Inverse Finance
- Company typePrivate
- Founded2020
- Headquarters—
- Headcount11–50
- GTM typeB2C
- OfferingSoftware
What Inverse Finance does
Inverse Finance is a decentralized finance (DeFi) protocol structured as a DAO governed by INV token holders, focused on fixed-rate borrowing and yield-bearing stablecoins. Its flagship product, FiRM (Fixed Rate Market), enables users to borrow the DOLA stablecoin at a fixed APR for unlimited duration by holding DBR (DOLA Borrowing Rights) tokens, which are consumed over time as tokenized interest. Collateral is isolated per user via Personal Collateral Escrow accounts and is never re-lent, differentiating the protocol from variable-rate lending venues such as Aave. Safety architecture includes pessimistic price oracles and a one-click hyperleverage feature offering up to 10x looping on yield-bearing assets.
The protocol's product stack comprises DOLA (a USD-soft-pegged stablecoin backed by retractable debt and AMM Fed contracts), sDOLA (a yield-bearing stablecoin that distributes 100% organic yield from FiRM lending activity), DBR (the ERC20 borrowing-rights token), INV (the governance and staking token), sINV (staked INV with dilution protection and DBR rewards), and jrDOLA (a junior-tranche structured-yield token). The protocol operates on Ethereum, Optimism, Arbitrum, Base and Polygon, with DOLA liquidity distributed across Curve, Uniswap, Balancer, Aerodrome, Velodrome and other venues. A wholly-owned subsidiary, Monolith, provides stablecoin-as-a-service that powers invUSD for INV-collateralized borrowing.
The business model is usage-based and transaction-fee oriented. Revenue accrues from borrowers purchasing and consuming DBR, from DBR auctions (Virtual, sDOLA, sINV) whose proceeds fund bad-debt repayment and staker rewards, and from FiRM operations that support DOLA liquidity, with reported revenue exceeding $2M/year at peak. Distribution is entirely self-serve through web app and wallet connections (MetaMask, WalletConnect, Coinbase Wallet), with no traditional sales motion; community and governance engagement occurs via Discord, X, Snapshot and a governance forum. The protocol is actively servicing legacy bad debt accrued from the 2022 oracle manipulation incident on its deprecated Frontier product and has cleared 3,518,680 DOLA of that debt to date.
Inverse Finance firmographics
Firmographics- Name
- Inverse Finance
- Legal name
- Inverse Finance
- Website
- https://inverse.finance
- Company type
- Private
- Founded year
- 2020
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Ownership category
- akta.pro rank
Inverse Finance industry classification
Industry- Product category
- Decentralized Finance (DeFi) Lending Protocol
- NAICS
- Activities Related to Credit Intermediation (5223)
- SIC
- Finance Services (6199)
- akta.pro primary industry
- Decentralized Lending & Borrowing Protocols (FSADAMAA)
- akta.pro secondary industry
- Yield, Vaults & Asset Management (vault strategies, robo-vaults, structured yield) (FSAPAEAG)
Keywords
Inverse Finance business model
Business model- GTM type
- B2C
- Offering type
- Software
- Cost components
- Technology or R&D, Operations, Others
Revenue model
- Borrowing Interest: Revenue generated from borrowers using FiRM protocol. Borrowers purchase DBR tokens which are consumed over time based on loan size, representing the cost of fixed-rate borrowing.
- DBR Auctions: Protocol generates revenue through various DBR auctions (Virtual, sDOLA, sINV) where proceeds support bad debt repayment and staker rewards.
- Liquidity Incentivization: DAO generates revenue through FiRM operations that support DOLA liquidity, with revenue rate surpassing $2M/year at peak.
Go-to-market motion2 records
Distribution channels2 records
Marketing channels5 records
Inverse Finance product offering
Product offeringCore offering
Inverse Finance is a DeFi (Decentralized Finance) fixed-rate lending protocol that enables users to borrow DOLA stablecoins at fixed rates for unlimited duration using DBR (DOLA Borrowing Rights) tokens. The protocol also offers sDOLA, a yield-bearing stablecoin that delivers 100% organic yield from FiRM lending market activity. Collateral is isolated per user through Personal Collateral Escrow accounts, ensuring user funds are never loaned to others.
Product overview
Inverse Finance is a DeFi fixed-rate lending protocol featuring a platform-plus-modules architecture. The core product is FiRM (Fixed Rate Market), a fixed-rate borrowing platform that uses DBR (DOLA Borrowing Rights) tokens to enable loans at fixed APR with unlimited duration. DOLA is the debt-backed stablecoin that powers the ecosystem, while sDOLA is the yield-bearing stablecoin offering returns from FiRM lending activity. Additional products include DBR Auctions (XY=K constant function market maker auctions), Monolith's invUSD (for borrowing against INV), sDOLA Earn, and the legacy Frontier debt repayer. INV is the governance token for DAO participation.
