This week, sDOLA joined the ranks of assets supported on Euler, following prior integrations on Fraxlend and Llamalend. This deployment extends sDOLA into a one of the more fast-growing variable-rate lending environments in DeFi — and it comes with $20,000 in incentives.

Let’s break it down.

What is Euler Frontier?

Euler Frontier is an isolated lending market architecture built by Euler Labs to enable permissionless deployment of new markets, each with its own risk parameters and liquidity profile. It’s designed to be fast, modular, and open—ideal for composability and experimentation. No centralized risk team or cross-market risk aggregation needed.

Why sDOLA?

sDOLA is the yield-bearing version of DOLA. When users borrow DOLA on FiRM, they pay borrowing costs via DOLA Borrowing Rights (DBR) — and DBR revenue is routed back to sDOLA holders to provide yield. sDOLA yield is sourced from 100% from FiRM fixed-rate loans -- borrowing revenues — no emissions, no fluff.

On Euler:

• ✅ sDOLA can be looped at up to 90% LTV

• ✅ Euler users can farm $20,000 in incentives

• ✅ Collateral earns yield natively while you borrow against it

Example Strategy

Let’s say you’re holding $10,000 worth of sDOLA.

You want to boost your exposure to fixed-yield sDOLA using Euler’s loopable lending environment. Here’s how:

1. Deposit sDOLA on Euler Frontier

2. Borrow USDC against it

3. Swap USDC → sDOLA with Euler using its built-in looping feature …

4. Repeat the looping process up to 10 times   — re-deposit the new sDOLA and borrow again

Now your yield exposure is amplified while still earning the underlying sDOLA yield.

It’s another milestone in building sDOLA Everywhere.

Incentives Are Live

A total of $20,000 in incentives will be distributed to sDOLA lenders and borrowers over the coming weeks.

Get started here: 👉 sDOLA Market on Euler

Reminders

• Please leverage responsibly. Euler Frontier is isolated, but that doesn’t mean risk-free.

• DYOR before looping or farming.

Have questions or want to game out a strategy? Join the Inverse community → Inverse Discord

1. Attractive yield bearing asset. First, while Ethena markets USDe as a “synthetic dollar” and not a stablecoin, it has most characteristics of a USD-pegged stablecoin and staked USDe, sUSDe, generates yield by investing collateral into derivatives strategies where yield today is currently 8%. Among yield-bearing stablecoins and yield-bearing quasi-stablecoins, sUSDe is doing heavy lifting and generating the TVL to prove it.

2. Earn Ethena sats. Holders of sUSDe can earn points - “sats” - when can be redeemed for Ethena’s governance token ENA. Ethena’s sats program is scheduled to continue for over a year so still plenty of time to enhance your sUSDe yield with sats. More on Ethena’s sats program here. Just holding sUSDe on FiRM currently gets you a 5x sats reward per day.

3. Borrow with maximum leverage using fixed rates. On FiRM, you can borrow at a 90% collateral factor against sUSDe using a fixed rate, currently 4.85%. But with the Accelerated Leverage Engine, you can “loop” your position up to 10 times in a single click, bringing you even greater leverage.

Check out the suSDE market on FiRM here.

About sUSDE

sUSDe is a synthetic dollar protocol built on Ethereum that is essentially a yield-bearing version of USDe, Ethe. When users stake USDe, they receive sUSDe, which accrues yield over time. This yield comes from multiple sources including staking rewards from Ethereum and profits from derivatives market spreads, thanks to Ethena's strategy involving delta-hedging and leveraging Ethereum's staking mechanism.

Security and Risk Management

The Risk Working Group (RWG) has conducted a comprehensive risk assessment to ensure the safety and reliability of the sUSDe market on FiRM. We also limit total collateral exposure for stablecoin assets - of which sUSDe is included - to 25% of all borrows on FiRM.

Do Your Own Research

As always, it is crucial for users to conduct their own research (DYOR) before depositing sUSDe into FiRM. While we strive to provide secure and reliable borrowing options, it is essential to understand the risks associated with borrowing in DeFi.

Today we launch both Convex and Yearn markets for this LP token, allowing users the choice of two excellent yields on top of that of the LP.

The Opportunity

• Better Productivity for your LP tokens: By depositing DOLA, FRAX, and pyUSD into Curve, users already enjoy a nice yield. Boosting this through Convex or Yearn amplifies the returns. Borrowing against this yield-bearing asset offers yet another layer for enhancing returns.

• Simplified Collateral Deposits: Take advantage of Convex or Yearn yields for Curve LP tokens without depositing separately into Convex.

• Competitive Fixed Rates. DOLA borrowing rates are among the lowest in the industry and they are fixed, not variable. For purposes of multiplying your leverage via the Accelerated Leverage Engine, the certainty of fixed rates is extremely valuable during periods of high volatility when, by comparison, variable rates may spike and trigger liquidation events.

Why Frax-pyUSD-DOLA matters on FiRM

• Important class of collateral: LP tokens represent an attractive path for future collateral additions to FiRM

• DOLA Liquidity and Lending Capacity: The addition of DOLA LP tokens directly supports DOLA liquidity, reduces liquidity costs, and increases DOLA's lending capacity.

Getting Started

1. Deposit Liquidity: Start by providing DOLA-crvUSD liquidity on Curve at Curve.fi. FiRM will automatically handle the subsequent deposit into Convex for you.https://curve.fi/#/ethereum/pools/factory-stable-ng-96/deposit

2. Leverage Your Position and utilize FiRM’s Accelerated Leverage Engine to:

   • Take out a DOLA loan.

