# Add sDOLA/reUSD Yearn LP Market to FiRM
# **Proposal to Add sDOLA/reUSD LP Market to FiRM**
Forum Post: https://forum.inverse.finance/t/add-sdola-reusd-lp-market-to-firm/680
## **Summary**
This proposal seeks to add the sDOLA/reUSD Curve LP, deposited via onlyBoost and Yearn, as a collateral market on FiRM.
This market was originally proposed in May 2025 but was ultimately paused following DAO discussion. At the time, the primary concern was not the strategic case for the integration, but Resupply's limited operational history. The view was that the protocol should be given additional time to demonstrate its stability and behaviour before FiRM took on exposure.
More than 15 months have now passed since that discussion, and Resupply has developed considerably. Alongside the additional protocol history, recent integrations between Inverse, Curve and Resupply have materially strengthened the business case for this market.
We believe now is the appropriate time to revisit the integration.
## **Background**
Resupply is a stablecoin and lending protocol built by contributors from the Convex and Yearn ecosystems. Users can deposit yield-bearing lending positions as collateral and borrow reUSD against them, allowing the underlying assets to continue earning yield while unlocking additional capital efficiency.
Resupply launched in March 2025 and has now been live in production for approximately 17 months.
The sDOLA/reUSD FiRM market was [first proposed shortly after Resupply's launch](https://forum.inverse.finance/t/add-sdola-reusd-convex-lp-market-to-firm/563). While the business case received support, the DAO ultimately preferred to allow the protocol more time to mature before proceeding. The proposal was therefore paused in May 2025 with the intention of revisiting it once Resupply had established a longer track record.
Shortly afterwards, in June 2025, Resupply suffered an exploit involving a newly deployed lending market, resulting in approximately 10m reUSD of bad debt. The incident reinforced the value of the DAO's cautious approach at the time. Resupply subsequently completed its bad-debt recovery process and has now operated for more than a year since the incident.
As a result, the DAO now has substantially more information and operational history on which to assess the protocol than was available during the original discussion.
## **Market Business Case**
The business case for this integration has strengthened considerably following the launch of the new sDOLA/crvUSD LlamaLend V2 market.
Resupply has integrated the crvUSD lending side of this market into its protocol, allowing users to deposit crvUSD into the sDOLA LlamaLend V2 market and use the resulting lending position as collateral to borrow reUSD.
This creates a particularly strong alignment between Inverse, Resupply and Curve.
The relationship can form a positive liquidity flywheel:
1. **FiRM enables leverage on the sDOLA/reUSD LP**
Allowing the LP to be used as FiRM collateral gives depositors access to fixed-rate DOLA borrowing and enables leveraged LP strategies. This should increase demand for the LP and make the incentives directed towards it more capital efficient.
2. **Greater LP demand deepens reUSD liquidity**
Additional sDOLA/reUSD liquidity provides reUSD with a deeper liquidity venue and improves its ability to maintain its peg. The Resupply and Convex ecosystems can further support this liquidity through incentives.
3. **Deeper reUSD liquidity enables Resupply to scale**
Stronger reUSD liquidity allows Resupply to support additional borrowing and leverage across its own markets.
4. **Resupply can direct additional capital into the sDOLA LlamaLend V2 market**
Resupply now accepts the crvUSD lending position from the sDOLA/crvUSD LlamaLend V2 market as collateral. Growth in Resupply therefore has the potential to drive additional crvUSD deposits into the market, increasing available liquidity for sDOLA borrowers and allowing the market to scale.
5. **A larger sDOLA market ultimately benefits Inverse**
Greater capacity within the sDOLA LlamaLend market increases the usefulness and potential scale of sDOLA, creating additional demand for DOLA and strengthening sDOLA's position throughout the Curve ecosystem.
The result is a highly synergistic structure where liquidity and borrowing activity can reinforce each other across FiRM, Resupply and LlamaLend.
## **Strategic Alignment**
There is also significant strategic alignment between the teams involved.
Inverse has longstanding relationships with contributors across Convex, Resupply and Yearn, with these teams having collaborated across liquidity, incentives, treasury management and product integrations for several years.
Resupply has consistently demonstrated an interest in growing integrations involving sDOLA. More recently, Resupply's decision to support the new sDOLA LlamaLend V2 market further increases the direct economic alignment between the protocols.
Adding the LP to FiRM provides another mechanism through which all parties can coordinate incentives and capital to grow the same underlying markets rather than competing for liquidity independently.
## **Market Parameters**
Market parameters proposed in accordance with [risk assessment and recommendations from the RWG](https://forum.inverse.finance/t/add-sdola-reusd-lp-market-to-firm/680/2).
