Proposal to Raise DOLA/USR LP FiRM Market Ceilings

Forum Post: https://forum.inverse.finance/t/raise-dola-usr-lp-firm-market-ceilings/589

Summary

This proposal seeks to raise the aggregate debt ceiling for the DOLA/USR LP collateral on FiRM from $40 million to $50 million, distributed as follows:

The increase reflects continued demand from FiRM borrowers and LP participants, while maintaining all other risk parameters and preserving the existing risk architecture.

Background

The DOLA/USR LP collateral markets — spanning both Convex- and Yearn-aligned variants — were introduced to FiRM in March 2025. A ceiling expansion from $20M to $40M was executed in April, and a reallocation between the two variants was approved in May to better match user preference and liquidity incentives.

FiRM’s DOLA/USR markets have since become a top-performing pair in terms of revenue efficiency and user demand. LP activity remains elevated due to ongoing incentives, and both vaults are operating with high utilization. Expanding the ceilings will allow FiRM to accommodate organic borrower demand while continuing to grow protocol revenue.

Motivation

• User demand: Resolv Points Season 2 has driven a surge in LP activity; FiRM power users have indicated the desire to scale in further to the position.
• Revenue Capture: FiRM benefits from continued DOLA demand while taking on no new collateral type or technical risk.

On-Chain Actions

• Set the market ceiling of Convex DOLA/USR FiRM Market to 40,000,000 DOLA
• Set the market ceiling of Yearn DOLA/USR FiRM Market to 10,000,000 DOLA