   • Purchase more Frax-pyUSD-DOLA LP tokens.

   • Deposit these as additional collateral.

   • Repeat this process with just one click, maximizing your capital efficiency.

This market launches with a 90% collateral factor, ensuring high capital efficiency. Access the market here https://www.inverse.finance/firm

Important Notes

• Do Your Own Research (DYOR): Always conduct your own research. Nothing in this post should be considered to be financial advice (NFA).

Join the Community

Have questions or need guidance? Join us on Discord at discord.gg/pDhpxgEDsZ, where all levels of DeFi users - from white belt to black belt - are welcome!

Today, we celebrate a significant milestone for FiRM with the introduction of crvUSD-DOLA LP (liquidity pool) tokens as collateral. This debut not only enhances the utility of DOLA LP tokens but also signifies a pivotal moment for FiRM, expanding our collateral options where users can take advantage of fixed rate leverage and secure, isolated markets.

The Opportunity

• Better Productivity for your LP tokens: By depositing DOLA and crvUSD into Curve, users already enjoy a nice yield. Boosting this through Convex amplifies the returns. And borrowing against this yield-bearing asset offers yet another layer for enhancing returns.

• Simplified Collateral Deposits: Take advantage of Convex yields for Curve LP tokens without depositing separately into Convex.

• Competitive Fixed Rates. DOLA borrowing rates are among the lowest in the industry and they are fixed, not variable. For purposes of multiplying your leverage via the Accelerated Leverage Engine, the certainty of fixed rates is extremely valuable during periods of high volatility when, by comparison, variable rates may spike and trigger liquidation events.

Why crvUSD-DOLA matters on FiRM

• New class of collateral: LP tokens represent an attractive path for future collateral additions to FiRM

• DOLA Liquidity and Lending Capacity: The addition of DOLA LP tokens directly supports DOLA liquidity, reduces liquidity costs, and increases DOLA's lending capacity.

Getting Started

1. Deposit Liquidity: Start by providing DOLA-crvUSD liquidity on Curve at Curve.fi. FiRM will automatically handle the subsequent deposit into Convex for you.https://curve.fi/#/ethereum/pools/factory-crvusd-12/deposit

2. Leverage Your Position and utilize FiRM’s Accelerated Leverage Engine to:

   • Take out a DOLA loan.

   • Purchase more DOLA-crvUSD LP tokens.

   • Deposit these as additional collateral.

   • Repeat this process with just one click, maximizing your capital efficiency.

This market launches with a 90% collateral factor, ensuring high capital efficiency. Access the market here https://www.inverse.finance/firm/crvUSD-DOLA

Important Notes

• Do Your Own Research (DYOR): Always conduct your own research. Nothing in this post should be considered to be financial advice (NFA).

Join the Community

Have questions or need guidance? Join us on Discord at discord.gg/pDhpxgEDsZ, where all levels of DeFi users - from white belt to black belt - are welcome!

Background

INV staking rewards, which have been live since early 2022, are intended as a type of anti-dilution protection for INV holders, protecting them against current and future INV emissions from liquidity and other DAO operations. To receive INV staking rewards, as well as DBR streaming rewards, requires staking INV exclusively on FiRM on Ethereum mainnet. This design results in multiple opportunity costs for the DAO:

1. Potential INV holders on non-Ethereum mainnet chains (e.g. L2’s) do not have direct access to INV, reducing demand for INV

2. Current INV stakers must manually claim DBR streaming rewards, which some view as inconvenient and, during periods of high gas costs, expensive.

3. INV holders interested in participating in DEX liquidity pools may hesitate due to perceived loss of staking and DBR streaming rewards, despite incentives provided by the DAO to compensate for such loss.

4. INV holders interested in utilizing their INV as loan collateral on third party lending markets are unable to do so without suffering dilution.

In the interests of maximizing INV tokenholder value, the introduction of a more portable, auto-compounding version of INV is an attractive option for the DAO. So we launched sINV.

sINV Design

sINV, short for staked INV, auto-compounds DBR and INV rewards into a single ERC-4626 vault token.

The design for sINV closely mirrors the design of the yield-bearing sDOLA vault token launched earlier this year. INV held in the sINV vault receives a stream of INV staking rewards according to the prevailing xINV staking rate advertised on FiRM, but also additional INV derived by converting DBR streaming rewards to INV at the prevailing DBR streaming rewards rate on FiRM.

Similar to sDOLA, sINV uses a dedicated XY=K auction, where DBR streaming rewards are sold for INV using a Dutch auction. The auction permissionlessly allows anyone to buy DBR using INV, with the price of DBR (per INV) continuously reducing every second until a DBR purchase is made at which point the price will increase. As with the virtual XY=K DBR auction, it is expected that MEV bots will be the main driver of the auction, completing arbitrage transactions between it and the DBR/INV pool on Curve as soon as it becomes profitable.

Also similar to sDOLA, sINV operates on a weekly reward cycle, resetting every Thursday at 00:00 UTC. The INV accumulated from the auction during each cycle is then distributed continuously to sINV holders pro-rata in the subsequent cycle.

An important distinction of sINV is that unlike sDOLA, where demand for sDOLA does not result in a continual increase in the price of DOLA, sINV will generally serve as a continual source of market buy pressure for the INV token as DBR are continually auctioned for INV and deposited in the sINV vault, while differences in price between sINV and INV will be quickly leveled out by arbitrageurs.

sINV may be wrapped and unwrapped only on Ethereum mainnet and users may unwrap and withdraw their INV from the sINV vault at any time with no withdrawal delay.

