Transparency
Inverse Finance strives to operate amongst DeFi's most transparent DAOs. Our Transparency Portal provides real-time data on every aspect of protocol operations including treasury holdings, liquidity positions, governance activity, FiRM market metrics, DBR supply dynamics, DOLA backing sources, and bad debt repayment progress. All data is pulled directly from on-chain sources and updated continuously, ensuring anyone can verify the protocol's financial health and operational status at any time.
Why Transparency Matters
Transparency is a core principle of DeFi, but many protocols treat it as an afterthought. Inverse Finance takes the opposite approach — comprehensive transparency is built into the protocol's culture and infrastructure. The transparency portal serves multiple purposes: it allows INV holders to make informed governance decisions, enables DOLA users to verify the stablecoin's backing in real-time, helps risk analysts assess protocol health, and provides accountability for working group operations and treasury management.
Unlike centralized finance where financial data is released quarterly and subject to manipulation, Inverse Finance's transparency portal updates every few minutes with data pulled directly from Ethereum and other chains. The "Don't trust, verify" motto appears at the top of the transparency portal — this isn't mere rhetoric. Every number, every chart, every metric can be independently verified by querying the blockchain directly. There's no lag, no sanitization, and no opportunity to hide unfavorable metrics. When markets are volatile, users can see exactly how FiRM collateral values are holding up. When bad debt accumulates, the exact amount and repayment progress are visible immediately. This level of radical transparency builds trust and allows the community to respond quickly to changing conditions.
The transparency portal is designed for different user types with varying levels of sophistication. Casual DOLA users might only check the DOLA & Feds page occasionally to verify backing, while active INV governance participants likely monitor multiple pages regularly to inform voting decisions. Risk analysts and auditors can dive deep into granular transaction data and historical charts to assess protocol health comprehensively.
Key Metrics Overview
The Key Metrics page provides a high-level snapshot of protocol health across all major categories. This is typically the first stop for users checking in on Inverse Finance's current state.
The top row displays core protocol statistics including FiRM's total value locked (TVL), total borrows outstanding, number of active borrowers, DOLA's circulating supply, and INV's market capitalization. These numbers give an immediate sense of protocol scale and usage.
Below the headline metrics, several visualizations break down the data by category. The "TVL by Market" chart shows which FiRM collateral types hold the most value, indicating where users are most actively depositing assets. The "Borrows by Market" chart reveals borrowing patterns, showing which collateral types borrowers prefer for DOLA loans. The "DOLA Backing Sources" chart is particularly important — it shows exactly what assets back the DOLA stablecoin, breaking down the proportion backed by collateral on FiRM versus other sources. Currently, over 97% of DOLA is backed by collateral deposited on FiRM, making FiRM's health directly tied to DOLA's stability.
The page also includes historical charts tracking FiRM revenues and fees over time, as well as the relationship between total collateral value and outstanding borrows. These charts help identify trends in protocol usage and revenue generation.
Treasury Holdings
The Treasury page provides complete visibility into the DAO's financial reserves across multiple chains and asset types. Understanding treasury composition is critical for evaluating the protocol's runway and ability to fund operations, incentivize liquidity, and weather market downturns.
The "Treasury Evolution" chart at the top of the page shows how total treasury value has changed over time, reflecting capital inflows from revenue, outflows from operational expenses, and market value fluctuations of treasury assets. The current treasury value is displayed prominently alongside a breakdown by asset category.
Several sections break down treasury holdings by type and location. The "Total Treasury Holdings" chart shows the proportion held in veNFTs (vote-escrowed NFTs from protocols like Aerodrome and Velodrome) versus other stable and volatile assets. The "Total Stable Reserves" section specifically tracks stablecoin holdings across different yield strategies, showing exactly how much stable liquidity the DAO has available for immediate expenses or market interventions.
The "Multisigs' Holdings" section deserves special attention — it shows how much value each working group multisig controls across different chains. The Treasury Working Group (TWG) holds the largest portion, managing assets on Base, Ethereum, and other chains for liquidity operations and strategic deployments. This transparency ensures working groups remain accountable for the funds they control.
The "In Treasury Contract" section shows assets held directly in the main treasury smart contract, including DBR, DOLA, and other tokens. These assets are controlled exclusively by governance and require on-chain votes to move, providing an extra layer of security for the protocol's most critical reserves.
Liquidity Analysis
The Liquidity page provides exhaustive detail on every DOLA liquidity pool across all chains and protocols. This is where DOLA's peg stability mechanisms become transparent — deep, well-distributed liquidity is essential for maintaining DOLA's $1 peg under all market conditions.
The page opens with current DOLA price and 24-hour trading volume, followed by three main categories: total DOLA liquidity (all pools), stable liquidity (DOLA paired with stablecoins like USDC or USDebtcoins), and volatile liquidity (DOLA paired with volatile assets like ETH). Each category displays total value locked, average DOLA weight in the pools, and total pairing depth (the value of non-DOLA assets paired with DOLA).