Differentiator
Problem solved
Functional benefit
Brands
- FiRM: Fixed Rate Market - a borrowing market for DOLA using DBR tokens at fixed rates with isolated collateral markets
- sDOLA
- DOLA
- DBR
- Monolith
- jrDOLA
- sINV
Products and services
- FiRM (Fixed Rate Market) FiRM is Inverse Finance's Fixed-Rate Market for borrowing DOLA using DBR tokens. It offers fixed borrow APR with unlimited loan duration, isolated markets where collaterals cannot be borrowed by others, and up to 10x leverage/looping on yield-bearing assets.
- sDOLA sDOLA is Inverse Finance's yield-bearing stablecoin, providing 100% organic yield from the FiRM lending market. It delivers pure DeFi returns fueled by real activity.
- DOLA DOLA is a decentralized stablecoin soft-pegged to the US Dollar, backed by retractable debt and managed via Fed contracts. It operates on Ethereum, Optimism, Arbitrum, Base, and Polygon with $45.89M in circulation.
- DBR (DOLA Borrowing Rights) DBR is the DOLA Borrowing Rights token (ERC20) used as tokenized interest in FiRM. One DBR gives the right to borrow one DOLA for one year at a fixed rate, and serves as the reward token for INV stakers on FiRM.
- INV INV is the governance token of the Inverse Finance DAO, used for voting on proposals and staking on FiRM to earn DBR rewards and protection against dilution.
- Monolith (invUSD) Powered by Monolith, invUSD is a stablecoin-as-a-service that allows borrowing against INV tokens. It is a product owned by the Inverse DAO.
- DBR Auctions XY=K constant function market maker auctions allowing users to buy DBR using DOLA or INV, with continuously reducing prices until a purchase is made. Includes Virtual Auction (20% proceeds to bad debt), sDOLA Auction (proceeds to sDOLA stakers), and sINV Auction (proceeds to INV stakers).
- sDOLA Earn An optimized experience for earning stablecoin yield with consistently higher than average decentralized organic yield on sDOLA deposits.
- Debt Repayer (Frontier) Legacy Frontier product that allows users holding anETH, anWBTC or anYFI to exit their position into the underlying asset at a discount, partially funded to repay bad debts.
Quantifiable outcome
- 87% DeFi Safety Score established through DefiSafety evaluation
- +2 more outcomes
Companies that use Inverse Finance
Customer profileNamed customers7 records
Segments3 records
Ideal customer profiles3 records
Inverse Finance technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration27 records
Feature7 records
Inverse Finance partnerships and signals
Strategic signalPartnerships
23 partnerships are on record, tiered core.
- AerodromecoreAerodrome Finance is a central trading and liquidity marketplace on Base. Inverse Finance maintains DOLA liquidity on Aerodrome as part of its multi-chain strategy.
- CurvecoreCurve Finance is a DEX focusing on stablecoin trading. DOLA maintains strong liquidity on Curve with active AMM Fed contracts.
- Convex FinancecoreConvex Finance optimizes yields for Curve liquidity providers. Inverse Finance ecosystem includes Convex partnerships for yield optimization.
- BalancercoreBalancer is a DEX and automatic portfolio management platform. Listed as a DEX partner in Inverse Finance ecosystem.
- Yearn FinancecoreYearn Finance automatically optimizes yields across lending protocols. Listed as yield partner in ecosystem.
- ChainlinkcoreChainlink provides decentralized oracle data feeds for secure smart contract operations. Listed as infrastructure partner.
- Code4ArenacoreCode4Arena security auditors compete to find vulnerabilities. Audited FiRM smart contracts and provided security review.
- NomoicoreNomoi is a boutique Web3 hacker collective providing comprehensive security audits for DeFi protocols. Audited FiRM.
- GearboxcoreGearbox Protocol is a DeFi lending protocol for leveraging crypto assets. Listed as trusted lending partner.
- AlchemixcoreAlchemix offers self-repaying crypto loans. Listed as trusted protocol partner in ecosystem.
- EthenacoreEthena is a synthetic dollar protocol. Listed as yield partner in ecosystem, with USDE integration.
- PendlecorePendle Finance enables trading of tokenized future yield. Users borrowing through FiRM continue earning Pendle points.
- OptimismcoreEthereum Layer 2 scaling solution. Inverse Finance deploys on Optimism for faster, cheaper transactions.
- ArbitrumcoreEthereum Layer 2 scaling solution. Inverse Finance maintains presence on Arbitrum.
- BasecoreEthereum Layer 2 blockchain by Coinbase. Inverse Finance ecosystem includes DOLA liquidity on Base via Aerodrome.
- VelodromecoreVelodrome is a DeFi platform on Optimism ecosystem. Listed as liquidity partner.
- UniswapcoreLargest decentralized exchange on Ethereum. Listed as DEX partner for token swaps.
- FraxcoreFrax is a decentralized stablecoin protocol. Listed as liquidity partner with FRAX integration.
- DeFiMooncoreDeFi Moon is a boutique auditing firm. Provided security review for Inverse Finance protocols.
- PeckShieldcorePeckShield is a leading blockchain security auditor for smart contracts and protocols.
- ImmuneFicoreImmunefi offers large bug bounties for securing web3 projects. Hosts Inverse Finance bug bounty program.
