Summary

Inverse Finance has an opportunity with FODL Finance to add DOLA lending to Fuse Pool 127 as well as to allow DOLA holders to supply DOLA to the same pool to earn yield.

Background

Inverse is in discussions with FODL Finance about a collaboration around their Rari Fuse Pool 127 “0xB1 Kitchen Sink.” Today, stablecoin borrowing options on Fuse Pool 127 include FRAX, USTw, DAI, USDT, and USDC, while collateral/supply options include those plus gOHM, ETH, FODL, VRN, KIRO, DOP, sSPELL, SOCKS, BIT, YAXIS, xSUSHI, DOP, and APE.

Assessment from Inverse risk team: Support a move to supply DOLA to the pool, but suggest caution. VRN pool stats would have to be monitored periodically before DOLA Fed injects more capital. Full proposal on Forum including links to risk analysis: https://forum.inverse.finance/t/proposal-to-whitelist-dola-fed-for-rari-fuse-pool-127/33/4

Given relatively low amounts of stablecoin liquidity in this pool and the supply of smaller / more high volatility tokens, a gradual approach to providing liquidity to this pool is recommended as we observe volatility and overall profitability of this pool.

Proposal

Whitelist DOLA Fed contract for Fuse Pool 127 as a DOLA minter