Inverse Finance governance has accepted the proposal to acquire Tonic Finance. This deal will put Inverse Finance over Tonic Finance at a cost over $1.5 million. The acquisition will be the first possible one in Decentralized Finance.
The Inverse/Tonic merger is not so much different from the traditional finance merger world, where both the company’s developer and their techs come onboard. Due to Tonic Finance not having a governance token, the negotiation with Tony Stark could take place comfortably. The Inverse Finance Native governance token is INV.
In respect to this, Tony Snark, the founder of Tonic Finance, will receive two hundred and fifty inverse governance tokens instantly and another two hundred and fifty when he becomes a permanent contributor. Also, a thousand INV governance tokens will serve as investments for over a couple of years. Tonic, which is known for building DCA vaults and was, in turn, an Inverse product competitor, will continue its operation under the parent company.
Nour Haridy, the founder of Inverse Finance, mentioned Snark joining Inverse Finance as a full-time developer to lead the entire company Dollar-Cost-Averaging product team. Including both the yield vaults and the recent buyout Tonic Finance Swirl vaults.
While there have been several gossips about mergers in Decentralized Finance, There were sorts of a merging last year from Yearn Finance which was later muddled up. Merging with five different protocols and some of them include SushiSwap, Cream, and Bounce. These were like collaboration and integration.
Inverse Finance is a yield aggregator and relatively a lending protocol that makes it possible for users to deposit Stable coins that might be USDT or USDC and earn returns(yields). These returns are selected crypto assets like Ethereum, Wrapped BTC, and YFI. INV finance makes it possible for users to DCA their Stablecoin.
What do you think? Share your comment below.