Inverse Finance is excited to announce a broad collaboration with the Floki project to bolster both projects to new audiences.
What is Floki?
Floki is a utility-focused deflationary meme coin project that aims to be the people’s currency. It was inspired by Elon Musk’s dog which shares the same name, and it quickly became a big project with a strong and amazing community. Floki is focused on real world adoption, and part of its goal is to expand the FLOKI token into the DeFi space. This is where Inverse Finance comes in.
What is Inverse Finance?
Inverse Finance is a decentralized banking and finance application that issues its own over-collateralized stablecoin, DOLA. DOLA is a better alternative to other stablecoins due to its lower cost of borrowing and developer-oriented business focus. DOLA maintains low borrowing costs using the DOLA Fed, an innovative tool that allows Inverse to control borrowing rates across all chains and protocols along with supply and demand for DOLA.
Bringing Utility to Floki
One issue that many current memecoins face is utility. Many memecoins currently only serve as speculative investment vehicles to get rich, but Floki seeks to bridge the gap between speculation and utility with this proposal. With this partnership, Floki is paving the way for memecoins to be used in DeFi protocols. This partnership between Floki and Inverse will allow Floki to be used as collateral for borrowing other assets through the Inverse lending protocol, Anchor.
First, Inverse Finance will add FLOKI as a new collateral type on Inverse Finance, allowing FLOKI users the opportunity to borrow against their staked FLOKI. with a 200% collateralization ratio.
Second, FLOKI will continue its treasury diversification efforts by purchasing and holding $3,000,000 in DOLA in the FLOKI treasury.
Third, Inverse and Floki are developing a roadmap of new product and joint marketing activities beginning with this announcement and extending in 2022, ensuring mutual growth and success for both protocols.
We are excited to be working with the Floki community to ensure mutual success for both projects. We feel the love and passion from Floki and know that this collaboration will bring both projects to new heights.