Inverse Finance

DESCRIPTION

I propose two simultaneous 30-day staking reward events

• INV-ETH Uniswap LP token staking for a total of 1000 INV
• DOLA-3CRV Curve LP token staking for a total of 200 INV

RATIONALE

With INV listings pending for Anchor, Fuse, and potentially Cream, there is currently insufficient liquidity (< $1m) in the INV-ETH pool to safely service this usage.

Additionally, if INV is used as collateral to borrow an asset (say DOLA or ETH) and the INV price goes down, a liquidator repays the loan (in DOLA or ETH) to get INV, the liquidator will be forced to sell INV at a discount to their target asset, crashing the price of INV

Since DOLA-ETH staking ended, DOLA liquidity and demand have plummeted. As incentives for supplying ETH on Anchor are about to go into effect, a new DOLA staking incentive would incentivize Anchor ETH suppliers to borrow DOLA and stake on Curve, generating borrowing interest revenue to the treasury and boosting DOLA liquidity.

Thanks to Curve’s low IL risk, Anchor DOLA borrowers face significantly lower risk when LP-ing and therefore the reward rate is reduced from the previous staking event’s 625 INV to 50 INV per week.

These incentives buy us time (1 month) to finish development and execution of LP token auctions.