Inverse Finance

Proposal With the INV-DAI Ruler pair expiring at the end of this month (12 days), I propose we allocate INV as rewards to bootstrap liquidity, which will:

• Allow borrowing of larger amounts against their INV
• Lower interest rates for borrowers

Description The Inverse community is extremely loyal and most users have yet to sell their airdrop, but may want to borrow against their INV positions. Ruler separates itself from other lending/borrowing platforms by offering non-liquidatable loans while also not requiring a Chainlink oracle.

I propose we incentivize the liquidity pools with 30 INV (~$40,000) from April 1st to April 30th. Ruler will match the 30 INV with 200 RULER (~$40,000), for a total of $80,000 in rewards over the month (4/1-4/30). The current March expiry INV pair has 200 RULER as incentives and has gathered ~$425k in liquidity. Doubling the rewards by adding INV should increase liquidity to close to $850k, enough to support large borrows.

Rationale The value of the 80 airdropped INV is currently valued at ~$104,000. Even with a conservative mint ratio, large amounts of borrowing would drastically shift the interest rates if there is a lack of liquidity.

Action Incentivize the Ruler INV pair from April 1st to April 30th by transferring 30 INV from the Inverse treasury to Ruler multisig (0x49B8a0893B83A171D7d461198b69A0b1bb4dd0Ed).

Outcome 30 INV + 200 RULER will be rewarded from April 1st to 30th ($80,000 in total rewards over a month).

By offering INV rewards to LPs, compounded with the use of crv.finance pools, the liquidity will be sufficiently deep enough to support large borrows/lends. This in turn means, the interest rate for borrowing will be much lower.