Proposal from Inverse.Finance DAO on August 11th 2021.
Goal: Adding a DOLA-3CRV metapool to Curve.fi and the CRV rewards gauge to grow volumes and increase fee capture.
Why make this change: The Inverse.Finance DAO believes there is a lot of synergy between the goals of Curve DAO and the Inverse Finance DAO and, ultimately, the goals and aspirations both teams have. We want to help increase your volumes, which captures additional fees while creating innovative products that continue to push DeFi forward and attract more and more $ and attention.
Why Dola: Dola is the first synthetic asset issued by Inverse.Finance and is a debt-based USD stablecoin that can also be used as collateral.
On Anchor, each DOLA always represents $1 collateral that can be used to borrow other assets regardless of DOLA’s market conditions or peg.
Benefits of DOLA:
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Unlike Maker, DOLA borrowers earn interest on their collateral while borrowing DOLA, making DOLA a native yield-bearing asset. This reduces the opportunity cost of holding DOLA.
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DOLA is a natively yield generating asset. Users can buy DOLA and supply it to Inverse.Finance to earn interest from DOLA minters.
Why Now: The Inverse.Finance team created the first DCA DeFi protocol and has now led the way to other protocols following our lead. DCA by Inverse.Finance has and will continue to attract many users and led to new minting of DOLA at a steady pace.
The Inverse.Finance team is on the cusp of a new innovation which we are calling Inverse Guard: Just-in-Time Smart Contract Risk Cover (Inverse Guard: Just-in-Time Smart Contract Risk Cover | by Nour Haridy | Aug, 2021 | Medium). This will attract an additional wave of interest into Inverse.Finance which will in turn create more DOLA and we want the Curve DAO to benefit from this additional volume, fees and attention.
Would the Curve DAO please share your feedback, questions and appropriate next steps?