* Collateral Factor: 85%
* Liquidation Factor: 100%
* Liquidation Incentive: 5%
* Minimum debt: 3,000 DOLA
For the onlyBoost Market: 0xf9287c29Cb888F4834B7D2757a833D509e7f9D9A
* Supply Ceiling: 1,500,000 DOLA
* Daily Borrow Limit: 350,000 DOLA
For the Yearn market: 0x1fD4985cdd57bDb1eD646B10B7952fCD58946916
* Supply Ceiling: 500,000 DOLA
* Daily Borrow Limit: 150,000 DOLA
# Enable Swap Proxies on ALEV4
# Proposal to Enable Swap Proxies on ALEV4
Forum Post: https://forum.inverse.finance/t/enable-swap-proxies-on-alev4/630
## TL;DR
* The recent **“[Migrate DBR Helpers to New TriDBR Poo](https://forum.inverse.finance/t/migrate-dbr-helpers-to-new-tridbr-pool/627)l”** proposal deployed and enabled the new ALE contract ALEV4 ([0x39D167Fe676EFC3be49bE874a37349A5D89f9058](https://etherscan.io/address/0x39D167Fe676EFC3be49bE874a37349A5D89f9058#code)).
* ALEV4 uses an allowlist (`isExchangeProxy`) for swap routers used in leverage/deleverage flows.
* We identified that the two swap proxies used by the FiRM frontend were not included in the whitelist:
* Odos router: [`0xCf5540fFFCdC3d510B18bFcA6d2b9987b0772559`](https://etherscan.io/address/0xcf5540fffcdc3d510b18bfca6d2b9987b0772559)
* 1inch Aggregation Router: [`0x111111125421cA6dc452d289314280a0f8842A65`](https://etherscan.io/address/0x111111125421cA6dc452d289314280a0f8842A65)
* This proposal simply calls `allowProxy` for both addresses on ALEV4 so that existing leverage/deleverage flows can route via Odos/1inch as intended.
* No changes to FiRM markets, risk parameters, or DBR logic.
---
## Background
In the DBR Helpers → new TriDBR pool migration, we:
* Deployed new helper contracts (ALEV4, PendlePTHelper, DbrHelper),
* Migrated configuration from the legacy ALE,
* Disabled the old helpers.
ALEV4 introduces a safety improvement around swap routing:
* Each market can be configured to use an `exchangeProxy`.
* At execution time, ALEV4 checks `markets[_market].useProxy` and `isExchangeProxy[_proxy]`.
* Only addresses explicitly allowed via `allowProxy()` can be used as swap routers.
This pattern is already in use (e.g. prior 0x → 1inch switch), but when we migrated to ALEV4 we did not include the `allowProxy` calls in the on-chain steps, so both Odos and 1inch are currently *not* enabled on the new ALE.
The result is that any leverage/deleverage flow that passes these routers as `exchangeProxy` will revert with `InvalidProxyAddress()`.
---
## Objective
Formally authorize the two swap routers used by FiRM as valid exchange proxies on ALEV2 so that:
* Frontends and power-users can use Odos and 1inch for DOLA / collateral routing in leverage and deleverage flows.
* Behaviour matches the previous ALE setup, with improved routing via the new TriDBR pool and the same aggregator stack.
No other changes are in scope.
---
## Rationale
* **Restores intended functionality** The original migration assumed Odos and 1inch would remain usable as swap backends for ALE flows. Without whitelisting, those routes simply revert.
* **Minimal, well-scoped change** We are only setting two booleans in `isExchangeProxy`. No state related to user escrows, market debt, or DBR accounting is modified.
* **Battle-tested routers** Both addresses correspond to heavily-used, audited swap routers (Odos router v2 and 1inch Aggregation Router v6), already integrated in the Inverse stack and widely used across DeFi.
* **Improved UX and execution** Allowing these aggregators lets users source the best routes across DEXs while still keeping ALE’s flash-mint-based leverage/deleverage UX.
---
## Specification / On-Chain Actions
On ALEV4: 0x39D167Fe676EFC3be49bE874a37349A5D89f9058
1. Enable Odos router as an exchange proxy
```
ALEV4.allowProxy(0xCf5540fFFCdC3d510B18bFcA6d2b9987b0772559);
```
2. Enable 1inch Aggregation Router as an exchange proxy
```
ALEV4.allowProxy(0x111111125421cA6dc452d289314280a0f8842A65);
```
setBorrowController(address)# [5/7] Update to Pectra-Compliant FiRM Borrow Controller
Forum Link: https://forum.inverse.finance/t/update-to-pectra-compliant-firm-borrow-controller/547
### Summary
This proposal seeks to update the FiRM Borrow Controller across all active markets to a newly-deployed, Pectra-compliant version, addressing security risks introduced by [EIP-7702](https://github.com/ethereum/EIPs/blob/master/EIPS/eip-7702.md#self-sponsoring-allowing-txorigin-to-set-code). The upgrade ensures continued protection against flash loan exploits, reentrancy, and atomic transaction manipulations, while maintaining all previously implemented risk controls such as the rolling 24-hour borrow limit and daily borrow caps.
### Background
The borrow controller in FiRM plays a crucial role in risk management, ensuring that borrowing transactions comply with security measures such as:
* **Minimum Debt Amount**: Protecting the protocol from griefing by enforcing a minimum market debt allowed to be carried per user.
* **Smart Contract Verification**: Restricting borrowing from unauthorized smart contracts to mitigate risk.
* **Rolling 24-Hour Borrow Limit**: Preventing exploitative behaviors related to fixed-time resets.
