Automating DeFi Strategies
Instadapp Lite Vaults maximizes your gains by reducing the number of transactions, saving on gas and automating fee collection, and simplifies the overall process of setting up and actively monitoring a DeFi strategy.
Instadapp Lite Vaults will periodically rebalance. Rebalancing can move funds to the withdraw pool, rebalance the vault or deleverage under unfavorable market conditions, these rebalances are automatic but can also be executed by the Instadapp team or through an open incentive mechanism.
Lite vaults are a leveraged strategy, as such this means the vault maintains a reserve which can be redeemed instantly. You can see this on the withdraw panel shown as Availability. The vaults strive to maintain around a 5%-10% withdraw pool but this changes based on different market conditions.
All deposits on Instadapp Lite vaults are tokenized as iTokens. iTokens are redeemable for their underlying deposit plus interest.