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- Inverse Finance unveiled the launch of the Anchor Protocol on Wednesday
- Inverse Finance founder believes that Anchor is very similar to the Synthetix protocol
- The members of the Inverse community proposed two governance schemes to seize INV
Soon after destroying its inactive members’ network, one of decentralized finance’s (DeFi) peculiar experiments is releasing a fresh stablecoin lending product.
Inverse Finance’s new protocol
On Wednesday, Inverse Finance unveiled the Anchor Protocol’s launch, a money market constructed around the framework of DOLA, a protocol-domestic synthetic stablecoin. Based on an improvised Compound branch, Inverse Finance founder Nour Haridy compared Anchor to Synthetix in a blog post. The latter provides credit through the medium of synthetic assets supported by over-leveraged security.
Ultimately, Nour believes that these models offer a very similar form of utility. He explained that the service of loan and synthetic protocols both provide the same facility: credit. Anchor, he highlighted, bridges the gap between them by joining them into a consolidated borrowing protocol.
Anchor’s objective is to achieve this with an unusual architecture that always serves the DOLA token as $1 security that allows borrowing of other assets, notwithstanding DOLA’s market circumstances. Customers deposit collateral, mint DOLA, and then they are free to use DOLA to access the service of loans in other crypto assets or earn returns on DOLA.
Nour explained that for over-collateralized debtors and leveraged investors, the platform provides them with a one-stop destination where they can exchange their collaterals over their synthetic and token borrowing levels, ensuring better capital organization more substantial leverage. According to Nour, Anchor will put DOLA into use for protocol-to-protocol lending.
Inverse Finance’s simultaneous plan of seizing INV tokens
Perhaps more fascinating than Inverse’s growth at the protocol layer is its progress earlier this week at the governance layer.
Likely to be the first time for the DeFi governance, on February 20, the Inverse community members proposed two governance schemes to seize INV, Inverse’s currently active non-transferrable governance token from the inactive members of the community. When the proposals were approved on February 25, the majority seemed unhappy with the consequences.
Nour explained that the platform did intentional scheduling of simultaneously placing two significant decisions. Just when they prepared to launch Anchor, a protocol that is likely to produce earnings for the DAO, the community dismissed certain freeloaders. He added that the platform needed to discharge the dead weight to recover specific tokens for re-allocation to the upcoming active members.
Next, Anchor plans to get Anchor off the ground. Moreover, it is planning to create a space for INV to become tradable. According to Nour, there’s a developing consensus in the network for trading.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