* **Staleness Threshold**: Addressing stale oracle data exploits by preventing borrowing when price feeds have not updated within a governance-defined timeframe.
However, with the first phase of the Pectra hard fork scheduled for mid-March 2025, [Ethereum's EIP-7702](https://mixbytes.io/blog/the-prague-electra-pectra-hardfork-explained) introduces the ability for EOAs (externally owned accounts) to delegate execution to smart contracts, effectively bypassing FiRM’s existing protections against flash loans and reentrancy attacks.
To mitigate these risks, the new borrow controller enforces a stricter validation, combining `tx.origin == msg.sender` with `msg.sender.code.length == 0` to ensure that the caller is not a delegated smart contract. In doing so, it ensures full compatibility with the Pectra hard fork, maintaining security without sacrificing user experience.
The new borrow controller has been rigorously tested on the Prague EVM and reviewed by 3rd parties, both of which confirm it correctly blocks unauthorized delegated transactions while maintaining expected protocol functionality.
### Implementation Plan
This proposal will standardize the borrow controller across all active markets, eliminating existing discrepancies and bringing the rolling 24-hour borrow limit to all markets. All previously whitelisted addresses as well as market-specific daily borrow limits, staleness thresholds, and min debts will need to be set. As such with 33 live markets, this will require over 100 on-chain actions. As each proposal is limited to 20 on-chain actions, this will be spread out across 7 proposals.
This is Proposal # 5 of 7 and will apply to the following...
### On-Chain Actions
1. Set the Borrow Controller and Inherit All Existing Borrow Parameters for the following FiRM Markets:
- DOLA/USR, yv-deUSD/DOLA, yv-sUSDS/DOLA, yv-scrvUSD/DOLA, yv-sUSDe/DOLA
# Switch ALE from 1inch v5 to 1inch v6 Router
# Proposal to switch FiRM’s Accelerated Leverage Engine (ALE) to the 1inch v6 Router
Forum Post: https://forum.inverse.finance/t/switch-ale-from-1inch-v5-to-1inch-v6-router/432
## Summary
ALE allows users to leverage up and down positions on FiRM, using a DOLA flash mint. This proposal seeks to switch the router used in ALE from 1inch v5 to 1inch v6.
## Background
ALE was launched on FiRM in [November 2023](https://www.inverse.finance/governance/proposals/mills/155) using the 0x Swap API router, although due to poor routing for many of the collaterals on FiRM, this was soon [switched to the 1inch v5](https://www.inverse.finance/governance/proposals/mills/158) router given the significantly better trade outcomes for users.
## Objective
The 1inch team [launched the new v6 router in March 2024](https://blog.1inch.io/1inch-announces-a-significant-upgrade-swaps-and-limit-orders-now-up-to-16-cheaper/), with the main improvements cited as being gas optimizations:
* Up to 16% gas reduction for the most common trades
* Limit orders are 14% more gas-efficient
* RFQ-like orders are 3% more gas-efficient
Utilizing 1inch v6 within ALE is expected to save some gas for FiRM users.
## On-Chain Action
* Set exchange proxy of ALE to 1inch v6
# Growth Working Group - S2 Proposal (Revised)
## Growth Working Group - Season 2 Proposal
Forum Post: https://forum.inverse.finance/t/treasury-working-group-s2-proposal/413
*NB: proposed revised to include previously approved amount for Redstone oracle*
### Summary
Proposal for Inverse Finance DAO to cover operations of the Growth Working Group (TWG) in Season 2, running from May 1st to November 31st, 2024.
### About The Growth Working Group
The GWG manages a wide portfolio of responsibilities including business development, marketing, design, community, and capital raising. In addition, the GWG engages in day-to-day risk-related activities including serving on Fed Chair and Policy multisigs.
### Season 2 180-Day GWG Objectives
We outlined the DAO’s 12-month objectives in August 2023 in this post and our “north star” objective of reducing bad DOLA debt – which is essential to returning greater value to INV tokenholders – remains intact after a decent Season 1 repayment performance.
The GWG directly impacts three of the four success levers mentioned in that document:
- Increase product adoption
- Increase product profitability; and
- Raise external capital;
In support of these three levers, the GWG has identified 180-day objectives across its functional areas of responsibility:
- Business development
- Marketing
- Design
- Community: and
- Capital raising.
Where possible, deliverables are reduced to measurable objectives.
### Business Development Objectives
Business development objectives impact product adoption and profitability. For Season 2, business development objectives are grouped into three categories:
- Liquidity partnerships,
- Third party lending partnerships; and
- Strategic growth initiatives;
Liquidity Partnerships.
In support of objectives laid out in our forthcoming product roadmap, liquidity partnerships help create demand for DOLA and sDOLA, help to expand lending capacity, create veNFT assets, generate treasury ops revenue where Feds are deployed, help manage the DOLA peg, and reduce our reliance on INV for liquidity incentives. New liquidity partnerships also help drive higher volumes which get us closer to a Chainlink oracle for DOLA, which is a hard requirement for certain leading lending markets.
