In the case of the DAO, the treasury working group of Inverse Finance, which is closely linked to the RWG, has been able to successfully develop numerous liquidity-oriented action plans since April. This activity was carried out with the sole aim and intention of supporting and strengthening DOLA.
This whole exercise sort of started with engaging in the corner wars on liquidity incentives. A partnership was formed with Yearn to deliver the Yearn Fed. This was followed by the handover of the FraxBP Fed, the transfer of the INV-DOLA liquidity to balancers, further the handover of a Velo Fed along with an Aura Fed.
The reason why DAO needs to have and maintain deep DOLA liquidity is to be able to raise increased amounts of credit on FiRM without experiencing unwanted price movements. The need in this scenario is therefore deep liquidity to withstand any selling pressure. This, in turn, paves the way for effective stablecoin swaps. In the same breath, given the exploitation of the credit markets that took place in the first half of the year, deep liquidation is required along with increased circulation. This helps reduce the associated risks for the DOLA holders.
Currently, the DAO is able to collect and use emissions control tokens such as $CVX, $AURA, and $VELO. These tokens are converted into voice bindings over and over again. This offers the opportunity for more voting power in controlling the direction in which the LP emissions are transmitted. Regarding TWG, she plans to continue creating positions in the tokens to reduce the need for INV issuance to support DOLA.
Inverse Finance DAO is a stablecoin provider and lender and can make huge profits by owning the emissions controlling tokens. They are currently going through the phase of a downtrend in the crypto market as overall token prices are falling. However, in the present scenario, the DAO is able to generate high returns on its liquidity pools because it has accumulated the highest quality emissions control tokens.
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