What is Inverse Finance?

Inverse Finance is a permissionless, decentralized financial toolkit managed by the Inverse DAO, a decentralized autonomous organization running on the Ethereum blockchain. In other words, Inverse Finance is simply a decentralized platform focused on borrowing, lending, and creating synthetic assets.

Currently, Inverse Finance is available on all major crypto exchanges, but some popular exchanges with INV listed on them include Huobi Global, Coinbase Exchange, Gate.io, BKEX, and Uniswap (V3).

What is INV?

INV is supposed to be the native utility token for Inverse Finance. In fact, it can be used for multiple purposes on the platform itself, such as managing Inverse Finance products as well as voting for enhanced versions of the platform in the future. As mentioned, Inverse Finance is simply a protocol responsible for generating profits on stablecoins and continuously investing those profits in a target token like ETH (Ethereum).

Now, I will briefly talk about the governance mechanism of Inverse Finance!

The governance mechanism of Inverse Finance consists of 2 parts:

  • Vote: Supporting proposals from the community To be able to vote, you will have to have enough voting power based on the number of INVs you hold or from the mandate from the community.
  • With a small amount of capital, you can participate in the administration by authorizing other individuals.

Some key products of Inverse Finance

It includes anchor, DOLA, and DCA Vaults.

Anchor and $ DOLA

Anchor is a money market and aggregated asset protocol that enables capital-efficient borrowing and lending.

DOLA can be generated using other assets on Anchor as collateral and can also be used itself as collateral to borrow assets from other assets on Anchor. Currently, Anchor only allows DOLA and ETH as collateral. You mortgage ETH and borrow DOLA.

DCA Vaults

With DCA Vaults, you can invest your tokens in profitable strategies while continuously buying assets of your choice with the proceeds.

When you deposit your USDC or DAI, you will 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 will be burned and you will get back the deposited stablecoin. You can claim your earnings at any time without having to withdraw your stablecoins.

Staking mechanism

In addition, it has a stake mechanism. Stake is a newly launched function of Inverse Finance.

Allow INV to be obtained by staking LP tokens.

  • Currently, Inverse Finance accepts LP tokens from ETH/DOLA pairs on Uniswap.
  • Deposit DAI, DOLA, USDC, or USDT (or any combination thereof) to the CRV DOLA-3 pool in exchange for liquidity provider tokens.
  • Deposit INV and ETH to the Uniswap pool to get LP tokens. You can then stake your LP tokens to earn INV rewards.

The platform’s advantages for users

  • Save gas fees

Because Inverse Finance Vault is designed to convert profits from all users at once, rather than one transaction per user.

  • “Safe investment strategy”

Stablecoin allows you to follow a dollar-cost averaging investment strategy in a target token with the help of your stablecoin returns over a long period of time. This can be a suitable strategy, especially for those who are not really willing to take the risk of the market buying the target token directly and want to keep their principal protected from volatility.

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