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Investing In Inverse Finance (INV) – Everything You Need to Know

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Inverse Finance (INV) provides a suite of DeFi tools to users via its proprietary protocol. The network combines a new cryptocurrency, advanced lending protocols, and synthetic assets to provide a unique investor experience. As such, the network is recognized as a pioneer in this regard. It’s among the first platforms to enable users to generate yields on stablecoins then autonomously invests the yield in another token like Bitcoin or Ethereum.

The developers behind the Inverse Finance concept have labeled the platform a “decentralized global central bank.” Notably, the protocol continues to see rising adoption due to its open enrollment and wealth generation tools. At this time, Inverse Finance has $80.98 million TVL (total value locked).

What Problems Does Inverse Finance (INV) Solve?

One of the main problems that Inverse Finance helps to alleviate is crypto risk exposure. The network’s technical structure enables users to generate stablecoin loans while at the same time, keeping their principal protected from volatility. In the past, borrowers would have to complete their loan terms in full to regain access to their collateral. Sadly, these delays could result in missed opportunities for investors and unnecessary losses.

Inverse Finance (INV) - Twitter

Inverse Finance (INV) – Twitter

Gas Fees

Gas fees are a major problem for many networks in the DeFi sector at this time. Ethereum, the world’s most popular DeFi blockchain, is in the midst of record-high gas fees. The sudden increase in platforms using the network has created a scenario where executing smart contracts and basic transactions is not feasible.

Inverse Finance eliminates this issue by pooling together users’ funds and converting them to Ethereum in a single large transaction. Since the system converts all users’ yield at the same time instead of one transaction per user, the overall cost of the transaction is much lower. These costs are then split between the community.

Gate Keepers

Traditional lending services can be very particular about who they work with. In the past, centralized banks have been caught discriminating against certain populations and social classes. If you have ever been into your local bank to ask for a loan, you know the entire process is humiliating. You have to go into the branch and present your plans to a minimally paid worker who then decides if you deserve the loan or not.

Inverse Finance eliminates gatekeepers from the lending process. The protocol doesn’t require you to jump through hoops or explain past financial mistakes. Instead, you simply need to meet the collateralization requirements to start borrowing funds immediately.

Data Theft

The news has been filled with stories regarding massive data breaches. There have been personal users’ information stolen from all types of government and financial institutions over the last five years. Sadly, these hacks are on the rise with trends indicating they will continue to increase in both frequency and intensity.

Inverse Finance users never have to worry about their personal data ending up in the wrong hands because the platform never asks you for this information. Like the majority of DeFi protocols in the market, you can start using features right after you link your compatible wallet. The popular web plug-in wallet MetaMask is a free option to consider.

Benefits of Inverse Finance (INV)

Inverse Finance provides users with a plethora of benefits. For one, users save on fees and maximize earnings via revenue sharing. The protocol also helps those seeking to acquire large amounts of a target token as the protocol automates the dollar-cost averaging process.  This strategy is called “Positive Sum DeFi.”

Decentralized

Inverse Finance provides more security than centralized systems. There is no single point of failure in the network. Additionally, it leverages a distributed ledger to remain immutable and secure.

Passive Income

Passive income is one of the biggest draws for DeFi platforms like Inverse Finance. The network provides a variety of ways for users to secure returns in a low-risk manner. Specifically, the networks staking features make it easy to secure returns without risking your original assets.

When you stake INV, you lock the token into a network smart contract. This temporarily removes the token from circulation which drives demand higher. Also, your staking rewards are paid out in INV which you can add to the next stake to compound your returns.

How Does Inverse Finance (INV) Work

Inverse Finance seeks to make it easy for anyone to lend, borrow, or create synthetic assets. These assets come in the form of the network stablecoin, DOLA. Users can deposit their stablecoin in a yield generating pool. The system will automatically convert the yield into the token you desire. This innovative approach saves you money, time, and helps you to reach your trading goals quicker.

Inverse Finance (INV) - Network Stats

Inverse Finance (INV) – Network Stats

Peer-to-Peer Lending

The P2P low-cost stable coin lending protocol is at the core of the network. The system was built to provide decentralized, capital-efficient lending, borrowing, and yield generation. The network leverages Yearn.Finance V2 vaults to secure 25% APY.

DOLA

Dola is Inverse Finance’s native stablecoin. The token operates as a fully-collateralized, low-interest stablecoin that is backed by both on-chain collateral and future interest payments.

INV

The INV token is the main utility token for the network. This token serves multiple roles within the ecosystem. It is used to interact with the lending features, create synthetics, and pay fees. You can also stake this token. All rewards within the Inverse Finance system are paid out in INV as well.

Community Governance

INV token holders gain access to the network’s community governance mechanism. Inverse Finance leverages a DAO (decentralized autonomous organization) to decide on the direction of the platform. Anyone can put forth proposals and vote on others using the DAO.

DAOs eliminate all centralized parties from organizational management. Instead, smart contracts and voting processes determine the network’s next move. In this way, community governance systems provide members with more control over their investments.

How to Buy Inverse Finance (INV)

Inverse Finance (INV) is available on the following exchanges:

Coinbase – A publicly traded exchange listed on the NASDAQ.  Coinbase accepts residents from 100+ countries including Australia, Canada, Singapore, UK & the United States (excluding Hawaii).

Gate.io – This exchange was established in 2013, and is one of the more popular & reputable exchanges. Gate.io currently accepts most international jurisdictions including Australia & the UK.  USA & Canada residents are prohibited.

Huobi Global – Established in 2013, Huobi Global has since become one of the world’s largest digital asset exchanges, with an accumulated trading volume of US $1 trillion.  It should be noted that Huobi Global currently does not accept USA or Canadian residents.

Inverse Finance (INV)

Inverse Finance demonstrates the creativity of developers in the DeFi sector today. The protocol enables users to unlock funding and save on conversion fees. These features, coupled with the passive income protocols, make Inverse Finance a smart network to keep an eye on moving forward.

David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com

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