Launch DOLA Market on Compound v3 on Base

Proposals
1

Summary

We, Inverse Finance, propose the addition of a DOLA market to Compound V3 on Base

Motivation

DOLA today is the #2 stablecoin by TVL ($49MM) on Base and Inverse Finance holds the #2 veNFT position on Aerodrome Finance where DOLA enjoys deep liquidity. We are keen to build on this success and seek a top-tier variable rate lending partner like Compound Finance as Inverse’s focus internally is now fixed rate lending.

Point of Contact:

Patb, Head of Growth. TG: pat0xb

Proposed Collateral

We propose adding the following as a borrow-only asset for the market

  • DOLA, with Collateral Factor = 0%

Relevant Statistics and Links

Contract address

0x4621b7a9c75199271f773ebd9a499dbd165c3191

About Inverse Finance

Inverse Finance is an on-chain decentralized autonomous organization that develops and manages a suite of permissionless and decentralized financial products using blockchain smart contract technology. Originally founded by Nour Haridy in late 2020, the protocol is now governed by Inverse Finance DAO, a collective of crypto enthusiasts.

Inverse Finance’s main products are:

  • FiRM, a fixed-rate lending market
  • DOLA, a stablecoin pegged to the US Dollar
  • sDOLA, yield-bearing version of the DOLA stablecoin
  • DBR, a new DeFi primitive that enables holders to service a DOLA loan on FiRM.

DOLA is a debt-backed USD stablecoin which is added into and removed from circulation;

  • On the supply side of money markets, such as the DAO-owned protocol FiRM, by Inverse Finance’s “Fed” contracts and then made available to be borrowed through over-collateralized loans.
  • Via injection/contractions into pools such as the Curve DOLA/FraxBP (currently $15M TVL), DOLA/USDC on Velodrome ($425k TVL), DOLA/USDC on Balancer ($2.1m TVL on ETH, $1.7m TVL on Arbitrum) and DOLA/USDbC on Aerodrome ($59.2m TVL).

DOLA is not “algorithmic” and the INV governance token is not used to mint or redeem DOLA.

Next Steps

We invite the community to consider this application for listing the DOLA market and welcome suggestions in this direction.

Additionally, we look forward to the community to suggest or comment on:

  • Collateral Factor
  • Reserve Factor
  • Borrowing Limit