inversefinance/initiatives

initiatives's Issues

Olympus Finance

Description:
Olympus utilizes Protocol Owned Value to enable price consistency and scarcity within an infinite supply system.

Argument:
So far we have backed every 1 OHM with 1 DAI and with any typical market we cannot control the price but what we can control is that each OHM is backed by the price floor.

Olympus proposes another use case for DOLA:

• User deposits INV, borrows DOLA
• User deposits DOLA in Curve, gets DOLA-3CRV
• User buys DOLA-3CRV bond at Olympus, receive OHM in rewards when 5 day bond matures
• User stakes OHM for a 5 digits+ APY and benefits from auto compounding

DOLA-3CRV will stay in the treasury and creates a price floor for DOLA as it's secure.
When it comes to risk it comes down to the market and how it reacts. We aren't forcing DOLA holders to provide liquidity against OHM, the DAO can vote no. But so far I see no usage for it at all.

To be discussed:

Source:

SCAMP Token on Polygon

Description:
SCAMP is a split token of INV. SCAMP will be deployed on Polygon.

Following the surge of animal tokens (Dogecoin,...) and the success of Woofy token of Yearn, SCAMP is the animal token of INV. The token is named after Scamp the Champ, the winner of the World's Ugliest Dog Contest.

Argument:

• A 1:1000 split of INV would give 100,000,000 max supply, and a current per token price of $0.48, and this would suddenly appear to be an affordable purchase as users may suffer from crypto unit bias.

To be discussed:

• How would SCAMP affect INV governance?
• How much effort we want to put into SCAMP when animal tokens are the temporary trend?

Source:
The unit bias
Crypto unit bias
woofy
woofy and crypto unit bias
gist

Lido Finance

Description:
Lido Finance: deposit Ether to the smart contract and get stETH tokens in return. You earn staking rewards for every day of holding these tokens in your wallet.

Argument:
Lido is a project built for Eth 2.0 staking (launched by Jordan Fish aka CryptoCobain) and they've got a lot in a pipeline.
$1B worth of staked ETH with nowhere else to borrow will be able to use DOLA to leverage or to stake and earn 90% additional APY, adding another use case for DOLA.

Source:

https://twitter.com/NourHaridy/status/1396123080196567046

DEFI5

Description:
Indexed Finance is a project focused on the development of passive portfolio management strategies for the Ethereum network.

Argument:
Lito from DEFI5 confirmed they could add INV to DEGEN, we will add DEFI5 to our DCA vaults.
The debate over USDC/DAI-DEFI5 vault: USDC has more liquidity and is more friendly as it can be acquired on Coinbase.

To be discussed:

Source:
defi5
DEGEN
docs

Docs Uplift

Help wanted for doc uplift

Frax Finance

Description:
Frax is the world’s first fractional-algorithmic stablecoin. The Frax Protocol introduced the world to the concept of a cryptocurrency being partially backed by collateral and partially stabilized algorithmically.

Argument:
The founder of Frax Finance is interested in exploring a proposal to add FXS (their governance token) to Anchor for a trial of a program to help them boost their locked veCRV.
Frax Finance is a protocol that produces a fractionally backed stable coin FRAX – since its launch in December 2020 it has not lost its peg – it is currently backed by 85% USDC and 15% by FXS shares which is adjusted over time up or down depending on the demand for FRAX. There is currently about $20 million in liquidity in the FXS/FRAX uniswap pool. FRAX was recently added to CRV and whitelisted to receive CRV rewards – the amount of locked CRV voting for FRAX is something they would like to increase as a priority – however, they don’t wish to dilute the treasury in doing so.

Proposal:
I have asked them if they would like to explore a way to increase locked veCRV by borrowing against the FXS in FRAX Finance's treasury as set out below:

1. Add FXS to anchor as collateral only (can’t be borrowed in order to avoid someone using it to short FXS) and only for whitelisted addresses (i.e. FRAX Finance Treasury address)
2. As a trial - Frax Finance deposits 150,000 FXS (currently worth about $350,000) and borrows $100,000 in DOLA
3. They swap DOLA for veCRV and lock for four years
4. The loan remains indefinitely on Inverse DAO’s books earning Inverse about 5% interest a year in DOLA borrowing

To be discussed:

Source:
coingecko
Frax uniswap

Remove this Repo?