Emerging L2 DEX’s
Perhaps the most significant liquidity partnership opportunity for the DAO centers on a growing number of Ethereum Layer 2 chains, where DOLA’s success on Base/Aerodrome is creating real demand for DOLA liquidity partnerships elsewhere. Many of our competitors have already begun to deploy liquidity in this way and Inverse can similarly take advantage of these opportunities with minimal risk (using native bridges and no feds) and expense.
For sDOLA, this L2 expansion lays the groundwork for partnerships with lending protocols and even perpetual futures markets keen on adopting new yield bearing collateral. Similarly, for our upcoming sINV product, the same partnerships can help drive demand for INV on new chains, bringing INV ownership to new segments.
We are currently in dialogue with well over a dozen potential L2 partner DEX’s. GWG analysis of emerging L2 opportunities takes into account current or likely TVL, community, partnership terms, team, and other attributes. While data is being updated on an almost daily basis, the GWG currently recommends - subject to RWG and TWG signoff - the pursuit of new DOLA, sDOLA, and sINV liquidity partnerships on:
- Berachain
- X Layer (OKX)
- Mantle
- Linea
- Fraxtal
Season 2 objective: close a minimum of three new DEX partnerships on emerging L2’s, subject to RWG and TWG signoff.
CEX’s
INV liquidity and volume on centralized exchanges remains light and our policy of paying zero fees for CEX listings has limited our recruitment of new CEX partners. However we remain in discussion with multiple CEX’s including among the top 5, who show some indications that INV could be added durings Season 2. The DAO should continue to seek out no-pay CEX listings and we are prepared to offer bounties of up to 5,000 DOLA for members who help us close no-fee CEX listings.
Season 2 objective: close one new CEX partner.
Third Party Lending, Perpetual Futures, and Yield Aggregator Partnerships
Also supporting DOLA Everywhere and INV Everywhere, we can build new relationships with third party lending and perpetual futures market protocols. DOLA’s success on Base is creating multiple near-term opportunities to add DOLA as a lend/borrow-only asset on lending markets without the requirement of a Chainlink price feed. GWG recently put forward a proposal, now passed, to acquire a Redstone price feed which is increasingly accepted as an alternative to Chainlink.
Today, we have one public proposal viewable on the Compound Finance forum and other proposals in the discussion stage, primarily on Base where DOLA liquidity is deep but also on Ethereum mainnet. Emerging L2’s are also likely sources of both lending and perpetual futures market partners. We have an active discussion with one perpetual futures market partner on an emerging L2 and preliminary discussions with two others, though sDOLA liquidity may be a gating factor in rollout. Also with our L2 expansion we have an opportunity to recruit new yield aggregator partners replicating our success to-date with Beefy and others.
Season 2 objective: close a minimum of three third party lending market partners.
Strategic Growth Initiatives
Strategic growth initiatives (SGI’s) represent partner-driven new product, distribution, or business model opportunities designed to catapult Inverse forward in our industry. SGI’s are ideally partner-driven and leverage partner ecosystems or installed bases, where the GWG provides leadership in drafting requirements documents, business model analysis, proposal development, or in the case of DAO treasuries, outbound business development.
Inverse Developer Partner Program. We are in the early stages of testing a program to enable “white label” access to fixed rate lending to partner users without directly surfacing today’s FiRM UX. We will provide an abstraction layer to assist developers who want to help bring FiRM everywhere. Draft proposal here. Season 2 objective: launch the Inverse Developer Partner Program with at least two grant applications.
Inverse Federation “Sister Project.” A draft whitepaper for our first Inverse “sister project” keying off last September’s Inverse Federation is underway. This and/or another Inverse Federation concept - whose goals include paths for faster DOLA bad debt repayment - will be presented to the DAO during Season 2.
New business model concepts. SGI’s may include formulating and analyzing longer-term business model concepts which may require longer incubation timelines. All have the “north star” of DOLA bad debt repayment as a priority.
DAO Treasuries. Diversification of DAO treasuries into sDOLA represents an excellent opportunity for increasing sDOLA demand, albeit with typically long sales cycles. The GWG recommends identifying a part-time resource to help penetrate this opportunity on a pay-per-performance basis. Alternatively, we could identify a partner seeking to assist DAO’s in this regard. Compensation for this role, when a resource is identified, will be subject to governance vote. Season 2 objective: identify a part-time resource or partner to help penetrate DAO Treasuries to close at least $500K in DOLA or sDOLA treasury diversification.
Grants. Two paths for grants are a) deploying FiRM (or other Inverse dapp) on a new chain with a grants program and b) apply for a grant on a chain where projects not deploying a dapp and only liquidity are eligible.
Other Season 2 SGI objectives: GWG will put forward a minimum of one new strategic growth proposal during Season 2.
### Marketing Objectives
The GWG is also responsible for marketing and communications functions for the DAO, with goals of driving awareness, trial, and adoption of DOLA, sDOLA, FiRM, and the INV token. Note: GWG is limiting requests for additional marketing and promotional resources, including events, pending further improvements in the DAO’s operating runway.
Increasing Awareness.
- We begin awareness raising by crafting narratives to support DAO priorities like sDOLA, new collateral on FiRM, and other product launches. These are often supported with formal marketing planning and coordination with working groups, partners, creatives, and community members.
