INV

Inverse Finance Governance Token

Contract Address: INV on Ethereum

The INV token is unique among governance tokens:

• INV holders who stake their INV on FiRM with two forms of continuous staking rewards: INV anti-dilution rewards and DBR streaming rewards.

• Staked INV can be used as collateral for long-term, fixed rate borrowing on the DAO’s fixed rate lending market, FIRM.

• Like many governance tokens, INV provides holders with voting power in the Inverse Finance DAO,allowing them to directly control essential operating and development functions of the DAO’s treasury, products, and operations.

How To Buy INV

INV is available to purchase on-chain, with deepest liquidity present on Curve and Balancer liquidity pools.

• USDC/ETH/INV pool on Curve Finance

• INV/DOLA/DBR pool on Curve Finance

• INV/DOLA LP pool on Balancer

You can also input the INV token address 0x41d5d79431a913c4ae7d69a668ecdfe5ff9dfb68 into any Dex aggregator (Cowswap, 1inch, LlamaSwap, Matcha, etc). Ensure the slippage is within an acceptable range before executing the trade.

INV is also available to buy on the following centralized exchanges:

• Coinbase

• MEXC Global

• Gate.io

• CoinEx

INV Staking

INV holders who stake on FiRM are able to borrow DOLA against their staked INV, and receive two forms of INV staking rewards, in addition to their INV voting rights in the DAO’s governance system..

Benefits

• Anti-Dilution Staking Rewards

  • INV holders are encouraged to deposit, or “stake” their INV in FiRM via staking rewards that are designed to mitigate the effects of periodic INV supply expansions to fund DAO liquidity and other expenses.These rewards incentivize the long-term holding of INV by users, reduce price volatility, and enable a fertile growth environment for the DAO.

  • INV stakers receive INV rewards continuously with every Ethereum block mined (roughly 6,400 times a day). The rate of rewards is continuously monitored and optimized by the Policy Committee. INV emissions directed to INV stakers are designed to be higher than INV emissions directed elsewhere. This ensures that INV stakers are protected from dilution and own an increasing proportion of the supply.

  • The DAO has consistently voted since early 2022 to ensure that stakers remain the primary beneficiaries of INV supply expansions by rewarding stakers with INV reward APY’s that closely track INV supply expansions. The rewards APY can therefore fluctuate as more or less INV is introduced. For greater historical context, please see our INV transparency pages.

• DBR Real Yield Streaming Rewards

  • Separate from anti-dilution rewards, INV stakers receive real yield streamed in the form of DBR rewards calculated on a per INV basis, which can be held, swapped, or used to service a DOLA loan on FiRM.

  • DBR streamed to INV stakers is in addition to the inflation adjusted INV rewards which make the added DBR staking rewards akin to Real Yield. The DBR APY will vary as DBR is issued in relation to DOLA borrowing on FiRM as well as . Keep an eye on DOLA borrows in FiRM and the Policy channel in our Discord for updates.

  • Issuing DBR to INV stakers aligns the interests of DOLA users and INV voters in the DAO. It interconnects the value flows of BDR burns as a result of DOLA borrowing in FiRM and the value of holding INV voting power over time, all of which benefit both INV stakers and the DAO via INV bonding.

• DOLA Borrowing

  • INV stakers are also able to borrow DOLA against their staked INV position for long maturities and at fixed rates, using FiRM.

• DAO Governance Voting Rights

  • Like INV holders, INV stakers retain their voting rights in the DAO’s on-chain governance system.

How To Stake INV

After buying INV tokens, staking INV can follow one of two paths based on how you acquired your INV.

Staking With a Non-Custodial Wallet

When using a non-custodial wallet like Metamask or Coinbase Wallet, ensure you have ETH in your wallet in order to pay for gas costs. Then, within the FiRM application, select the INV market and proceed to the staking feature here.

As you deposit INV into FiRM, you will receive xINV tokens as receipts, which can always be swapped back to your original INV tokens when you unstake.

Upon staking, you will begin to receive staking rewards and your staked INV is eligible to be used as collateral for DOLA loans on FiRM.

Staking When Starting From A Centralized Exchange (e.g. Coinbase)

If you have INV on Coinbase or other centralized exchange or custodial service, it is highly recommended to read their latest documentation for updates as their wallets may not interact with Ethereum smart contracts.

Using Coinbase as an example, utilize the “send” or “transfer” feature to transfer your INV to the Ethereum address of your (non-custodial) wallet like Metamask.

Here are a series of screenshots to guide you through the process on Coinbase:

After you receive INV in your non-custodial wallet, you can begin the staking process. Note that in order to complete transactions on the Ethereum chain, you will need some ETH in your non-custodial wallet (e.g. Metamask) to pay for the Ethereum chain gas fees. Note also that it is possible to transfer Ethereum from your Coinbase account to your non-custodial wallet address.

