Decentralized finance protocol and wallet provider Instadapp has launched a new multi-signature product that could be a game changer for security. Furthermore, the wallet is the first of its kind multi-chain multisig wallet according to the protocol.
On August 29, Instadapp announced Avocado Multisig, a secure and user-friendly wallet solution for individuals, teams, and institutions alike.
DeFi Wallet Evolution
A multi-signature (or multisig) wallet offers the option of multiple private keys to access crypto assets or make transfers.
The Avocado next-generation DeFi wallet was initially launched by Instadapp in March. Commenting on the Multisig launch, Circle CEO Jeremy Allaire said:
“Great example of a multi-sig direct custody wallet with a unified USDC gas tank for all chain fees. Well done Instadapp.”
The USDC “gas tank” allows all signers to share a common kitty to cover gas costs on all supported chains.
DeFi researcher “@DefiIgnas” offered a rundown of the wallet’s features and why multisig was the way to go.
“Similar to how 2FA requires two separate forms of identification to access your CEX or email, multisig wallets also eliminate the risk of a single point of failure.”
Instadapp said that multisigs can be generated in the wallet, so users do not need to manually create them.
Read more: What Are Multisig Wallets and How Do They Work?
It added that Avocado Multisig simplifies treasury management by “consolidating treasuries onto a single address across networks.” Moreover, this enables novel use cases such as token bridging which was not possible with traditional multisig wallets.
Furthermore, standard multisig DeFi wallets require a new address for each chain. However, Avocado uses the same address on more than ten different networks.
The new wallet also enables Account Abstraction which brings Ethereum smart contract functionality to wallets.
Instadapp Ecosystem Outlook
DeFi interoperability protocol Instadapp has $1.95 billion in total value locked. It is ranked at 13th in terms of TVL, including liquid staking providers, so it is no DeFi minnow.
However, collateral has tanked 85% since its peak of $13.5 billion in September 2021, according to DeFiLlama.
The protocol has its own governance token called INST, but that has also tanked 95% since its peak during the crypto bear market.
INST was trading flat on the day at $1.10 at the time of writing. Nevertheless, it reached a lofty peak of $24.40 during the last bull market.
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