# Increase Daily Borrow Limits to 2,000,000 DOLA for Select FiRM LP Markets

**URL:** <https://forum.inverse.finance/t/increase-daily-borrow-limits-to-2-000-000-dola-for-select-firm-lp-markets/527>\
**Category:** FiRM\
**Created:** [January 10, 2025, 11:01pm UTC](https://forum.inverse.finance/t/increase-daily-borrow-limits-to-2-000-000-dola-for-select-firm-lp-markets/527 "2025-01-10T23:01:11Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![edo](https://sea1.discourse-cdn.com/inverse/user_avatar/forum.inverse.finance/edo/32/157_2.png) [@edo](https://forum.inverse.finance/u/edo)\
**Post date:** [January 10, 2025, 11:01pm UTC](https://forum.inverse.finance/t/increase-daily-borrow-limits-to-2-000-000-dola-for-select-firm-lp-markets/527/1 "2025-01-10T23:01:11Z")

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### **Summary**

This proposal seeks to increase the **daily borrow limits** for the same FiRM LP markets recently targeted for market ceiling adjustments. The current daily borrow limit of **1,000,000 DOLA** per market will be increased to **2,000,000 DOLA** to address growing borrower demand and further support FiRM’s operational efficiency.

### **Markets and Addresses**

| **Market** | **Address** |
| --- | --- |
| yv-DOLA-scrvUSD | 0x5bb8f6aAcFF2971B42F9fE6945D24726A2541CF2 |
| DOLA-scrvUSD | 0x2fed508aAc87c0e6f0b647Fe83164A7AA6eb2FC9 |
| yv-DOLA-sUSDe | 0x4E264618dC015219CD83dbc53B31251D73c2db1a |
| DOLA-sUSDe | 0xb427fC22561f3963B04202F9bb5BCEbd76c14A99 |
| yv-DOLA-sUSDS | 0x4A33baFA8a31E4ec9649f65646022cAD1957808b |
| DOLA-sUSDS | 0xD68d3a44d46dd50BFeBa8Cca544717B76e7C4b29 |
| scrvUSD-sDOLA | 0x63D27fC9d463Ed727676367D3F818999962737E8 |
| yv-scrvUSD-sDOLA | 0xb8bc1E9c0a2d445bc39d2A745F47619E954dD565 |

### **Background**

FiRM LP markets have shown consistent growth in borrower participation and utilization rates, as highlighted in the [**Revised Risk Assessment of Stable LP Markets (December 2024)**](https://docs.google.com/document/d/1rQeGZgSiK3tf21JzVbn7qncW-cLwhNhjjQYVT7pUYgs/preview?tab=t.0#heading=h.usvk0t9pbkoo). The recent increase in market ceilings to **50,000,000 DOLA** has created a strong foundation to scale these markets further.

The current daily borrow limit of **1,000,000 DOLA** per market now presents a bottleneck to borrower activity. Borrowers seeking larger amounts frequently encounter delays or limitations, reducing market efficiency and flexibility. Increasing the daily borrow limits to **2,000,000 DOLA** aligns with borrower demand and eliminates operational friction, enabling sustained growth and improved capital utilization.

This proposal builds on the governance-approved update to the **borrow controller** , which introduced a rolling 24-hour limit. This update ensures equitable access to borrowing capacity while addressing risks of double borrowing and market monopolization.

### **Rationale**

1. **Increased Borrower Demand:** Borrowers in these markets continue to push against the current daily borrow limits, demonstrating sustained and growing interest. Raising the limits will ensure FiRM can meet this demand effectively.
2. **Improved User Experience and Operational Efficiency:** Higher daily borrow limits reduce delays and enable borrowers to access larger loans without needing to split transactions across days.
3. **Alignment with Growth Strategy:** Raising the daily borrow limits complements the recent increase in market ceilings, allowing FiRM to maximize utilization and strengthen its competitive position.

### **Risk Assessment**

The [**Revised Risk Assessment of Stable LP Markets (December 2024)**](https://docs.google.com/document/d/1rQeGZgSiK3tf21JzVbn7qncW-cLwhNhjjQYVT7pUYgs/preview?tab=t.0#heading=h.usvk0t9pbkoo) supports the proposed increase in daily borrow limits based on the following:

- **Collateral and Liquidity Health:** The underlying pools for these markets demonstrate sufficient liquidity to handle higher borrowing volumes without causing instability.
- **Low Liquidation Risk:** The stablecoin-paired nature of these LP markets ensures minimal price volatility, reducing the likelihood of liquidations.
- **Risk Mitigation Measures:**
  - **Borrow Controller Update:** The recently implemented rolling 24-hour limit ensures controlled and equitable borrowing.
  - **Continuous Monitoring:** The RWG will actively monitor liquidity, utilization rates, and collateral health to adjust parameters as needed.

### **On-Chain Actions**

1. **Increase Daily Borrow Limit** to **2,000,000 DOLA** for the following FiRM markets:

- yv-DOLA-scrvUSD
- DOLA-scrvUSD
- yv-DOLA-sUSDe
- DOLA-sUSDe
- yv-DOLA-sUSDS
- DOLA-sUSDS
- yv-scrvUSD-sDOLA
- scrvUSD-sDOLA