0xec092c15…471asent to0xbeccb6bb…9bf6·#25,882,341·0x5ad09819…12b58f
# Proposal to Increase reUSD LP Market Supply Ceilings on FiRM
Forum Link: https://forum.inverse.finance/t/proposal-to-increase-reusd-lp-market-supply-ceilings-on-firm/683
**Summary**
This proposal raises the aggregate supply ceiling for the two reUSD LP markets on FiRM from 2,000,000 DOLA to 3,000,000 DOLA. The full increase is directed to the Yearn strategy market, whose ceiling rises from 500,000 DOLA to 1,500,000 DOLA; the OnlyBoost strategy market ceiling is unchanged at 1,500,000 DOLA. Daily borrow limits are equalized at 250,000 DOLA per market, leaving the 500,000 DOLA aggregate daily limit unchanged. All other parameters are unchanged: collateral factor 85%, liquidation factor 100%, liquidation incentive 5%, and minimum debt 3,000 DOLA. This is a measured 50% aggregate step sized to what the underlying liquidity data has sustained, not to its most recent peak.
**Background**
The reUSD LP markets launched with deliberately conservative ceilings, consistent with the slow-launch posture set out in the [reUSD risk assessment (August 7, 2026)](https://github.com/InverseFinance/Risk-Assessments/blob/main/Resupply_reUSD/FiRM_Assessment_reUSD__Resupply.md). Just over a week after going live, both markets have already filled their combined 2,000,000 DOLA borrow capacity, and organic demand remains. The proposed increase directs the full 1,000,000 DOLA of new capacity to the Yearn strategy market, bringing the two market ceilings to parity at 1,500,000 DOLA each, and equalizes the daily borrow limits at 250,000 DOLA per market. The assessment committed any ceiling expansion to observed liquidity data rather than projection. This proposal is the first application of that commitment.
**Data**
Since the market launch the RWG has monitored Resupply's capacity through a daily on-chain series covering three indicators, benchmarked against an August 6 baseline: the TVL of the Curve pool underlying the price feed, total reUSD DEX liquidity across all four Curve pools, and aggregate withdrawable backing liquidity (the idle lender-side stablecoins a redeemer could realize across Resupply's lending markets).
As of August 25, the price feed pool has grown from roughly $7.9M to $11.1M (+40%), total DEX liquidity from roughly $11.4M to $18.3M (+60%), and withdrawable backing liquidity from roughly $14.6M to $27.9M (+91%). The composite of the three indicators stands at +64% versus baseline and has held at or above +46% for eight consecutive days.
Two honest qualifications shape the sizing. First, most of this growth arrived in the second half of August, so the trailing floor of the series over the full observation window sits near the baseline itself; the data demonstrates strong recent capacity, not yet a month of sustained capacity. Second, the largest single contributor to the backing liquidity improvement was a one-day lender deposit into a single Resupply market, which is liquidity that could exit as quickly as it arrived. The RWG tracks a redemption-realizable measure alongside the headline figure and it currently reads about $20M.
**Rationale for the sizing**
A point-in-time reading of the current data could justify a larger increase. We are deliberately not doing that. FiRM's fixed-rate structure means ceiling decisions are difficult to walk back: if liquidity trends down 50% next month, outstanding fixed-rate positions cannot simply be unwound by a parameter reversal. A 50% step to 3,000,000 DOLA keeps aggregate reUSD exposure well inside the capacity the data has actually sustained, and remains comfortably below the exposure FiRM extends to comparable collateral (the crvUSD market operates at an 87% collateral factor with a 5,000,000 DOLA ceiling, which we treat as the outer bound for reUSD until it accumulates comparable history).
Further increases will follow the same discipline. From early September the daily series will span a full 30 days, and subsequent ceiling requests will be benchmarked against the rolling 30-day trailing low of the composite indicator rather than its current value, so growth must persist before FiRM prices it in.
|Parameter | Current | Proposed|
|--- | --- | ---|
|Supply ceiling, Yearn strategy market | 500,000 DOLA | 1,500,000 DOLA|
|Supply ceiling, OnlyBoost strategy market | 1,500,000 DOLA | unchanged|
|Supply ceiling, aggregate | 2,000,000 DOLA | 3,000,000 DOLA|
|Collateral factor | 85% | unchanged|
|Liquidation factor | 100% | unchanged|
|Liquidation incentive | 5% | unchanged|
|Daily borrow limit, Yearn strategy market | 150,000 DOLA | 250,000 DOLA|
|Daily borrow limit, OnlyBoost strategy market | 350,000 DOLA | 250,000 DOLA|
|Minimum debt | 3,000 DOLA | unchanged|
**On-chain actions**
1. Set the supply ceiling of the reUSD LP Yearn strategy market to 1,500,000 DOLA.
2. Set the daily borrow limit of the reUSD LP Yearn strategy market to 250,000 DOLA.
3. Set the daily borrow limit of the reUSD LP OnlyBoost strategy market to 250,000 DOLA.