Enable DOLA/USDC (0.25% fee tier) v3 gauge on Base Chain

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Overview

Inverse Finance is an on-chain decentralized autonomous organization that develops and manages a suite of permissionless and decentralized financial products using blockchain smart contract technology. Originally founded by Nour Haridy in late 2020, the protocol is now governed by Inverse Finance DAO, a collective of crypto enthusiasts.

Inverse Finance’s main products are:

  • FiRM, a fixed-rate lending market
  • DOLA, a stablecoin pegged to the US Dollar
  • sDOLA, yield-bearing version of the DOLA stablecoin
  • DBR, a new DeFi primitive that enables holders to service a DOLA loan on FiRM.

DOLA is a debt-backed USD stablecoin which is added into and removed from circulation;

  • On the supply side of money markets, such as DAO-owned protocol FiRM, by Inverse Finance’s “Fed” contracts and is then made available to be borrowed through over-collateralized loans.
  • Via injection/contractions into pools such as the Curve DOLA/FraxBP (currently $9.3M TVL), DOLA/USDC on Velodrome ($1.5M TVL), DOLA/USDC on Balancer ($2.8m TVL on ETH, $2.4m TVL on Arbitrum) and DOLA/USDbC on Aerodrome ($16.4m TVL).

DOLA is not “algorithmic” and the INV governance token is not used to mint or redeem DOLA.

Background

Inverse Finance DAO seeks a gauge to trial incentivization for DOLA pools on PCS. The Inverse Finance DAO Treasury Working Group will assess this continuously, starting the trial at the $2k/epoch level.

Details

  1. Boost Multiplier and Emission Cap % : 1.00x boost multiplier and 0.5% emission cap (default values)

  2. Audits: Inverse Finance - Audits

  3. Token Utility: Decentralized USD stabelcoin

  4. Volatility: The DOLA stablecoin is soft pegged to $1, and like fully decentralized, over-collateralized stablecoins, can experience some volatility around this peg. Larger deviations (below $0.99) often recover fast due to the repegging mechanism built into the protocol (increasing borrowing cost on FiRM, AMM Fed contractions).

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  5. Oracles: The Fixed Rate Market or “FiRM,” is Inverse Finance’s Fixed Rate Market lending protocol. FiRM makes use of Chainlink price oracles or Curve’s ema, depending on the market, in combination with our native Pessimistic Price Oracle (PPO). This novel approach to price oracles for borrows and liquidations in FiRM uses the lower of two recorded prices: either a) the current collateral price on the oracle feed, or b) the 48-hour low price as observed by the PPO on the oracle feed, divided by the collateral factor. For example, if the current Chainlink price for wETH is $1,500, the 48-hour low was $1,000 and the collateral factor is 80%, the PPO returns $1,250. ($1,000 / .80 = $1,250).
    Note: for some assets without a Chainlink price feed (such as cvxCRV, cvxFXS, INV), Curve’s EMA oracle (found in ng pools) is used instead.

  6. Control:
    The protocol itself is completely decentralized, and requires no human interaction to work as is. However, DAO working groups have been formed and are active in order to improve efficiencies is various operational areas within the DAO. Often, these working groups will have a Multisig wallet that the DAO governance awards certain roles and limited treasury asset allowances in order to carry out required work. All granted privileges and allowances can be reclaimed/disabled by INV token controlled governance. These are:

  • Treasury Working Group (TWG): 3 of 5 Multisig with allowances giving access to Treasury funds to optimize treasury management.
  • Risk Working Group (RWG): 1 of 3 Multisig with privileges to pause actions in our (now disabled) lending market.
  • Policy Committee (PC): 5 of 9 Multisig that can change staking reward rate to INV stakers.
  • Fed Chair: 2 of 7 Multisig with the operator role on DOLA Fed Contracts, which allows for DOLA to be expanded/contracted under the Fed smart contract logic (bounded by market conditions)

Please see our Multisig Wallet section of the transparency portal here.
9. Merit: DOLA is the #2 stablecoin on Base (only behind USDC), making it the largest decentralized stablecoin on the chain. This brings over 15k unique holders, and millions in volume every single week. This will bring both users and fees to Pancake swap.

Links

  1. Token address: 0x4621b7A9c75199271F773Ebd9A499dbd165c3191
  2. Liquidity pool address: 0x2163A4989B42748f28510CDDeC7a335ab656bB99
  3. Position manager vault address (if applicable): N/A
  4. Website: https://www.inverse.finance/
  5. Socials: X (twitter)
  6. Documentation: Introduction | Inverse Finance
  7. Github: Inverse Finance · GitHub
  8. Any other relevant links: DOLA Liquidity
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Thank you for your application! The Kitchen has enabled the DOLA/USDC 0.25% fee tier gauge on Base with 1x boost multiplier and 0.5% emissions cap.

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