diff --git a/.solcover.js b/.solcover.js
index db331df..ba8ea30 100644
--- a/.solcover.js
+++ b/.solcover.js
@@ -1,14 +1,3 @@
 module.exports = {
-  skipFiles: [
-    'tornado_proxy/TornadoProxy.sol',
-    'tornado_proxy/ITornadoTrees.sol',
-    'tornado_proxy/ITornadoInstance.sol',
-    'ERC20TornadoVirtual.sol',
-    'denomination_templates/Add1Instance.sol',
-    'denomination_templates/Add2Instances.sol',
-    'denomination_templates/Add3Instances.sol',
-    'denomination_templates/Add4Instances.sol',
-    'denomination_templates/Add5Instances.sol',
-    'denomination_templates/Add6Instances.sol',
-  ],
+  skipFiles: [],
 }
diff --git a/README.md b/README.md
index e71fcbb..3dc2b65 100644
--- a/README.md
+++ b/README.md
@@ -2,7 +2,19 @@
 
 ## About
 
-This repository contains governance proposal factory for the addition of new Tornado ERC20 instances to the Tornado router.
+This repository contains:
+
+1. `InstanceFactory` - instance factory for the creation new Tornado ERC20 pools
+2. `InstanceFactoryWithRegistry` - governance proposal factory for the addition of new Tornado ERC20 instances to the Tornado router
+
+### InstanceFactory
+
+Anyone can create a new ERC20 instance by calling `createInstanceClone` method of the factory with parameters:
+
+1. `address token` - address of ERC20 token for a new instance
+2. `uint256 denomination` - denomination for new instance (tokens can only be deposited in certain denominations into instances)
+
+### InstanceFactoryWithRegistry
 
 Anyone can create governance proposal for the addition of a new ERC20 instance by calling `createProposalApprove/createProposalPermit` method of the factory with parameters (proposal creation fee in TORN is charged from sender):
 
@@ -13,13 +25,15 @@ Anyone can create governance proposal for the addition of a new ERC20 instance b
 
 ## Factory parameters
 
+### InstanceFactoryWithRegistry
+
 1. `max number of new instances in one proposal` - the current version supports the addition of a maximum of 3 instances at once.
 2. `proposal creation fee` - this fee is charged from creator of proposal during `createProposalApprove/createProposalPermit` factory method execution. It can be changed by governance. Default value is stored in `config.js`.
 
 ## Warnings
 
 1. This version of the factory creates a proposal for **immutable** Tornado instance initialization.
-2. Users should manually propose a proposal after its creation using the factory (in governance UI for example). As `propose()` method caller must have 1000 TORN locked in the governance. Moreover, the proposer can't propose more than one proposal simultaneously.
+2. For `InstanceFactoryWithRegistry` users should manually propose a proposal after its creation using the factory (in governance UI for example). As `propose()` method caller must have 1000 TORN locked in the governance. Moreover, the proposer can't propose more than one proposal simultaneously.
 
 ## Tests
 
@@ -46,7 +60,8 @@ Check config.js for actual values.
 
 With `salt` = `0x0000000000000000000000000000000000000000000000000000000047941987` address must be:
 
-1. `InstanceFactory` - `0xBb3bd4849F88E709Ea6e5dC8F2C4cDc5293a12d5`
+1. `InstanceFactory` - `0x9A04e3F1091A69CB53D163abE7ad9bbc86C23823`
+1. `InstanceFactoryWithRegistry` - `0xee994E045B9Ec5a37f3f85d34f9fD087A0c69236`
 
 Check addresses with current config:
 
@@ -61,14 +76,14 @@ Deploy InstanceFactory:
     yarn hardhat run scripts/deployInstanceFactory.js --network mainnet
 ```
 
+Deploy InstanceFactoryWithRegistry:
+
+```shell
+    yarn hardhat run scripts/deployInstanceFactoryWithRegistry.js --network mainnet
+```
+
 Verify InstanceFactory on Etherscan:
 
