Proposal to Re-allocate the FiRM Market Ceilings for USR LPs
Summary
Rebalance the existing $50 million FiRM debt ceiling for the USR-backed LPs by shifting capacity full from DOLA/USR to DOLA/wstUSR.
| Variant | Current Ceiling | Proposed Ceiling | Change |
|---|---|---|---|
| yv-DOLA/USR | $5m | 0 | -$5m |
| DOLA/USR | $20m | 0 | -$20m |
| yv-DOLA/wstUSR | $5m | $10m | +$5m |
| DOLA/wstUSR | $20m | $40m | +$20m |
| Total | $50m | $50m | 0 |
The overall risk exposure stays constant; only its distribution changes.
Background
- Collateral listing: DOLA/USR LP (Convex & Yearn) was enabled in March 2025; DOLA/wstUSR (Convex & Yearn) was enabled in October 2025
- Performance: the USR-backed market has consistently been the top-performing (or one of the top-performing) markets on FiRM
Motivation
- Better Performance: The wstUSR variant LP has performed better, despite a lower RESOLV point multiplier (20x compared with 30x on DOLA/USR)
- Long-term sustainability: Switching to the yield-bearing variant is more sustainable in the long run because the yield will always be available, whereas the value of point incentives is likely to decrease over time.
- 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 0 DOLA
- Set the market ceiling of Convex DOLA/USR FiRM Market to 0 DOLA
- Set the market ceiling of Yearn DOLA/wstUSR FiRM Market to 10m DOLA
- Set the market ceiling of Convex DOLA/wstUSR FiRM Market to 40m DOLA