We are constantly improving our value proposition — making LPing even easier and more accessible for all DeFi users. Most of what we have planned in our technical roadmap align with Composable Finance’s development, jointly helping to lead DeFi into a cross-chain, cross-layer (aka cross-ledger) future.
Our first significant milestone for 2022 will occur in Q1 when we fully launch the Instrumental app. The app will feature the Instrumental strategies, staking and locking, which are already live. Strategy stakers of STRM-ETH Sushiswap LPs in the first three weeks will earn 3% vested over three months, while lockers within three months will earn 5% vested over three months. Lockers of veSTRM will also earn 5% if they lock within the first month, to be vested over three months.
The app will also provide users with the ability to transfer assets such as their LP positions to maximize their yield and will enable cross-layer swaps by integrating Automated Market Maker (AMM) solutions. These features leverage Composable’s Mosaic bridge solution to facilitate cross-ledger LPing. With cross-layer transfers and swaps, Instrumental is able to guarantee the best yield irrespective of the chain or layer. Instead of manually moving assets such as LP positions, an arduous and often fruitless task, Instrumental automates this process by guaranteeing the best possible yield based on the strategy. This not only defragments liquidity provisioning on decentralized exchanges, but allows users to earn the maximum yield possible.
Still in Q1, we will also be adding support for stablecoin pools allowing for more opportunities for yield optimisation for Instrumental users. In stablecoin pools, impermanent loss (IL) is minimised while fees are still earned. In this case, Instrumental Finance’s goal is to ensure the maximum amount of fees is collected and with no IL. The Instrumental strategies can also be joined with stablecoins in addition to LP tokens to provide even more opportunities for users.
With the help of Composable’s innovative technology, Instrumental can bring even more efficiency to our cross-chain features. Composable XCVM (cross-chain virtual machine) serves as a crucial piece for this purpose. Composable’s XCVM and Routing layer facilitates cross-ecosystem communication using a network of bridges. This technology will allow Instrumental to communicate across any chain and layer to provide an actual cross-ledger user experience. Most importantly, it will allow us to expand beyond non-EVM chains such as Terra and other thriving ecosystems. Composable Finance has scheduled the release of its XCVM for Q2. Instrumental will be leveraging this tech stack to realise its strategies, optimisation, and offerings.
Starting in Q2, we will also begin to add more pools to Instrumental. Q2 will feature the addition of four new pools, and we aim to double this number as we progress into each quarter of 2022.
By Q3, Instrumental will begin the initial phase of entering the Cosmos ecosystem. This period aligns with Composable Finance development as well. Composable will begin development in the Cosmos ecosystem in line with their goal of becoming a chain and layer agnostic computing layer. Instrumental will be offering Cosmos strategies, extending the same type of APY chasing liquidity provisioning by leveraging Composable’s tech stack for seamless integration and strategy offering for the Cosmos ecosystem. This will help Instrumental expand its reach and further allow ecosystem-agnostic LPing.
By Q4, Instrumental aims to activate depositing and withdrawing for any chain and layer. For example, a user can deposit assets on the Ethereum mainnet and later choose to withdraw on Osmosis. This should further enable users to optimise their yield by expanding what they can do with their assets and cross-chain and layer. Instrumental will be relying heavily on Composable’s SDK for chain and layer agnostic LP deposit and withdrawal.
Composable Finance adopts a pallet-centric approach via their parachains (in Kusama and Polkadot). We will also be deploying Instrumental Finance as a pallet on Picasso which will be the crowning point of our development journey. As a Picasso pallet, Instrumental will be able to take advantage of the connection to other pallets on Picasso and other parachains within the Dotsama ecosystem. We will be driving this by H2 of 2022 in a bid to expand, in a secure way, the reach and impact of our strategies since it opens up more pools and sources of funds. We would perform protocol-to-protocol interactions through XCVM. Read more about Composable’s pallets in their whitepaper.
Overall, Instrumental’s vision is to become a strategy hub powered by and for a cross-layer, cross-chain future for DeFi’s continuous growth. By this, we power chain and layer-agnostic LPing, which allows builders to optimize their liquidity provisioning yield, cross-layer.
Every incoming feature from our technical roadmap aligns with our vision to provide the most helpful yield optimization service possible. We are looking forward to what’s to come for Instrumental and the future of cross-ledger liquidity provisioning!