Introduce Additional Reward Tokens to DOLA/USDC Pool
Inverse Finance is a community of crypto enthusiasts organized as a DAO and started on December 26th 2020. Inverse DAO governs and develops a suite of permissionless and decentralized financial tools using blockchain smart contract technology. The code base is open source and maintained by the community.
Inverse DAO’s core product is DOLA, a debt-backed USD stablecoin.
This proposal seeks to get the option to add additional rewards to the DOLA/USDC pool on Aura. Acquiring veBAL votes in the market doesn’t always follow a predictable pattern, and there are situations where the actual results fall far below what was initially expected. We seek the ability to add direct rewards to the pool as a fallback for when an underperformance happens, allowing the DAO to seamlessly top up the rewards ensuring LPs APR is not hit. Maintaining deep TVL in the pool is crucial for Inverse Finance to safely operate it’s lending market, FiRM.
DAO multisig will call setExtraReward on this “stash” for the DOLA/USDC pool. A new “VirtualRewardPool” would be created, and would allow a reward token to be sent to this stash, queuing it on the new virtual reward pool. Any reward token sent there would be queued over the following week.
Please note, the intention is for this proposal to go to vote in the Thursday 15th June snapshot round.
As such, the discussion period for this proposal is shorter than usual. We plan to finalize adding rewards to the DOLA/USDC pool by Monday 19th June, and therefore, we kindly request that the discussion period and the Snapshot voting take place before this date. Your timely participation is greatly appreciated.
The voting will follow a single-choice format. You can either vote “For” or “Against” this proposal, or you may choose to abstain. Voting “For” this proposal implies your support towards establishing the flexibility to add extra rewards to the DOLA/USDC pool.
Hello sir, what is the extra reward token Inverse intends to provide for the USDC/DOLA pool on Aura? INV?
I am wondering whether a long term vision of incentives to the pool can be elaborated. Does inverse plan to go with the model of only using INV rewards to the pool, while not participating in BAL wars?
If we could hear a bit more from you now in response to these questions, I could (individually) possibly support going to Snapshot on this proposal on a temporary basis. If so, my expectation would be that we revisit the proposal next round as Inverse provides more info about its strategy for deploying these rewards, tokens used, Aura in general, etc., along with reasonable time and opportunity for discussion. For example, see AIP-23 and AIP-30.
I would also like to hear how Aura could possibly tie into Inverse’s pending BIP-331 plans on Arbitrum.
Hi! Thanks for you proposal!
Can you be more specific on the metrics that would activate this “fallback” option?
Hi all, I added some wording edits to the original post.
USDC is the reward token that we currently intend to do this for.
We look to grow this pool’s TVL and volume in order to facilitate more efficient stableswaps for our stablecoin, DOLA, for borrowers on FiRM. We absolutely intend to continue in the BAL wars as we have historically, building both vlAURA and sdBAL positions, and incentivizing votes via HH vlAURA, HH veBAL, Paladin Quest, Votemarket and private OTC deals, as we have done in the past. We pivot on the exact platform we use depending on the current state of the BAL wars, seeking the most efficient method for veBAL votes.
We intend to provide incentives for the 2 pools once the guage’s are live. Any POL deposited into these pools will be staked on Aura, and we will likely look at vlAURA holders to get veBAL votes to incentivize the pool.
This is when, in our opinion, we could not achieve sufficient veBAL votes for the epoch. This can be caused by a number of reasons, such as poor bribe performance and miscommunication within an OTC deal, for example. It is important for the protocol to keep TVL within the pool when this happens, so having the ability to top up rewards on Aura directly will prove very useful.
Thanks for the response. Definitely helpful. We have recommended that your request for an expedited vote proeceed to this round of Snapshot as an AIP. While this is not the optimal framework, due to your collaboration on answering the various questions, the Maxis are willing to support the vote of this proposal for the current epoch.