- Moving sDOLA and sINV onto emerging L2’s with new DEX and other partners in Season 2 will provide high-visibility awareness opportunities across new user segments and with partners keen to promote ecosystem growth. Certain new partner-driven collateral like sFRAX also have high potential to boost awareness.
- For major product launches like sDOLA, we craft low-budget, high-intensity marketing campaigns to break through in a loud crypto marketplace. We will execute a “major” campaign for sINV with smaller, partner-driven campaigns for cross-chain sDOLA deployments. The sINV launch will also provide for compensating third party YouTube and long-form Twitter content writers who provide compelling or high traffic content. GWG recommends a total of 1,200 DOLA for third party content to support the sINV launch during Season 2.
- Twitter/X remains our primary channel for reaching new users. We engage current and prospective users on Twitter/X on a continual basis, with an emphasis on partner-driven events, new Inverse product launches, and DOLA yield farming opportunities. There is now a high likelihood that the @inversefinance account will receive a “blue check” during Season 2, allowing for long-form content and better performance vs. Season 1 for our posts due to the X algorithm design.
- For Season 2 we will expand our presence on Warpcast and offer one or more promotions to build our audience there, which today has a heavy concentration of Base users.
- GWG also creates blog and newsletter content which are useful for both awareness raising as well as retention but also serve as due diligence tools for prospective users and potential partners. GWG also works with publishers like Coingecko and Coinmarketcap and now engaging Token Terminal along with AWG to improve our presence there.
- To bring a new layer of “expert” reference content to our marketing, in Season 2 we will do a low-budget test with an outside analyst firm to support our sINV launch, support cross-chain sDOLA, and generate coverage of Inverse on an ongoing basis. GWG recommends a up to 100 INV for a test with a third party analyst firm during Season 2.
Increasing Trial and Retention
- A large opportunity for inducing trial of sDOLA and sINV in Season 2 are new partnerships on emerging L2’s where via partner co-marketing, partner-led incentives, and grants help us induce trial across segments we are likely not reaching today.
- Until a date is set for FiRM availability on an L2, for Season 2 GWG will focus our overall trial efforts on sDOLA and sINV. We also achieve trial via users joining liquidity pools and lending markets which incorporate either of these products.
- Increasing trial on FiRM mainnet is impacted by DBR prices, lending capacity, collateral options, and other factors driven from outside of the GWG. We will continue to focus our trial efforts around messaging new collateral like sFRAX, long-term lending use cases, and as market conditions permit launch promotions to encourage variable rate users to migrate loans to FiRM.
- In Season 2 we will continue the work with the AWG to provide cohort analysis among DOLA and, soon, sDOLA holders in order to help us form better approaches to segmenting the DOLA LP and sDOLA markets which also informs our L2 expansion strategy.
Other communications. The DAO requires ongoing communications leadership both for routine DAO communications but also during unusual events and the GWG continues to work to ensure a high level of professionalism in all our outbound communications. For Inverse this function is particularly important as in addition to the DAO’s commitment to transparency, the DAO’s bad debt adds extra importance on trust building within the community. High transparency, high impact communications are essential to strengthening the Inverse brand.
### Design
- The DAO will continue to rely on freelance creatives who can fit our budget since visual assets improve audience engagement. We will continue to experiment with AI tools, which are powerful in terms of generating baseline content but the editing process for quality animated output is still fairly time intensive.
- In light of upcoming product launches and other initiatives, GWG recommends a total of 7,200 DOLA in ad hoc design spending during Season 2.
### Community
- GWG will continue to manage a part-time Discord moderator and also recommends additional low budget community meme contest(s) in support of new product launches. Total Season 2 DOLA budget for mod and contest expenses: 3,000.
### Capital Raising
- Treasury Asset Sales. The DAO’s veNFT portfolio is increasingly attractive as a vehicle for more quickly retiring bad DOLA debt. GWG has already led discussions in this regard and we should expect veNFT’s to become more marketable later in 2024 when they become splittable. GWG will continue to work with TWG to qualify these opportunities before bringing to a governance vote.
- OTC Sales. The uptick in treasury ops revenue and the likely increase in DAO lending revenue is making the need for outside capital to repay DOLA bad debt less urgent. Despite the lack of a legal entity, the DAO may still seek to do an additional OTC sale for purposes of retiring bad DOLA debt or funding a sister project. GWG will facilitate discussions with potential OTC buyers during Season 2.
- Inverse legal entity. The prospects for a legal wrapper or similar entity for the DAO appear unlikely today, however at least one Inverse contributor is likely to form an entity which can help us achieve some of the goals of a legal entity. The GWG will continue to support this effort.
### Other GWG Activities
- Fed Chair. Like other Fed chair members, @patb is on standby 24 hours per day, seven days per week.
- Policy Committee.