Seems unused and inactive.

Night mode

Description:
Support front-end night mode on INV site.

INV FAQ

Description:
It is necessary to have an FAQ section for newcomers.

Argument:

1. What is the collateral for xINV & other tokens?
   Market Collateral factor
   ETH 60%
   DOLA 60%
   xSUSHI 60%
   WBTC 60%
   YFI 60%
   xINV 50%

2. How often do we receive xINV rewards?
   xINV accrues INV rewards every block,. this is immediately deposited into the xINV contract. This means that the supply of xINV increases more slowly than INV, allowing users to exchange their xINV for more INV as time passes.

3. How do I stake xINV?

• Visit https://inverse.finance/banking.
• Enter the xINV market using the "Enable" button next to it.
• Enter the amount of INV to supply. This will trigger two transactions: one to approve the xINV contract to transfer the INV and another one to perform the transfer.

4. How do I unstake xINV?

• Visit https://inverse.finance/banking.
• Enter the amount of INV to withdraw. Note that this number increases over time due to accruing interest.
• Press withdraw. This will start the 14 day escrow.
• A new dialog box will appear below the "Withdraw" button indicating when the locked period ends. Press "Confirm" after the period is over to finalize withdrawal.

5. Can rewards be unstaked immediately?
   No. In order to incentivize longer staking, the withdrawal time is currently 14 days.

6. During the 14 day wait of withdrawal do I still earn rewards
   No.

7. Are the Anchor rewards empty?
   Yes. An Anchor upgrade to pull rewards directly from the treasury is in the works and is currently pending review. This upgrade will need to be deployed after approval. Afterwards an on-chain proposal will follow to perform the upgrade.

8. Is the DeFi Pulse TVL Correct?
   Yes, this has been updated to show xINV now

9. Why is liquidity so low?
   Not as many people are providing liquidity via LP tokens. We are looking into a dutch auction for LP tokens, or alternatively increasing incentive to provide liquidity.

10. What is difference between APR and APY?
    Rate = how much interest you earn on your collateral, e.g. you deposit ETH you get 1.15% on that (so your ETH increases).
    Reward APY = how much INV interest you earn. This is the number shown in the middle of Anchor, i.e. your "Claimable rewards".

11. Risk of liquidation
    Users are at risk of liquidation if their collateral is unable to cover their loans. User that only supply and never borrow are never at risk of liquidation.
    Example

Time = T
INV = 1,000 USD
ETH = 4,000 USD

User X deposits 50 INV = 50,000$ collateral.
xINV collateral factor = 50%, thus user has 25,000 USD borrowing credit.
User borrows 6.25 ETH = 25,000 USD.

... some time passes.

Time = T + x
INV = 800 USD
ETH = 5,000 USD

User X's collateral is still 50 INV. It's now worth 50 x 800 USD = 40,000 USD.
User X's loan is 6.25 ETH. It's now worth 6.25 x 5,000 USD = 31,250 USD.
40,000 > 31,250. User is not at risk of liquidation.

... more time passes.

Time = T + x + y
INV = 800 USD
ETH = 7,000 USD

User X's collateral is still 50 INV. It's still worth 40,000 USD>
User X's loan is still 6.25 ETH. It's now worth 6.25 x 7,000 USD = 43,750 USD.
40,000 < 43,750. User can be liquidated.

This is just a simple liquidation example. Note that users should also account for interest accrual.

12. Why do I not have 1:1 xINV after stake?
    The ratio at which xINV is minted is determinted by the amount of INV within the contract and the total supply of xINV. Due to accruing interest, this ratio is constantly changing.

Source:
@AdamBNW-INV

Dune Analytics

Description:
Update metrics on INV Dune Analytics.