Instaraise — Decentralized Project Empowerment
Website: https://www.instaraise.io/
Twitter: https://twitter.com/instaraise
Telegram: https://telegram.me/Instaraise
The notion that projects can be financed through a decentralized process once seemed improbable, but the rise of blockchain technology has finally made such a thing possible. One of the most innovative and exciting platforms that is attempting to provide project empowerment through DeFi is Instaraise.
The way this works is that any project that exists on the Tezos network can secure funding through the presale of tokens which provides much needed capital for the project in question. Tezos is a proof of stake blockchain network, and Instaraise is the first DeFi project funding platform that is based on this network.
Co-founders Dibya Majumder and Aditya Gautam have gone to great lengths to use the unique features of Tezos to address some of the fundamental problems surrounding DeFi staking in projects, problems that have recently been preventing the growth of this concept.
Both Majumder and Gautam have experience working with Tezos in the past, and some of the problems that they noticed in DeFi project funding are rug pulling and an unfair token allocation to various stakeholders. The people at Instaraise are addressing these issues by introducing fixed price swap pools instead of the traditional IDO format.
These swap pools offer tokens at a rate that will remain fixed until the exhaustion of initial supply, and this locking of liquidity makes rug pulling next to impossible. Bad actors running away with liquidity can leave you with tokens that have no real value, so this innovation by Instaraise can go a long way towards increasing the level of trust that people might feel towards DeFi project funding and staking.
This level of trust facilitates LP farming, thereby enabling investors to unlock even more rewards through other tokens that are offered as incentives. However, guarding against rug pulling is just one of the many innovations that Instaraise has made to facilitate a fairer and more secure marketplace. The second innovation that we would like to talk about is the unfair advantage that certain industry insiders can obtain from various IDOs.
Various influential individuals often receive pre-allocated tokens for IDOs, but Instaraise is looking to change this by offering tokens purely on a first come, first served basis. This eliminates the advantage of being an industry insider and opens up the playing field to people that might not have otherwise felt it possible for them to get in on rapidly appreciating projects.
Investors are also given what Instaraise is calling Pool Weight Score. This system makes it so that small time investors and neophytes actually have a higher chance of purchasing tokens than industry insiders. This can exponentially increase participation in financing and make presales far more democratic.
All of this comes together to make presales trustworthy and downright preferable to other alternatives for the first time.
Another advantage of Instaraise’s unique swap pool methodology is that it helps prevent price volatility. Token prices can be frustratingly volatile, especially during initial stages when liquidity might be low. Fixed token prices and supply helps maintain a relatively stable and consistent price for tokens, something that increases trust among investors since they can rely on the token prices staying pretty much where they are until all of them have been bought up.
The smart contracts provided by Instaraise are kept liquid through an immediate transfer to Quipuswap. Bringing a third party into the mix helps ensure liquidity, and can really help to keep investors’ minds at ease throughout the funding process. These smart contracts are fully automated as well which further decreases the likelihood of rug pulling, and furthermore it results in automatic ratio adjustments for the pool thereby facilitating the aforementioned price stability.
The potential of DeFi project funding is often put at stake due to bad actors many of whom are often popular influencers that are participating in pump and dump schemes. These influencers often have really gullible audiences who would fall for virtually anything they say, and they use this to their advantage to artificially increase token prices before dumping all of their own tokens. Instaraise might just make such schemes a thing of the past through its highly democratic fixed price swap pools.
The people behind the projects that require funding benefit greatly from this model too. Rather than their liquidity and capital varying widely based on factors outside of their control, the stability of the swap pool means that investors will always know the amount of actual capital they have raised so far. They will also be able to gain the trust of their investors thanks to this stability, and will be able to better plan for the future due to the accurate data that they have at their disposal.
Decentralized capital raising has the potential to change the way businesses are started and operated, but first the numerous problems associated with this still new investment technique will first need to be fixed. Instaraise is the first company to actually take these problems head on instead of trying to cash in on a rapidly expanding field. The improvements that they are making to DeFi can help normal people become partial owners of projects that might change the world, and plenty of projects such as Kick Flow, Atomic Swap and Maverick Finance have already seen the benefits of using swap pools on Instaraise to raise highly liquid capital.