Use Cases & Reasons To Use sINV

• Ease of Use. More of a benefit, but a commonly cited need for sINV is based on user desire to avoid the manual claiming of INV staking rewards. As sINV rewards are autocompounded for the user, there is no need to manually claim rewards

• Holding INV outside of FiRM. A principal use case for sINV is the ability to hold INV without staking on FiRM.

• Holding INV on non-Ethereum mainnet chains. sINV gives users on non-Ethereum L1’s and L2’s the ability to hold INV and accrue rewards.

• Participating in INV liquidity pools. sINV allows users to deploy their INV to liquidity pools without worry that they are missing out on earning the benefits of compounded rewards.

• Loan collateral. While there is no announced third party oracle for sINV, third party lenders are expected to list sINV as collateral in the coming weeks and months.

Cross-Chain Expansion

An important reason for bringing sINV to market is to enable cross-chain portability and utility of INV in ways that are not currently available to users. As an ERC-4626 vault token, we believe Chainlink’s Cross Chain Interoperability Protocol is the safest and most reliable option for bringing sINV to other chains, particularly Ethereum Layer 2’s like Base, Arbitrum, and OP Mainnet. The approval process for sINV is already underway with Chainlink and with approval of this proposal, rollout of sINV to new chains will begin in the coming weeks.

As always, do your own research and nothing here should be construed as investment advice. If you have questions, come see us in the Inverse Finance discord server!

A bit of background:

What is an Affiliate program?

An affiliate program is a performance-based method for compensating individuals or businesses who send new business to a project or company - most famously launched by Amazon whose associates program is now legend. Affiliates typically receive a portion of the revenue or a one-time incentive as compensation for their promotional efforts. Affiliate programs in DeFi are surprisingly uncommon, largely due to opportunities for abuse but potentially as well due to the manual intervention that can be required to vet and manage Affiliates.

How how does the FiRM Affiliate program work?

We approached this problem initially to design a referral program for all users, which presented risks of abuse that would not pass muster with DAO governance. Instead, we looked at models with a more narrow eligibility criteria that allow us - for now - to vet prospective Affiliates manually. We try to do things permissionlessly, of course, but the amount of manual intervention we believe will be modest and if necessary additional contributor talent can be acquired to manage the problem as it scales.

To become an Affiliate, it’s pretty easy - tell us you are interested and answer a few questions and if you are eligible we will issue you a custom referral URL for your users along with access to our Affiliate dashboard so you can view your referrals (and your commission rewards) in real-time. Payouts are made in DBR and are done monthly.

Why should you become a FIRM Affiliate?

If your website, social media presence, or other online asset is discussing DeFi lending, stablecoins, liquidity farming, and related topics, the FiRM Affiliate program adds an additional monetization path that can have its own stand-alone presence (e.g. a web page dedicated to FiRM or fixed rate lending) or be deployed against unused or unsold advertising inventory.

Most importantly, the FiRM Affiliate program provides a generous revenue share against even large loans on FiRM - something unique among DeFi lending protocols.

Who is eligible?

Eligibility is initially limited to influencers, community leaders, businesses, media properties, and others with sizeable followings. This is where we start, anyway, and we’ll perhaps broaden it in the future. Take a look here at the criteria and - hey this is a beta so if we’re missing out on an opportunity by being too narrow in our criteria, reach out and let us know.

How much can an Affiliate earn?

Our program allows affiliates to earn a 10% commission on DBR’s spent by borrowers they refer. There is no limit to the number of borrowers you can refer however during the beta period we are capping overall payouts. Some borrowers take out 6 and 7-digit loans on FiRM so your earnings could potentially be significant.

The program's success is founded on the fact that FiRM today offers some of the most competitive lending rates in DeFi, including compared to top variable rate lending protocols, against blue chip collateral like wstETH, WBTC, CRV, CVX, and newer assets like COMP. With a robust community of Affiliates, there is no stopping us.

To join, visit our signup page here inverse.finance/affiliate/apply

Now LGTM!

What is COMP?

COMP is the native governance token of Compound Finance. As an early pioneer in DeFi, Compound Finance has demonstrated resilience and adaptability, especially through significant market shifts and regulatory landscapes. COMP tokens enable holders to propose and vote on key protocol changes, thereby maintaining a decentralized governance model that has become a benchmark in the DeFi space.

How does COMP represent a strategic opportunity for FiRM?

Integrating COMP into FiRM presents a strategic opportunity for Inverse Finance. It taps into a dedicated community of Compound users who are actively involved in governance. Furthermore, by offering a unique feature where users retain their governance rights even when their COMP tokens are used as collateral, FiRM differentiates itself from other lending platforms. This approach not only enhances user engagement but also strengthens the governance propositions of both Inverse and Compound Finance.

DYOR: Understanding Risks and Rewards

Before diving into COMP or any DeFi product, conducting thorough research is imperative. Consider the following:

• A technical risk assessment conducted by RWG, accessible here, highlights the viability of integrating COMP into FiRM.

• Governance: Compound Finance operates under a decentralized governance model facilitated by COMP tokens. This model ensures that protocol changes are community-driven, with proposals and voting conducted transparently on-chain. This decentralization aligns with FiRM’s principles and enhances the governance framework of the integrated platform.

• Oracles and Market Implementation: The Chainlink COMP/USD price feed, available on Mainnet ensures reliable and accurate price data. No advanced oracle implementation is required, leveraging Chainlink’s robust infrastructure to mitigate risks associated with price feed inaccuracies.

