What Is Inverse Finance (INV)?
Inverse Finance crypto project is a lending protocol combined with a yield aggregator. Users can deposit stablecoins and generate yields in the form of their preferred assets using this platform.
INV is the governance token of the platform. The holders of INV tokens can participate in the decision-making processes in Governor Mills, which is the governance system of Inverse Finance. Take a look at the Inverse Finance price chart above to see the current INV price.
Besides that, INV tokens are also used as collateral assets in Frontier, which allows users to lend or borrow various crypto assets. INV holders can stake their tokens in Frontier this way generating APY. Every time an Ethereum block is mined, INV staking rewards are calculated.
Besides, note that, once INV is deposited into Frontier, the holder receives xINV tokens. They can then be exchanged back to INV after the holder decides to withdraw the tokens from the staking process.
INV tokens can be purchased in various exchanges. The Inverse Finance price does, however, frequently change. This occurs because a number of factors that have an impact on the entire crypto market also have an impact on the INV price.
INV as a Backup Token for DOLA
Another token that belongs to the Inverse Finance crypto project is DOLA, which is a low-interest stablecoin. INV is anticipated to serve as a DOLA backup token. Inverse Finance token holders have developed a DAO, which can be used as an institutional lender for DOLA tokens.
Essentially, by issuing uncollateralized loans, the DAO can create DOLA tokens and use them to fund lenders. The borrowers can also borrow other tokens from Anchor (a money market forked from Compound) by using DOLA as collateral. However, they can use DOLA simply as a stablecoin as well. Besides, if the borrower is not able to cover the debt, Inverse Finance coins are used to pay it off.
