Proposal to Whitelist DOLA Fed for Rari Fuse Pool 127

1

Summary

Inverse Finance has an opportunity with FODL Finance to add DOLA lending to Fuse Pool 127 as well as to allow DOLA holders to supply DOLA to the same pool to earn yield.

Background

Inverse is in discussions with FODL Finance about a collaboration around their Rari Fuse Pool 127 “0xB1 Kitchen Sink.”

Today, stablecoin borrowing options on Fuse Pool 127 include FEI, UST, USDC, USDT and FRAX

1134×1140 127 KB

Stable liquidity is low in this pool overall.

while collateral/supply options include those plus gOHM, ETH, FODL, VRN, KIRO, DOP, sSPELL, SOCKS, BIT, YAXIS, xSUSHI, and APE.

772×1474 171 KB

Collateral factors for other stables used as collateral are as high as 89% while CF for other collateral ranges from 20% for lesser known tokens like KIRO, 40% for FODL, 69% for gOHM.

Given relatively low amounts of stablecoin liquidity in this pool and the supply of smaller / more high volatility tokens, a gradual approach to providing liquidity to this pool is recommended as we observe volatility and overall profitability of this pool.

Assessment from Inverse risk team here: Assessing Risk of Fuse Pool 127 (0xB1's Kitchen Sink) - Google Docs

More on FODL Finance here https://fodl.finance/

Proposal

  • Whitelist DOLA Fed contract for Fuse Pool 127 as a DOLA minter
4 Likes
2

Update: CF for KIRO reduced to 0%. CF for VRN reduced to 40% and will go to 30% in 2 weeks.

3

Adding updated Risk Assessment for Fuse Pool 127 here Assessing Risk of Fuse Pool 127 (0xB1's Kitchen Sink) - Google Docs

Recommend we proceed to GovMills draft with initial DOLA injection of $500K-$1MM, monitor closely, and engage the FODL team on other partnership opportunities.

4

If CF for VRN is lowered to 30%, which they’ve agreed to, we will meet FODL’s request to increase DOLA injection to $1.5-2MM at launch.