One of the most important announcements for INV stakers since the launch of Inverse Finance DAO is here: DBR Streaming. xINV stakers will not only continue to receive INV staking rewards, but they will now receive DBR’s as well. Read on for details!
A Major Change in INV Tokenomics
DBR’s enable users to borrow DOLA at a fixed rate in FiRM and over a year’s time, each borrowed DOLA slowly burns one DBR from the user’s wallet. DBR was launched with limited liquidity issued by the Inverse Finance Treasury and as a result of DBR demand from borrowers in FiRM, the price of DBR’s and the cost to borrow DOLA, has risen by 75% to nearly 7 cents per year.
A high DBR price is of course great for DBR speculators but it makes borrowing in FiRM less attractive. So we invented a new way of supplying DBR’s to the marketplace that is more efficient and more aligned with INV holder interests: DBR Streaming.
Only Available to INV Stakers
After migrating their xINV from Frontier to the new INV market in FiRM, stakers will be able to claim DBR’s as their INV stake accrues DBR APY. Note: any INV that is deposited into escrow with FiRM’s new INV market is automatically staked and eligible for DBR streaming, however DOLA borrowing remains disabled for the INV market.
Why Is This So Powerful?
Issuing DBR to INV stakers connects the value flow from DOLA borrowing with INV staking which benefits both INV voters and the DAO as a whole. As DOLA borrowing increases, DBR supply gets burned at an increased rate. This prompts the Fed Chair to increase issuance of DBR to INV stakers, boosting the total INV staking APR making INV staking more attractive, providing a tailwind for INV’s price.
How To Stake
Staking is very straight-forward, simply deposit INV in FiRM’s INV market and you’re done. You will then receive INV rewards that keep you whole versus issuance of new INV, and you’ll get DBR APY to boot! There are no locking periods and you can track your position in FiRM. As you accumulate enough DBR you can take out a fixed rate DOLA loan in FiRM at no up-front DBR cost.
Connecting The Dots
The link between DOLA borrowing and INV staking creates a direct connection for holders of DAO voting power and benefiting from the success of the product suite. Although great in itself, the benefits compound as Inverse Finance is using INV to “bribe” holders of vote-locked tokens in decentralized exchanges, such as Convex and Velodrome, to direct liquidity incentives to DOLA pools. By incentivizing deep liquidity, paying down the DOLA debt and introducing factors that encourage increased use of FiRM suggests a higher INV price, and therefore leads to significant increases in APY’s both for INV staking and for DOLA pools throughout the DeFi landscape. We are prepared for growth.
Feel free to drop in to the community and ask questions on our Discord server. You can find more detailed information in our docs and here is a link to a more general FiRM & DBR explainer.