 ```
     yarn hardhat verify --network <network-name> <contract-address> <constructor-arguments>
 ```
-
-With current config:
-
-```
-    yarn hardhat verify --network mainnet 0x7a6e627DC6F66617b4A74Be097A8f56c622fa24c 0xce172ce1F20EC0B3728c9965470eaf994A03557A 0x83584f83f26aF4eDDA9CBe8C730bc87C364b28fe 20 0x5efda50f22d34F262c29268506C5Fa42cB56A1Ce 0xB20c66C4DE72433F3cE747b58B86830c459CA911 0x77777FeDdddFfC19Ff86DB637967013e6C6A116C 200000000000000000000
-```
diff --git a/config.js b/config.js
index fa4b8c3..5c9c57e 100644
--- a/config.js
+++ b/config.js
@@ -14,4 +14,5 @@ module.exports = {
   compWhale: '0xF977814e90dA44bFA03b6295A0616a897441aceC',
   creationFee: '200000000000000000000', // 200 TORN
   deployGasLimit: 7000000,
+  owner: '0xBAE5aBfa98466Dbe68836763B087f2d189f4D28f',
 }
diff --git a/contracts/InstanceFactory.sol b/contracts/InstanceFactory.sol
index 39527cd..4c4331a 100644
--- a/contracts/InstanceFactory.sol
+++ b/contracts/InstanceFactory.sol
@@ -7,68 +7,44 @@ import { Ownable } from "@openzeppelin/contracts/access/Ownable.sol";
 import { Address } from "@openzeppelin/contracts/utils/Address.sol";
 import "@openzeppelin/contracts/proxy/Clones.sol";
 import "./ERC20TornadoCloneable.sol";
-import "./AddInstanceProposal.sol";
-import { IERC20 } from "@openzeppelin/contracts/token/ERC20/IERC20.sol";
-import { IERC20Permit } from "@openzeppelin/contracts/drafts/IERC20Permit.sol";
 
 contract InstanceFactory is Ownable {
   using Clones for address;
   using Address for address;
 
-  address public immutable governance;
-  address public immutable torn;
-  address public immutable instanceRegistry;
   address public implementation;
   address public verifier;
   address public hasher;
   uint32 public merkleTreeHeight;
-  uint256 public creationFee;
 
   event NewVerifierSet(address indexed newVerifier);
   event NewHasherSet(address indexed newHasher);
   event NewTreeHeightSet(uint32 indexed newTreeHeight);
-  event NewCreationFeeSet(uint256 indexed newCreationFee);
   event NewImplementationSet(address indexed newImplemenentation);
   event NewInstanceCloneCreated(address indexed clone);
-  event NewGovernanceProposalCreated(address indexed proposal);
-
-  /**
-   * @dev Throws if called by any account other than the Governance.
-   */
-  modifier onlyGovernance() {
-    require(owner() == _msgSender(), "Caller is not the Governance");
-    _;
-  }
 
   constructor(
     address _verifier,
     address _hasher,
     uint32 _merkleTreeHeight,
-    address _governance,
-    address _instanceRegistry,
-    address _torn,
-    uint256 _creationFee
+    address _owner
   ) {
     verifier = _verifier;
     hasher = _hasher;
     merkleTreeHeight = _merkleTreeHeight;
-    governance = _governance;
-    instanceRegistry = _instanceRegistry;
-    torn = _torn;
-    creationFee = _creationFee;
 
     ERC20TornadoCloneable implContract = new ERC20TornadoCloneable(_verifier, _hasher);
     implementation = address(implContract);
 
-    transferOwnership(_governance);
+    transferOwnership(_owner);
   }
 
   /**
-   * @dev Throws if called by any account other than the Governance.
+   * @dev Creates new Tornado instance.
    * @param _denomination denomination of new Tornado instance
    * @param _token address of ERC20 token for a new instance
    */
-  function createInstanceClone(uint256 _denomination, address _token) external onlyGovernance returns (address) {
+  function createInstanceClone(uint256 _denomination, address _token) public virtual returns (address) {
     bytes32 salt = keccak256(abi.encodePacked(_denomination, _token));
 
     require(!implementation.predictDeterministicAddress(salt).isContract(), "Instance already exists");
@@ -85,95 +61,27 @@ contract InstanceFactory is Ownable {
     return implementation.predictDeterministicAddress(salt);
   }
 
-  /**
-   * @dev Creates AddInstanceProposal with approve.
-   * @param _token address of ERC20 token for a new instance
-   * @param _uniswapPoolSwappingFee fee value of Uniswap instance which will be used for `TORN/token` price determination.
-   * `3000` means 0.3% fee Uniswap pool.
-   * @param _denominations list of denominations for each new instance
-   * @param _protocolFees list of protocol fees for each new instance.
-   * `100` means that instance withdrawal fee is 1% of denomination.
-   */
-  function createProposalApprove(
-    address _token,
-    uint24 _uniswapPoolSwappingFee,
-    uint256[] memory _denominations,
-    uint32[] memory _protocolFees
-  ) external returns (address) {
-    require(IERC20(torn).transferFrom(msg.sender, governance, creationFee));
-    return _createProposal(_token, _uniswapPoolSwappingFee, _denominations, _protocolFees);
-  }
-
-  /**
-   * @dev Creates AddInstanceProposal with approve.
-   * @param _token address of ERC20 token for a new instance
-   * @param _uniswapPoolSwappingFee fee value of Uniswap instance which will be used for `TORN/token` price determination.
-   * `3000` means 0.3% fee Uniswap pool.
-   * @param _denominations list of denominations for each new instance
-   * @param _protocolFees list of protocol fees for each new instance.
-   * `100` means that instance withdrawal fee is 1% of denomination.
-   */
-  function createProposalPermit(
-    address _token,
-    uint24 _uniswapPoolSwappingFee,
-    uint256[] memory _denominations,
-    uint32[] memory _protocolFees,
-    address creater,
-    uint256 deadline,
-    uint8 v,
-    bytes32 r,
-    bytes32 s
-  ) external returns (address) {
-    IERC20Permit(torn).permit(creater, address(this), creationFee, deadline, v, r, s);
-    require(IERC20(torn).transferFrom(creater, governance, creationFee));
-    return _createProposal(_token, _uniswapPoolSwappingFee, _denominations, _protocolFees);
-  }
-
-  function _createProposal(
-    address _token,
-    uint24 _uniswapPoolSwappingFee,
-    uint256[] memory _denominations,
-    uint32[] memory _protocolFees
-  ) internal returns (address) {
-    require(_token.isContract(), "Token is not contract");
-    require(_uniswapPoolSwappingFee > 0, "uniswapPoolSwappingFee is zero");
-    require(_denominations.length > 0, "Empty denominations");
-    require(_denominations.length == _protocolFees.length, "Incorrect denominations/fees length");
-
-    address proposal = address(
-      new AddInstanceProposal(address(this), instanceRegistry, _token, _uniswapPoolSwappingFee, _denominations, _protocolFees)
-    );
-    emit NewGovernanceProposalCreated(proposal);
-
-    return proposal;
-  }
-
-  function setVerifier(address _verifier) external onlyGovernance {
+  function setVerifier(address _verifier) external onlyOwner {
     verifier = _verifier;
     emit NewVerifierSet(verifier);
   }
 
-  function setHasher(address _hasher) external onlyGovernance {
+  function setHasher(address _hasher) external onlyOwner {
     hasher = _hasher;
     emit NewHasherSet(hasher);
   }
 
-  function setMerkleTreeHeight(uint32 _merkleTreeHeight) external onlyGovernance {
+  function setMerkleTreeHeight(uint32 _merkleTreeHeight) external onlyOwner {
     merkleTreeHeight = _merkleTreeHeight;
     emit NewTreeHeightSet(merkleTreeHeight);
   }
 
-  function setCreationFee(uint256 _creationFee) external onlyGovernance {
-    creationFee = _creationFee;
-    emit NewCreationFeeSet(_creationFee);
-  }
-
-  function setImplementation(address _newImplementation) external onlyGovernance {
+  function setImplementation(address _newImplementation) external onlyOwner {
     implementation = _newImplementation;
     emit NewImplementationSet(implementation);
   }
 
-  function generateNewImplementation() external onlyGovernance {
+  function generateNewImplementation() external onlyOwner {
     implementation = address(new ERC20TornadoCloneable(verifier, hasher));
   }
 }
diff --git a/contracts/InstanceFactoryWithRegistry.sol b/contracts/InstanceFactoryWithRegistry.sol
new file mode 100644
index 0000000..9046df7
--- /dev/null
+++ b/contracts/InstanceFactoryWithRegistry.sol
@@ -0,0 +1,122 @@
+// SPDX-License-Identifier: MIT
+
+pragma solidity 0.7.6;
+pragma abicoder v2;
+
+import { Address } from "@openzeppelin/contracts/utils/Address.sol";
+import "./AddInstanceProposal.sol";
+import "./InstanceFactory.sol";
+import { IERC20 } from "@openzeppelin/contracts/token/ERC20/IERC20.sol";
+import { IERC20Permit } from "@openzeppelin/contracts/drafts/IERC20Permit.sol";
+
+contract InstanceFactoryWithRegistry is InstanceFactory {
+  using Address for address;
+
+  address public immutable governance;
+  address public immutable torn;
+  address public immutable instanceRegistry;
+  uint256 public creationFee;
+
+  event NewCreationFeeSet(uint256 indexed newCreationFee);
+  event NewGovernanceProposalCreated(address indexed proposal);
+
+  /**
+   * @dev Throws if called by any account other than the Governance.
+   */
+  modifier onlyGovernance() {
+    require(owner() == _msgSender(), "Caller is not the Governance");
+    _;
+  }
+
+  constructor(
+    address _verifier,
+    address _hasher,
+    uint32 _merkleTreeHeight,
+    address _governance,
+    address _instanceRegistry,
+    address _torn,
+    uint256 _creationFee
+  ) InstanceFactory(_verifier, _hasher, _merkleTreeHeight, _governance) {
+    governance = _governance;
+    instanceRegistry = _instanceRegistry;
+    torn = _torn;
+    creationFee = _creationFee;
+  }
+
+  /**
+   * @dev Throws if called by any account other than the Governance.
+   * @param _denomination denomination of new Tornado instance
+   * @param _token address of ERC20 token for a new instance
+   */
+  function createInstanceClone(uint256 _denomination, address _token) public override onlyGovernance returns (address) {
+    return super.createInstanceClone(_denomination, _token);
+  }
+
+  /**
+   * @dev Creates AddInstanceProposal with approve.
+   * @param _token address of ERC20 token for a new instance
+   * @param _uniswapPoolSwappingFee fee value of Uniswap instance which will be used for `TORN/token` price determination.
+   * `3000` means 0.3% fee Uniswap pool.
+   * @param _denominations list of denominations for each new instance
+   * @param _protocolFees list of protocol fees for each new instance.
+   * `100` means that instance withdrawal fee is 1% of denomination.
+   */
+  function createProposalApprove(
+    address _token,
+    uint24 _uniswapPoolSwappingFee,
+    uint256[] memory _denominations,
+    uint32[] memory _protocolFees
+  ) external returns (address) {
+    require(IERC20(torn).transferFrom(msg.sender, governance, creationFee));
+    return _createProposal(_token, _uniswapPoolSwappingFee, _denominations, _protocolFees);
+  }
+
+  /**
+   * @dev Creates AddInstanceProposal with permit.
+   * @param _token address of ERC20 token for a new instance
+   * @param _uniswapPoolSwappingFee fee value of Uniswap instance which will be used for `TORN/token` price determination.
+   * `3000` means 0.3% fee Uniswap pool.
+   * @param _denominations list of denominations for each new instance
+   * @param _protocolFees list of protocol fees for each new instance.
+   * `100` means that instance withdrawal fee is 1% of denomination.
+   */
+  function createProposalPermit(
+    address _token,
+    uint24 _uniswapPoolSwappingFee,
+    uint256[] memory _denominations,
+    uint32[] memory _protocolFees,
+    address creater,
+    uint256 deadline,
+    uint8 v,
+    bytes32 r,
+    bytes32 s
+  ) external returns (address) {
+    IERC20Permit(torn).permit(creater, address(this), creationFee, deadline, v, r, s);
+    require(IERC20(torn).transferFrom(creater, governance, creationFee));
+    return _createProposal(_token, _uniswapPoolSwappingFee, _denominations, _protocolFees);
+  }
+
+  function _createProposal(
+    address _token,
+    uint24 _uniswapPoolSwappingFee,
+    uint256[] memory _denominations,
+    uint32[] memory _protocolFees
+  ) internal returns (address) {
+    require(_token.isContract(), "Token is not contract");
+    require(_uniswapPoolSwappingFee > 0, "uniswapPoolSwappingFee is zero");
+    require(_denominations.length > 0, "Empty denominations");
+    require(_denominations.length == _protocolFees.length, "Incorrect denominations/fees length");
+
+    address proposal = address(
+      new AddInstanceProposal(address(this), instanceRegistry, _token, _uniswapPoolSwappingFee, _denominations, _protocolFees)
+    );
+    emit NewGovernanceProposalCreated(proposal);
+
+    return proposal;
+  }
+
+  function setCreationFee(uint256 _creationFee) external onlyGovernance {
+    creationFee = _creationFee;
+    emit NewCreationFeeSet(_creationFee);
+  }
+}
diff --git a/scripts/deployInstanceFactoryWithRegistry.js b/scripts/deployInstanceFactoryWithRegistry.js
new file mode 100644
index 0000000..bc24b52
--- /dev/null
+++ b/scripts/deployInstanceFactoryWithRegistry.js
@@ -0,0 +1,28 @@
+const { ethers } = require('hardhat')
+const config = require('../config')
+const { generate } = require('../src/generateAddresses')
+
+async function deploy({ address, bytecode, singletonFactory }) {
+  const contractCode = await ethers.provider.getCode(address)
+  if (contractCode !== '0x') {
+    console.log(`Contract ${address} already deployed. Skipping...`)
+    return
+  }
+  await singletonFactory.deploy(bytecode, config.salt, { gasLimit: config.deployGasLimit })
+}
+
+async function main() {
+  const singletonFactory = await ethers.getContractAt('SingletonFactory', config.singletonFactory)
+  const contracts = await generate()
+  await deploy({ ...contracts.factoryWithRegistryContract, singletonFactory })
+  console.log(
+    `Instance factory with registry contract have been deployed on ${contracts.factoryWithRegistryContract.address} address`,
+  )
+}
+
+main()
+  .then(() => process.exit(0))
+  .catch((error) => {
+    console.error(error)
+    process.exit(1)
+  })
diff --git a/src/generateAddresses.js b/src/generateAddresses.js
index 21ea249..50ece99 100644
--- a/src/generateAddresses.js
+++ b/src/generateAddresses.js
@@ -6,6 +6,19 @@ async function generate(config = defaultConfig) {
   const deploymentBytecodeFactory =
     FactoryFactory.bytecode +
     FactoryFactory.interface
+      .encodeDeploy([config.verifier, config.hasher, config.merkleTreeHeight, config.owner])
+      .slice(2)
+
+  const factoryAddress = ethers.utils.getCreate2Address(
+    config.singletonFactory,
+    config.salt,
+    ethers.utils.keccak256(deploymentBytecodeFactory),
+  )
+
+  const FactoryWithRegistryFactory = await ethers.getContractFactory('InstanceFactoryWithRegistry')
+  const deploymentBytecodeFactoryWithRegistry =
+    FactoryWithRegistryFactory.bytecode +
+    FactoryWithRegistryFactory.interface
       .encodeDeploy([
         config.verifier,
         config.hasher,
@@ -17,10 +30,10 @@ async function generate(config = defaultConfig) {
       ])
       .slice(2)
 
-  const factoryAddress = ethers.utils.getCreate2Address(
+  const factoryWithRegistryAddress = ethers.utils.getCreate2Address(
     config.singletonFactory,
     config.salt,
-    ethers.utils.keccak256(deploymentBytecodeFactory),
+    ethers.utils.keccak256(deploymentBytecodeFactoryWithRegistry),
   )
 
   const result = {
@@ -29,6 +42,11 @@ async function generate(config = defaultConfig) {
       bytecode: deploymentBytecodeFactory,
       isProxy: false,
     },
+    factoryWithRegistryContract: {
+      address: factoryWithRegistryAddress,
+      bytecode: deploymentBytecodeFactoryWithRegistry,
+      isProxy: false,
+    },
   }
 
   return result
@@ -37,6 +55,7 @@ async function generate(config = defaultConfig) {
 async function generateWithLog() {
   const contracts = await generate()
   console.log('Instance factory contract: ', contracts.factoryContract.address)
+  console.log('Instance factory with registry contract: ', contracts.factoryWithRegistryContract.address)
   return contracts
 }
 
diff --git a/test/factory.test.js b/test/factory.test.js
index fa0b9a7..c588ab8 100644
--- a/test/factory.test.js
+++ b/test/factory.test.js
@@ -4,45 +4,30 @@ const { loadFixture } = waffle
 const { expect } = require('chai')
 const { BigNumber } = require('@ethersproject/bignumber')
 const config = require('../config')
-const { getSignerFromAddress, minewait } = require('./utils')
-const { PermitSigner } = require('../src/permit.js')
+const { getSignerFromAddress } = require('./utils')
 const { generate } = require('../src/generateAddresses')
+const { rbigint, createDeposit, toHex, generateProof, initialize } = require('tornado-cli')
 
 describe('Instance Factory Tests', () => {
-  const ProposalState = {
-    Pending: 0,
-    Active: 1,
-    Defeated: 2,
-    Timelocked: 3,
-    AwaitingExecution: 4,
-    Executed: 5,
-    Expired: 6,
-  }
-
   const addressZero = ethers.constants.AddressZero
 
   async function fixture() {
-    const [sender, deployer, multisig] = await ethers.getSigners()
+    const [sender, deployer] = await ethers.getSigners()
 
-    const tornWhale = await getSignerFromAddress(config.tornWhale)
+    const owner = await getSignerFromAddress(config.owner)
 
-    const gov = await ethers.getContractAt('Governance', config.governance)
+    await sender.sendTransaction({
+      to: config.owner,
+      value: ethers.utils.parseEther('1'),
+    })
 
-    const tornToken = await ethers.getContractAt(
-      '@openzeppelin/contracts/token/ERC20/ERC20.sol:ERC20',
-      config.TORN,
-    )
+    const compWhale = await getSignerFromAddress(config.compWhale)
 
     const compToken = await ethers.getContractAt(
       '@openzeppelin/contracts/token/ERC20/IERC20.sol:IERC20',
       config.COMP,
     )
 
-    const instanceRegistry = await ethers.getContractAt(
-      'tornado-relayer-registry/contracts/tornado-proxy/InstanceRegistry.sol:InstanceRegistry',
-      config.instanceRegistry,
-    )
-
     // deploy InstanceFactory with CREATE2
     const singletonFactory = await ethers.getContractAt(
       'SingletonFactory',
@@ -59,328 +44,115 @@ describe('Instance Factory Tests', () => {
     return {
       sender,
       deployer,
-      multisig,
-      tornWhale,
-      gov,
-      tornToken,
+      owner,
       compToken,
-      instanceRegistry,
+      compWhale,
       instanceFactory,
     }
   }
 
   it('Should have initialized all successfully', async function () {
-    const { sender, gov, tornToken, instanceRegistry, instanceFactory } = await loadFixture(fixture)
+    const { sender, compToken, instanceFactory } = await loadFixture(fixture)
     expect(sender.address).to.exist
-    expect(gov.address).to.exist
-    expect(tornToken.address).to.exist
-    expect(instanceRegistry.address).to.exist
+    expect(compToken.address).to.exist
     expect(instanceFactory.address).to.exist
   })
 
   it('Should set correct params for factory', async function () {
     const { instanceFactory } = await loadFixture(fixture)
 
-    expect(await instanceFactory.governance()).to.be.equal(config.governance)
     expect(await instanceFactory.verifier()).to.be.equal(config.verifier)
     expect(await instanceFactory.hasher()).to.be.equal(config.hasher)
     expect(await instanceFactory.merkleTreeHeight()).to.be.equal(config.merkleTreeHeight)
     expect(await instanceFactory.implementation()).to.exist
-    expect(await instanceFactory.creationFee()).to.be.equal(config.creationFee)
-    expect(await instanceFactory.torn()).to.be.equal(config.TORN)
   })
 
   it('Governance should be able to set factory params', async function () {
-    let { instanceFactory, gov } = await loadFixture(fixture)
+    let { instanceFactory, owner } = await loadFixture(fixture)
 
     await expect(instanceFactory.setVerifier(addressZero)).to.be.reverted
 
-    const govSigner = await getSignerFromAddress(gov.address)
-    instanceFactory = await instanceFactory.connect(govSigner)
+    instanceFactory = await instanceFactory.connect(owner)
 
     await instanceFactory.setVerifier(addressZero)
     await instanceFactory.setHasher(addressZero)
     await instanceFactory.setMerkleTreeHeight(1)
-    await instanceFactory.setCreationFee(0)
 
     expect(await instanceFactory.verifier()).to.be.equal(addressZero)
     expect(await instanceFactory.hasher()).to.be.equal(addressZero)
     expect(await instanceFactory.merkleTreeHeight()).to.be.equal(1)
-    expect(await instanceFactory.creationFee()).to.be.equal(0)
 
     await instanceFactory.setVerifier(config.verifier)
     await instanceFactory.setHasher(config.hasher)
     await instanceFactory.setMerkleTreeHeight(config.merkleTreeHeight)
-    await instanceFactory.setCreationFee(config.creationFee)
 
     expect(await instanceFactory.verifier()).to.be.equal(config.verifier)
     expect(await instanceFactory.hasher()).to.be.equal(config.hasher)
     expect(await instanceFactory.merkleTreeHeight()).to.be.equal(config.merkleTreeHeight)
-    expect(await instanceFactory.creationFee()).to.be.equal(config.creationFee)
   })
 
-  it('Should successfully deploy/propose/execute proposal - add instance', async function () {
-    let { sender, instanceFactory, gov, instanceRegistry, tornWhale, tornToken } = await loadFixture(fixture)
+  it('Should successfully add instance', async function () {
+    let { sender, instanceFactory } = await loadFixture(fixture)
 
-    // deploy proposal ----------------------------------------------
-    await tornToken.connect(tornWhale).transfer(sender.address, config.creationFee)
-    await tornToken.approve(instanceFactory.address, config.creationFee)
+    // deploy instance
+    await instanceFactory.connect(sender).createInstanceClone(ethers.utils.parseEther('1000'), config.COMP)
 
-    await expect(() =>
-      instanceFactory
-        .connect(sender)
-        .createProposalApprove(config.COMP, 3000, [ethers.utils.parseEther('100')], [30]),
-    ).to.changeTokenBalances(
-      tornToken,
-      [sender, gov],
-      [BigNumber.from(0).sub(config.creationFee), config.creationFee],
+    // check instance initialization
+    let logs = await instanceFactory.queryFilter('NewInstanceCloneCreated')
+    const instance = await ethers.getContractAt(
+      'ERC20TornadoCloneable',
+      ethers.utils.getAddress('0x' + logs[logs.length - 1].topics[1].slice(-40)),
     )
 
-    let logs = await instanceFactory.queryFilter('NewGovernanceProposalCreated')
-    const proposal = await ethers.getContractAt(
-      'AddInstanceProposal',
-      ethers.utils.getAddress('0x' + logs[0].topics[1].slice(-40)),
-    )
-
-    expect(await proposal.instanceFactory()).to.be.equal(instanceFactory.address)
-    expect(await proposal.instanceRegistry()).to.be.equal(instanceRegistry.address)
-    expect(await proposal.token()).to.be.equal(config.COMP)
-    expect(await proposal.uniswapPoolSwappingFee()).to.be.equal(3000)
-    expect(await proposal.numInstances()).to.be.equal(1)
-    expect(await proposal.protocolFeeByIndex(0)).to.be.equal(30)
-    expect(await proposal.denominationByIndex(0)).to.be.equal(ethers.utils.parseEther('100'))
-
-    // propose proposal ---------------------------------------------
-    let response, id, state
-    gov = await gov.connect(tornWhale)
-    await tornToken.connect(tornWhale).approve(gov.address, ethers.utils.parseEther('26000'))
-    await gov.lockWithApproval(ethers.utils.parseEther('26000'))
-
-    response = await gov.propose(proposal.address, 'COMP token instance proposal')
-    id = await gov.latestProposalIds(tornWhale.address)
-    state = await gov.state(id)
-
-    const { events } = await response.wait()
-    const args = events.find(({ event }) => event == 'ProposalCreated').args
-    expect(args.id).to.be.equal(id)
-    expect(args.proposer).to.be.equal(tornWhale.address)
-    expect(args.target).to.be.equal(proposal.address)
-    expect(args.description).to.be.equal('COMP token instance proposal')
-    expect(state).to.be.equal(ProposalState.Pending)
-
-    // execute proposal ---------------------------------------------
-    await minewait((await gov.VOTING_DELAY()).add(1).toNumber())
-    await expect(gov.castVote(id, true)).to.not.be.reverted
-    expect(await gov.state(id)).to.be.equal(ProposalState.Active)
-    await minewait(
-      (
-        await gov.VOTING_PERIOD()
-      )
-        .add(await gov.EXECUTION_DELAY())
-        .add(96400)
-        .toNumber(),
-    )
-    expect(await gov.state(id)).to.be.equal(ProposalState.AwaitingExecution)
-
-    let tx = await gov.execute(id)
-
-    expect(await gov.state(id)).to.be.equal(ProposalState.Executed)
-
-    // check instance initialization --------------------------------
-    let receipt = await tx.wait()
-    const instanceAddr = '0x' + receipt.events[0].topics[1].toString().slice(-40)
-    const instance = await ethers.getContractAt('ERC20TornadoCloneable', instanceAddr)
-
-    expect(await instance.token()).to.be.equal(config.COMP)
-    expect(await instance.verifier()).to.be.equal(config.verifier)
-    expect(await instance.hasher()).to.be.equal(config.hasher)
-    expect(await instance.levels()).to.be.equal(config.merkleTreeHeight)
-    expect(await instance.denomination()).to.equal(ethers.utils.parseEther('100'))
-
-    const instanceData = await instanceRegistry.instances(instance.address)
-    expect(instanceData.isERC20).to.be.equal(true)
-    expect(instanceData.token).to.be.equal(config.COMP)
-    expect(instanceData.state).to.be.equal(1)
-    expect(instanceData.uniswapPoolSwappingFee).to.be.equal(3000)
-    expect(instanceData.protocolFeePercentage).to.be.equal(30)
-  })
-
-  it('Should successfully deploy/propose/execute proposal - add instances', async function () {
-    let { sender, instanceFactory, gov, instanceRegistry, tornWhale, tornToken } = await loadFixture(fixture)
-
-    // deploy proposal ----------------------------------------------
-    await tornToken.connect(tornWhale).transfer(sender.address, config.creationFee)
-    await tornToken.approve(instanceFactory.address, config.creationFee)
-
-    await expect(() =>
-      instanceFactory
-        .connect(sender)
-        .createProposalApprove(
-          config.COMP,
-          3000,
-          [ethers.utils.parseEther('100'), ethers.utils.parseEther('1000')],
-          [30, 30],
-        ),
-    ).to.changeTokenBalances(
-      tornToken,
-      [sender, gov],
-      [BigNumber.from(0).sub(config.creationFee), config.creationFee],
-    )
-
-    let logs = await instanceFactory.queryFilter('NewGovernanceProposalCreated')
-    const proposal = await ethers.getContractAt(
-      'AddInstanceProposal',
-      ethers.utils.getAddress('0x' + logs[0].topics[1].slice(-40)),
-    )
-
-    expect(await proposal.instanceFactory()).to.be.equal(instanceFactory.address)
-    expect(await proposal.instanceRegistry()).to.be.equal(instanceRegistry.address)
-    expect(await proposal.token()).to.be.equal(config.COMP)
-    expect(await proposal.uniswapPoolSwappingFee()).to.be.equal(3000)
-    expect(await proposal.numInstances()).to.be.equal(2)
-    expect(await proposal.protocolFeeByIndex(0)).to.be.equal(30)
-    expect(await proposal.protocolFeeByIndex(1)).to.be.equal(30)
-    expect(await proposal.denominationByIndex(0)).to.be.equal(ethers.utils.parseEther('100'))
-    expect(await proposal.denominationByIndex(1)).to.be.equal(ethers.utils.parseEther('1000'))
-
-    // propose proposal ---------------------------------------------
-    let response, id, state
-    gov = await gov.connect(tornWhale)
-    await tornToken.connect(tornWhale).approve(gov.address, ethers.utils.parseEther('26000'))
-    await gov.lockWithApproval(ethers.utils.parseEther('26000'))
-
-    response = await gov.propose(proposal.address, 'COMP token instances proposal')
-    id = await gov.latestProposalIds(tornWhale.address)
-    state = await gov.state(id)
-
-    const { events } = await response.wait()
-    const args = events.find(({ event }) => event == 'ProposalCreated').args
-    expect(args.id).to.be.equal(id)
-    expect(args.proposer).to.be.equal(tornWhale.address)
-    expect(args.target).to.be.equal(proposal.address)
-    expect(args.description).to.be.equal('COMP token instances proposal')
-    expect(state).to.be.equal(ProposalState.Pending)
-
-    // execute proposal ---------------------------------------------
-    await minewait((await gov.VOTING_DELAY()).add(1).toNumber())
-    await expect(gov.castVote(id, true)).to.not.be.reverted
-    expect(await gov.state(id)).to.be.equal(ProposalState.Active)
-    await minewait(
-      (
-        await gov.VOTING_PERIOD()
-      )
-        .add(await gov.EXECUTION_DELAY())
-        .add(96400)
-        .toNumber(),
-    )
-    expect(await gov.state(id)).to.be.equal(ProposalState.AwaitingExecution)
-
-    await gov.execute(id)
-
-    expect(await gov.state(id)).to.be.equal(ProposalState.Executed)
-
-    // check instances initialization -------------------------------
-    logs = await instanceFactory.queryFilter('NewInstanceCloneCreated')
-    let instanceAddr = '0x' + logs[0].topics[1].slice(-40)
-    let instance = await ethers.getContractAt('ERC20TornadoCloneable', instanceAddr)
-
-    expect(await instance.token()).to.be.equal(config.COMP)
-    expect(await instance.verifier()).to.be.equal(config.verifier)
-    expect(await instance.hasher()).to.be.equal(config.hasher)
-    expect(await instance.levels()).to.be.equal(config.merkleTreeHeight)
-    expect(await instance.denomination()).to.equal(ethers.utils.parseEther('100'))
-
-    let instanceData = await instanceRegistry.instances(instance.address)
-    expect(instanceData.isERC20).to.be.equal(true)
-    expect(instanceData.token).to.be.equal(config.COMP)
-    expect(instanceData.state).to.be.equal(1)
-    expect(instanceData.uniswapPoolSwappingFee).to.be.equal(3000)
-    expect(instanceData.protocolFeePercentage).to.be.equal(30)
-
-    instanceAddr = '0x' + logs[1].topics[1].slice(-40)
-    instance = await ethers.getContractAt('ERC20TornadoCloneable', instanceAddr)
-
     expect(await instance.token()).to.be.equal(config.COMP)
     expect(await instance.verifier()).to.be.equal(config.verifier)
     expect(await instance.hasher()).to.be.equal(config.hasher)
     expect(await instance.levels()).to.be.equal(config.merkleTreeHeight)
     expect(await instance.denomination()).to.equal(ethers.utils.parseEther('1000'))
-
-    instanceData = await instanceRegistry.instances(instance.address)
-    expect(instanceData.isERC20).to.be.equal(true)
-    expect(instanceData.token).to.be.equal(config.COMP)
-    expect(instanceData.state).to.be.equal(1)
-    expect(instanceData.uniswapPoolSwappingFee).to.be.equal(3000)
-    expect(instanceData.protocolFeePercentage).to.be.equal(30)
   })
 
-  it('Should successfully deploy proposal with permit', async function () {
-    let { instanceFactory, gov, instanceRegistry, tornWhale, tornToken } = await loadFixture(fixture)
+  it('Should deposit and withdraw into the new instance', async function () {
+    let { sender, instanceFactory, compToken, compWhale } = await loadFixture(fixture)
 
-    const privateKey = '0xc87509a1c067bbde78beb793e6fa76530b6382a4c0241e5e4a9ec0a0f44dc0d3'
-    const publicKey = '0x' + ethers.utils.computeAddress(Buffer.from(privateKey.slice(2), 'hex'))
-    const sender = await ethers.getSigner(publicKey.slice(2))
+    // deploy instance
+    await instanceFactory.connect(sender).createInstanceClone(ethers.utils.parseEther('100'), config.COMP)
 
-    await expect(() =>
-      tornToken.connect(tornWhale).transfer(sender.address, config.creationFee),
-    ).to.changeTokenBalances(
-      tornToken,
-      [tornWhale, sender],
-      [BigNumber.from(0).sub(config.creationFee), config.creationFee],
+    let logs = await instanceFactory.queryFilter('NewInstanceCloneCreated')
+    const instance = await ethers.getContractAt(
+      'ERC20TornadoCloneable',
+      ethers.utils.getAddress('0x' + logs[logs.length - 1].topics[1].slice(-40)),
     )
 
-    // prepare permit data
-    const domain = {
-      name: await tornToken.name(),
-      version: '1',
-      chainId: 1,
-      verifyingContract: tornToken.address,
-    }
+    // check instance work ------------------------------------------
+    const depo = createDeposit({
+      nullifier: rbigint(31),
+      secret: rbigint(31),
+    })
 
-    const curTimestamp = Math.trunc(new Date().getTime() / 1000)
-    const args = {
-      owner: sender,
-      spender: instanceFactory.address,
-      value: config.creationFee,
-      nonce: 0,
-      deadline: curTimestamp + 1000,
-    }
+    const value = ethers.utils.parseEther('100')
 
-    const permitSigner = new PermitSigner(domain, args)
-    const signature = await permitSigner.getSignature(privateKey)
-    const signer = await permitSigner.getSignerAddress(args, signature.hex)
-    expect(signer).to.equal(sender.address)
+    await compToken.connect(compWhale).transfer(sender.address, value)
+    await compToken.connect(sender).approve(instance.address, value)
 
-    await expect(() =>
-      instanceFactory.createProposalPermit(
-        config.COMP,
-        3000,
-        [ethers.utils.parseEther('100')],
-        [30],
-        sender.address,
-        args.deadline.toString(),
-        signature.v,
-        signature.r,
-        signature.s,
-      ),
-    ).to.changeTokenBalances(
-      tornToken,
-      [sender, gov],
-      [BigNumber.from(0).sub(config.creationFee), config.creationFee],
+    await expect(() => instance.deposit(toHex(depo.commitment), [])).to.changeTokenBalances(
+      compToken,
+      [sender, instance],
+      [BigNumber.from(0).sub(value), value],
     )
 
-    let logs = await instanceFactory.queryFilter('NewGovernanceProposalCreated')
-    const proposal = await ethers.getContractAt(
-      'AddInstanceProposal',
-      ethers.utils.getAddress('0x' + logs[0].topics[1].slice(-40)),
-    )
+    let pevents = await instance.queryFilter('Deposit')
+    await initialize({ merkleTreeHeight: 20 })
 
-    expect(await proposal.instanceFactory()).to.be.equal(instanceFactory.address)
-    expect(await proposal.instanceRegistry()).to.be.equal(instanceRegistry.address)
-    expect(await proposal.token()).to.be.equal(config.COMP)
-    expect(await proposal.uniswapPoolSwappingFee()).to.be.equal(3000)
-    expect(await proposal.numInstances()).to.be.equal(1)
-    expect(await proposal.protocolFeeByIndex(0)).to.be.equal(30)
-    expect(await proposal.denominationByIndex(0)).to.be.equal(ethers.utils.parseEther('100'))
+    const { proof, args } = await generateProof({
+      deposit: depo,
+      recipient: sender.address,
+      events: pevents,
+    })
+
+    await expect(() => instance.withdraw(proof, ...args)).to.changeTokenBalances(
+      compToken,
+      [instance, sender],
+      [BigNumber.from(0).sub(value), value],
+    )
   })
 })
diff --git a/test/factory.with.registry.test.js b/test/factory.with.registry.test.js
new file mode 100644
index 0000000..271c0ef
--- /dev/null
+++ b/test/factory.with.registry.test.js
@@ -0,0 +1,482 @@
+const hre = require('hardhat')
+const { ethers, waffle } = hre
+const { loadFixture } = waffle
+const { expect } = require('chai')
+const { BigNumber } = require('@ethersproject/bignumber')
+const config = require('../config')
+const { getSignerFromAddress, minewait } = require('./utils')
+const { PermitSigner } = require('../src/permit.js')
+const { generate } = require('../src/generateAddresses')
+const { rbigint, createDeposit, toHex, generateProof, initialize } = require('tornado-cli')
+
+describe('Instance Factory With Registry Tests', () => {
+  const ProposalState = {
+    Pending: 0,
+    Active: 1,
+    Defeated: 2,
+    Timelocked: 3,
+    AwaitingExecution: 4,
+    Executed: 5,
+    Expired: 6,
+  }
+
+  const addressZero = ethers.constants.AddressZero
+
+  async function fixture() {
+    const [sender, deployer, multisig] = await ethers.getSigners()
+
+    const tornWhale = await getSignerFromAddress(config.tornWhale)
+
+    const compWhale = await getSignerFromAddress(config.compWhale)
+
+    const gov = await ethers.getContractAt('Governance', config.governance)
+
+    const router = await ethers.getContractAt(
+      'tornado-relayer-registry/contracts/tornado-proxy/TornadoRouter.sol:TornadoRouter',
+      config.router,
+    )
+
+    const tornToken = await ethers.getContractAt(
+      '@openzeppelin/contracts/token/ERC20/ERC20.sol:ERC20',
+      config.TORN,
+    )
+
+    const compToken = await ethers.getContractAt(
+      '@openzeppelin/contracts/token/ERC20/IERC20.sol:IERC20',
+      config.COMP,
+    )
+
+    const instanceRegistry = await ethers.getContractAt(
+      'tornado-relayer-registry/contracts/tornado-proxy/InstanceRegistry.sol:InstanceRegistry',
+      config.instanceRegistry,
+    )
+
+    // deploy InstanceFactoryWithRegistry with CREATE2
+    const singletonFactory = await ethers.getContractAt(
+      'SingletonFactory',
+      config.singletonFactoryVerboseWrapper,
+    )
+    const contracts = await generate()
+    if ((await ethers.provider.getCode(contracts.factoryWithRegistryContract.address)) == '0x') {
+      await singletonFactory.deploy(contracts.factoryWithRegistryContract.bytecode, config.salt, {
+        gasLimit: config.deployGasLimit,
+      })
+    }
+    const instanceFactory = await ethers.getContractAt(
+      'InstanceFactoryWithRegistry',
+      contracts.factoryWithRegistryContract.address,
+    )
+
+    return {
+      sender,
+      deployer,
+      multisig,
+      tornWhale,
+      compWhale,
+      router,
+      gov,
+      tornToken,
+      compToken,
+      instanceRegistry,
+      instanceFactory,
+    }
+  }
+
+  it('Should have initialized all successfully', async function () {
+    const { sender, gov, tornToken, instanceRegistry, instanceFactory } = await loadFixture(fixture)
+    expect(sender.address).to.exist
+    expect(gov.address).to.exist
+    expect(tornToken.address).to.exist
+    expect(instanceRegistry.address).to.exist
+    expect(instanceFactory.address).to.exist
+  })
+
+  it('Should set correct params for factory', async function () {
+    const { instanceFactory } = await loadFixture(fixture)
+
+    expect(await instanceFactory.governance()).to.be.equal(config.governance)
+    expect(await instanceFactory.verifier()).to.be.equal(config.verifier)
+    expect(await instanceFactory.hasher()).to.be.equal(config.hasher)
+    expect(await instanceFactory.merkleTreeHeight()).to.be.equal(config.merkleTreeHeight)
+    expect(await instanceFactory.implementation()).to.exist
+    expect(await instanceFactory.creationFee()).to.be.equal(config.creationFee)
+    expect(await instanceFactory.torn()).to.be.equal(config.TORN)
+  })
+
+  it('Governance should be able to set factory params', async function () {
+    let { instanceFactory, gov } = await loadFixture(fixture)
+
+    await expect(instanceFactory.setVerifier(addressZero)).to.be.reverted
+
+    const govSigner = await getSignerFromAddress(gov.address)
+    instanceFactory = await instanceFactory.connect(govSigner)
+
+    await instanceFactory.setVerifier(addressZero)
+    await instanceFactory.setHasher(addressZero)
+    await instanceFactory.setMerkleTreeHeight(1)
+    await instanceFactory.setCreationFee(0)
+
+    expect(await instanceFactory.verifier()).to.be.equal(addressZero)
+    expect(await instanceFactory.hasher()).to.be.equal(addressZero)
+    expect(await instanceFactory.merkleTreeHeight()).to.be.equal(1)
+    expect(await instanceFactory.creationFee()).to.be.equal(0)
+
+    await instanceFactory.setVerifier(config.verifier)
+    await instanceFactory.setHasher(config.hasher)
+    await instanceFactory.setMerkleTreeHeight(config.merkleTreeHeight)
+    await instanceFactory.setCreationFee(config.creationFee)
+
+    expect(await instanceFactory.verifier()).to.be.equal(config.verifier)
+    expect(await instanceFactory.hasher()).to.be.equal(config.hasher)
+    expect(await instanceFactory.merkleTreeHeight()).to.be.equal(config.merkleTreeHeight)
+    expect(await instanceFactory.creationFee()).to.be.equal(config.creationFee)
+  })
+
+  it('Should successfully deploy/propose/execute proposal - add instance', async function () {
+    let { sender, instanceFactory, gov, instanceRegistry, tornWhale, tornToken } = await loadFixture(fixture)
+
+    // deploy proposal ----------------------------------------------
+    await tornToken.connect(tornWhale).transfer(sender.address, config.creationFee)
+    await tornToken.approve(instanceFactory.address, config.creationFee)
+
+    await expect(() =>
+      instanceFactory
+        .connect(sender)
+        .createProposalApprove(config.COMP, 3000, [ethers.utils.parseEther('100')], [30]),
+    ).to.changeTokenBalances(
+      tornToken,
+      [sender, gov],
+      [BigNumber.from(0).sub(config.creationFee), config.creationFee],
+    )
+
+    let logs = await instanceFactory.queryFilter('NewGovernanceProposalCreated')
+    const proposal = await ethers.getContractAt(
+      'AddInstanceProposal',
+      ethers.utils.getAddress('0x' + logs[logs.length - 1].topics[1].slice(-40)),
+    )
+
+    expect(await proposal.instanceFactory()).to.be.equal(instanceFactory.address)
+    expect(await proposal.instanceRegistry()).to.be.equal(instanceRegistry.address)
+    expect(await proposal.token()).to.be.equal(config.COMP)
+    expect(await proposal.uniswapPoolSwappingFee()).to.be.equal(3000)
+    expect(await proposal.numInstances()).to.be.equal(1)
+    expect(await proposal.protocolFeeByIndex(0)).to.be.equal(30)
+    expect(await proposal.denominationByIndex(0)).to.be.equal(ethers.utils.parseEther('100'))
+
+    // propose proposal ---------------------------------------------
+    let response, id, state
+    gov = await gov.connect(tornWhale)
+    await tornToken.connect(tornWhale).approve(gov.address, ethers.utils.parseEther('26000'))
+    await gov.lockWithApproval(ethers.utils.parseEther('26000'))
+
+    response = await gov.propose(proposal.address, 'COMP token instance proposal')
+    id = await gov.latestProposalIds(tornWhale.address)
+    state = await gov.state(id)
+
+    const { events } = await response.wait()
+    const args = events.find(({ event }) => event == 'ProposalCreated').args
+    expect(args.id).to.be.equal(id)
+    expect(args.proposer).to.be.equal(tornWhale.address)
+    expect(args.target).to.be.equal(proposal.address)
+    expect(args.description).to.be.equal('COMP token instance proposal')
+    expect(state).to.be.equal(ProposalState.Pending)
+
+    // execute proposal ---------------------------------------------
+    await minewait((await gov.VOTING_DELAY()).add(1).toNumber())
+    await expect(gov.castVote(id, true)).to.not.be.reverted
+    expect(await gov.state(id)).to.be.equal(ProposalState.Active)
+    await minewait(
+      (
+        await gov.VOTING_PERIOD()
+      )
+        .add(await gov.EXECUTION_DELAY())
+        .add(96400)
+        .toNumber(),
+    )
+    expect(await gov.state(id)).to.be.equal(ProposalState.AwaitingExecution)
+
+    let tx = await gov.execute(id)
+
+    expect(await gov.state(id)).to.be.equal(ProposalState.Executed)
+
+    // check instance initialization --------------------------------
+    let receipt = await tx.wait()
+    const instanceAddr = '0x' + receipt.events[0].topics[1].toString().slice(-40)
+    const instance = await ethers.getContractAt('ERC20TornadoCloneable', instanceAddr)
+
+    expect(await instance.token()).to.be.equal(config.COMP)
+    expect(await instance.verifier()).to.be.equal(config.verifier)
