Proposal to Raise DOLA/USR LP FiRM Market Ceilings
Summary
This proposal seeks to raise the aggregate debt ceiling for the DOLA/USR LP collateral on FiRM from $40 million to $50 million, distributed as follows:
Variant
Current Ceiling
Proposed Ceiling
Change
Convex
$35m
$40m
+$5m
Yearn
$5m
$10m
+$5m
Total
$40m
$50m
+10m
The increase reflects continued demand from FiRM borrowers and LP participants, while maintaining all other risk parameters and preserving the existing risk architecture.
Background
The DOLA/USR LP collateral markets — spanning both Convex- and Yearn-aligned variants — were introduced to FiRM in March 2025. A ceiling expansion from $20M to $40M was executed in April, and a reallocation between the two variants was approved in May to better match user preference and liquidity incentives.
FiRM’s DOLA/USR markets have since become a top-performing pair in terms of revenue efficiency and user demand. LP activity remains elevated due to ongoing incentives, and both vaults are operating with high utilization. Expanding the ceilings will allow FiRM to accommodate organic borrower demand while continuing to grow protocol revenue.
Motivation
User demand: Resolv Points Season 2 has driven a surge in LP activity; FiRM power users have indicated the desire to scale in further to the position.
Revenue Capture: FiRM benefits from continued DOLA demand while taking on no new collateral type or technical risk.
On-Chain Actions
Set the market ceiling of Convex DOLA/USR FiRM Market to 40,000,000 DOLA
Set the market ceiling of Yearn DOLA/USR FiRM Market to 10,000,000 DOLA
The RWG supports this market ceiling increase for the DOLA/USR LP markets based on comprehensive post-TGE monitoring and assessment of Resolv’s operational maturity. USR’s track record, though brief, demonstrates the maturity and transparency we require for collateral expansion and the proposed ceiling increase reflects confidence in Resolv’s execution while maintaining appropriate risk controls.
We’ve been closely tracking USR’s performance across multiple metrics, and the fundamentals continue to strengthen. Recent TVL recovery from $333M to $500M+ signals the protocol is finding stable footing after initial post-TGE volatility. Most importantly, Resolv has maintained robust over-collateralization throughout, demonstrating the resilience of their risk management framework. The Season 1 points program transition to governance tokens occurred without major operational disruptions, and Season 2 continues smoothly with consistent user engagement.
For FiRM collaterals, we prioritize protocols with transparent governance and clear delegation structures, predictable liquidity assumptions, and more immutable underlying infrastructure and/or stable operational frameworks that don’t shift frequently. USR has delivered on these criteria through consistent reporting, responsive team communication, and successful execution of planned technical integrations including BTC hedging strategy, new Vaults product launch, and most recently the fee switch, to name a few. Unlike our experience with other early-stage protocols, Resolv has avoided governance drama or sudden technical pivots that typically characterize operational adolescence. This stability, combined with transparent proof-of-reserves reporting, provides the operational consistency we look for in mature collateral assets.
While endorsing this increase, we continue monitoring several key risk vectors. The governance transition timeline remains somewhat undefined, with long-term token holder structures still being finalized. Additionally, RLP leverage on external markets (currently ~52% of $253M deployed on Euler/Morpho, and an additional ~9% in Pendle) requires ongoing attention, though current diversification levels appear manageable. Non-DOLA liquidity depth remains a constraint for larger exposure scenarios, and the protocol’s continued reliance on whitelisted minting with no confirmed timeline for full permissionless operations introduces centralization concerns. However, these factors are being actively addressed and don’t materially impact the proposed ceiling levels.