Yup. We save DNGs, but aside from attaching your geo tag (if you have it enabled), we don't touch the DNG at all.

DNGs support XMP, which is an XML based way of describing edits. However, we're doing post processing that can't really be described in XMP.

We're launching Instant RAW as an MVP to see how people use it, so to that end we've only focused on "I want amazing details from RAW but I have no idea how to use Lightroom. Just let me share it on Instagram." For now.