We launched FiRM on December 16, 2022 in “guarded launch” fashion, limiting borrow capacity and with a lower collateral factor for WETH, our only collateral option at launch. We’ve since been gradually expanding borrow capacity as well as DBR liquidity and now beginning the process of expanding collateral options on FiRM.
Today we’re going live with our second collateral asset for FiRM, Lido’s stETH, aka "staked ETH." Liquid staking derivatives (LSD's) are generating high levels of interest among our users and community members as the rebasing nature of assets like stETH means the underlying asset is continually accruing value relative to native ETH. The upcoming Ethereum Shanghai fork is expected to make LSD's like stETH a more likely staking option for Ethereum validators and is spawning a series of LSD’s like rETH, cbETH, fxETH, and others. We expect LSD’s to be an attractive category of collateral on FiRM and as Lido stETH is the industry leader, this was the natural first pick.
Relative to other money markets, FiRM offers a very competitive fixed-rate borrowing option that is currently below that of other variable-rate borrowing options. Additionally, the options today for DOLA holders have never been better. For a step-by-step guide to using stETH on FiRM and then using your DOLA, check out our thread here: