Launch the Inverse Developer Grants Program

Summary

A grants program test to attract projects with new ideas for integrating Inverse into their products.

Background

Inverse’s mission is to bring fixed rate DeFi lending to millions of users and today we are engaging with projects with new ideas for integrating fixed rate lending into their product lines. Partner conversations have turned to funding assistance for certain development and other costs, yet there is no formal mechanism within the DAO for addressing these requests. For example, one prospective partner, Skyline Digital, is studying a pilot project to bring fixed rate lending to their users via FiRM and allow for fiat loans against an underlying (non-custodial) FiRM collateral position.

Proposal

In order to assist partners in bringing their integration concepts to market, an Inverse Developer Grants Program can provide limited yet valuable development assistance to qualified partners. While the current DAO budget is limited, a six month test program funded with DBR’s provides a path that helps us address strategic opportunities without negatively impacting INV price or Treasury DOLA reserves.

Successful Proposals Receive:

  • Grant funding in DBR’s
  • Developer support (on a as-available basis)
  • Co-marketing
  • Introductions to other Inverse Ecosystem members

Objectives

  1. Test the hypothesis that an Inverse Developer Grant program with a limited budget can attract innovative proposals for integrating FiRM into partner products
  2. Test the hypothesis that proposals can be supported with minimal Inverse developer resources

Funding Structure & Criteria

  • Applicant qualification: any project may apply
  • Proposal criteria: any idea will be considered but particular focus during this test will be on third party integrations of FiRM
  • Grant size range: 50,000-250,000 DBR
  • Payouts: paid based on achievement of milestones laid out by the proposer and approved by Inverse

Application Process

  1. Applicants submit via Charmverse.
  2. Applications accepted on a rolling basis.
  3. Grant proposals are reviewed by the Growth Working Group, which may request modifications to a proposal before requesting comments on the proposal from the DAO community on a dedicated Discord channel. The Growth Working Group will make best efforts to approve/deny applications in a timely fashion.
  4. Applications tracked via Charmverse or similar application and/or via direct TG contact.
  5. Grant is made public upon Growth Working Group approval of application.

Evaluation Criteria

  • Feasibility
    • Does the proposal pass an initial test of reasonableness?
    • Does the team have the background to execute against the proposal?
    • Can the proposed integration be executed within six months of award?
  • Impact
    • Is the proposal likely to have a meaningful impact on FiRM adoption, open a new vertical market, address a new target segment, or otherwise expand the long-term prospects for FiRM?
  • Resources
    • Does the proposal require custom development by Inverse?
    • Does the proposal have support requirements that fit within Inverse’s resources?
  • Alignment
    • Does the proposal align with the long-term mission, goals, and brand of Inverse?
    • Does the proposal introduce new risk vectors for Inverse?

Post-Award Engagement & Payouts

  • Applicant progress towards milestones will be tracked via Charmverse or similar TBD application.
  • Changes to milestones requires Growth Working Group OK.
  • Non-completion of milestones is grounds for withholding payout. Grantee’s showing good-faith efforts to complete a milestone that was not met may be paid at the discretion of the Growth Working Group.
  • Joint marketing

Program Marketing

The Inverse Developer Grants Program can be promoted both to prospective partners during 1:1 BD engagements but also more broadly to the Inverse community and general audiences:

  • Social media: Twitter, Warpcast, DeBank
  • Blog: Inverse blog, Mirror
  • Grantee announcements using all of the above

Total Test Program Request

  • 500,000 DBR
  • Grant size range: 50,000-250,000 DBR
  • Program duration: 180 days
  • Unawarded DBR: returned to DAO treasury at end of 180 day period.
1 Like

Thanks for putting this together. Seems like a no brainer to me to test out whether we can drive third party integrations in this way.

Also a cool mechanism in that builders will earn DBR so theoretically could use that as an initial grant to their own users use of FiRM. Implementation subsidization!?!

Run it
-M

2 Likes

Interesting! Would be cool to see projects offering 0% fixed rate loans where the borrower’s dola would finance the project’s goals.

250k dbr is about 50k usd worth or it’s 250k borrowed dola worth. :nerd_face: Imagine yourself as a private investor getting access to e.g. 125k dbr to borrow all 125k dola against your collateral and then invest it in a project.
Now, based on the performance of the project you invested in, your loan will be paid back from protocol revenue while you enjoy the equity shares for seeding the project with a loan in the first place.

Your risk is also lower compared to a normal investment, cause you can still pay back the loan yourself in case the project fails… Cause the collateral is still to gain back.
If the value of your collateral grows, the potential loss will shrink so in case of being unable to pay back the loan your loss might be minimized. Can anyone follow? :joy:

2 Likes

Updated with Discord channel for DAO community request for comment.