Instrumental Finance: the next DeFi generation

If 2020 was a breakthrough year for decentralised finance (DeFi), 2021 established DeFi as the hottest sphere in the crypto space. Yes, non-fungible tokens (NFTs) and metaverse & gaming tokens have a charm of their own but DeFi is the only hero of this story. 

To put it into perspective, at the start of last year, DeFi protocols had a total-value locked (TVL) of $18.71 billion – this grew to an astonishing $250 billion by the end of the year and currently stands at $235.81 billion. The essence of technology is evolution and this year, we will see DeFi take the next step in its unprecedented rise.

Instrumental Finance is DeFi’s solution to a cross-layer, cross-chain future.

The future of DeFi is in the hands of Instrumental Finance

Incubated by Composable Labs, Instrumental Finance will correct a fundamental flaw in the DeFi industry – siloing due to a lack of interoperability between layer 2 ecosystems and the applications that use them. Yield farmers look for the best opportunities to maximize returns on provided liquidity. 

At the moment, a lack of interoperability between layer 2 protocols translates to several inefficiencies, including high costs and complexities. A cross-layer, cross-chain solution could help liquidity providers (LPs) tap into the potential for yield across different layers and chains. 

How it works

Instrumental Finance provides a chain- and layer-agnostic solution for LPs that are looking to maximize returns on the liquidity they provide on various layer one and layer two protocols. The protocol streamlines the process of liquidity provision and yield generation. All you have to do is deposit funds into the Instrumental Vault.

Your funds will be deposited into the highest yield-generating pool available, irrespective of the layer or protocol it is on. It is as simple as that. If we dive into more detail, the protocol leverages Composable Finance’s cross-layer asset swapping tool, the Mosaic Bridge. 

The Mosaic Bridge integrates several chains and layer two solutions to provide users the flexibility to freely transfer assets and maximize returns on their liquidity. STRM, Instrumental Finance’s native token, powers the platform. 

Staking

Currently, you can participate in the staking program. If you stake ETH-STRM LP tokens for a locking period of 3 months, you will receive an annual percentage yield (APY) of 217.53%. Over $1.13 million has been locked already – you are definitely not late!

If you partook in the Instrumental Liquidity Rush Program (ended on Dec. 31), you can lock your STRM rewards to receive veSTRM tokens and revenue share.