CRE8R DAO AMA with Nour Haridy from Inverse Finance
Primer: Inverse Finance is a suite of permissionless decentralized finance tools governed by Inverse DAO. Their main products are Anchor, a money market and synthetic asset protocol, and DOLA, a stablecoin minted on Anchor. Nour Haridy from Inverse Finance shares about their project with the CRE8R DAO community. Read on!
Why Are They Called Inverse Finance?
They started in December 2020
At that point, they didn’t even have a name yet. All they had was a Telegram channel and a bunch of smart contracts
They asked the Telegram community for name suggestions and the name Inverse sticked
“Inverse as a brand right now gives the impression of the values that we have, and kind of the ways we're doing things and many different ways are almost the inverse of the status quo and the standard of what most other projects are doing.”
- Nour Haridy
They did not do a launch. They did an airdrop to people who are involved
Their token started out as a non-transferable token
They don’t do any audits because audits create a false sense of security
Do They Get Mixed Up With Curve War Projects?
No, they don’t
They are going the completely inverse approach for dealing with the stablecoin competition
Other stablecoin projects are pushing and spending a lot on Curve wars
Thinks that the inflationary emissions of Curve war participants are not sustainable
Do They Get Criticism For Not Adopting The Latest DeFi Trends?
Many people would criticize the project when compared to its competitors, but not criticize what they are doing
Decided to take a conservative approach to rewards emission
A lot of people are appreciating their project because they keep the supply from inflating too fast
Their Team
Inverse is set up very differently from other projects
Everything is directly owned by an on-chain governance system
Recently added a payroll contract that is owned by governance where they add full-time contributors
Will be setting up a growth working group, treasury working group, and a policy committee
Will be hiring a smart contract dev, a frontend engineer, and an analytics contributor
Team Having Matching Profile Pictures
It’s from the Animetas project
It is a coincidence
Products Of Inverse Finance
Their first product is a DCA product. The stablecoin yield will be used to buy your favourite crypto over time
Realized that their first product is not popular with the degen community. Hence, they pivoted into DOLA and Anchor around 9 months ago
DOLA is a decentralized debt-backed stablecoin
DOLA is initially minted on Anchor, their lending protocol/stablecoin minting facility. Can be thought of as a mix of Maker and Compound
Anchor is more capital efficient than Compound because it all uses the same collateral pool
Did an experiment where they deployed a fed contract to supply DOLA to Rari Capital’s Fuse Pool #6. The experiment turned out very well
Did a second experiment on Scream, which is on the Fantom blockchain
With the fed contract, users are able to directly mint DOLA without going through Anchor
Inverse Finance mints and lends DOLA on these protocols. These protocols subsequently lend DOLA out to borrowers. Inverse Finance and the protocols get a cut of the fees
Instead of evaluating collaterals, Inverse Finance evaluates protocols. Hence, they scale faster since each protocol has multiple collaterals
Their Upcoming Partnerships
Will be launching a few more fuse pools. Is in discussions to lower risk and improve safety
Have spoken to one major protocol on Avalanche
Their Cross-Chain Plans
Mainly headquartered on Ethereum
They are not looking to deploy Anchor on other blockchains. Instead, they are looking to partners on each chain
Will be prioritizing EVM chains
What Makes DOLA Unique?
The fed contracts give them a lot of control and protection over the peg
They have a stabilizer that contains a reserve of DAI. This can be used by people to arbitrage DOLA if it goes above or under the peg
The stabilizer has 3.8 million DAI reserves
If the reserve is exhausted, they have another tool at their disposal — controlling the interest rates for both borrowers and suppliers across chains and apps connected to the Fed
Is This The Time For DOLA To Shine Now That There’s Controversy Around Frog Nation Products?
Yes. This is why they are launching Inverse Plus right now
It allows them to grow DOLA in terms of liquidity, supply, and demand in a sustainable way
Right now, SPELL is doing a proposal to buy up the Wonderland treasury using the SPELL tokens that are allocated for future rewards
Thinks that the proposal will fail because SPELL holders do not want any association with Wonderland
They will be continuously buying up the DOLA liquidity. After that, they will set up a treasury committee to allocate liquidity across chains
“Governance doesn't really matter until it's the only thing that matters. That's what happened. That's exactly what happened with Wonderland, where nothing else really mattered except for governance and it wasn't there.”
