Inverse Finance Coin Price & Market Data
Inverse Finance price today is $118.07 with a 24-hour trading volume of $1,404,417. INV price is down -2.1% in the last 24 hours. It has a circulating supply of 56 Thousand INV coins and a total supply of 100 Thousand. If you are looking to buy or sell Inverse Finance, Sushiswap is currently the most active exchange.
What is INV?
INV is the governance token for Inverse Finance.
How to obtain INV?
You can purchase INV from Uniswap.
What is Inverse Finance?
Inverse Finance is a yield aggregator and a lending protocol.
What are vaults?
Inverse Finance allows users to deposit stablecoins and earn yields in the form of chosen assets such as ETH, wBTC, and YFI. Essentially this allows users to Dollar Cost Average (DCA) their stablecoins’ yield into the chosen assets.
Like other yield aggregators, it is more gas efficient to deposit into the vaults than manually selling the yield into the chosen assets.
Inverse Finance utilizes Yearn Finance V2 vaults as the yield generator.
What is Anchor?
Anchor is a money market, forked from Compound with some changes. Other than allowing borrowing and lending of assets, users can mint DOLA - a stablecoin pegged to USD.
How does Inverse Finance plan to leverage DOLA?
INV is expected to be a backstop token for DOLA. This allows the DAO formed by INV token holders to act as institutional DOLA lenders. The DAO can mint DOLA and use it to finance lenders by offering uncollateralized loans. The borrowers can either use DOLA as collateral to borrow other tokens from Anchor or use it directly as a stablecoin. If the borrower defaults, INV would be minted to settle the debts.
When Achor grows into having a highly liquid and diverse pool of borrowable assets and sufficient DOLA liquidity on AMMs, Inverse DAO can capture yield opportunities by following these steps:
Inverse DAO finds a yield opportunity generated by another protocol.
The DAO mint DOLA.
If the required asset is a stablecoin, the DAO swaps DOLA to the stablecoin using Curve. If not, it uses DOLA as collateral on Anchor to borrow the required asset.
The DAO uses the asset to generate yield.
After earning the profit, the DAO repays the borrowed assets and burns the minted DOLA amount.
The generated profit would be kept in the DAO treasury.