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Inverse Finance: Everything you need to know

INV

Source: CoinMarketCap

The cryptocurrency industry has been around for a long time now and ever since it was first introduced, it has been a huge success and managed to make a name for itself in the global marketplace. Not just that, the crypto world has had a surge in its overall growth and popularity recently, thus making its way onto greater heights!

Having said that, I believe a majority of you are already familiar with the basics of the industry but, if for some reason that is still not the case, let me help you with that first!

To begin with, crypto is nothing but a form of virtual or online currency that can be used for a variety of purposes including the purchase and sale of goods and services as well as for the purpose of trade and exchange over cryptocurrency exchanges available online.

In technical terminology, the cryptocurrency industry is a blockchain-based platform that is said to be decentralized to its very core. Being decentralized, the industry becomes more than capable of stepping outside the overall control and jurisdiction of central authorities and can work freely without any unnecessary government interference as well.

When the crypto world was the first brought in, there were not many currencies for investors to choose from, and honestly, not many people were wanting to be a part of it either, naturally so, as there was a lot of doubt in respect to the return on investments they could expect and the safety of their money too.

Well, that is surely not the case anymore as today, there is an entire pool of currencies available for investors to pick from with newer ones coming in with each passing day and tons of new investors joining in every hour.

INV

Source: Cointelegraph

Speaking of a lot of currencies available today in the marketplace, some of the most prominent ones worth investing in includes Bitcoin, Polkadot, PancakeSwap, Binance Coin, Cardano, Dogecoin, Ethereum as well as Baby Doge to name just a few of course.

Also, it is worth noting that, a few of the major contributing factors for this huge success of the industry include its portability, intuitive nature, negligible response time, high-profit margins, the convenience it offers, volatility as well as ease of use of course.

Being volatile, it is important for you to be aware of the fact that, it is not always possible to predict the price changes and act accordingly as the price fluctuations in the crypto marketplace are almost immediate, thus leaving no time to plan. Therefore, whenever dealing in online currencies, keep in mind that, if the industry is providing you with an opportunity to earn huge profits and make quick money, if not done right, you could also end up having significantly huge losses as well.

Not just that, as per the chatter amongst some of the leading experts on the field, it has come to our notice that, crypto is rapidly progressing towards completely revolutionizing the global payment system and from where I stand, it looks like it has already started to do so as many merchants and businesses have started accepting crypto as an official mode of payment from their customers.

Now that you have a brief backstory about the crypto world, you will be able to have a much better understanding of what we have with us today, Inverse Finance. To know more, I suggest you read further!

Everything to know about Inverse Finance (INV)

INV

Source: MarginATM

Inverse Finance or as commonly referred to as INV is nothing but a suite of permissionless decentralized Finance (DeFi) tools that are said to be governed by Inverse DAO which is a decentralized autonomous organization running on the popular Ethereum blockchain. In other words, Inverse Finance is simply a decentralized platform that is focused on borrowing, lending as well as creating synthetic assets.

Not just that, Inverse Finance also claims to be a protocol that is known to offer passive no-loss investment in any given token by just following a Dollar-Cost Averaging strategy by making use of stablecoin yield. Before moving on any further, it is worth noting that, Inverse Finance was created by a sole developer, about a year ago, back in December 2020.

Also, INV is said to be the native utility token for Inverse Finance, which as a matter of fact can be used for a variety of purposes on the platform itself like to govern Inverse Finance products as well as for voting on future upgrades too. As mentioned, Inverse Finance is simply a protocol that is responsible for generating a yield on stablecoins and constantly investing their yield in a target token such as ETH (Ethereum).

When you deposit a stablecoin, you will be receiving a vault token at a 1:1 ratio, and as long you plan on holding that token, you will continue to receive ETH. However, when you finally withdraw your stablecoin, the value token is then burned and you will be receiving the deposited stablecoins back.