### Budget
GWG Contributors to be paid at the following rates:
| Name | FTE | Pro Rata Monthly Salary | Total For Season 1 |
| ---- | --- | ----------------------- | ------------------ |
| patb | 1.0 | 14,500 | 87,000 |
Ad Hoc Expenses
The GWG multisig currently has 32,800 DOLA designated for a DOLA Redstone price feed and 120 INV remaining in its multisig from its Q2 2022 budget proposal 1. The GWG requests an additional 11,850 in ad hoc DOLA authorization and 110 additional INV authorization for Season 2.
| Expense Type - DOLA | Description | Estimated Monthly Expense | Estimated 6-Month Total Expense | Available in GWG Multisig | S2 Budget Request |
| ------------------- | ---------------------------------------------------------------- | ------------------------- | ------------------------------- | ------------------------- | ----------------- |
| Business Development | Maintain already-approved amount for Redstone oracle | | 32,800 | | 32,800 |
| Marketing | YouTube and other creator content in support of product launches | 200 | 1200 | | 1,200 |
| Marketing | Tools & Subscriptions | 75 | 450 | | 450 |
| Design | Freelance design services | 1,200 | 7200 | | 7,200 |
| Community | Discord Moderation | 300 | 1800 | | 1,800 |
| Community | Contests & Promotions | 200 | 1200 | | 1,200 |
| | | | | | |
| Total DOLA | | | 11850 | 0 | 44,640
| Expense Type - INV | Description |Estimated Season 2 INV Expense|
| ------------- | -------------- |------------- |
| Business Development | Spot rewards for community members assisting with BD & Marketing objectives | 30 |
| Marketing | Analyst Research | 100 |
| Marketing | Other | 100 |
| Total | | 230 |
| Expense | Total Season 2 |
| ------------- | -------------- |
| Salaries | 87,000 |
| Ad Hoc - DOLA | 44,650 |
| Total DOLA | 131,650 |
| | |
| Ad Hoc- INV | 230 |
| Total INV | 230 |
# ALE: switch the exchangeProxy from 0x to 1inch for better routing
## Summary
The ALE allows to leverage a user’s deposit by flash minting the required amount of DOLA to buy extra collateral via an exchange proxy and then borrowing from his escrow to repay and burn the minted amount.
This proposal aims to switch the exchange proxy used in the ALE from the 0x protocol to the 1inch protocol which shows better routing for most trades regarding DOLA and the collaterals of FiRM markets.
Forum post: https://forum.inverse.finance/t/ale-switch-the-exchangeproxy-from-0x-to-1inch/349
## On-Chain Actions
setExchangeProxy(0x1111111254eeb25477b68fb85ed929f73a960582)
# Product Working Group - Season 1 Proposal
Forum post: https://forum.inverse.finance/t/product-working-group-season-1-proposal/313
## 1. Summary
Proposal for Inverse Finance DAO to cover operations of the Product Working Group (PWG) in Season 1, running from October 1st to March 31st.
## 2. PWG @ Inverse Finance
The core responsibility of the Product Working Group is the design, development, deployment and maintenance of Inverse Finance smart contract systems and associated interfaces.
The transition to a fully empowered PWG started with [Proposal 100](https://www.inverse.finance/governance/proposals/mills/100), which established the Product Working Group multisig and gave it funding to pay for ad-hoc auditing work. It has since been given further resources to pay for a trial period of a part time smart contract developer.
The product life cycle at Inverse Finance typically go through the following steps:
1. Ideation of new product or feature for existing product.
2. Evaluation of the idea across the entire team of core contributors.
3. Design and specification of the idea.
4. Development of necessary code to support the idea.
5. Testing of the new product or feature.
6. Review of the new product or feature both internally and externally.
7. Deployment of the new product or feature.
8. Maintenance of the new product or feature.
The core contributors of the product working group take a deep part in all of these steps, and fully own accountability for steps 3-7. Part of that ownership is not just to execute on the tasks, but to make sure that it’s being done in a manner that maximizes security of the developed systems.
### 2.1 Goals
The northstar of season 1 at Inverse Finance is to reduce bad debt. This can both be done by making current operations more efficient, making our current offerings more desirable for customers, or making new products that increase revenues for the DAO. The Product Working Group is well positioned to positively impact all of these.
The PWG, alongside TWG, is on constant lookout for increasing DOLA bribe efficiency and demand by integrating with other protocols. We’ve already seen big success with this strategy with partners such as Velo/Aerodrome, Convex Finance and Aura Finance.
As for increasing user adoption, the PWG will maintain the security and usability of our current product offerings, along with:
* Deliver on projects mentioned in the 2.3 Projects section.
* Increase utility of FiRM markets, by:
* Making it easy to leverage positions and tear down positions.
* Use harvested yields to pay back debt or increase collateral positions.
* Refinance debt from other lending protocols to FiRM
* Expand the selection of attractive FiRM markets both on mainnet and layer 2’s
### 2.2 Responsibilities:
* Hosting and maintaining https://www.inverse.finance/
* Offering best in class transparency dashboards for applicable Inverse products.
* Integrate with third-parties technology solutions
* Develop and implement new types of escrows for FiRM unlocking new collaterals
* Expansion of new Feds to ensure the efficiency and availability of DOLA liquidity.
* Continuously improving our product development process both in terms of transparency, security and productivity.