+    expect(await instance.hasher()).to.be.equal(config.hasher)
+    expect(await instance.levels()).to.be.equal(config.merkleTreeHeight)
+    expect(await instance.denomination()).to.equal(ethers.utils.parseEther('100'))
+
+    const instanceData = await instanceRegistry.instances(instance.address)
+    expect(instanceData.isERC20).to.be.equal(true)
+    expect(instanceData.token).to.be.equal(config.COMP)
+    expect(instanceData.state).to.be.equal(1)
+    expect(instanceData.uniswapPoolSwappingFee).to.be.equal(3000)
+    expect(instanceData.protocolFeePercentage).to.be.equal(30)
+  })
+
+  it('Should successfully deploy/propose/execute proposal - add instances', async function () {
+    let { sender, instanceFactory, gov, instanceRegistry, tornWhale, tornToken } = await loadFixture(fixture)
+
+    // deploy proposal ----------------------------------------------
+    await tornToken.connect(tornWhale).transfer(sender.address, config.creationFee)
+    await tornToken.approve(instanceFactory.address, config.creationFee)
+
+    await expect(() =>
+      instanceFactory
+        .connect(sender)
+        .createProposalApprove(
+          config.COMP,
+          3000,
+          [ethers.utils.parseEther('100'), ethers.utils.parseEther('1000')],
+          [30, 30],
+        ),
+    ).to.changeTokenBalances(
+      tornToken,
+      [sender, gov],
+      [BigNumber.from(0).sub(config.creationFee), config.creationFee],
+    )
+
+    let logs = await instanceFactory.queryFilter('NewGovernanceProposalCreated')
+    const proposal = await ethers.getContractAt(
+      'AddInstanceProposal',
+      ethers.utils.getAddress('0x' + logs[logs.length - 1].topics[1].slice(-40)),
+    )
+
+    expect(await proposal.instanceFactory()).to.be.equal(instanceFactory.address)
+    expect(await proposal.instanceRegistry()).to.be.equal(instanceRegistry.address)
+    expect(await proposal.token()).to.be.equal(config.COMP)
+    expect(await proposal.uniswapPoolSwappingFee()).to.be.equal(3000)
+    expect(await proposal.numInstances()).to.be.equal(2)
+    expect(await proposal.protocolFeeByIndex(0)).to.be.equal(30)
+    expect(await proposal.protocolFeeByIndex(1)).to.be.equal(30)
+    expect(await proposal.denominationByIndex(0)).to.be.equal(ethers.utils.parseEther('100'))
+    expect(await proposal.denominationByIndex(1)).to.be.equal(ethers.utils.parseEther('1000'))
+
+    // propose proposal ---------------------------------------------
+    let response, id, state
+    gov = await gov.connect(tornWhale)
+    await tornToken.connect(tornWhale).approve(gov.address, ethers.utils.parseEther('26000'))
+    await gov.lockWithApproval(ethers.utils.parseEther('26000'))
+
+    response = await gov.propose(proposal.address, 'COMP token instances proposal')
+    id = await gov.latestProposalIds(tornWhale.address)
+    state = await gov.state(id)
+
+    const { events } = await response.wait()
+    const args = events.find(({ event }) => event == 'ProposalCreated').args
+    expect(args.id).to.be.equal(id)
+    expect(args.proposer).to.be.equal(tornWhale.address)
+    expect(args.target).to.be.equal(proposal.address)
+    expect(args.description).to.be.equal('COMP token instances proposal')
+    expect(state).to.be.equal(ProposalState.Pending)
+
+    // execute proposal ---------------------------------------------
+    await minewait((await gov.VOTING_DELAY()).add(1).toNumber())
+    await expect(gov.castVote(id, true)).to.not.be.reverted
+    expect(await gov.state(id)).to.be.equal(ProposalState.Active)
+    await minewait(
+      (
+        await gov.VOTING_PERIOD()
+      )
+        .add(await gov.EXECUTION_DELAY())
+        .add(96400)
+        .toNumber(),
+    )
+    expect(await gov.state(id)).to.be.equal(ProposalState.AwaitingExecution)
+
+    await gov.execute(id)
+
+    expect(await gov.state(id)).to.be.equal(ProposalState.Executed)
+
+    // check instances initialization -------------------------------
+    logs = await instanceFactory.queryFilter('NewInstanceCloneCreated')
+    let instanceAddr = '0x' + logs[logs.length - 2].topics[1].slice(-40)
+    let instance = await ethers.getContractAt('ERC20TornadoCloneable', instanceAddr)
+
+    expect(await instance.token()).to.be.equal(config.COMP)
+    expect(await instance.verifier()).to.be.equal(config.verifier)
+    expect(await instance.hasher()).to.be.equal(config.hasher)
+    expect(await instance.levels()).to.be.equal(config.merkleTreeHeight)
+    expect(await instance.denomination()).to.equal(ethers.utils.parseEther('100'))
+
+    let instanceData = await instanceRegistry.instances(instance.address)
+    expect(instanceData.isERC20).to.be.equal(true)
+    expect(instanceData.token).to.be.equal(config.COMP)
+    expect(instanceData.state).to.be.equal(1)
+    expect(instanceData.uniswapPoolSwappingFee).to.be.equal(3000)
+    expect(instanceData.protocolFeePercentage).to.be.equal(30)
+
+    instanceAddr = '0x' + logs[logs.length - 1].topics[1].slice(-40)
+    instance = await ethers.getContractAt('ERC20TornadoCloneable', instanceAddr)
+
+    expect(await instance.token()).to.be.equal(config.COMP)
+    expect(await instance.verifier()).to.be.equal(config.verifier)
+    expect(await instance.hasher()).to.be.equal(config.hasher)
+    expect(await instance.levels()).to.be.equal(config.merkleTreeHeight)
+    expect(await instance.denomination()).to.equal(ethers.utils.parseEther('1000'))
+
+    instanceData = await instanceRegistry.instances(instance.address)
+    expect(instanceData.isERC20).to.be.equal(true)
+    expect(instanceData.token).to.be.equal(config.COMP)
+    expect(instanceData.state).to.be.equal(1)
+    expect(instanceData.uniswapPoolSwappingFee).to.be.equal(3000)
+    expect(instanceData.protocolFeePercentage).to.be.equal(30)
+  })
+
+  it('Should successfully deploy proposal with permit', async function () {
+    let { instanceFactory, gov, instanceRegistry, tornWhale, tornToken } = await loadFixture(fixture)
+
+    const privateKey = '0xc87509a1c067bbde78beb793e6fa76530b6382a4c0241e5e4a9ec0a0f44dc0d3'
+    const publicKey = '0x' + ethers.utils.computeAddress(Buffer.from(privateKey.slice(2), 'hex'))
+    const sender = await ethers.getSigner(publicKey.slice(2))
+
+    await expect(() =>
+      tornToken.connect(tornWhale).transfer(sender.address, config.creationFee),
+    ).to.changeTokenBalances(
+      tornToken,
+      [tornWhale, sender],
+      [BigNumber.from(0).sub(config.creationFee), config.creationFee],
+    )
+
+    // prepare permit data
+    const domain = {
+      name: await tornToken.name(),
+      version: '1',
+      chainId: 1,
+      verifyingContract: tornToken.address,
+    }
+
+    const curTimestamp = Math.trunc(new Date().getTime() / 1000)
+    const args = {
+      owner: sender,
+      spender: instanceFactory.address,
+      value: config.creationFee,
+      nonce: 0,
+      deadline: curTimestamp + 1000,
+    }
+
+    const permitSigner = new PermitSigner(domain, args)
+    const signature = await permitSigner.getSignature(privateKey)
+    const signer = await permitSigner.getSignerAddress(args, signature.hex)
+    expect(signer).to.equal(sender.address)
+
+    await expect(() =>
+      instanceFactory.createProposalPermit(
+        config.COMP,
+        3000,
+        [ethers.utils.parseEther('100')],
+        [30],
+        sender.address,
+        args.deadline.toString(),
+        signature.v,
+        signature.r,
+        signature.s,
+      ),
+    ).to.changeTokenBalances(
+      tornToken,
+      [sender, gov],
+      [BigNumber.from(0).sub(config.creationFee), config.creationFee],
+    )
+
+    let logs = await instanceFactory.queryFilter('NewGovernanceProposalCreated')
+    const proposal = await ethers.getContractAt(
+      'AddInstanceProposal',
+      ethers.utils.getAddress('0x' + logs[logs.length - 1].topics[1].slice(-40)),
+    )
+
+    expect(await proposal.instanceFactory()).to.be.equal(instanceFactory.address)
+    expect(await proposal.instanceRegistry()).to.be.equal(instanceRegistry.address)
+    expect(await proposal.token()).to.be.equal(config.COMP)
+    expect(await proposal.uniswapPoolSwappingFee()).to.be.equal(3000)
+    expect(await proposal.numInstances()).to.be.equal(1)
+    expect(await proposal.protocolFeeByIndex(0)).to.be.equal(30)
+    expect(await proposal.denominationByIndex(0)).to.be.equal(ethers.utils.parseEther('100'))
+  })
+
+  it('Should deposit and withdraw into the new instance', async function () {
+    let { sender, instanceFactory, gov, tornWhale, tornToken, router, compToken, compWhale } =
+      await loadFixture(fixture)
+
+    // deploy proposal ----------------------------------------------