Apart from this, some of the major products of Inverse Finance include Anchor, DOLA as well as DCA Vaults. Now, for some of you wondering what they are? Allow me a chance to explain. To get going, the first one is Anchor, which is nothing but a synthetic asset and a money market protocol that helps in enabling capital-efficient lending and borrowing.

INV

Source: Medium

Secondly, we have with us DOLA, which is simply a stablecoin token that is responsible for tracking the price of a dollar. In other words, DOLA can easily be minted by making use of other assets on Anchor as nothing but collateral and can also be used itself as collateral in order to borrow other assets on Anchor.

Lastly, DCA Vaults allow you to invest your tokens into yield-bearing strategies while continuously purchasing the asset of your choice with the help of the proceeds. Thus, allowing you to dollar-cost average (DCA) into an asset including YFI, ETH, or WBTC over a certain period of time.

In addition to this, you should probably be aware of the fact that Inverse Finance is a platform that is known to be governed and run by its very own community of elected delegates as well as token holders (currently numbering over 2000 holders).

Speaking of benefits that the platform offers to its users, the first one is gas fees savings as the Inverse finance Vault is said to convert all users’ yield at pretty much the same time instead of one transaction per user. Apart from this, Inverse Finance also allows you to follow Dollar-Cost Averaging investment strategy in a target token with the help of your stablecoins yield over a long-term period, as mentioned previously as well.

This may be a suitable strategy especially for those who are not actually willing to take the risk of market buying the target token directly and would rather prefer to keep their principal protected from volatility.

Now that we have talked much about Inverse Finance, some of you must be wondering, whether or not it is a good idea to invest in the platform? If that’s the case, then let’s find out, shall we?

Investing in Inverse Finance (INV)

INV

Source: Cointelegraph

As of today, the price of Inverse Finance is about 635.86 US dollars with a twenty-four-hour trading volume of 3,488,247 dollars. Not just that, in just the past twenty-four hours, the value of Inverse Finance has gone down by 9.14 percent, and though unfortunately the current market cap and the current circulating supply of the currency are not yet available, INV is currently placed at #2981 position as per the CoinMarketCap rankings.

Also, it is worth mentioning that, the maximum lifetime supply of the token is about 100,000 INV coins and in just the past week alone, the price of the platform has fallen by 17.68 percent.

Reading so far, you must have gotten a fair understanding of the platform and by now, you should be able to figure out on your own whether or not investing in Inverse Finance is the right thing for you to do. Seeing what it has to offer when combined with its performance in the recent past as well as its plans for the near future, I certainly believe that Inverse Finance can prove to be a risky investment in the near future, which is likely to provide you with fewer returns and it is a possibility that your current investment may decrease in value. But again, nothing can be said or sure!

INV

Source: Nomics

If still not convinced, see it this way that, if say you buy Inverse Finance worth a hundred dollars today, you will receive nearly 0.157 INV. According to the analysis done by experts on the field, after five years of your investment, the return is expected to be about +1.32 percent and thus, your current hundred-dollar investment will be nearly 101.32 US dollars in 2026.

As mentioned at the very beginning, crypto is a highly volatile marketplace and is extremely uncertain. Thus, It is very important for you to understand the fact that just like any other currency in the crypto marketplace, Inverse Finance does have its own risks as well and you should invest only if you are willing to take those risks and bear any and all losses if at all necessary.

If you are wondering, where can you buy Inverse Finance? Let me help you with that. Currently, Inverse Finance is available on all major crypto exchanges but, some of the popular exchanges that have INV listed on them include Huobi Global, Coinbase Exchange, Gate.io, BKEX as well as Uniswap (V3) to name a few.  

In conclusion, what are your thoughts on Inverse Finance? Do let us know in the comments area below. To know more about various cryptocurrencies, do check out other articles we have on our website. Thank you for your time & if you found our content informative, do share it with your investor friends!

Also read: Empire Capital Token: Everything you need to know

 

 

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