Forum Link: https://forum.inverse.finance/t/add-dola-wstusr-yearn-lp-market-to-firm/607

Summary

This proposal adds the DOLA/wstUSR Curve LP token (LPT) as a collateral option on FiRM. The new market mirrors the risk framework of the existing DOLA/USR LP markets while directing part of aggregate exposure to the yield-bearing wstUSR leg. To keep total USR-related exposure unchanged, we propose reducing the aggregate DOLA/USR LP ceilings to $25m and setting the DOLA/wstUSR LP ceiling to $25m, preserving a combined $50m limit across USR-family LPs as previously approved and expanded by governance.

Why now: the DOLA/wstUSR LP accrues the staking yield from stUSR via wstUSR, which should be structurally more sustainable for the DAO versus points-only flows. While the current Resolv incentives award a lower multiplier to DOLA/wstUSR versus DOLA/USR (e.g., 20× vs. 30×), the embedded stUSR yield helps offset that difference over time.

Background

• The DAO previously approved the DOLA/USR Convex LP market on FiRM and later raised its ceilings (Convex + Yearn variants) with an aggregate cap of $50m
• This proposal keeps the same overall USR-related exposure while introducing the yield-bearing wstUSR variant as an alternative collateral market

Motivation

• Sustainability: wstUSR wraps stUSR, which accrues protocol yield; LPing DOLA against wstUSR lets borrowers capture that yield path while borrowing fixed-rate DOLA on FiRM.
• No net risk expansion: we reallocate ceilings from DOLA/USR to DOLA/wstUSR 1:1 (see “Ceilings & Reallocation”) instead of increasing aggregate exposure.

Ceilings & Reallocation

This proposal will uphold the previously authorized $50 million total cap across USR-family LPs. The current DOLA/USR LP limits will be scaled down proportionally from the existing split (Convex $40 million, Yearn $10 million) to convex $20 million and Yearn $5 million. The new DOLA/wstUSR LP limits will mirror this, with convex receiving $20 million and Yearn receiving $5 million.

Risk & Oracle (unchanged approach)

• Collateral profile: Stable-to-stable Curve LP with DOLA and wstUSR; wstUSR unwraps to stUSR, accruing yield against USR units.
• Oracle methodology: Mirror the approved DOLA/USR LP oracle approach using a conservative LP valuation (Curve virtual price and Chainlink USR/USD price feed) via the deployed custom token price feed adapter used for USR-family LPs.
• Liquidations: Same liquidation factor/incentive and settlement paths as DOLA/USR LP markets.
• Governance & operational considerations: This does not add a new issuer exposure beyond USR/stUSR; it redistributes ceilings toward the yield-bearing wrapper. Prior USR collateral risk assessment and monitoring continue to apply.

Parameters (match DOLA/USR LP settings)

We propose to inherit the existing DOLA/USR LP market parameters, which have already been vetted by governance:

• Collateral Factor (CF): 90%
• Liquidation Factor (LF): 100%
• Liquidation Incentive (LI): 5% *Daily Borrow Limit (BorrowController): 2,000,000 DOLA
• Minimum Debt: 3,000 DOLA
• Oracle stalenessThreshold: 86,460 (≈ 24h)

These values match the approved template previously used for the DOLA/USR Convex LP market. (Inverse Finance Forum)

On-Chain Actions

• Add DOLA/wstUSR LP Yearn Market to DBR Contract
• Set borrowController of Market to FiRM BorrowController
• Set Market Supply Ceiling to 5,000,000 DOLA
• Set Daily Limit in BorrowController to 2,000,000 DOLA
• Set Collateral Factor to 90%
• Set Liquidation Factor to 100%
• Set Liquidation Incentive to 5%
• Approve DOLA/wstUSR LP Yearn Market on the DBR Helper
• Set Minimum Debt Amount in BorrowController to 3,000 DOLA
• Set stalenessThreshold for DOLA/wstUSR Convex LP market to 86460 (24 hours)
• Set FiRM Oracle Price Feed for DOLA/wstUSR Convex LP to the deployed custom tokenPriceFeed contract
• Add DOLA/wstUSR LP Convex Market to ALE
• Add DOLA/wstUSR LP Convex Market to CurveDolaLPHelper
• Reduce DOLA/USR LP Yearn market ceiling to 5,000,000