+    await tornToken.connect(tornWhale).transfer(sender.address, config.creationFee)
+    await tornToken.approve(instanceFactory.address, config.creationFee)
+
+    await expect(() =>
+      instanceFactory
+        .connect(sender)
+        .createProposalApprove(config.COMP, 3000, [ethers.utils.parseEther('100')], [30]),
+    ).to.changeTokenBalances(
+      tornToken,
+      [sender, gov],
+      [BigNumber.from(0).sub(config.creationFee), config.creationFee],
+    )
+
+    let logs = await instanceFactory.queryFilter('NewGovernanceProposalCreated')
+    const proposal = await ethers.getContractAt(
+      'AddInstanceProposal',
+      ethers.utils.getAddress('0x' + logs[logs.length - 1].topics[1].slice(-40)),
+    )
+
+    // propose proposal ---------------------------------------------
+    let id
+    gov = await gov.connect(tornWhale)
+    await tornToken.connect(tornWhale).approve(gov.address, ethers.utils.parseEther('26000'))
+    await gov.lockWithApproval(ethers.utils.parseEther('26000'))
+
+    await gov.propose(proposal.address, 'COMP token instance proposal')
+    id = await gov.latestProposalIds(tornWhale.address)
+
+    // execute proposal ---------------------------------------------
+    await minewait((await gov.VOTING_DELAY()).add(1).toNumber())
+    await expect(gov.castVote(id, true)).to.not.be.reverted
+    await minewait(
+      (
+        await gov.VOTING_PERIOD()
+      )
+        .add(await gov.EXECUTION_DELAY())
+        .add(96400)
+        .toNumber(),
+    )
+
+    let tx = await gov.execute(id)
+    let receipt = await tx.wait()
+    const instanceAddr = '0x' + receipt.events[0].topics[1].toString().slice(-40)
+    const instance = await ethers.getContractAt('ERC20TornadoCloneable', instanceAddr)
+
+    // check instance work ------------------------------------------
+    const depo = createDeposit({
+      nullifier: rbigint(31),
+      secret: rbigint(31),
+    })
+
+    const value = ethers.utils.parseEther('100')
+
+    await compToken.connect(compWhale).transfer(sender.address, value)
+    await compToken.connect(sender).approve(router.address, value)
+
+    await expect(() => router.deposit(instance.address, toHex(depo.commitment), [])).to.changeTokenBalances(
+      compToken,
+      [sender, instance],
+      [BigNumber.from(0).sub(value), value],
+    )
+
+    let pevents = await instance.queryFilter('Deposit')
+    await initialize({ merkleTreeHeight: 20 })
+
+    const { proof, args } = await generateProof({
+      deposit: depo,
+      recipient: sender.address,
+      events: pevents,
+    })
+
+    await expect(() => router.withdraw(instance.address, proof, ...args)).to.changeTokenBalances(
+      compToken,
+      [instance, sender],
+      [BigNumber.from(0).sub(value), value],
+    )
+  })
+})
diff --git a/test/instance.tests.js b/test/instance.tests.js
deleted file mode 100644
index a85af3b..0000000
--- a/test/instance.tests.js
+++ /dev/null
@@ -1,166 +0,0 @@
-const hre = require('hardhat')
-const { ethers, waffle } = hre
-const { loadFixture } = waffle
-const { expect } = require('chai')
-const { BigNumber } = require('@ethersproject/bignumber')
-const { rbigint, createDeposit, toHex, generateProof, initialize } = require('tornado-cli')
-const config = require('../config')
-const { getSignerFromAddress, minewait } = require('./utils')
-const { generate } = require('../src/generateAddresses')
-
-describe('Instance Factory Tests', () => {
-  const ProposalState = {
-    Pending: 0,
-    Active: 1,
-    Defeated: 2,
-    Timelocked: 3,
-    AwaitingExecution: 4,
-    Executed: 5,
-    Expired: 6,
-  }
-
-  async function fixture() {
-    const [sender, deployer, multisig] = await ethers.getSigners()
-
-    const tornWhale = await getSignerFromAddress(config.tornWhale)
-    const compWhale = await getSignerFromAddress(config.compWhale)
-
-    let gov = await ethers.getContractAt('Governance', config.governance)
-
-    const tornToken = await ethers.getContractAt(
-      '@openzeppelin/contracts/token/ERC20/ERC20.sol:ERC20',
-      config.TORN,
-    )
-
-    const compToken = await ethers.getContractAt(
-      '@openzeppelin/contracts/token/ERC20/IERC20.sol:IERC20',
-      config.COMP,
-    )
-
-    const instanceRegistry = await ethers.getContractAt(
-      'tornado-relayer-registry/contracts/tornado-proxy/InstanceRegistry.sol:InstanceRegistry',
-      config.instanceRegistry,
-    )
-
-    const router = await ethers.getContractAt(
-      'tornado-relayer-registry/contracts/tornado-proxy/TornadoRouter.sol:TornadoRouter',
-      config.router,
-    )
-
-    // deploy InstanceFactory with CREATE2
-    const singletonFactory = await ethers.getContractAt(
-      'SingletonFactory',
-      config.singletonFactoryVerboseWrapper,
-    )
-    const contracts = await generate()
-    if ((await ethers.provider.getCode(contracts.factoryContract.address)) == '0x') {
-      await singletonFactory.deploy(contracts.factoryContract.bytecode, config.salt, {
-        gasLimit: config.deployGasLimit,
-      })
-    }
-    const instanceFactory = await ethers.getContractAt('InstanceFactory', contracts.factoryContract.address)
-
-    // deploy proposal
-    await tornToken.connect(tornWhale).transfer(sender.address, config.creationFee)
-    await tornToken.approve(instanceFactory.address, config.creationFee)
-
-    await instanceFactory
-      .connect(sender)
-      .createProposalApprove(config.COMP, 3000, [ethers.utils.parseEther('100')], [30])
-
-    let logs = await instanceFactory.queryFilter('NewGovernanceProposalCreated')
-    const proposal = await ethers.getContractAt(
-      'AddInstanceProposal',
-      ethers.utils.getAddress('0x' + logs[0].topics[1].slice(-40)),
-    )
-
-    // propose proposal
-    gov = await gov.connect(tornWhale)
-    await tornToken.connect(tornWhale).approve(gov.address, ethers.utils.parseEther('26000'))
-    await gov.lockWithApproval(ethers.utils.parseEther('26000'))
-    await gov.propose(proposal.address, 'COMP token instance proposal')
-    const id = await gov.latestProposalIds(tornWhale.address)
-
-    // execute proposal
-    await minewait((await gov.VOTING_DELAY()).add(1).toNumber())
-    await expect(gov.castVote(id, true)).to.not.be.reverted
-    expect(await gov.state(id)).to.be.equal(ProposalState.Active)
-    await minewait(
-      (
-        await gov.VOTING_PERIOD()
-      )
-        .add(await gov.EXECUTION_DELAY())
-        .add(96400)
-        .toNumber(),
-    )
-    expect(await gov.state(id)).to.be.equal(ProposalState.AwaitingExecution)
-    await gov.execute(id)
-    expect(await gov.state(id)).to.be.equal(ProposalState.Executed)
-
-    logs = await instanceFactory.queryFilter('NewInstanceCloneCreated')
-    const instance = await ethers.getContractAt(
-      'ERC20TornadoCloneable',
-      ethers.utils.getAddress('0x' + logs[0].topics[1].slice(-40)),
-    )
-
-    return {
-      sender,
-      deployer,
-      multisig,
-      tornWhale,
-      compWhale,
-      gov,
-      tornToken,
-      compToken,
-      instanceRegistry,
-      router,
-      instanceFactory,
-      instance,
-    }
-  }
-
-  it('Should set correct params for factory', async function () {
-    const { instance } = await loadFixture(fixture)
-
-    expect(await instance.token()).to.be.equal(config.COMP)
-    expect(await instance.verifier()).to.be.equal(config.verifier)
-    expect(await instance.hasher()).to.be.equal(config.hasher)
-    expect(await instance.levels()).to.be.equal(config.merkleTreeHeight)
-    expect(await instance.denomination()).to.equal(ethers.utils.parseEther('100'))
-  })
-
-  it('Should deposit and withdraw into the new instance', async function () {
-    const { sender, instance, compToken, compWhale, router } = await loadFixture(fixture)
-
-    const depo = createDeposit({
-      nullifier: rbigint(31),
-      secret: rbigint(31),
-    })
-
-    const value = ethers.utils.parseEther('100')
-
-    await compToken.connect(compWhale).transfer(sender.address, value)
-    await compToken.connect(sender).approve(router.address, value)
-
-    await expect(() => router.deposit(instance.address, toHex(depo.commitment), [])).to.changeTokenBalances(
-      compToken,
-      [sender, instance],
-      [BigNumber.from(0).sub(value), value],
-    )
-
-    let pevents = await instance.queryFilter('Deposit')
-    await initialize({ merkleTreeHeight: 20 })
-
-    const { proof, args } = await generateProof({
-      deposit: depo,
-      recipient: sender.address,
-      events: pevents,
-    })
-
-    await expect(() => router.withdraw(instance.address, proof, ...args)).to.changeTokenBalances(
-      compToken,
-      [instance, sender],
-      [BigNumber.from(0).sub(value), value],
-    )
-  })
-})