• Liquidity and Trading Volumes: COMP has limited on-chain liquidity but substantial off-chain liquidity, with trading volumes predominantly occurring on CEXs. The token’s trading volumes and liquidity patterns reflect a stable and engaged market, essential for maintaining collateral value and ensuring smooth market operations. Current trends indicate a strong baseline of trading activity, providing a reliable environment for the introduction of COMP collateral within FiRM.

• Security and Audits: Compound Finance has undergone multiple audits from reputable firms such as OpenZeppelin and Trail of Bits. These audits, combined with an active bug bounty program, underscore the protocol’s commitment to security and resilience. Historical incidents have been addressed transparently, with measures taken to prevent future vulnerabilities and restore value to affected users.

The RWG’s evaluation resulted in a Total Asset Score (TAS) of 5.91/10 for COMP, reflecting its strong market capitalization, equitable distribution, and moderate price volatility. While on-chain trading volumes are lower compared to other assets, the comprehensive liquidity across CEXs and the robust governance framework significantly bolster COMP’s risk profile.

How Do I Deposit and Borrow Against COMP In FiRM?

To leverage COMP within FiRM, follow these steps:

• Deposit: Head to inverse.finance and open the FiRM webpage, navigate to the deposit section, and select COMP as your collateral.

• Borrow: With COMP as collateral, you can borrow DOLA against it. The terms are fixed-rate, providing predictability and stability. Read more here.

• Manage Your Borrowing: Keep an eye on your loans, adjust as necessary, and ensure compliance with the platform’s requirements to avoid liquidations.

As you explore the potential of COMP within the FiRM ecosystem, leverage the wealth of resources available, including Compound’s detailed documentation, community forums, and governance updates. This due diligence will equip you to make informed decisions aligned with your financial strategies and risk tolerance.

We are pleased to announce availability of Nexus Mutual cover for FiRM and sDOLA users. By purchasing cover, users are "insured" in the event of a smart contract or oracle exploit, as explained in their docs. This partnership is also significant other reasons which are explained later in this post.

Who is Nexus Mutual?

Nexus Mutual is a decentralized insurance alternative built on the Ethereum blockchain. It allows members to join and share risk, offering protection against various types of risks through its cover products. Members can also participate in the protocol governance and earn rewards by underwriting risk, assessing claims, and building risk management businesses. Nexus Mutual aims to provide a decentralized and community-driven alternative to traditional insurance models.

Who is OpenCover?

OpenCover is a blockchain insurance and cover data startup that works with underwriters like NexusMutual to help individuals and institutions protect themselves against onchain risks such as protocol exploits and governance attacks. It raised $4.6m in total funding and is also backed by Nexus Mutual. One benefit of OpenCover is the ability to buy cover without KYC.

How Does It Work

After purchasing cover, it's tokenized and represented as an NFT (ERC-721) that you hold in your wallet. This NFT allows you to renew your cover, file partial claims, and transfer the cover to another address if needed. If you need to edit your cover, such as extending the cover period, you can do so, and any remaining fee from your original purchase can be applied as a credit to the updated period.

When you buy cover, the cover fee is converted to NXM, which is the native token of Nexus Mutual. This NXM is then streamed to stakers within the staking pool(s) where the cover capacity was sourced. If you file a claim and it's approved, you can redeem your claim payment, and the remaining cover amount will still be active for the remaining cover period.

You can also access links to cover from within the FiRM user interface:

It's also worth noting that Nexus Mutual is a decentralized insurance alternative that uses blockchain technology to allow people from all over the world to share insurance risk together without the need for an insurance company.

How Do Claims Work?

Nexus Mutual has paid out against claims against some of DeFi's more notorious incidents including FTX, Rari, and others. Their claims process involves several steps. When a member who holds cover suffers a material loss, they can submit their claim and go through the Claims Assessment process. Members who have staked NXM can participate as claim assessors.

Here is a step-by-step breakdown of the claims process:

1. Claim submission: Members who held active cover when the loss event took place can submit a claim through the Nexus Mutual user interface. When a claim is submitted, the cover holder will provide details related to the loss incident, the loss amount, and the supporting proof of loss.

2. Claim assessment: Once a claim is submitted, members can stake NXM and participate as a claim assessor, who reviews the validity of a submitted claim. Claim assessors review submitted claims, discuss claims, and vote on whether or not to accept claims.

3. Voting and decision: A simple majority (50%+) is required to decide an assessment vote. The assessment will last for a minimum of three days, which starts from the time the first vote to approve is submitted. There is a 24-hour silent period, where no votes should be casted before an assessment vote closes. If a vote is submitted during the last 24 hours of the vote, the voting period is extended with an amount of time proportional to the voter's stake, with 24 hours representing the maximum time increase. This design feature prevents "rush attacks," where someone tries to overturn a claim outcome by submitting a vote at the last minute that moves the majority outcome with no time to appeal the vote.

4. Claim outcome: If the claim is approved, the claim deposit is refunded in the same transaction as the claim payout. If the claim is denied, the claim deposit will not be refunded.

5. Payout: Once the claim is approved, the claim payout is processed and the member who submitted the successful claim can redeem their payout after a cool-down period of one day.

Important: remember that Nexus Mutual is a discretionary mutual, which means that the cover products members purchase are not the same as traditional insurance policies. Members vote on claims, and the Mutual has paid out over $18 million in claims to date.

How Much Does It Cost?

