are lots of projects
- Dapps like Synthetix, Augur
- PoS projects like Livepeer, Matic etc which have mechanisms to stake coins and get rewards. However, it is super time consuming and technically intensive to keep up with all these projects, their yield and performing actual staking on-chain. We thought of creating a protocol bridge for these projects.
What it does
Instastake enables you to buy into a diverse portfolio of incoming generating coins instantly. For PoC, we support Synthetix and Matic.
How it works
- A fund manager creates a portfolio, say that allocates 70% investment to SNX coin and 30% to Matic coins.
- User can choose to put any amount of money, say 10 DAI.
- 10 DAI are Kyber swapped for 7 SNX and 3 MATIC tokens. In return the investor gets 7 iSnx and 3 iMatic coins - similar to compound cTokes - So that these investments can be traded in secondary markets.
- The SNX are staked in the Synthetix protocol and Matic tokens are delegated to a validator.
- Later, when SNX fees is disbursed to stakers, say 14 SNX, so the pool holds 21 SNX in total and each iSnx token is now worth 21/7 = 3 SNX.
- Similarly, when PoS rewards are distributed to Matic delegators, the pool gets bigger and iMatic appreciates in value.
How we built it
- Interfaced with Synthetix contracts.
- Matic's staking programs, details and contracts are still under development. So I wrote a light-weight staking mechanism for the project.
What's next for Instastake
Develop this into a real product where users can choose a portfolio to invest in based on its yield, risk factor etc. We plan to offer 3-4 portfolios to begin with. There is also another interesting idea, where funds can be allocated to income generating DApps! - like Nuo, Uniswap and staking on Augur market outcomes. We think this will contribute to ethereum ecosystem as a whole. Imagine people putting in money that provides liquidity to various dapps while generating rewards for users.