Forum Link: https://forum.inverse.finance/t/sunset-pt-susde-31jul25-and-deusd-dola-lp-markets/592

Summary

This proposal recommends formally sunsetting three FiRM markets by setting their market ceilings to zero and pausing new borrows where applicable. The markets targeted for deprecation include: PT-sUSDe-31JUL25, deUSD-DOLA LP, and yv-deUSD-DOLA LP. These actions are part of ongoing operational cleanup initiatives to streamline FiRM's collateral roster, reduce unnecessary risk exposure, and improve protocol efficiency.

Motivation

As FiRM matures, periodic reviews of its supported collateral markets are essential to maintaining a healthy, efficient lending protocol. The PT-sUSDe market is past expiry, while the deUSD markets have been paused for over 2 months following extensive risk assessment that revealed fundamental misalignment with FiRM's risk tolerance and strategic objectives.

Sunsetting these markets serves multiple objectives. It removes operational overhead from the RWG, reduces the monitoring burden for oracles and liquidity, and minimizes governance surface area around parameters that no longer require tuning. From a security perspective, deprecating these markets narrows the protocol's exposure to tail risks and allows the RWG to focus resources on higher-impact opportunities.

By formally winding down these markets, we reinforce our commitment to good protocol hygiene and signal to external partners and users that FiRM collateral is thoughtfully curated and regularly maintained.

Background & Rationale

PT-sUSDe-31JUL25

The PT-sUSDe-31JUL25 market holds a Pendle Finance principal token that expires on July 31, 2025. Now over a week past maturity, this market no longer serves a viable purpose for new borrowing. Principal tokens lose their yield-bearing properties at expiry and convert to their underlying asset, making continued support operationally inefficient. This deprecation follows standard lifecycle management for expiring assets, consistent with our handling of the previously expired PT-sUSDe-27MAR25 and PT-sUSDe-29MAY25 markets.

deUSD-DOLA LP & yv-deUSD-DOLA LP

The deUSD-DOLA LP markets were paused on June 20, 2025, following growing concerns about the Elixir protocol's risk profile. After 2 months of observation, the RWG determined that resuming these markets was not in the best interest of the DAO, and communicated such to the Elixir team. deUSD remains in an early development phase with evolving governance structures, planned technical transitions requiring new audits and expanding multichain strategies that continuously alter the risk assessment for the asset at a time when, we believe, Inverse Finance should prioritize protocols with more immutable underlying infrastructure. The resource allocation required to monitor Elixir through its experimental development phase does not justify the potential market opportunity.

On-Chain Actions

For each market listed:

• PT-sUSDe-31JUL25: pauseBorrows = true, setMarketCeiling = 0 DOLA

• deUSD-DOLA: setMarketCeiling = 0 DOLA

• yv-deUSD-DOLA: setMarketCeiling = 0 DOLA