At this writing, and for illustrative purposes, $5,000 in cover can be purchased for $5.13 per week. Currently there is $1.5 million in cover available to FiRM and sDOLA users.

Significance Of Cover In Our Risk and Safety Protocols

We believe Inverse today does perhaps more than any other DeFi lending protocol to ensure maximum safety and security for its users. The availability of cover from Nexus Mutual for both FiRM and sDOLA represents an important additional layer in the DAO's safety protocols, in addition to safety innovations like Personal Collateral Escrows, Pessimistic Price Oracles, and more.

We are pleased to announce the availability of DOLA on our latest Ethereum L2, Mode.

What is Mode?

Mode is an Ethereum Layer 2 chain using the Optimism “Superchain” stack with an incentive design that directly compensates users and protocols for using Mode, rather than rely on governance to allocate periodic grants that may or may not trickle down to actual users.

For developers and users on Mode, sequencer revenue is shared via a predetermined formula and it uniquely - for now - implements referral fees for virtually anyone sending new users to the Mode network. Mode does seem to be taking a different approach to compensating its ecosystem.

Mode also emphasizes a practical emphasis on analytics and other transparency features for developers - something required to implement its points system, no doubt - but for developers seeking to focus on core functionality and who don’t want to be distracted with third party support and related applications when bringing a new product up, this at least sounds pretty cool.

Why is Inverse’s expansion to Mode important?

DOLA’s expansion to Base and Optimism mainnet has been a great success for the DAO and Mode represents an additional experiment in cross-chain expansion. However, this is our first expansion leveraging an existing partner - Velodrome - to bring DOLA online quickly and with the ability to rapidly scale.

Today Inverse is the #2 veVELO holder on Velodrome, giving us great ability to bribe anywhere Velodrome deploys, now including on Mode.

Important note: Velodrome has launch support for Fraxtal, Build on Bitcoin, and other Superchain L2’s and will likely continue to support new Superchain L2’s as they appear. All things being equal, this should create additional demand for VELO (and veVELO) and increase the value of the DAO’s veVELO NFT.

As mentioned above, Mode is an Ethereum Layer 2 chain using the Optimism “Superchain” Bedrock stack, making it compatible with existing DOLA Feds on OP Mainnet and Base. While there are no near-term plans to deploy a DOLA Fed on Mode, we have the ability to do so rapidly and, of course, subject to governance.

Lastly, Mode represents a new venue for our yield bearing assets, sDOLA and soon, sINV. Chainlink has announced CCIP bridging and messaging support for Mode and bringing those assets to Mode can occur in a matter of weeks.

Who are our launch partners?

We are initially launching with Velodrome with conversations with third party lending partners and others already underway.

What Incentives Are There On Mode for the Inverse Community?

If you are new to Mode there are multiple streams of incentives:

Mode points. Mode has an automated system for allocating points according to which dapp is being used and how it is being used. You can see a full menu here: https://www.mode.network/about-the-airdrop

Optimism-driven incentives. Similar to users on Base or OP mainnet, as a member of the OP Superchain ecosystem, Mode is eligible for OP grants and incentives that will find their way to users on Mode.

Velodrome incentives. Of course DEX partners are one place to earn points and our partnership with Velodrome allows us to incentivize DOLA liquidity pools on Mode at an aggressive rate.

What Else Do I Need To Know?

• At launch DOLA is being supported exclusively on the Mode native bridge, which facilitates fast bridging from Ethereum mainnet to Mode but like other OP superchains,  has a 7-day waiting period when bridging from Mode back to Ethereum mainnet.

How Do I Get Started?

1. Bridge DOLA to Mode here.

2. LP on Velodrome:

3. Enjoy. More opportunities on Mode are in the works!

More Links

1. A resource page that dives into the entire enchilada https://mode.mirror.xyz/

2. DOLA token address on Mode https://explorer.mode.network/token/0x00eA4344e90c741560f08667961A8dE39FF506D7

3. Your questions and ideas are always welcome at the Inverse Discord here: https://discord.gg/At8M9ekVE2

LGTM.

What is Blast?

Blast is an EVM-equivalent Layer 2 optimistic rollup that differs from other L2’s by offering more “native” yield to ETH and USDB stakers and more generous sharing of gas fees back to developers who deploy on Blast. Blast also promises faster transactions compared to other L2’s.

ETH on Blast automatically receives a rebasing yield via Lido (stETH), and USDB - which is wrapped USDC, USDT, or DAI - staked on Blast automatically receives DAI DSR (T-bill) yield. By baking yield directly into ETH and their own stablecoin, the theory goes, it will be easier to attract liquidity, the lifeblood of any chain, to Blast.

Why is Inverse’s expansion to Blast important?

Blast is now #4 in L2 TVL and growing at a rapid pace. The need for stablecoin liquidity there is apparent and the incentives for bringing DOLA to Blast are attractive for current DOLA users, but more importantly this continues expands DOLA’s expansion beyond Ethereum mainnet to lower-cost L2’s with their own distinctive communities and app ecosystems.

Beyond just DOLA, as Chainlink CCIP (bridging) support comes online for Blast, yield-bearing ERC-4626 vault collateral like sDOLA and sINV represent a great opportunity for users on Blast.

Who are our launch partners?

Our first DEX partner on Blast is Thruster. DOLA liquidity providers on Thruster receive three types of incentives: Blast points, Blast Gold, and Thruster Credits starting with our first pool $DOLA-USDB.