The pie charts break down liquidity distribution by pair type, chain, protocol, and strategy (with Fed vs. without Fed). These visualizations quickly reveal whether liquidity is concentrated in a few pools or well-distributed across venues, which chains host the most DOLA activity, and what proportion of liquidity receives Fed support (automatic DOLA supply management based on demand).
The detailed "Liquidity Pools Details" table lists every active DOLA pool with comprehensive data including TVL, pairing depth, DOLA balance and weight, APY, pool dominance (percentage of total DOLA liquidity), profit/loss (PnL), daily earnings, and whether the pool has a Fed contract managing supply. This table allows sophisticated users to identify the most efficient liquidity venues and evaluate whether liquidity is properly distributed to support healthy DOLA trading.
Users can filter the table by stable/volatile pairs, specific chains, or whether pools have Fed support. The "Zap" column provides direct links to add liquidity to specific pools, making it easy to contribute to DOLA liquidity where it's most needed.
INV & DAO Metrics
The INV & DAO page covers governance token distribution, voting power concentration, DAO activity levels, contributor compensation, and multisig operations. This section provides accountability for how the DAO operates and ensures power isn't overly concentrated.
The "INV price adjusted to Circ. Supply" chart shows INV's market price adjusted for circulating supply variations over time, providing a more accurate historical pricing view that accounts for supply expansions and contractions. This helps evaluate INV's value trajectory independent of supply changes.
The "DAO voting & INV" section reveals voting power distribution across the token holder base. The pie chart shows what percentage of total INV participates in governance versus remains inactive or is held by non-voting holders. The "DAO Proposals" bar chart displays governance activity over the past 12 months, showing how many proposals were submitted each month and whether the DAO is actively evolving or stagnant.
Two sections track contributor compensation: "DOLA monthly payrolls" shows the current monthly burn rate by working group (Engineering, Treasury, Growth, Risk, Analytics, Founder), while "Unclaimed payrolls" reveals how much compensation has been earned but not yet claimed by contributors. These sections ensure transparent accounting of DAO operational expenses.
The "INV Granted" section tracks vested INV allocations, particularly the 2-year vesting schedule used for strategic investor grants (like the bad debt repayment INV swap discussed in the tokenomics section). This shows how much unvested INV exists and when it will become liquid.
The INV supply section breaks down token distribution across chains (Ethereum holds 99.95% of INV), staking participation rates, and the division between INV staked on FiRM versus staked through the founder's allocation. The multisigs diagram visualizes which DAO contributors hold signing authority on critical multisig wallets, showing the distribution of operational control across trusted community members.
Finally, the "DAO Transactions on Ethereum" table lists every recent governance action, multisig transaction, and contract interaction, providing a complete audit trail of DAO operations.
DBR Supply Dynamics
The DBR & FiRM page tracks the DBR token's supply, issuance, burn rate, and inventory levels. Since DBR is consumed to service DOLA loans on FiRM, understanding DBR dynamics reveals borrowing demand and protocol revenue flows.
The headline metrics show annualized DBR issuance (new DBR minted and distributed to INV stakers), annualized DBR burn (DBR consumed by FiRM borrowers), inventory days (how long current DBR supply would last at current burn rates), DBR claimed by stakers, and total DBR burned by borrowers. When burn exceeds issuance, DBR becomes deflationary — this occurred frequently during peak FiRM usage periods in 2024-2025.
The "DBR annualized burn & issuance over time" chart shows these dynamics historically, with burn depicted in one color and issuance in another. When the burn area rises above issuance, it indicates strong borrowing demand. When issuance exceeds burn, it suggests borrowing has slowed and DBR is accumulating in staker balances.
The "FiRM Borrows & DBR inventory days" chart correlates total DOLA borrows outstanding against DBR inventory levels. High borrows with low inventory indicates tight DBR supply and healthy borrowing demand. Low borrows with high inventory suggests excess DBR capacity and potential for borrowing growth.
The "DBR Daily Net-Issuance Rate" chart shows day-to-day fluctuations in net DBR issuance (issuance minus burns), revealing short-term trends in borrowing activity. The "DBR burned in the last 12 months" and "Accumulated DBR burned" charts show total historical burn, demonstrating the cumulative demand for FiRM borrowing over time.
Together, these metrics provide complete transparency into FiRM's revenue model — DBR burns represent real protocol revenue, as borrowers must acquire DBR (either by staking INV or buying on the market) to service their loans. High burn rates indicate healthy revenue generation.
DOLA Supply & Fed Management
The DOLA & Feds page reveals exactly where every DOLA comes from and how Fed contracts manage supply to maintain the peg. This is arguably the most critical transparency page for DOLA users, as it shows the stablecoin's backing in real-time.
