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The DOLA Fed

Each official DOLA lending/borrowing market has a Fed contract set up (see the Smart Contracts page). These contracts have 3 functions for controlling the DOLA supply for its lending pool:
expansion - Mints DOLA into the lending side of the pool (lowers borrow APY %)
contraction – Burns DOLA on the lending side of the pool (increases borrow APY %)
takeProfit – Transfers all profit earned from borrowers to the Inverse Treasury (causes borrow APY % to increase slightly)
These 3 functions can only be called/operated by the account with the ‘Fed Chair’ role. Currently, the ‘Fed Chair’ of all the official DOLA lending pools is a 2/5 multi-signature wallet with the following signers: Nour founder, 0xMT dev, Patb from GWG, Naoufel from AWG, Edo from RWG and CryptoHarry from TWG. If the Inverse DAO decides that the ‘Fed Chair’ is managing DOLA supply inappropriately, the account with the role can be voted in via an on-chain DAO proposal. This setup allows for the supply of DOLA to be managed dynamically and efficiently while maintaining decentralization as the DAO ultimately controls who has the responsibilities of ‘Fed Chair’.
If an issue arose, Inverse DAO would quickly mobilize to replace a 'Fed Chair' signer from their position if they mismanaged a pool. The new ‘Fed Chair’ candidate would then be able to reverse the previous ‘Fed Chair’ actions.
A great way to keep track of all the ‘expansions’ and ‘contractions’ of DOLA supply is via the ‘Feds Historical Data’ tab on the Transparency page.
If an issue arose, Inverse DAO would quickly mobilize to replace a 'Fed Chair' signer from their position if they mismanaged a pool. The new ‘Fed Chair’ candidate would then be able to reverse the previous ‘Fed Chair’ actions.
A great way to keep track of all the ‘expansions’ and ‘contractions’ of DOLA supply is via the ‘Feds Historical Data’ tab on the Transparency page.