We are also launching with Hyperlock, a Convex-like protocol for Thruster LP’s which compounds incentives earned on Thruster as well as its own incentives.

What Incentives Are There On Blast for the Inverse Community?

If you are new to Blast, the incentive machine there is firing with multiple barrels.

First, there are Blast points. Blast Points are distributed by the Blast Protocol to wallets that hold ETH/WETH or USDB. Points accrue over time at a linear rate based on your ETH and USDB balance, as outlined in official Blast documentation. When ETH/USD is transferred to a smart contract that smart contract will also earn points proportional to the ETH/USD balance over time.

Second, there’s another incentive called Blast Gold. Gold is a Blast incentive distributed to protocols and applications on the chain, to be further distributed to promote long-term growth. Blast Gold is effectively a bonus on top of Blast points that is obtainable, in effect, for DeFi users.

Third, individual protocols have their own rewards. Each of the partners mentioned in this post - Thruster and Hyperlock - all offer their own protocol rewards to users. This is made easier when protocols are stackable - like Hyperlock on top of Thruster - where you’re getting not only the “native” rewards of the protocols but also Blast points and Blast Gold for each of those protocols. Hyperlock also has an additional incentive token, TURTLE, via Turtle Club. As you might imagine, the yields on Blast are generous right now.

What Else Do I Need To Know?

At launch DOLA is being supported exclusively on the Blast native bridge, which facilitates fast bridging to Blast from Ethereum mainnet but has a 14-day waiting period when bridging from Blast back to Ethereum mainnet.

Do your own research. Nothing here is investment advice and these are new protocols with plenty of risk to accompany the attractive yields. Take your time and don't hesitate to ask questions in partner Discords or in the Inverse Discord.

How Do I Get Started?

1. Bridge DOLA: https://www.inverse.finance/blast

2. Use your bridged DOLA (or just swap if you are already on Blast) and then LP on Thruster:  https://app.thruster.finance/analytics

3. Deposit Thruster LP tokens in Hyperlock https://app.hyperlock.finance/

Your questions and ideas are always welcome at the Inverse Discord here: https://discord.gg/At8M9ekVE2

Now LGTM.

1. Attractive fixed-rate borrowing opportunities: With sFRAX currently offering yields close to 14%, users can now enjoy a significant boost over the latest DAI DSR/sDAI APY of 8%. This presents a unique opportunity for those seeking the certainty of fixed-rate borrowing against a high-yield stablecoin.

2. Enhanced portfolio diversification: The introduction of sFRAX as a yield-bearing asset further diversifies our collateral portfolio, aligning with our strategy to provide a wide range of collateral options for our users.

3. Expanding partnership: Our collaboration with the Frax team around joint liquidity incentives has been ongoing, and we are excited to further strengthen things by adding sDOLA as collateral on Fraxlend. This proposal can be viewed here:

   https://gov.frax.finance/t/authorize-fraxlend-amo-for-a-new-pair-sdola-frax-variable-rate/3071

About sFRAX

sFRAX is an ERC4626 staking vault that distributes a portion of the Frax protocol revenue denominated in FRAX. This revenue is generated from governance-approved AMOs/strategies and/or real-world asset (RWA) strategies from off-chain sources. The sFRAX vault APY is based on a utilization function that can be set by the frxGov governance module.

sFRAX represents pro rata deposits within the vault and is always withdrawable for FRAX stablecoins at the pro rata rate. The sFRAX APY attempts to roughly track the interest on reserve balances (IORB) rate of the US Federal Reserve using the IORB oracle. The FRAX staking vault attempts, but does not guarantee in any way, to target this rate.

Security and Risk Management

The Risk Working Group (RWG) has conducted a comprehensive risk assessment to ensure the safety and reliability of the sFRAX market on FiRM, which can be found here. We also limit total collateral exposure for stablecoin assets to 25% of all borrows on FiRM.

Do Your Own Research

As always, it is crucial for users to conduct their own research (DYOR) before depositing sFRAX into FiRM. While we strive to provide secure and reliable borrowing options, it is essential to understand the risks associated with borrowing in DeFi.

We are excited about the possibilities for yield-bearing stablecoins on FiRM and even more excited at how sFRAX is poised to be part of a much larger collaboration between Inverse and the Frax community in 2024.

LGTM!

What Is st-yETH?

st-yETH is a staked version of the yETH token, derived from Yearn Finance’s innovative yETH protocol, which itself is a liquidity pool token consisting of various Ethereum Liquid Staking Derivatives (LSTs). By staking yETH, users receive st-yETH, enabling them to earn yields and participate actively in the governance of the yETH pool, influencing its operations and strategic direction.

Who Created yETH?

Yearn Finance, pioneers in DeFi and close friends of Inverse Finance, created yETH. Yearn are known for developing automated strategies to optimize yield farming, Since inception, they have played a pivotal role in advancing the DeFi ecosystem through products like yETH that simplify and enhance liquidity management.

How Does st-yETH Work?

The yETH protocol operates as an Automated Market Maker (AMM) for LSTs, allowing users to deposit their tokens into the pool in exchange for yETH tokens, which are pegged 1:1 with the beacon chain ETH. Here’s the workflow:

1. Deposit and Pooling: Users deposit LSTs into the yETH pool, receiving yETH tokens in return.

2. Staking for Yield: By staking yETH, users mint st-yETH and start accruing yield generated from the underlying assets.

3. Governance Participation: st-yETH holders wield governance power, voting on decisions like pool composition and protocol parameters, which are adjusted every epoch to optimize yield and manage risks.

