Inverse Finance buys Tonic Finance as part of what appears to be the first merger of the DeFi Protocol

In a possible first in the world of decentralized financing (DeFi), the governance of Inverse finance Today approved a purchase proposal Tonic Finance in an agreement of $ 1.6 million This places tonic under the umbrella of Inverse.

After “weeks of negotiations” at the beginning of April Inverse Finance DAO members voted yesterday on a proposal to buy tonic and hire its only developer, Tony Snark.

The proposal quickly crossed the 4,000 token limit and it appears that it will be approved today, especially with no dissenting vote.

Inverse Finance buys Tonic Finance as part of what appears to be the first merger of the DeFi Protocol
Inverse Finance buys Tonic Finance as part of what appears to be the first merger of the DeFi Protocol

As a result, Tony will receive 250 INV immediately, Inverse Governance Tokens, and is expected to receive an additional 250 when he “becomes a full-time employee” and an additional 1,000 INV awarded over two years. Tonic, which created dollar-cost safes (a competitor to Inverse’s original product), will continue to operate under the Inverse umbrella.

“Tony will join Inverse as a full-time developer to lead the entire Inverse DCA product line, including our performance safes and the acquired Tonic Finance Swirl safes.” said the founder of Inverse Finance, Nour Haridy, about the vote.

Although there was talk and speculation about the mergers at DeFi, there was not much fuss. The next case was the chain of “mergers” of nostalgia last year, but the nature of these purchases is a bit confusing.

In an interview with Cointelegraph, Leo Cheng from CREAM Finance, indicated that there could be a meta token of the YFI ecosystem, For now, however, the relationships are closer to a relaxed and supportive collective focused on individual projects.

Instead, the merger between Inverse and Tonic is much closer to something that would be seen in traditional finance, where both technology and developers come on board. This was partly aided by the fact that Tonic did not have a governance token and negotiations could take place directly with Snark.

“A governance token would make a purchase much more complicated as it is not possible to buy the full range of tokens on the market,” Haridy told Cointelegraph. “If we skip buying governance tokens, the token will become unusable. However, I think it is worth looking for better ways to purchase governance token projects.”

Having a full-time employee working in the DCA vaults means Nour now has more time to devote to himself Anchor, Inverse Synthetic Stablecoin Protocol. The expansion may be a step towards making Inverse a full DeFi ecosystem similar to 1 inch or sushi swap, They now offer several services.

“We want to separate every product from the Inverse brand. Our existing DCA vaults are likely to be labeled Tonic, much like our loan product is called Anchor. Both of them may have their own core of developers, marketing, domains, communities, etc. under one roof and the funding of Inverse DAO “, Said Haridy.

Haridy added that he expects more DAO-based MA activity to take place after Inverse paved the way and that Inverse itself may be open to further purchases.

“I hope our work here will set a new precedent for projects that merge with DAOs instead of going public. We certainly plan to explore more MA opportunities in the future. We’re also open to talking to anyone speak. New DeFi project out there at every stage. “

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