- Nour Haridy
How Does Their Governance System Work?
INV token holders are able to vote
Everything is owned by the treasury and no funds can go out of the treasury without a vote
Has an on-chain governance system where you can delegate your votes to someone else and save gas
Every vote has to go through 3 days of voting. After the vote passes, it will go through another 2 additional timelock days, which allows holders who did not participate in governance to exit if need be
On their website, they have a page called “Transparency,” where users can monitor every single detail in their system
The INV Token
Features
INV is primarily a governance token
INV can be delegated to someone else to vote on your behalf
Recently, they launched INV+ to make INV more productive
“It's to design a positive-sum system and not a system where you're just getting in this zero-sum or negative-sum game where you're just getting somebody else's rewards.”
- Nour Haridy
INV+ comes with the following features:
Can be used as collateral on Anchor
Can be staked for rewards
DOLA interest generated by borrowers across all fed contracts will accrue to xINV stakers
They will be proposing to increase the maximum supply of the token in a future proposal
Their last proposal is to spend 5000 INV per month to purchase liquidity using Olympus protocols
Their goal with INV+ is to increase supply but not dilute existing stakers. Eventually, they would remove all staking rewards on their products
The end goal is to have a massive treasury and allocate capital and liquidity efficiently to support DOLA and grow the product
Process Of Implementing INV+
xINV staking and bonds will be controlled up to a certain limit by the policy committee
The goal of the policy committee is to fundraise without causing any sudden reactions in the market
The goal is to reach 1 billion DOLA in circulation
Once they have reached a stable stage, they would remove the policy committee
Collaterals On Anchor
💡 Fugu: Anchor has a whole list of DeFi blue chips and then suddenly, there’s FLOKI. What’s going on here?
FLOKI was a request by the Floki team
Took a long time for the proposal to pass and for the team to fulfil the rules and requirements for listing
Applied a 50% collateral factor to FLOKI, which is the most conservative collateral factor in Anchor
Inverse Finance does not profit from liquidations. They are fully reliant on third-party liquidators
What Are The Risks Of Using The Inverse Finance Platform?
Doesn’t think that there’s a significant risk to using Inverse
Thinks that protocols that advertise and market their audit reports are more risky than Inverse
On rekt.news, there are more protocols that are audited than non-audited ones
Even though Inverse is not audited, they still do code reviews by community developers and bug bounties
What Challenges Are They Facing And How Do They Plan To Overcome Them?
Their main challenge right now is to improve DOLA liquidity
INV+ was designed as a solution to the low liquidity problem of DOLA
Once there’s sufficient liquidity, they can then proceed on their cross-chain plans
Had a project that wanted to migrate their liquidity to DOLA, but were unable to do so because of a lack of DOLA liquidity on the Fantom blockchain
Their Roadmap
Will be expanding further liquidity on the Fantom blockchain
The goal is to partner with projects that are creating user-centric products, particularly games
💡 Nour is currently working with a gaming project on Fantom called Station Zero-X. The goal is to incorporate DOLA in their product
He is personally involved with Station Zero-X. He has written a lot of code for them
Station Zero-X is aspiring to launch an entire economy, including different assets and types of assets
Will There Be Any Inverse NFTs?
There is proof of participation NFTs meant for special events
They are not meant to be collectables
Where Can Interested Listeners Go To Next?
They have a Swap page where users can swap their stablecoins for DOLA
Put DOLA on Anchor to generate interest
Since INV+ has launched, users could also participate in buying bonds
On the governance side:
Delegate your votes to others
Become a proposer to make proposals
Where Did Gabriel Haines Get His Inverse Sweater?
Think it’s from the loldefi project. Loldefi released it to support their project
They are not getting any proceeds from it
Gabriel has been involved with Inverse Finance from the start
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