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Deeper Roots In The Curve Ecosystem

Nakamomo
Nakamomo

Community Working Group

FiRMpartners

4 min

Cover Image for Deeper Roots In The Curve Ecosystem

Inverse Finance is excited to announce the launch of the new cvxFXS market on FiRM. Our CRV and cvxCRV markets have been very successful and we look forward to a similar uncorking of demand for cvxFXS. 

This new cvxFXS market provides FXS holders with access to liquidity on their FXS assets without locking their FXS as veFXS, which is non-tradeable and not available for use as loan collateral. In addition, cvxFXS deposited on FiRM still receives cvxFXS staking yield, currently more than 9% APY.

cvxFXS is a yield-bearing token that is generated when users stake and lock FXS tokens on Convex Finance. It is a great collateral choice for FiRM because it offers real advantages as a collateral token. 

  • In addition to receiving CVX yield from convex, cvxFXS tokens receive the yield that a user would get from just staking FXS tokens in Frax Finance. This yield can be used to repay loans taken out on FiRM, or it can be used to generate additional income.

  • FiRM Security: Your cvxFXS is never loaned to another user, but rather you maintain custody of your cvxFXS in your Personal Collateral Escrow. This also means that your assets are not pooled together with other assets, which avoids common risks in pooled lending protocols.


Who Are Frax Finance?

FXS is the governance token for the Frax Finance DAO, and it governs parameters for their three stablecoin products: staked ETH, a USD pegged FRAX, and inflation adjusted FPI. Frax Finance is a steadfast “curve wars” partner to Inverse Finance and we’re happy to deepen our ties by opening the cvxFXS market. This market provides a simple way for participants in the curve ecosystem to access liquidity against their FXS portfolio while getting the benefits of locked staking.


How To Borrow with cvxFXS In FiRM

  1. Head to the Inverse Finance website and click "Borrow."

  2. Confirm that there is DOLA liquidity available in the cvxFXS market. Especially for new markets, we add liquidity slowly.

  3. Acquire cvxFXS on the open market or convert FXS into cvxFXS on Convex’s site to use as collateral.

  4. Choose between the regular mode or walkthrough mode (simpler interface) on the FiRM app, depending on your desire for technical detail about your transaction.

  5. Decide the amount of cvxFXS you want to deposit.

  6. Decide how much DOLA you want to borrow and for how long.

  7. Click the “Auto-buy DBR” button.

  8. Review your loan in the “summary” information and confirm that everything is correct.

  9. Approve the interaction in your wallet.

  10. Execute the transaction to deposit, borrow and buy DBR in FiRM.

Enjoy your fixed-rate loan!


Feel free to drop in to the community and ask questions on our Discord server. You can find more information in our docs and here is a link to an explainer video for FiRM & DBR. There is even a DOLA Strategist Contest running, and if you think your strategy will perform well, there might be a prize in it for you if you enter a submission in the community Discord forum


Disclaimer: 

FiRM and any other protocol deployed by Inverse, however thoroughly tested and audited, will always carry risk inherent in smart-contracts due to Ethereum’s simultaneous execution environment. Inverse Finance is a decentralized, open-source protocol, and is not affiliated with any central authority or organization. Inverse Finance’s products are provided "as is" and without any warranties or guarantees of any kind. Inverse Finance does not endorse or recommend any particular use or implementation of its products, and is not responsible for any losses or damages that may result from their usage. Users of FiRM are to follow any local laws applicable when using FiRM and users are solely responsible for their own actions, and Inverse Finance will not be liable for any damages or losses that may result from the use of FiRM. By using FiRM, users acknowledge and agree to these terms and conditions.


Docs - Github - Discord - Twitter - Forum


Nakamomo
Nakamomo

Community Working Group


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