Inverse.Finance (INV)

Basics

• Based in:
• Started in / Announced on:
• Mainnet release:

History

• From Daily Gwei (3-3-2021):

"The INV tokens were initially distributed in an airdrop and have not been transferable (and therefore not tradable) ever since that airdrop. This was done because the founding team/community wanted to encourage people to actually participate in governance using their tokens - not just simply hold them for speculative reasons. The DAO even went as far as to seize tokens from holders who hadn’t used them to vote in any of the governance proposals. The funny thing is that there was ample warning that this was going to happen and then when it did happen, people who had their tokens seized rushed to the community channels to air their grievances.

Now, there have been multiple governance proposals to make the INV token tradable in the past but all of them had been voted against - until today (as you can see in the tweet above). In less than 48 hours, the token will be able to be moved for the first time since its creation which I’m assuming will lead to some fireworks. As far as I know, this is the first (or at least the most high profile) instance of a token being “launched” in this way so it’ll be fun to watch play out."

Audits

• There is no evident bug bounty program (10-6-2021).
• From CryptoRisks (9-1-2023):

"The two debt-repayment contracts have undergone an audit by Peckshield. FiRM went through a bug bounty contest at code4arena, whereby some issues of mediocre and low severity were found and resolved."

• Got a score of 47% on DeFi Safety (10-6-2021): "No audits of Inverse Finance were performed. Information around upgradability: a) some info give can change variables are they upgradeable? - 10%. b) They say they have an admin key - 20% c) Virtually no info - 0% Score 30%. Pause control not documented or explained" With the comment: "No tests, no software docs and no audit yet.  Trist is built on transparency and they don't have much to see."

Bugs/Exploits

• From CryptoRisks (9-1-2023):

"The deployment of two debt-repayment contracts allows affected users to redeem small portions of their collateral. The income for the repayments stems mostly from Inverses’ bonds (i.e. an Olympus Pro integration). The largest bad debt position is the DOLA portion (approx. $9.5M)."

• From Week in Ethereum (18-6-2022):

"Inverse Finance $5.8 million oracle price manipulation, attack was backrun by arb bot otherwise it would have been frontrun by generalized frontrunner."

• From Rekt (2-4-2022):

"~$15.6M was stolen in the form of:

1. 1588 ETH
2. 94 WBTC
3. 4M DOLA
4. 39.3 YFI

First of all, the exploiter withdrew 901 ETH from Tornado Cash.

Then they transferred 1.5 ETH to 241 clean addresses via Disperse and deployed five different smart contracts, of which only one was real.

He then swapped 500 ETH to 1.7k INV so that it went through the INV-WETH pair on SushiSwap, significantly changing the price due to low liquidity (50x).

At the same time, he began spamming transactions with an exploit to be the first to get into the next block and get an inflated price from SushiSwap.

The Inverse Finance oracle, through Keeper Network, ended up using SushiSwap TWAP as an oracle, returning the price that made the INV token on the platform incredibly expensive.

The attacker then deposited his 1.7k INV (fair price - $644k) as collateral and (permanently) borrowed $15.6M.

After the attack, in Twitter Spaces, Inverse Finance stated that they are working with Chainlink to launch a INV price feed once liquidity requirements have been met. This would then replace the current TWAP oracle."

Governance

Admin Keys

• From DeFi Safety (10-6-2021):

"Information around upgradability: a) some info give can change variables are they upgradeable? - 10%. b) They say they have an admin key - 20% c) Virtually no info - 0% Score 30%. Pause control not documented or explained"

Token

Other Details

• From CryptoRisks (9-1-2023):

"$INV is the protocol’s governance token that can be staked (xINV). Both INV and xINV provide voting rights and can be used as collateral in the Frontier lending market."

Stablecoin

• Has the DOLA stablecoin. From CryptoRisks (9-1-2023):

"DOLA is the hybrid collateralized/uncollateralized stablecoin integrated with all of Inverse's other products. It is partially collateralized by deposits in its lending markets and partially issued by Inverse to regulate the balance of DOLA in a variety of liquidity pools. During the period after Frontier was paused, all minting and burning of DOLA has been managed by Inverse's Fed Chair multisig. All protocol-controlled DOLA is deployed through the Fed contracts, each of which employs a liquidity pool strategy that deposits DOLA directly into those pools."

Technology

• Whitepaper or docs can be found [insert here].
• Code can be viewed [insert here].

Implementations

• Built on:
• Programming language used:

Transaction Details

• Capacity (TPS):
• Latency:

How it works

• From CryptoRisks (9-1-2023):

"Its main products are a lending market and the stablecoin DOLA. The Frontier lending market was paused after two exploits earlier this year. Since then, Inverse has prioritized reducing its bad debt that resulted from these hacks. At the same time, it developed and just released its newest product FiRM (Fixed-Rate Money Market). FiRM is an improved version of Frontier with additional features, increased security, and a new primitive to facilitate fixed-rate borrowing of DOLA."

Their Other Projects

==Roadmap==*Can be found [Insert link here].

Team, Funding, Partners

Team

• Full team can be found [here].

(:

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