Aave Suggests Strategic Partnership With Instadapp Via INST Token Investment In New Proposal
In Brief
Aave unveils a proposal for a strategic partnership between Aave DAO and Instadapp, featuring a $4 million investment in INST tokens to enhance collaboration between the two protocols.
Community supporting the decentralized finance (DeFi) lending protocol, Aave, has announced a proposal for a strategic partnership between Aave DAO and Instadapp. This partnership includes a $4 million investment in INST tokens, valued at a fully diluted valuation (FDV) of $350 million. The goal is to strengthen collaboration and alignment between the two protocols.
Instadapp has been an integral partner within the Aave ecosystem, offering key infrastructure and user-friendly interfaces. With Instadapp’s upcoming tokenomics reform and rebranding, there is an opportunity for deeper strategic synergy. The proposed partnership aims to create mutual benefits, including promoting GHO adoption through Fluid integration, ensuring prioritized support for Aave protocol integrations, and fostering governance collaboration between the protocols.
The proposal includes several key components: Aave DAO will act as a launch partner for Instadapp’s rebranding and tokenomics update. The DAO and its service providers will adopt a strict non-hostility policy regarding Instadapp’s products and team in public communications. Additionally, Aave DAO will support and promote Instadapp products that utilize the Aave protocol, including GHO and Fluid integrations. This will involve tailored support, such as offering free flash loans to the Instadapp protocol to enhance its integrations.
In order to align the protocols further, Aave plans to purchase $4 million worth of INST tokens using GHO. A portion—up to one-third—of the acquired INST tokens will be allocated to support GHO pairs on Fluid via Merit. The remaining tokens will be vested over a one-year period, with delegation to the Aave Protocol Embassy for active participation in Fluid governance.
Given the time-sensitive nature of this proposal, it is suggested that the transaction proceed via a direct-to-AIP (Aave Improvement Proposal) vote. This approach would allow for the allocation of $4 million in GHO from the treasury for the purchase of INST tokens, with ACI facilitating the transaction. The AIP would also whitelist Instadapp for flash loan access.
Aave Protocol Now Allows Users To Supply And Borrow rsETH On Aave V3 Ethereum Market
The Aave Protocol is a decentralized, non-custodial liquidity platform designed for users to participate as suppliers, borrowers, or liquidators. At the core of the protocol is the AAVE token, which serves as a governance tool, enabling holders to participate in decision-making processes while also offering financial incentives.
Recently, it was announced that users can now supply and borrow rsETH, Kelp DAO’s liquid restaking token, on the Aave V3 Ethereum market. Additionally, users who deposit rsETH into Aave will earn Kelp Miles and EigenLayer points, adding extra value and incentives to their participation.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
