One goal for Inverse Plus is the expansion of liquidity on multiple AMM’s to make buying INV and DOLA easier and more efficient. We tested Olympus Pro in November as a means for switching from conventional liquidity mining rewards to Protocol owned Liquidity (PoL) and we are pleased to continue our collaboration with the Olympus team to expand Inverse’s bond offerings.
If you are new to bonds or to what we are doing with Olympus Pro, here’s a brief summary:Why We Switched To Protocol Owned Liquidity
Rather than “rent” liquidity, why not own it? The conventional method of ensuring liquidity for your token on a decentralized exchange like SushiSwap is paying someone a fee to lend you their tokens. The fee is usually paid in the form of a project’s governance tokens and can be lucrative for the liquidity provider. The weakness in this approach becomes clear when the budget for paying that someone runs out and liquidity disappears and … volatility mayhem ensues.
A better option launched by the team at Olympus simply purchases the tokens in that loan, albeit at a premium. It’s unclear why it took the crypto industry so long to come up with this idea but it’s a good one and we are going with it.
Financial Impact for Inverse
When you provide liquidity for a pair of assets on SushiSwap, you receive a percentage of the swap fee collected during a trade. Since in the PoL model Inverse owns the liquidity for these pairs, those swap fees go to the Inverse treasury and are marked as revenue. In addition, the LP token itself resides in our treasury as an asset that is at least 50% DOLA.
So while bonds are a way for us to generate liquidity for more efficient decentralized INV and DOLA trades, they indirectly serve as a way to generate new demand for DOLA, typically via Curve where you can swap DAI, USDC, or USDT for DOLA, or via Inverse’s own Stabilizer product which allows you to swap DAI for DOLA.
In sum, as we sell more bonds, we build the Inverse war chest for accelerating our cross-chain liquidity plans, hiring, acquisitions, etc. And most importantly, for driving the circulation of DOLA to 1 billion in 2022.
How to Buy
There are three separate options on Olympus Pro today:
1. INV-DOLA SLP
The INV-DOLA pool on Sushiswap is currently the main source of liquidity for the INV token today on Ethereum. Users can deposit their INV-DOLA SLP tokens and as of this writing the seven day return has dropped to approximately 3% and you can get started here.
DOLA bonds increase DOLA’s strength in the marketplace by allowing the protocol to own more DOLA which allows expanded lending operations which also accrue to the Inverse treasury. Treasury revenue is used in three primary ways: internal operations costs, reinvestment, and revenue sharing of DOLA to INV holders. Visit the DOLA bond page here.
3. DOLA 3POOL Curve
Deepening the liquidity of the DOLA-3pool on Curve is symbiotic to DOLA bonding since bonders need access to DOLA itself. As the primary source of liquidity for DOLA it is essential we keep this pool liquid. By owning this liquidity we strengthen DOLA in the marketplace and ensure users will always have access to Inverse’s own DOLA swap feature. To access DOLA 3pool Curve bonds, go here.
The ROI for Inverse Bonds
Returns on bonds is over a 7-day period and the numbers in the “ROI” column for our bonds will vary depending on demand and as this screenshot shows, demand for one of our bonds has already outstripped the amount of INV available — so the ROI is displayed as a negative number and in case that’s not clear it also uses the color red.
We will be refilling our Olympus Pro bonds on a regular basis so these numbers will be changing — and note that when bonds are refilled, ROI’s tend to be much higher than when bonds are nearly sold out, as is the case above. However if our bonds happen to be sold out, there’s a product we’d like you to try called Inverse Plus — the positive sum rewards version of our INV governance token — which is delivering attractive staking rewards along with revenue sharing rewards that you can view right here.
Disclaimer: This content is for informational purposes only and should not be construed as legal, tax, investment, financial, or other advice.