How Do I Deposit and Borrow Against st-yETH In FiRM?

To leverage st-yETH within FiRM, follow these steps:

1. Deposit: Head to inverse.finance and open the FiRM webpage, navigate to the deposit section, and select st-yETH as your collateral.

2. Borrow: With st-yETH as collateral, you can borrow DOLA against it. The terms are fixed-rate, providing predictability and stability. Read more here.

3. Manage Your Borrowing: Keep an eye on your loans, adjust as necessary, and ensure compliance with the platform’s requirements to avoid liquidations.

DYOR: Understanding Risks and Rewards

Before diving into st-yETH or any DeFi product, conducting thorough research is imperative. Consider the following:

• Security and Audits: Yearn Finance has undergone multiple security audits and maintains a proactive bug bounty program to address vulnerabilities.

• Governance and Structure: The yETH protocol benefits from a robust multi-DAO governance structure, ensuring decentralized decision-making and resilience against regulatory or operational shifts.

• Market Position and Competitive Edge: st-yETH offers a unique proposition in risk-adjusted yield generation, distinguished by its integration with Yearn Finance’s broader suite of yield-generating strategies.

• Risk Assessment: Regular assessments by Inverse Finance’s Risk Working Group (RWG) ensure that st-yETH remains a viable collateral option with a solid risk profile, supported by detailed analytics and real-time market adjustments. Our first assessment can be accessed here.

As you explore the potential of st-yETH within the FiRM ecosystem, leverage the wealth of resources available, including Yearn’s detailed documentation, community forums, and real-time governance updates. This due diligence will equip you to make informed decisions aligned with your financial strategies and risk tolerance.

Wrapped Bitcoin (WBTC) is Bitcoin (BTC) that has been converted for use on the Ethereum ecosystem. It’s an ERC-20 (Ethereum) token that’s backed one-to-one by Bitcoin (BTC), which means that one WBTC will usually equal one bitcoin.

Who Created WBTC?

The initial developers of the wrapped Bitcoin protocol were BitGo Inc, Kyber Network, and Ren. Their consortium released a wBTC whitepaper and launched WBTC in January 2019. The wBTC protocol today is controlled by a DAO.

How does WBTC Work?

Wrapped Bitcoin DAO members each hold a key to a multisig wallet that secures the system, allowing members to vote to add or remove members and to make changes to the smart contracts on which the system is built.

BitGo audits the system regularly and initiates a proof of reserve transaction on the Bitcoin blockchain, which allows users to verify the validity of their Bitcoin reserves.

How Do I Deposit and Borrow Against WBTC In FiRM?

To get started, you simply deposit WBTC as collateral in order to borrow DOLA. FiRM does not custody the collateral, instead it is locked in a personal escrow under the user’s control. The personal escrow allows the user to maintain custody of their collateral while still subjecting it to the rules of FiRM, enabling replenishments and liquidations.

One brilliant aspect of FiRM is the ability to combine deposits, borrows, looping, and the purchase of DBR for maximum convenience in FiRM’s interface. Prepare the position as you prefer and FiRM will let you confirm approvals and transactions in sequence when you’re done.

Looping, btw, is very cool: you can multiply the borrowing against your WBTC position in this same transaction using our Accelerated Leverage Engine. Huge gas savings vs. doing this in consecutive transactions.

After your position has been created, you You can perform any of these actions individually after the position has been created. To reduce the position, just click the “Unstake” button.

DYOR

It is important to do your own research (DYOR) before depositing your WBTC tokens into FiRM. There always is some risk involved in any investment, and you should make sure that you understand the risks before you proceed.

If you have any other questions, please feel free to ask in Discord. You can find more detailed information in our docs and here is a link to a more general FiRM & DBR explainer.

What is sDOLA?

sDOLA is an ERC-4626 wrapper around a DOLA Savings Account (DSA) contract that continuously streams DOLA Borrowing Rights rewards to staked DOLA and auto-compounds them. This means you'll receive generous yield on your stablecoin portfolio without the hassle of manual swapping and compounding.

In practice, sDOLA makes an outsized impact on the Inverse ecosystem as it enables a four-part lending system (FPLS) for the DAO whereby the improvement or expansion of one system component leads to improvement or expansion of one or more other components supporting FiRM.

sDOLA: An Additional DOLA USD Peg Management Tool

An alternative example of this four-part system in operation is the case of DOLA losing its USD peg during a (hypothetical) market downturn. While not the DAO’s sole tool for managing DOLA’s USD peg, sDOLA provides a useful option where the supply of DBR Rewards is increased to bring DOLA back to peg. For example:

How sDOLA Differentiates vs. The Competition

sDOLA stands out not only for its healthy APY (projected to be ~14% in the coming weeks) but also because its yield is 100% organically sourced from actual on-chain FIRM lending market revenues. No rehypothecation of your collateral to third parties takes place. Oh - and no governance tokens are being printed to source sDOLA yield.

How You Can Profit from sDOLA

We’re excited to bring you an amazing set of use cases for sDOLA. Here’s the starter list:

• Stable Store of Value. A core use case for sDOLA. Compared to conventional USD-pegged stablecoins, sDOLA helps protect savings from USD inflation by adding more DOLA to a user’s position. In lieu of holding “naked” stables in a portfolio for diversification, yield-bearing sDOLA carries no additional opportunity cost beyond the gas costs of staking.

• Loan collateral. While not available as collateral on FiRM, other lending protocols can add sDOLA as a stable form of yield bearing collateral. Borrowers utilizing looping strategies can realize significant returns with minimal risk of liquidation of the underlying asset due to sDOLA’s low volatility and yield generation.