- MonolithcoreCrypto-backed stablecoin factory owned by Inverse DAO. Powers invUSD stablecoin for INV collateral borrowing.
- BunnicoreTransforms Uniswap v3 NFT liquidity into fungible ERC-20 tokens. New partnership for DOLA/INV and DOLA/USDC pools via Liquis.
Scale indicators9 records
Recent moves2 records
Expansion highlights5 records
Inverse Finance competitors and assessment
Company assessmentDirect peers
- Aave: Aave is the largest decentralized lending protocol, offering variable-rate borrowing and lending of crypto assets. It directly competes with Inverse Finance's FiRM as the primary alternative for DeFi borrowers, although Aave offers variable rather than fixed rates.
- Compound: Compound is a foundational decentralized lending protocol with algorithmic variable interest rates. It competes with Inverse for the same DeFi borrower and lender base using a similar pooled-lending model with cTokens.
- MakerDAO: MakerDAO issues DAI, a decentralized stablecoin backed by crypto collateral via Collateralized Debt Positions (CDPs), and runs the Spark lending protocol. It is comparable to Inverse because both operate collateralized-debt-driven DeFi lending markets with native stablecoins (DAI vs DOLA).
Emerging players
- Pendle Finance: Pendle enables trading of tokenized future yield and fixed-yield exposure via an AMM. It is comparable to Inverse because both offer DeFi users fixed-rate exposure to yield, with Pendle providing fixed-yield via yield stripping and Inverse providing it via DBR tokens on FiRM.
- Spectra Finance: Spectra is an open-source protocol for interest rate derivatives, enabling fixed-yield and leveraged yield exposure. It is comparable to Inverse because it competes for the same fixed-rate DeFi borrowers and is listed as a yield partner in Inverse's ecosystem.
- Ethena: Ethena issues USDe, a synthetic dollar protocol using delta-neutral hedging. It competes with Inverse in the yield-bearing stablecoin category (USDe vs sDOLA) and is integrated as a yield partner in Inverse's ecosystem.
- Alchemix: Alchemix offers self-repaying crypto loans via collateralized debt positions. It is comparable to Inverse because both operate collateralized DeFi lending with novel mechanisms (self-repayment vs fixed-rate DBR) and are ecosystem partners.
- Yearn Finance: Yearn aggregates yield across DeFi lending protocols and vaults. It is comparable to Inverse because both target yield-seeking DeFi users, and Yearn (via yAudit) provides security services to Inverse's ecosystem.
Broad incumbents
- Curve Finance: Curve is the dominant DEX for stablecoin and like-asset swaps, with deep DOLA liquidity. It is comparable to Inverse because it is a core liquidity venue for DOLA and serves overlapping DeFi users seeking stablecoin yield.
- Frax Finance: Frax is a decentralized stablecoin protocol issuing FRAX and its yield-bearing variant sFrax. It is comparable to Inverse as a direct competitor in the algorithmic stablecoin and yield-bearing stablecoin space, with FRAX integration listed in Inverse's ecosystem.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat4 records
Key risks6 records
Key highlights7 records
Customer concentration
Inverse Finance social profiles
Digital presenceInverse Finance compliance and trust
Trust signalCompliance8 records
Inverse Finance financial estimates
Financial estimateRevenue estimate
Valuation estimate
Inverse Finance leadership team
Management profileNumber of profiles
Inverse Finance subsidiaries and ownership
Company hierarchySubsidiaries1 record
Inverse Finance funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Inverse Finance M&A and investment
M&A and investmentM&A1 record
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Inverse Finance
What does Inverse Finance do?
Inverse Finance is a DeFi (Decentralized Finance) fixed-rate lending protocol that enables users to borrow DOLA stablecoins at fixed rates for unlimited duration using DBR (DOLA Borrowing Rights) tokens. The protocol also offers sDOLA, a yield-bearing stablecoin that delivers 100% organic yield from FiRM lending market activity. Collateral is isolated per user through Personal Collateral Escrow accounts, ensuring user funds are never loaned to others.
Is Inverse Finance a public or private company?
Inverse Finance is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was Inverse Finance founded?
Inverse Finance was founded in 2020. It employs 11 to 50 people.
How does Inverse Finance make money?
Three revenue lines are on record. Borrowing Interest is the primary driver. The others are DBR Auctions and liquidity Incentivization.
Who are Inverse Finance's main competitors?
Direct peers on record are Aave, Compound and MakerDAO. Emerging players are Pendle Finance, Spectra Finance, Ethena, Alchemix and Yearn Finance. Broad incumbents are Curve Finance and Frax Finance.
Does Inverse Finance have an API?
No public API is recorded for Inverse Finance.
What industry is Inverse Finance in?
Inverse Finance's product category is Decentralized Finance (DeFi) Lending Protocol. Its primary akta.pro industry code is FSADAMAA, Decentralized Lending & Borrowing Protocols, with a secondary code of FSAPAEAG, Yield, Vaults & Asset Management (vault strategies, robo-vaults, structured yield). Its NAICS code is 5223 and its SIC code is 6199.