The "DOLA sources overview" pie chart breaks down DOLA's circulating supply by source: FiRM Fed (DOLA backed by collateral on FiRM), Frontier Fed (DOLA from the deprecated Frontier lending protocol), and PSM Fed (DOLA from the Peg Stability Module). Currently, over 97% of DOLA comes from the FiRM Fed, meaning it's backed by overcollateralized borrowing positions on FiRM.
The "Detailed DOLA sources" chart drills down further, showing exactly which FiRM markets contribute what percentage of total DOLA supply. For example, the sUSDe-DOLA market might represent 51% of all DOLA, the sUSDS-DOLA market 20%, and so on. This granular breakdown helps risk analysts understand concentration risk — if one market dominates DOLA supply and experiences issues, it could impact the entire stablecoin.
The "Active DOLA Feds Overview" table lists each Fed contract with its contract address, type (isolated lending, cross-lending, or PSM), total DOLA supply supported by that Fed, how much has been borrowed or used, and the current utilization percentage. Each Fed has a "More Data" link leading to detailed analytics on that specific Fed's operations.
The "DOLA Circulating Supply Evolution" chart shows how total DOLA supply has changed over time, excluding DOLA sitting in FiRM markets or Fed Farmers (these are protocol-controlled and not truly circulating). Major supply expansions or contractions are clearly visible, often corresponding to new market launches, debt repayments, or changing DOLA demand.
The "DOLA 24h volumes" chart tracks daily trading volume across all venues, providing insight into DOLA's market activity and liquidity depth. High volume relative to circulating supply suggests healthy, active usage.
Fed Policy & Revenue
The Feds Policy page provides detailed transaction-level data on every Fed contract operation. While the DOLA & Feds page shows current state, this page shows the historical record of how Feds have expanded or contracted DOLA supply over time.
The "All Feds Supply Evaluation" chart tracks total DOLA supply managed by all Feds combined, showing major expansions (when Feds mint new DOLA to meet demand) and contractions (when DOLA is repaid and burned). The current total Fed supply is displayed prominently at the top.
Below the chart, users can filter Fed transactions by specific Fed contracts (FiRM, Frontier, PSM, Yearn, Convex, Scream, Velo, Auro, AuroEuler, ArbiFed, PSM) to isolate activity from particular venues. The transaction table shows every Fed operation chronologically, including the transaction hash (linking to Etherscan), event type (Expansion or Contraction), the amount of DOLA minted or burned, new Fed supply after the transaction, new total Fed supply across all Feds, and timestamps.
This granular data allows auditing of Fed behavior — users can verify that expansions occur when DOLA trades above peg (excess demand) and contractions occur when DOLA trades below peg (excess supply). It also reveals which Feds are most active in managing supply, indicating where DOLA demand is strongest.
The right sidebar provides context about DOLA's backing, Fed contracts' role in the DOLA ecosystem, Fed revenue sources, and current DOLA supply across different chains and venues. This educational content helps users interpret the raw transaction data.
Bad Debt Tracking
The Bad debts page documents the protocol's bad debt situation with complete transparency, including the source of the debt, repayment progress, and remaining obligations. This level of transparency about a sensitive topic demonstrates Inverse Finance's commitment to honesty even when the news is unfavorable.
The "DOLA Bad Debt Repayment Progress" bar at the top shows that 81.02% of DOLA bad debt has been repaid as of the latest update. This reflects the ongoing repayment plan detailed in the July 2025 governance proposal discussed in the INV tokenomics section.
The "DOLA Bad Debt Evolution" chart shows how bad debt accumulated following the April 2022 Frontier exploit, peaked around $6M, and has been steadily declining through systematic repayment using strategic investor swaps, protocol revenues, and veNFT-backed loans. The current bad debt stands at $2.72M, down dramatically from the peak.
The "Total Repayments in USD" section shows that over $15.3M has been repaid toward various bad debts since the exploit. The chart below breaks this down by repayment frequency and timing, showing consistent monthly repayments with occasional larger payments when strategic opportunities arise.
The "Bad Debt Recap & Repayments" table provides asset-by-asset accounting of what was lost, what's been repaid, what remains, and the repayment percentage for each asset. DOLA leads with 81.02% repaid, while WBTC (44.75%), YFI (34.05%), ETH (21.21%), and IOU tokens (0.12%) follow.
An important note clarifies that "DOLA bad debt is the only bad debt that poses direct risk to the DAO; bad debts in other assets such as WBTC are related to Frontier's users deposits and don't directly pose risk to the DAO's survival." This distinction is critical — DOLA bad debt represents unbacked stablecoin supply that threatens the peg, while other bad debts are liabilities to Frontier depositors but don't endanger the core protocol.
The "Annex: Bad Debt Converter and Repayer" section documents specialized contracts deployed to facilitate repayment, showing exactly how much has been repaid through each mechanism and how many IOUs (debt acknowledgment tokens) have been issued to affected users.
Resources
Data-Driven Governance: The transparency portal exists to empower informed decision-making. Before voting on any proposal, check relevant transparency pages to understand the current state and potential impact of proposed changes.
Last updated
Was this helpful?