• Yield-bearing liquidity partnerships. sDOLA is an attractive asset for protocols seeking to pair their stablecoin/token with a yield-bearing stablecoin, which will reduce liquidity costs given the pre-existing yield of sDOLA.

• Dollar-denominated savings for unbanked users. Individuals residing outside the U.S. often lack access to dollar-denominated savings vehicles. sDOLA provides permissionless access, no maturity dates, and high rates of return from anywhere in the world by anyone with access to a browser and a non-custodial wallet.

• Stablecoin Portfolio Diversification. For individuals, funds, or DAO treasuries holding stablecoins, sDOLA provides a decentralized yield-bearing hedge against the risks of centralized, yield-bearing stablecoins like sDAI or sFRAX.

• Single-sided alternative to stablecoin liquidity pools. The attractive APY for sDOLA will in many cases provide a comparable return to other stablecoin liquidity pools without the inconvenience and risk of farming on third party protocols.

It's a Great Time To Try sDOLA!

We believe sDOLA is the most coherent, scalable, and reliable yield-bearing stablecoin architecture ever created. Come stake at https://www.inverse.finance/sDOLA

Want more research? Check out our whitepaper or our docs here. View the governance proposal or visit us in Discord and ask away!

P.S. Commemorative sDOLA Launch NFT available - for free! - right here.

Previous clients of yAudit include the likes of Olympus DAO, Nouns DAO, Temple DAO, LlamaLend, Timeless Finance, and of course, Yearn Finance. They were our top choice for the task at hand given the similarities between these products and Yearn’s.

Understanding DOLA Savings Account (DSA) and sDOLA

Before we delve into the specifics of the audit, let's briefly look at the underlying smart contacts. For a more detailed writeup on these products, refer to the official proposal here and the sDOLA whitepaper here.

DolaSavings.sol: The DOLA Savings Account Underlying sDOLA:

sDOLA is built on top of the DOLA Savings Account. A yearly DBR budget on a pro-rata basis is distributed to DOLA stakers, with a cap on the maximum yearly DBR Spend Rate, and consequently the DBR per DOLA rate, set by Inverse governance. This mechanism allows us to incentivize the holding of DOLA, thereby stabilizing its market presence.

sDola.sol: sDOLA Auto-Compounding: sDOLA takes the concept of DOLA Saving Account a step further. It's an ERC-4626 vault that uses a virtual constant function market maker-based auction to continuously convert accrued DBR rewards into DOLA. The contract is designed to maintain a constant 'K' in the auction, as set by Inverse governance, with revenue payouts structured to prevent auction frontrunning. This process not only simplifies the investment process for DOLA holders but also potentially turns sDOLA into a valuable form of collateral.

sDolaHelper.sol: A user-friendly contract that facilitates easy buying, selling, and price checking of DBR.

The Role of yAudit

yAudit's comprehensive audit focused on several key areas:

• Smart Contract Security: Ensuring that the contracts for DOLA Savings Account and sDOLA are free from vulnerabilities and are robust against potential attacks.

• Economic Model Validation: Assessing the economic models underlying these mechanisms to ensure they are sound and sustainable.

• Governance and Control Mechanisms: Reviewing the governance processes and control mechanisms in place for adjusting key parameters of the system.

• User Experience and Interaction: Evaluating the ease of use and interaction processes for end-users, ensuring that the system is not only secure but also user-friendly.

A link to the audit results can be found here.

Moving Forward with Confidence

We would like to especially thank the team at yAudit for a timely and thorough job. They were a joy to work with and we are very much looking forward to our next collaboration.

We believe smart contract reviews and formal external audits to be mandatory steps in a product release roadmap. We have stayed true to this idea and are proud to share the results time and time again with our stakeholders. Your trust and security are our top priorities, and we are here to play our part in the revolution that is DeFi. Stay tuned for further updates.

sDOLA is born out of a desire to expand DOLA lending capacity on FiRM more rapidly, add a new USD peg management tool to our arsenal, as well as to bring a new source of demand for DOLA itself. By using DBR’s as its exclusive “organic” yield source, sDOLA stands apart from yield bearing stablecoins which rely on centralized sources of yield like Treasury securities - effectively rendering those products “centralized” and therefore at risk of censorship and other risks of the sort experienced by clients of Silicon Valley Bank or FTX.

The implications of sDOLA for the DAO are hard to overstate. As sDOLA deposits grow, FiRM’s DOLA lending capacity grows at a 1:1 rate. And as lending grows, so does DBR issuance. And finally as DBR issuance grows, it gets distributed back to … INV and sDOLA holders. This “4-part lending system” is unlike any other DeFi lending or saving system in the industry today.

sDOLA is primed to launch with an attractive APY – close to the price (borrowing rate) of DBR today – in order to generate immediate demand for sDOLA. Relative to yields found on other yield bearing stablecoins that are sourcing yield from government bonds, the difference will be clear.

Our vision for DOLA is a world where decentralized stablecoins are used for most goods and services and fixed rate credit is central to that vision. With sDOLA, there is an opportunity to build on our 2023 success with FiRM - where we found product-market fit - and take the next step towards radically scaling fixed-rate DeFi lending in ways not previously possible.

We invite you to dive into the sDOLA whitepaper now and then consider becoming a contributor to the Inverse Finance community by joining the conversations on Discord or Twitter. More details about sDOLA, governance voting, and the launch are imminent. LGTM.