As Inverse Finance enters the Curve Wars we enter a new era. We want to honor the people who stayed staked through during the 4/2 incident. With that in mind, users who staked their INV tokens shortly after the April 2nd event will be able to claim an exclusive Inverse Army NFT that signifies your resolve.
As we commemorate the resolve of some of our most committed contributors and users, we’d also like to take this moment to reflect on Inverse Finance DAO’s history.
The First 409 Contributors
The DAO’s inception began with a tweet from Inverse Finance founder, Nour. There was no presale and no whitelist. Nour requested that prospective DAO contributors fill out a google form to join. All who were chosen were given governance tokens that were yet to be unlocked for trade or sale. Interest quickly built up on Crypto Twitter as people flooded in to fill out the form, offering their talents to the DAO.
Having observed many DeFi launches, Nour created a radical proposal to weed out uninterested parties and airdrop hunters: early governance was made mandatory. Those who didn’t delegate or vote had their INV tokens returned to the DAO treasury. This was a one time occurrence to ensure that the core contributors would be active in the DAO.
After considering the applications from the form and reclaiming the INV from those who did not participate in governance, the DAO was left with a core group of 409 people, known as the “409’ers.” The majority of these members were awarded 80 INV tokens, and thus started Inverse’s journey as an up and coming DeFi protocol.
The core community was made up of talented people committed to bootstrapping the launch of the protocol.
To read more about the 409, you can read a personal account from Somer, one of the original contributors, here.
The April 2nd Price Manipulation Incident
On April 2nd, Inverse went through one of its biggest challenges yet. A price manipulation incident led to a loss of $15.6M worth of assets. The incident was a tough day for Inverse, but the DAO regrouped and looked at various avenues that could keep Inverse Finance in a competitive position and quickly deployed the Yearn Fed on Curve and Convex. Core members also drafted a make-good proposal that would repay users that were affected by the incident. The DAO maintained transparency, hosting a Twitter Spaces the day of the incident, to inform the community of what had happened. We are grateful to have received a lot of support from various DeFi actors leading to more opportunities to grow Inverse Finance, the Yearn Fed integration being the first.
Yearn has worked closely with Inverse Finance as we set out on our foray into the Curve wars, growing our DOLA-3CRV Pool by issuing CVX bribes. As a result of these efforts, DOLA-3CRV liquidity skyrocketed to an all time high of 82.5M, and has grown our circulating DOLA substantially.
The incident forced the DAO to adapt and come up with novel solutions to move forward and we ultimately believe that Inverse Finance is stronger for it. We appreciate the support and are doing our best to make sure that Inverse grows and comes out as a major contender in the stablecoin space!