Lending / Yield·EVM
Inverse Finance
DAO behind DOLA (debt-backed USD stablecoin), sDOLA (yield-bearing wrapper), and FiRM — a fixed-rate lending protocol where borrowing rights are tokenized as DBR (DOLA Borrowing Rights). 1 DBR = right to borrow 1 DOLA for 1 year.
- 01fixed-rate DOLA borrowing (FiRM)
- 02yield-bearing stablecoin exposure (sDOLA)
- 03DOLA stablecoin issuance
- 04long-duration borrowing without rollover
- 05DBR yield farming
- pnpm add viem
- git clone https://github.com/InverseFinance/FiRM
| Variable | Scope | Description |
|---|---|---|
| NEXT_PUBLIC_INVERSE_DBR | Client | DBR (DOLA Borrowing Rights) token address — Ethereum: 0xAD038Eb671c44b853887A7E32528FaB35dC5D710. |
| NEXT_PUBLIC_INVERSE_SDOLA | Client | sDOLA ERC-4626 wrapper address — Ethereum: 0xb45ad160634c528Cc3F2926C4D7058C75666b3a4. |
Integrate Inverse Finance FiRM. Each FiRM `Market` is an isolated lending market for one collateral (e.g. WETH, wstETH, cbBTC) borrowing DOLA at a fixed implicit rate via DBR. Borrower flow: (1) deposit collateral with `Market.deposit(amount)` (creates an `Escrow` per user), (2) buy DBR on a DEX or via `DBRAuction.buyDBR(exactDolaIn, minDbrOut, to)`, (3) call `Market.borrow(dolaAmount)` — DBR is burned over time at `debt / SECONDS_PER_YEAR` per second from the borrower's wallet. Repay with `Market.repay(user, amount)` and withdraw via `Market.withdraw(amount)`. For yield-bearing stablecoin exposure: deposit DOLA into sDOLA (`sDola.deposit(assets, receiver)`) — an ERC-4626 vault that auto-compounds DBR auction proceeds back into DOLA. Liquidations: if DBR is depleted (borrower runs out of borrowing rights), anyone can call `Market.forceReplenish(user, amount)` which mints DBR for them at a premium, increasing their debt.
- ⚑DBR DEPLETION RISK — if a borrower's DBR balance hits zero, `forceReplenish` lets liquidators top up DBR at a premium that increases the borrower's DOLA debt; chronically forgetting to refill DBR can cascade into liquidation.
- ⚑DOLA peg risk — DOLA is debt-backed (minted via DOLA Feds into Curve, Velodrome, FiRM markets, etc.), not over-collateralized 1:1. Past depegs occurred during the Frontier (legacy) exploits in 2022; build slippage tolerance and peg checks.
- ⚑FiRM is fixed-rate but NOT fixed-term — debt persists indefinitely as long as DBR is supplied. There is no maturity, but the DBR price floats on the open market, so the effective rate moves with DBR price.
- ⚑Each market has a single oracle (Chainlink-based PessimisticOracle or PriceFeed) — oracle staleness or a price-feed deprecation can pause borrows or trigger mass liquidations.
- ⚑Market shutdown risk — DAO governance can pause a market, deprecate a Fed, or wind down DOLA supply on a venue, which can affect available liquidity and cause stuck deposits until the wind-down completes.
- ⚑sDOLA yield depends on DBR auction revenue, which depends on protocol borrow demand — yield can drop sharply in low-utilization regimes; do not project current APY forward.
- ⚑Frontier (the legacy Compound-fork money market) was exploited twice (Apr 2022, Jun 2022); the protocol has since migrated to FiRM. Do not integrate the deprecated Frontier comptroller — use FiRM markets only.