* Assure product security by:
* Stress testing internal systems and checks
* Continuous built out of testing suites
* Continuous engagement with high-quality 3rd party code quality & security consultants
### 2.3 Projects
Along with the incremental improvements of products and systems, the PWG plans three major releases for season 1:
**FiRM v2:**
FiRM has been a big success for Inverse Finance, having $50MM TVL and over $20MM worth of borrowing, benefiting INV holders. As with all products, once they’re taken into use, improvements and desired features are discovered and our goal is to build the best protocol for fixed rate lending in the space, with the security and TVL to match. In version 2, we will go over every little detail protocol and apply the lessons we’ve learned from a year of operation, making upgrades wherever things can be improved.
**FiRM on Optimism**
Another big push will come in the form of venturing out from Ethereum and making FiRM truly cross chain. While DBR rewards will continue to flow to INV stakers, stakers will now be able to decide which supported network they want to withdraw their DBR on, which in turn will support network specific assets such as OP and VELO.
**Accelerated Leverage Engine:**
The accelerated leverage engine is meant to easily allow borrowers to lever up and deleverage their positions on FiRM in one transaction. We believe this will unlock more borrowing activity, as borrowers will no longer have to manually loop their borrowing activity to lever up, but can instead do it without a hassle.
While these items make for the big deliverables, the PWG will also be focusing on smaller projects such as escrow specific helper functions and any projects that may increase DOLA demand and bribe efficiency.
### 2.4 Success Metrics
The PWG will measure its success in the following ways:
#### No major security incidents or major bug bounty payouts.
Security has become an ingrained part of the process at Inverse Finance, and we hold ourselves to the highest standards of the industry. Not only do we consider major security incidents that cause a loss of funds a failure, but even the discovery of a failure mode in deployed code that isn’t exploited or activated, is considered a failure of our process as well. We will measure success in this area by the amount of high impact bugs and high payout bug bounties. We aim for 0 on both.
#### Adoption of new functionality.
It’s not only important to build secure products, but also useful ones. A clear metric for success for the PWG is how much our products are used. This is primarily measured as revenue growth for the DAO, and TVL growth, with revenue growth being more of a lagging indicator and TVL growth being more of a forward looking one.
### 2.5 Decision Making Power
The PWG will reserve the power to pursue product opportunities as they become apparent. While we plan on delivering on the projects as outlined earlier, the crypto space is a dynamic one, and we may find a golden opportunity that will take precedence on execution. We’ve had success with this approach in the fast, as successes like our partnership with Velodrome or implementation of CRV and cvxCRV markets in FiRM came from executing quickly on suddenly apparent opportunities.
The PWG will maintain its role as the “Gas Clerk” of cross L2 governance contracts. This privileged role only has the power to set parameters related to transaction execution, and cannot operate any underlying business logic. The PWG will request the authority to maintain servers hosting the Inverse Finance website, along with write access for its members to the [public github code repository](https://github.com/InverseFinance) associated with Inverse Finance.
# Budget
In Season 1 Contributors agreed to move to a standard compensation banding system. You can view the full compensation bands [here](https://docs.google.com/spreadsheets/d/1nl2MdD_3V-6LjjScDCaEmfTzxo4AHRvzddmrfHOgsuY/edit#gid=0).
## 1. Contributors
Contributors will be active within PWG, to be paid as follows.
|Name|FTE|Band|Pro-rata Monthly Salary|Total for Season 1|
| --- | --- | --- | --- | --- |
|0xMT|1|A|14500|87000|
|theAlienTourist|1|A|14500|87000|
|Tabboz|0.5|B|6000|36000|
**0xMT [WGL]**
While initially on-boarded as a smart contract engineer, 0xMT has since taken on increasing amounts of responsibility, driving improvements to the internal security and product development process, along with taking part in protocol design and business strategy discussions. His expertise in both maintaining and further developing Inverse Finance smart contract systems along with his importance in driving the internal product development, makes him a crucial contributor.
**theAlienTourist**
Thealientourist has been with the Inverse Finance DAO for a long time, and is the backbone of all things user facing. His contributions make sure that our web front-end and back-end operates without a hitch, that we integrate with some third-parties (Zapper, Defillama, etc), and he lends his expertise to review of smart contract code and business logic as well. Without him, all user facing logic would grind to a halt.
**Tabboz**
Tabboz has recently been on-boarded to Inverse Finance’s product team to help the team go through their ever increasing backlog of desired features. He has deep experience with DeFi, having worked with multiple projects in the space. His uptake to the role has been quick, and he’s pushed both the majority of the Arbitrum AuraFed which will allow Inverse Finance to start building DOLA liquidity on the biggest L2 in the ecosystem, along with quickly pushing towards enabling a user experience enhancing generalized leverage feature.
## 2. Ad hoc & Tooling
|Details|Type|Requested $INV|Requested $DOLA|
| --- | --- | --- | --- |
|External expert review|Security|370|10000|
|Red team bounty|Security|20||
**External expert review:**
Part of the Inverse Finance DAO product development process is continued learning and improvement, and one of the key parts of that has been engaging with 3rd party smart contract development domain experts. [Proposal 100](https://www.inverse.finance/governance/proposals/mills/100) that founded the PWG, started this program and the spend has remained lower than the asked for allowance, primarily due to the excellent professionalism and efficiency of our external collaborator.
