Inverse Finance Partnership With Yearn Finance
Inverse is making large investments to aggressively grow DOLA liquidity in the marketplace. This is essential to accelerate revenue growth but this is also likely to have many indirect benefits including, to cite just one example, ensuring DOLA is included in analyst coverage of stablecoin markets, which is often missing for us today.
A major part of its new liquidity strategy was unveiled as it added a new proposal on GovernorMills to launch a new DOLA Fed with Yearn Finance. It’s another DOLA Fed that is similar in most respects to others it operate, but with some notable differences.
the path to stablecoin liquidity today is currently via Curve Finance, who built an entire DEX just for stablecoins like DOLA. They’ve masterfully developed a system that emits fresh Curve governance tokens — CRV — every week and sprinkles them on wallets that lock their CRV tokens in vaults for between 1–4 years. The longer you lock, the more CRV gets sprinkled onto your wallet every week.
But when you lock your CRV governance tokens, you also get this voting token, veCRV, in return. For every CRV governance token you lock, you receive one veCRV. Big deal … another useless voting token, right? No! In addition to sprinkling CRV on wallets who lock their CRV, Curve also sprinkles CRV tokens as rewards for anyone providing stablecoin liquidity into their curve.finance DEX. Wallets with the veCRV tokens get to decide how next week’s batch of new CRV tokens will be split across different stablecoin pools and, in turn, dropped into the wallets of their liquidity providers.
So the more CRV that is voted to be sprinkled into your pool, the higher the APY for liquidity providers. The higher APY, like lions to a fresh kill, causes these LP’s to move over to your pool and provide liquidity.
Inverse < > Yearn
A whole industry of veCRV bribery is out there. Inverse is now competing with other stablecoin projects to get veCRV voters to send CRV rewards to the DOLA-3POOL pool on Curve. Inverse is light on veCRV in Their treasury. So they connected with Yearn. Yearn has lots of veCRV.
Boosting DOLA 3POOL with Yearn
Yearn today owns approximately 9.7 million veCRV tokens and they’ve committed to voting 10% of those to DOLA 3POOL. This is currently 2,428,625 veCRV, equivalent to $5.5m worth of CRV locked for 4 years.
Inverse, in turn, is injecting millions of DOLA to a custom Yearn vault in a way that is more profitable for Yearn than accepting pure bribes.
For Inverse, instead of renting liquidity by spending its own INV tokens as bribes to veCRV owners, they are deploying DOLA — via a custom DOLA Fed — into a custom Yearn vault that in turn, deploys that DOLA into DOLA 3POOL, receives LP tokens, and deploys those tokens into Convex. The cost to Inverse here is essentially zero.
For Yearn, this delivers a better return than what is available through conventional bribing as swap fees, CRV rewards, and CVX rewards all accrue to Yearn.
To read the full information visit this link.
Inverse users can profit handsomely by depositing DOLA into DOLA-3POOL on Curve and then depositing those LP tokens into Yearn
ABOUT Inverse Finance
Inverse Finance is a community of cryptocurrency enthusiasts organized as a Decentralized Autonomous Organization (DAO), started on the 26th of December 2020. Inverse DAO governs and develops a suite of permissionless and decentralized finance tools using blockchain smart contract technology. The code base is open-source, and maintained by the community.
ABOUT Yearn Finance
Yearn Finance is a suite of products in Decentralized Finance (DeFi) that provides yield generation, lending aggregation, and more on the blockchain. The protocol is maintained by various independent developers and is governed by YFI holders.
RESOURCES
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