Authors: @nourharidy @patB @nakamomo @n3bs @basedxeno @thealientourist @cryptoharry

Objectives of INV+

• Increase treasury and liquidity holdings in order to increase the supply of lendable DOLA towards our goal of 1 billion DOLA circulation by the end of 2022.
• Ensure that the Inverse product line is optimized for maximum performance and competitive strength
• Expand INV & DOLA LP bond capacity via Olympus Pro
• Transition the INV governance token to a model with expanding supply that will accrue value based on DOLA lending revenue

Core Proposal Features

• Positive Sum Rewards Token.
• xINV Continuous Rewards
• DOLA Revenue Sharing Rewards
• Permanent protocol-owned liquidity
• Low-interest DOLA borrowing

Summary of Continuous xINV Reward Rate Framework

• With INV+, xINV rewards occur on a near-constant basis, not an arbitrary interval (e.g. 8 hours). Continuous rewards are issued with the creation of new Ethereum blocks https://ycharts.com/indicators/ethereum_blocks_per_day which today are mined 6400 times per day.
• The amount of xINV rewards received by stakers is determined by a Policy Committee initially comprised of seven members who monitor and adjust the xINV Continuous Rewards rate with the following goals and criteria in mind:
  • Grow the Inverse Treasury to support at least 1 billion in circulating DOLA on a sustained basis by the end of 2022.
  • Issue rewards within the aggregate limits set by the GovernorMills voters, who are responsible for replenishing the INV Continuous Rewards allocation approximately every 90 days.
  • Limit sudden downward price action linked to changes in the xINV Continuous reward rate
• With an initial allocation of 15,500 INV for purposes of xINV staking rewards, a base reward rate APY of 100% is anticipated, with an initial cap of 500%.

Policy Committee To Manage xINV Reward Rates and LP Bond Allocations

• A Policy Committee will be responsible for setting reward rates for xINV as well as allocating INV for LP bonding campaigns.
• The Policy Committee will submit a new request for minting of INV to the treasury approximately every 90 days for these purposes via GovernorMills.
• The Policy Committee will be comprised of 7 INV team members who have been active in the development of INV+ and will serve on the committee for a one year term:
  • Nour, patb, BasedXeno, thealientourist, nakamomo, n3bs, and cryptoharry.
  • No additional compensation for serving on this committee is required. Inactive or retiring committee members may be replaced by vote on GovernorMills.
  • Voting requires 5 members to achieve quorum and decisions are decided by majority vote though the committee will endeavor to reach unanimous consent on rewards decisions.
• Reward rate changes are implemented by the Policy Committee using the Policy Committee multisig wallet.

On-Chain Actions To Approve

• Move ownership of the xINV contract to the new xINV Manager contract
• Set a hard cap of 0.085616438356 per block for xINV reward rate
• Set xINV reward rate to 0.0260416666666667 per block (5000 INV per month)
• Set xINV withdrawal delay to 0 days
• Authorize a 15,000 INV allowance to Policy Committee multisig to be used for refilling OP Bonds over the coming months.
• Authorize 15,500 INV allowance to the xINV contract from the Inverse treasury to be used as xINV rewards.