The agreed upon rate is $225/hour, paid 50% in DOLA and 50% in INV tokens. These are allowances and are unlikely to be fully used, as the initial allowance of Proposal 100 stretched much further than the initial 3 months proposed and has yet to be fully spent.
**Red team bounty:**
A new security initiative for season 1 is the institution of an internal red team competition. Team members will conduct mock attacks against key privileged roles and try to social engineer or trick other core members to perform potentially unsafe actions, but without the disastrous consequences a real attack may result in. Points will be given to team members who correctly identify mock attacks along with team members who successfully mislead other core contributors.
## 3. Flexible Budget
PWG requests a flexible budget as follows to cover unforeseen expenditure that arises during the Season
|Additional flexible budget in $DOLA|$40,000*|
| --- | --- |
|Additional flexible budget in $INV|0|
We have requested a flexible $DOLA budget of $40,000 primarily to cover either taking on Tabboz full time, or should negotiations fall through, the recruitment of an additional 0.5 FTE smart contract developer. This spend is not committed yet and can be used at the discretion of the PWG multisig.
## 4. Summary
In summary PWG requested the following budget for the 6 months of Season 1.
||S1 $DOLA allowance|S1 $INV allowance|
| --- | --- | --- |
|Contributors|210000||
|Ad Hoc & Tooling|10000|390|
|Flexible Budget|40000||
|Total|260000|390|
# Create The Product Working Group
Forum discussion:
https://forum.inverse.finance/t/proposal-to-create-the-product-working-group/204
## Summary
This proposal aims to formalize the creation of a product working group (“PWG”) .The PWG will be led by our lead solidity developer 0xMT and will serve as the working group responsible for Inverse product innovation and maintenance, as well as fund expenses for ad-hoc auditing services and developer tool expenses.
## Background
To better manage daily operations, Inverse has many permissioned roles. These are assigned to working groups via governance proposals. This form of governance is designed to be transparent, decentralized, and inclusive, and is intended to give our token holders a direct say in the direction of the DAO, whilst simultaneously maximizing DAO output.
While Inverse began with the inspiration and efforts of a single developer, we’ve reached a stage in our product development and maintenance effort where a more formal PWG is required, similar to other working groups in the DAO. As we scale Inverse Finance, it is hard to over-emphasize the importance of a well-functioning product team; establishing the PWG is an overdue step in this process.
The potential list of product development projects for the DAO continues to grow, including porting FiRM to new L1/L2 platforms, adding new collateral options and features to FiRM, deploying new Feds, and developing entirely new products altogether. Yet today Inverse has just three developers, @thealientourist (fullstack web dev) and @0xmt (smart contract dev), it can count on for day-to-day operations, with an additional third, @nour, who tends toward longer term R&D projects like FiRM.
## Responsibilities/Scope
The PWG will serve organizationally as the working group responsible for product engineering, front end design, and quality assurance. In practice, the PWG will, with assistance from other WG’s, bring product ideas from the cradle of ideation, through validation from a user, business and feasibility perspective, into final implementation and maintenance. Initial members of the PWG will be @0xMT, @thealientourist and @naoufel.
Upon the execution of this proposal, a PWG multisig will be formed and used to manage costs related to day-to-day engineering executions, onboarding and management of any new developer hire, as well as costs related to developer tooling, hosting, etc. Funding to the PWG multisig will be governed by Inverse DAO. The multisig will be composed of @thealientourist, @0xmt, @naoufel, and @nour, and will require 3 of 4 signers at all times to reach quorum.
A highly experienced developer will be onboarded as an outside consultant to perform ad hoc quality assurance services for smart contracts. As part of our heightened risk posture, having a reliable additional set of “eyes” on our smart contracts is both good engineering as well as risk management practice. We expect this individual to, on average, perform 10-15 hours of work per month at a rate of $225/hour, paid in a mix of DOLA and INV.
## Funding
To cover aforementioned auditing expenses, the PWG asks the DAO allot it’s multisig an allowance of 125 INV and 5000 DOLA for 3 months of auditing work. Allowance will be used as needed and is unlikely to be fully spent.
## Accountability
The PWG will present a quarterly update on its use of resources and progress towards development goals.
## On-chain Actions
- Approve 5000 DOLA spending for PWG multisig
- Approve 125 INV spending for PWG multisig
Only markets can call onForceRep`Dreplenishment price must be over`DONLY MINTERS OR OPERATOROnly markets can call onRepayOnly markets can call onBorrowRsInsufficient balance``
# Increase Governance Quorum and Submit Proposal Requirements
Recently the DAO has voted in favor of and executed a proposal to increase total supply
https://www.inverse.finance/governance/proposals/mills/11. This change in supply warrants an updated governance quorum and submit proposal requirements to respectively reflect 5% total supply (7,000 votes) and 1% total supply (1,400 votes). These thresholds ensure high proposal quality and safeguard the DAO against governance attacks in time’s of weak markets.
Important to note that DAO Governance has consistently shown good health with 18 of the last 19 proposals receiving over 7000 for votes. The DAO has an active core group of delegates to submit proposals on chain, and a newly formed proposer whitelist of incentivized team members.