Inverse Finance Newsletter
October
Hello Invaders! It’s a build market as they say, a time we use to focus on building products and securing liquidity for DOLA. The past month has been very fruitful as we have seen important proposals come through and new Fed code audited, now we are good to go on the liquidity front.
Inverse Finance’s founder,
https://twitter.com/x/status/1571796391038418945, has been hinting that there is a better way of doing things than relying on the classical variable rate lending paradigm that we see throughout the crypto space. We have had to re-evaluate the very foundations of our previous platform and began building a product that is more secure. More information will follow in November but it tackles both variable rates and the security risks inherent to shared collateral pools in lending markets.
Proposals
Several important proposals have been passed since the time of the last newsletter. We are diversifying our liquidity strategy and opening up new Feds which will offer deeper liquidity, increased DOLA peg control and a smaller spend on liquidity incentives.
Bug Bounty Contest
A recent proposal added a significant sum of DOLA to the bug bounty/audit allowance as a part of our sharpened security awareness. This will be used in part for Defimoon who audits our contracts but the brunt of the funds go towards the bug bounty contest for our upcoming product. Code4arena is a platform for holding contests where verified whitehat hackers compete for finding bugs or vulnerabilities for a prize.
Voting Power
The proposal to fund investments in emission-controlling tokens is passed and accumulation of
vlCVX, yCRV, sdCRV, sdBAL, veVELO and veSDT has begun. Each of these tokens direct incentives like CRV, FXS or BAL to the liquidity pools that we are interested in. Holding these voting-tokens rather than only bribing others holding these tokens is more economically efficient over the long-term and reduces our reliance on Yearn’s vlCVX votes for DOLA incentives on Curve.
The Frax Fed will connect to Our DOLA-FRAXBP pool on Curve using Convex for rewards.
The Velo Fed is connected to our DOLA-USDC pool on Velodrome which is a decentralized exchange on Optimism, a second layer to the Ethereum blockchain with cheaper transactions. Velodrome has seen sustained high TVL numbers despite the harsh market and the outlook is optimistic.
The proposal to launch a Fed for our Balancer Aura DOLA-bb-a-USD stablecoin pool is about to go active which carries similar benefits.
The Yearn Fed is unchanged and the DOLA-3POOL currently has >$43MM liquidity.
Funds Recovered From Hacked Rari Fuse Pools
https://www.inverse.finance/blog/posts/en-US/funds-recovered-from-hacked-rari-fuse-pools
Our Treasury Working Group and Risk Working Groups have been hard at work finding ways to liquidate positions with seemingly illiquid collateral. They have recovered enough funds to place our Fuse endeavor at +$127k, accounting for bad debt. On April 30th, seven of Rari’s Fuse pools were drained for a total of ~$80,000,000. Inverse Finance has recovered almost 82% of DOLA supplied to Fuse Pool Feds. Of the remaining 18%, we deem 88% is healthy and recallable, and 12% is being written off as bad debt
Community Rewards
Several of our community participants have been helpful in their discord inquiries and discussions and a proposal was made to fund INV rewards for the following:
Keygenmusicenjoyer, Cryptoenthusiast, Trophycase, Zach, Dasvir and Cryptinewt
Thank you for lifting the level of conversation in discord!
Discord Poker And Events
Discord has introduced new gaming activities in discord and among them is a Texas hold’em poker app which we can access through a simple voice channel (unless you’re on mobile). This will make Thursday poker sessions much more convenient and perhaps we will boost our numbers. There is 50 DOLA in the pot and it’s open to all Invaders, so join us at 2 PM PST / 5 PM EST / 21 UTC!
Community calls are on Mondays at 11AM PST / 2PM EST / 18 UTC. Orientation calls on the DAO’s structure and culture on Tuesdays 11AM PST / 2PM EST / 18 UTC.
As always you can ping @Nakamomo from the Community Working Group in our Discord if you have any questions.
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