Inverse Finance’s treasury working group, with the close association of the RWG, has successfully been able to chalk out plenty of liquidity-oriented plans of action, in the case of the DAO, ever since the month of April. This activity has been carried out with the sole aim and intention of being in a position of backing and strengthening DOLA.
This entire exercise began with the involvement in the Curve wars, so to speak, in terms of incentives for liquidity. In the process, an association was formed with Yearn so as to deliver the Yearn Fed. Following that, there was the deliverance of the FraxBP FED, transference of INV-DOLA liquidity to Balancer, further to which was the deliverance of a Velo Fed together with an Aura Fed.
The reason why DAO requires to have and maintain deep DOLA liquidity is to be able to initiate increased amounts of borrowing on FiRM, bereft of some unwanted price movement. The need in this case scenario is, therefore, deep liquidity to be able to withstand any selling pressure. This, in turn, paves the way for effective stablecoin swaps. In the same breath, considering the exploitation of the lending markets, which happened in the earlier part of the year, it becomes necessary for deep liquidation together with higher circulation. This helps to lessen the risks involved where the DOLA holders are concerned.
At the present moment, the DAO has been able to accumulate and utilize emission-controlling tokens like $CVX, $AURA, and $VELO. These tokens are over and over again into vote bonds. This provides the opportunity for more voting power in controlling the direction in which the LP emissions are transferred. Where the TWG is concerned, it plans on pursuing the creation of positions in the tokens to lessen the need for INV emissions in order to back DOLA.
Inverse Finance DAO being a stablecoin provider and lender can make enormous profits with the possession of the emission controlling tokens. They are presently going through the phase of a downward trend in the crypto market because of the going down of the overall prices of tokens. In the present scenario, however, having accumulated top-quality emission-controlling tokens, the DAO is in the position to receive high returns for its liquidity pools.
Source: https://www.cryptonewsz.com/better-liquidity-operations-from-inverse-finance-in-2023/