> For the complete documentation index, see [llms.txt](https://arvind-anandacoumar.gitbook.io/untitled/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://arvind-anandacoumar.gitbook.io/untitled/how-does-instafi-work.md).

# How does InstaFi work?

What is this magic you speak of ser?

InstaFi works by connecting CeFi and DeFi transaction providers in 1 place.

![](https://2471688010-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fasf0GXnTANE68JMJFkYN%2Fuploads%2Fe07Fe7pn9W84IPLvwxJZ%2Fimage.png?alt=media\&token=918059b8-7fc6-4c1d-8ad1-dba3275750ca)

1. Wallets to sign & approve decentralized transactions
2. Centralized exchanges for fiat transactions & cross chain swaps
3. DEXs for on chain swaps
4. Multi-chain bridges for cross-chain swaps
5. DeFi protocols for 1 click liquidity provision, lending or staking

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Transactions that would have taken multiple steps across each of these services - can now happen in just 1 step with InstaFi. The smart router finds the cheapest path across DeFi and CeFi options - **and completes the intermediary steps programmatically on the user's behalf, by interacting with APIs and smart contracts of underlying transaction providers.**\
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Take the simple transaction of using US dollars to invest in a Uniswap Liquidity Pool\
Today that process looks like this:

1. Buy USDC on centralized exchange
2. Send USDC to wallet
3. Swap USDC for Token 1
4. Swap USDC for Token 2
5. Add Liquidity

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What about a basic cross chain swap?

1. Swap Token 1 to Bridge Currency
2. Use Bridge
3. Swap Bridge Currency for Token 2

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What about moving from a BSC liquidity pool to a ETH liquidity pool?

1. Remove Liquidity
2. Swap Token 1 to USDC
3. Swap Token 2 to USDC
4. Use Bridge to move from BSC to ETH
5. Swap USDC for Token 1
6. Swap USDC for Token 2
7. Provide Liquidity

With InstaFi - all of these transactions can happen in 1 step for the user.\ <br>