Proposal to Re-allocate the FiRM Market Ceilings for DOLA/USR LP
Summary
Rebalance the existing $40 million FiRM debt ceiling for the DOLA / USR collateral by shifting capacity from the Yearn vault to the Convex vault:
| Variant | Current Ceiling | Proposed Ceiling | Change |
|---|---|---|---|
| Yearn | $20m | $5m | -$15m |
| Convex | $20m | $35m | +$15m |
| Total | $40m | $40m | 0 |
The overall risk exposure stays constant; only its distribution changes.
Background
- Collateral listing: DOLA/USR LP (Convex & Yearn) was enabled in March 2025.
- Ceiling increase: On 6 April 2025 the DAO raised each vault’s ceiling from $10m to $20m (total $40m).
- Performance: As of 12 May 2025, DOLA/USR is FiRM’s most profitable collateral, delivering a 1.44× bribe-to-revenue multiplier.
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, specifically on the Convex vault.
- Capital efficiency: Redirecting headroom to the preferred venue lets FiRM capture incremental revenue without lifting the aggregate cap.
- Unchanged risk profile: Total debt, LTV parameters, and oracle sources remain exactly as already approved.
On-Chain Actions
- Set the market ceiling of Yearn DOLA/USR FiRM Market to 5m DOLA
- Set the market ceiling of Convex DOLA/USR FiRM Market to 15m DOLA