What Is Inverse Finance?

2021-04-22 23:50:00 · 676 views · 4 min read

 

Inverse.finance is a suite of permissionless decentralized finance tools governed by Inverse DAO, a decentralized autonomous organization running on the Ethereum blockchain.

 

 

The main Inverse.finance products are Anchor, $DOLA and DCA Vaults.

 

 

Anchor and $DOLA

Anchor is a money market and synthetic asset protocol enabling capital-efficient borrowing & lending, it includes:

 

  • $DOLA - A stablecoin token that tracks the price of $1. 

$DOLA can be minted by using other assets on Anchor as collateral and can also be used itself as collateral to borrow other assets on Anchor.

 

 

  • Banking - The Anchor money market

You can mint $DOLA here. You can also borrow or supply your Dola, ETH, WBTC, YFI and xSUSHI. By lending ETH and/or borrow DOLA in the Inverse Anchor money markets, you will receive rewards in $INV tokens, the protocol’s governance token.

 

 

  • Stabilizer - Where you can mint and burn $DOLA via $DAI at a 1:1 price.

  • Liquidity Pools (in Curve & Uniswap) - For DOLA liquidity & stability


 

 

DCA Vaults 

DCA Vaults enable you to invest your tokens into yield-bearing strategies while continuously buying the asset of your choice with the proceeds. 

 

 

When you deposit your USDC or DAI, you receive a vault token at a 1:1 ratio. As long as you hold that token, you continue to earn ETH, WBTC or YFI. When you withdraw your stablecoin, the vault token is burned and you receive the deposited stablecoins back. You can claim your earnings at any time without having to withdraw your stablecoin. 

The highest APY is 13.3% for USDC to ETH Yield Token.

 

 

As we introduced, the advantage of stablecoin mining is that compared to non-stablecoin mining, you do not need to buy in a fluctuated token to stake and bear the staked tokens’ price fluctuation. Your principal will not get hurt even in a bearish market. 

 

 

There’s one more advantage of staking in Inverse Finance: Your reward tokens are major cryptocurrencies like ETH, WBTC, YFI. They have good liquidity in the crypto market and will be easy to trade flexibly.

 

 

Stake

You can earn $INV by providing liquidity to $DOLA or $INV.

 

 

The Uniswap DOLA-ETH Pool has ended. There are still 2 pool available:

  • Deposit DAI, DOLA, USDC or USDT (or any combination) to the DOLA-3 CRV pool to receive liquidity provider tokens

  • Deposit INV and ETH into the Uniswap pool to receive LP tokens

Then you can stake your LP tokens to earn $INV rewards.

Inverse Finance data dashboards demonstrate that the $INV price has a high correlation to the protocol’s on-chain users and transactions. In the past 90 days, the daily users peaked at 873 and daily transactions peaked at 1.45K on 6th March. The $INV price also hit a peak at $1.62K on the same day.



 

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