Make sure that your non-custodial wallet is set to the Ethereum network, navigate to the inverse.finance website, and connect your wallet. Then begin the INV staking process as outlined for non-custodial wallets above.

If you are not familiar with crypto wallets you can check this guide made by Coinbase: https://www.coinbase.com/learn/tips-and-tutorials/how-to-set-up-a-crypto-wallet

Cover

INV stakers can purchase "cover", which is a decentralized "insurance alternative" to protect against smart contract and other risks when staking INV. OpenCover offers cover for staked INV, sDOLA, as well as other assets on FiRM. Cover is underwritten by Nexus Mutual and claims are subject to DAO governance vote before payout. The Nexus Mutual docs are a good place to explore how cover works.

How To Borrow Against INV

Staked INV, represented by xINV tokens, can be used as collateral on FiRM to borrow DOLA. For a step-by-step guide, see the “Using FiRM” section.

How The Supply of INV Is Managed

The circulating supply of INV is subject to periodic expansions or emissions which are used to fund various DAO initiatives. The DAO has contracted INV once since its founding and retains the ability to burn additional INV in the future with governance consent.

Maximum Supply

As the circulating supply of INV changes periodically, the INV token does not have a coded or “hard capped” supply. The original social consensus from the start of the project was that there would never be an excess of 100,000 tokens in circulation. However, since the INV+ proposal (which represented a shift away from these tokenomics), the DAO moved to an "uncapped" total supply, allowing the Inverse Finance DAOInverse DAO to expand the supply of INV token through on-chain governance votes. These supply increases ensure the DAO has INV available for liquidity and operating expenses while ensuring that INV stakers can continue to be rewarded with anti-dilution rewards. This supply policy ensures optimal performance and competitive strength for Inverse Finance DAO.

Buybacks

No formal buyback policy is currently in place. The Inverse Finance DAOInverse DAO has the ability to conduct a buyback of INV tokens using funds from the treasury. This has been done once before where $50,000 of INV was bought back from the open market, the proposal can be found here.

Use of INV Emissions

The DAO uses additional INV for multiple operating expenses, in addition to anti-dilution rewards described above.

Bond Expenses

Inverse Finance maintains a working relationship with Bond Protocol by utilizing their Olympus Pro bond program. This allows for users to purchase INV tokens at a discount in return for supplying liquidity pool tokens or DOLA. The amount of INV tokens supplied to the bond program is continually monitored and optimized by the Policy Committee.

Liquidity Mining Expenses

Inverse Finance provides INV incentives to certain DEX liquidity pools in order to ensure adequate liquidity for the DAO’s tokens, INV, DOLA, and DBR.

Anti-Dilution Rewards

As described above, INV stakers do not experience dilution as emissions to INV stakers are in excess of emissions to non-stakers and stakers’ proportional ownership of INV continually increases. So while additional minting of INV (as controlled by the on-chain DAO) will inflate the INV supply, it does NOT dilute INV stakers.

Governance of INV Supply Expansion

The DAO retains control of the minting process via quarterly governance proposals, which to-date have provided the Policy Committee (multisig) with the ability to adjust the rate at which newly minted INV is distributed to stakers on a week-to-week or day-to-day basis.

The Policy Committee is responsible for setting the reward rate for xINV as well as allocating INV for bonding campaigns. This ensures that INV rates are always optimized to accrue maximum value both to INV holders and to the Inverse Finance DAO treasury. The Policy Committee is comprised of nine active Inverse Finance DAO team members. Inactive or retiring committee members are replaced via a Policy vote. All Policy Committee decisions require a quorum of 5 members out of 9 to conduct a vote. The policy Committee can be dissolved or replaced by Inverse Finance DAO governance, as with all enacted proposals.

Always check our transparency pages for the most up to date information.

FAQ

What is INV?

INV is Inverse Finance’s governance token.

What can I do with my INV?

You can stake your INV on FiRM, where you receive the ability to borrow DOLA against INV while you simultaneously receive continuous xINV anti-dilution rewards, DBR streaming rewards, and the continued ability to use INV for voting purposes, where 1 INV = 1 vote.

How is the INV staking Annual Percentage Yield determined?

The Policy Committee handles day-to-day changes to xINV reward rates as well as bond discount rates. INV stakers receive rewards proportionate to INV supply expansions to remain undiluted. Inverse Finance DAO can vote to set restrictions for intra-day changes in interest rates.

Can I borrow against my INV?

Yes - borrowing DOLA against INV is enabled on FiRM.

Where can I buy INV?

INV is available to purchase on-chain on Curve, Balancer, UniswapV2, and Sushiswap.

NV is also available on the following centralized exchanges: Coinbase, MEXC Global, Gate.io, CoinEx.