Increase Market Ceiling Parameter to 50M for Select FiRM LP Markets
Summary:
This proposal aims to increase the market ceiling parameter for the following FiRM LP markets to 50M DOLA. The adjustment aligns with Inverse Finance’s growth strategy and is supported by the Revised Risk Assessment of Stable LP Markets (December 2024).
Markets and Addresses:
| yv-DOLA-scrvUSD | 0x5bb8f6aAcFF2971B42F9fE6945D24726A2541CF2 |
|---|---|
| DOLA-scrvUSD | 0x2fed508aAc87c0e6f0b647Fe83164A7AA6eb2FC9 |
| yv-DOLA-sUSDe | 0x4E264618dC015219CD83dbc53B31251D73c2db1a |
| DOLA-sUSDe clp | 0xb427fC22561f3963B04202F9bb5BCEbd76c14A99 |
| yv-DOLA-sUSDS | 0x4A33baFA8a31E4ec9649f65646022cAD1957808b |
| DOLA-sUSDS clp | 0xD68d3a44d46dd50BFeBa8Cca544717B76e7C4b29 |
| yv-crvUSD-DOLA | 0xe85943e280776254ee6C9801553B93F10Ef4C99C |
| crvUSD-DOLA | 0x6A522f3BD3fDA15e74180953f203cf55aA6C631E |
| scrvUSD-sDOLA | 0x63D27fC9d463Ed727676367D3F818999962737E8 |
| yv-scrvUSD-sDOLA | 0xb8bc1E9c0a2d445bc39d2A745F47619E954dD565 |
Rationale:
- Increased Demand: The Revised Risk Assessment indicates significant borrower interest, evidenced by high utilization rates and robust participation in LP markets.
- Operational Efficiency: Raising the market ceiling reduces operational friction, allowing borrowers greater flexibility and supporting sustained market growth.
- Risk Framework Confidence: FiRM’s robust risk management frameworks provide confidence in scaling these markets while safeguarding DOLA’s stability.
Risks and Mitigation:
- Increased Market Exposure: Concentration risks in collateral pools will be monitored, and mitigation strategies such as diversified exposure and periodic reviews will be employed.
- Governance and Multisig Security: Continued oversight of the Fed Chair’s discretionary power and enhanced security measures for multisig wallets will address potential vulnerabilities.
Conclusion:
The proposed increase to 50M DOLA for these markets aligns with FiRM’s growth objectives while maintaining its strong risk management posture. This change supports Inverse Finance’s mission to provide predictable and secure lending opportunities.