Shortly after the community of inactive members was weeded out, one of the strangest experiments by the Decentralized Finance Department (DeFi) launches the launch of a new stablecoin loan product.
On Wednesday, Inverse Finance unveiled the Anchor Protocol, a money market centered around DOLA, a protocol-based synthetic stablecoin. Nour Haridy, founder of Inverse Finance, compares Anchor to Synthetix, which returns loans in the form of synthetic assets through overfunded collateral, and Compound, which issues loans in the form of crypto assets, loans that are also collateralized by overfunded collateral.
Ultimately, Haridy sees the same benefit in these models.
“Lending and synthetic protocols both offer the same service: credit. Anchor bridges the gap between them by combining them into a unified loan protocol. “
Anchor aims to achieve this with a unique architecture that always treats the DOLA token as “$ 1 security” that can be used to lend other assets regardless of market conditions or DOLA’s commitment. Users deposit collateral, mint DOLA and can then take out loans in other crypto assets with DOLA or simply generate returns with DOLA.
Introducing Anchor & DOLA: Capital Efficient Lending, Borrowing, and Synthetic Assets (and more)
With the kind support of Inverse DAOhttps: //t.co/pOOkp8ECsR
Summary thread below ⬇️
– Inverse.Finance (@InverseFinance) February 25, 2021
“For over-secured borrowers and leveraged traders, we offer them a one-stop-shop where they can spread their collateral across their synthetic and token credit positions, allowing for greater capital efficiency and leverage,” says Haridy.
Haridy anticipates that Anchor will use DOLA for log-to-log loans similar to Cream’s Iron Bank, for undercollateralised loans (long a price in DeFi), and for the protocol to “borrow” loans for income opportunities track for agriculture.
No dead weight
Perhaps more interesting than developing Inverse at the protocol level are the steps they took at the governance level earlier in the week.
On Saturday, February 20, Inverse community members tabled two governance proposals to seize INV – Invers currently non-transferable governance token – from inactive community members. The proposals were adopted on Thursday, February 25th, and not everyone was happy with the outcome.
– Knockerton (@knockerton) February 24, 2021
Haridy says the timing was on purpose – just like Anchor, a protocol that could generate revenue for the DAO, is preparing to launch, the community freeloader shed.
“We had to get rid of our own weight in order to soon reclaim some tokens for redistribution to new active members. We have also established an INV Scholarship Committee, which has the ability to reward contributors and add new members to the DAO. Also, when free riders are removed, active members have a greater incentive to contribute as they get a bigger slice of the pie. “
While the unprecedented move may seem harsh, it also applies simply to the governance of the aggressive style that put inverse finance on the map in the first place. By forcing token holders to participate under the threat of seized tokens, this is also supported in the development of Anchor.
“This is a joint effort by many DAO members, from the idea to development to internal reviews and tests,” says Haridy.
The next step for Inverse will be to get Anchor up and running and prepare for a world where INV will become tradable. Haridy says there is a growing consensus in the community about tradability. This would mean the DAO would give up the power to seize tokens, which could change Inverse’s community landscape.
However, Haridy seems unimpressed by the emerging shifts and is already preparing the next innovation.
“This will change the existing incentives significantly and can reduce participation. Fortunately, a new alternative governance model is being worked on internally to address this issue. “