Summary
This proposal seeks to adjust parameters across four FiRM markets to better align DOLA issuance capacity with the current risk picture. For the sUSDe LP markets (DOLA/sUSDe and yv-DOLA/sUSDe), daily borrow limits are raised from 2M to 5M DOLA each, reflecting sustained high demand and the improved risk posture established by January’s FeedSwitch v2 deployment. For the wstUSR LP markets (DOLA/wstUSR and yv-DOLA/wstUSR), supply ceilings are reduced from 40M to 25M DOLA and from 10M to 5M DOLA respectively, and the daily borrow limit on the primary market is reduced from 5M to 2M DOLA, reflecting the RWG’s monitoring-only conclusion on USR following an extended reassessment. These changes collectively represent a risk-adjusted reallocation of DOLA issuance capacity; expanding where the evidence supports it, and right-sizing where caution is warranted.
Background and Rationale
sUSDe LP Markets
The DOLA/sUSDe and yv-DOLA/sUSDe markets have consistently been among FiRM’s highest-utilization markets. In January 2026, the community approved a comprehensive sUSDe LP parameter update that raised the collateral factor to 92%, reduced the liquidation incentive to 4%, set a minimum debt floor of 5,000 DOLA, and activated FeedSwitch v2 across both markets. That update meaningfully strengthened the risk architecture of these markets. FeedSwitch v2 introduced oracle fallback logic tied to observable, objective Ethena health indicators, providing borrowers a layer of protection during market anomalies and stress scenarios.
Since that proposal passed, borrower demand has continued to grow. The current daily borrow limit of 2M DOLA per market constrains legitimate borrowing activity without providing meaningful additional risk protection given the collateral’s fundamentals. Raising the daily borrow limit to 5M DOLA per market gives these markets room to accommodate growth while the per-market supply ceiling and the inherent liquidity depth of the underlying collateral continue to act as the binding risk constraints.
wstUSR LP Markets
The wstUSR LP markets have been under active monitoring since launch. The RWG has been conducting ongoing due diligence on the Resolv ecosystem; tracking USR’s collateral composition, collateralization ratio, redemption infrastructure, and liquidity depth through the weekly Risk Observer Checklist and a dedicated FiRM x USR Risk Dashboard. That body of work, now spanning well over a year of continuous data, has led to a monitoring-only conclusion for new USR exposure. The wstUSR LP parameter adjustments in this proposal reflect that conclusion and bring existing governance caps into alignment with what our risk framework actually supports.
Reducing the DOLA/wstUSR supply ceiling from 40M to 25M DOLA and the yv-DOLA/wstUSR ceiling from 10M to 5M DOLA brings total combined ceiling capacity to 30M DOLA; comfortably within the stress model ceiling. Reducing the daily borrow limit on the primary market from 5M to 2M DOLA aligns with the same posture and reduces the rate at which new DOLA exposure can accumulate. Total current DOLA debt across both wstUSR LP markets is approximately $13.1M, well below both the existing and proposed ceilings and no active borrowers are affected by this change. These adjustments are a governance hygiene measure that corrects a parameter overhang relative to the RWG’s actual risk assessment, without disrupting any live positions.
Actions
- Set Daily Borrow Limit to 5,000,000 DOLA for the DOLA/sUSDe market
- Set Daily Borrow Limit to 5,000,000 DOLA for the yv-DOLA/sUSDe market
- Set Supply Ceiling to 25,000,000 DOLA for the DOLA/wstUSR market
- Set Daily Borrow Limit to 2,000,000 DOLA for the DOLA/wstUSR market
- Set Supply Ceiling to 5,000,000 DOLA for the yv-DOLA/wstUSR market