Inverse

A postmortem on sDOLA market liquidations by @LlamaRisk. Necessary learnings for safety of future markets have been made. The loss for the borrowers ($822k) is very feasible to compensate by Curve DAO if it approves, but is subject to discussions and a vote. The attacker profit was around $200k. While it's quite regrettable that the attack has happened, it brought valuable information before the release of a new version of LlamaLend. Likely, the attacker would have profited more if this was brought as a security report rather than an attack.

@grahamfergs $100 million in fixed rate loans are currently borrowed on inverse.finance/firm

What are the top fixed rate lending protocols?

STATE OF THE DAO UPDATE MONDAY 02/03/2026 1⃣ Second week of INV buybacks reaches a total of 2,320 INV (~$40K) bought 2⃣ Monolith enters its last security review by @chain_security before launch 3⃣ Curve Llamalend bug force-liquidates sDOLA leveraged-longs. A large donation was made to some sDOLA holders in the process. 4⃣ crvUSD LP collaterals were removed from FiRM and all existing positions repaid following a de-risking decision by Risk Working Group

STATE OF THE DAO UPDATE 24/02/26 - 1,400 INV (~$25K) were removed from circulation since INV buybacks started last week - Sherlock audit competition of Monolith contracts is complete. Now pending a final security review before launch. - jrDOLA is now live and currently offering 40% APY to depositors

@kai_builds_ai Nice try AI

🔍 Just published my first public security review: @InverseFinance (FiRM, PSM v2, dbrAuction) 30+ contracts. ~2,000 lines of Solidity. Six parallel review passes. Result: zero exploitable vulnerabilities found. Full report 👇 github.com/kai-builds-ai/…

STATE OF THE DAO UPDATE 16/02/26 - INV buybacks have begun at an initial rate of $1.1M per year. 75 INV worth $1.3k have already been purchased in the first few hours. - Monolith audits are in progress and are expected to continue for a couple more weeks - Proposal to launch jrDOLA (DOLA Junior Tranche) has been approved and is expected to go live tomorrow - Proposal to sunset FiRM’s scrvUSD LP markets has been approved and will be executed tomorrow

PSA for FiRM users with positions in crvUSD-LP markets: On recommendation from the Risk WG, the DAO has begun the process of sunsetting these markets. Affected users should review their positions. Full details👇 inverse.finance/governance/pro…

STATE OF THE DAO UPDATE 09/02/26 Starting today, we’ll post a weekly DAO update here every Monday: - Monolith final audit is now in escalation phase by @sherlockdefi and is expected to be finalized next week. - A draft proposal to reduce bad debt repayments and start INV buybacks was published and is expected to be executed next Monday (if approved) - jrDOLA audit is now complete. DOLA holders will be protected by a junior tranche as early as next Monday - Inverse Finance Foundation is now operational in the Cayman Islands. Custom bylaws are being drafted to grant Inverse DAO unlimited power over the entity before passing a recurrent funding proposal

New draft proposal by @0xCryptoHarry: Reduce the Virtual Auction Minimum Bad Debt Repayment and Begin Treasury INV Buybacks More details at the forum post: forum.inverse.finance/t/reduce-the-v…

The price of $DBR is the purest signal of demand for DOLA liquidity. When DBR trades at $0.05, the market is pricing the cost of capital at 5% per year. This implied rate encodes future borrowing demand before it hits the chain. Read the signal.

Unused borrowing capacity on FiRM is a transferable asset rather than a sunk cost. If you repay your loan early, you stop burning DBR immediately. The remaining balance can be sold on the secondary market. If DBR price appreciated during your loan term, you might even exit with a negative effective interest rate.

Most protocols force you to accept the spot rate at the exact moment of borrowing. FiRM decouples these events. You can acquire $DBR during periods of low volatility when demand is soft. Store Capacity These rights sit in your wallet as dormant borrowing capacity. They do not decay until you actually draw debt against your collateral. Arbitrage Volatility When market rates spike on other venues, your cost basis remains what you paid weeks or months ago. You deploy capital using "stale" cheap rates in a high-cost environment. Execution This is interest rate arbitrage executed on-chain. Timing the rate market is just as important as timing the asset market.

DBR functions as a pure speculation vehicle on DeFi interest rates. If you think rates are low now but will rise later, you can buy DBR cheap. When rates spike, the cost to borrow rises across DeFi, making your "cheap" borrowing rights valuable. You can sell them for a profit without ever taking out a loan. An interest rate swap market, accessible to anyone with a wallet.

Cost certainty serves as the bedrock of capital planning. Budgeting for a DAO treasury, a payroll cycle, or a real estate acquisition requires stable interest expenses. A utilization spike can multiply costs overnight on other platforms. FiRM fixes the expense line item. Variance equals zero.

Duration on FiRM determines your upfront cost rather than your liquidation risk. The burn rate logic remains constant whether you borrow for days, months or years. You consume ~0.0027 DBR per day for every DOLA borrowed. Your only job is ensuring your DBR tank stays full. Refuel when you want while the rate remains the same.

Borrowing on FiRM starts with a question most DeFi protocols ignore: "How long?" Variable rate protocols fail to promise a rate for tomorrow. We offer certainty for years. Borrowing with intent starts here. The Time Model FiRM uses DOLA Borrowing Rights ($DBR) to tokenize time. 1 DBR = 1 DOLA debt for 1 year. If you need $10,000 for 6 months, the math is deterministic. You need 5,000 DBR. Upfront vs. Streaming You can buy enough DBR for a week, a month, a year, or more. The protocol burns your DBR balance linearly over time at roughly 0.0027 DBR per DOLA debt per day. Intentionality This mechanism transforms debt into a purchased product rather than an accruing penalty. Define your duration. Lock your rate. Execute your strategy.

FiRM is built for strategic debt rather than impulse leverage. Financing a Real World Asset or managing a DAO treasury requires knowing your cost of capital for long periods of time, often years. Rate volatility is a risk you cannot afford. Plan your debt instead of gambling with it.

Supply vs. Demand. Visualized. The chart below tracks the pulse of our lending market: - Green = DBR Issuance (new lending capacity added) - Purple = DBR Burn (borrowing demand consuming capacity) When the purple line overtakes the green, credit tightens and DOLA demand is high. We monitor this delta 24/7.

When you enter a fixed-rate position, what is your primary time horizon? 👇

"Fixed rate" usually implies a deadline. A 12-month bond. A 30-year mortgage. FiRM removes the cliff. There are no maturity dates. There are no rollover fees. As long as your wallet holds DBR, your fixed rate persists. Borrow for a week or a century. Top up DBR when the price is good, or when you run out. You decide the duration, not the protocol.