0xed937609…8469sent to0xbeccb6bb…9bf6·#21,743,051·view on Etherscan
# Increase Daily Borrow Limits to 2,000,000 DOLA for Select FiRM LP Markets
Forum Link: https://forum.inverse.finance/t/increase-daily-borrow-limits-to-2-000-000-dola-for-select-firm-lp-markets/527
### **Summary**
This proposal seeks to increase the **daily borrow limits** for the same FiRM LP markets recently targeted for market ceiling adjustments. The current daily borrow limit of **1,000,000 DOLA** per market will be increased to **2,000,000 DOLA** to address growing borrower demand and further support FiRM’s operational efficiency.
### **Markets and Addresses**
|**Market**|**Address**|
| --- | --- |
|yv-DOLA-scrvUSD|0x5bb8f6aAcFF2971B42F9fE6945D24726A2541CF2|
|DOLA-scrvUSD|0x2fed508aAc87c0e6f0b647Fe83164A7AA6eb2FC9|
|yv-DOLA-sUSDe|0x4E264618dC015219CD83dbc53B31251D73c2db1a|
|DOLA-sUSDe |0xb427fC22561f3963B04202F9bb5BCEbd76c14A99|
|yv-DOLA-sUSDS|0x4A33baFA8a31E4ec9649f65646022cAD1957808b|
|DOLA-sUSDS |0xD68d3a44d46dd50BFeBa8Cca544717B76e7C4b29|
|scrvUSD-sDOLA|0x63D27fC9d463Ed727676367D3F818999962737E8|
|yv-scrvUSD-sDOLA|0xb8bc1E9c0a2d445bc39d2A745F47619E954dD565|
### **Background**
FiRM LP markets have shown consistent growth in borrower participation and utilization rates, as highlighted in the [**Revised Risk Assessment of Stable LP Markets (December 2024)**](https://docs.google.com/document/d/1rQeGZgSiK3tf21JzVbn7qncW-cLwhNhjjQYVT7pUYgs/preview?tab=t.0#heading=h.usvk0t9pbkoo). The recent increase in market ceilings to **50,000,000 DOLA** has created a strong foundation to scale these markets further.
The current daily borrow limit of **1,000,000 DOLA** per market now presents a bottleneck to borrower activity. Borrowers seeking larger amounts frequently encounter delays or limitations, reducing market efficiency and flexibility. Increasing the daily borrow limits to **2,000,000 DOLA** aligns with borrower demand and eliminates operational friction, enabling sustained growth and improved capital utilization.
This proposal builds on the governance-approved update to the **borrow controller**, which introduced a rolling 24-hour limit. This update ensures equitable access to borrowing capacity while addressing risks of double borrowing and market monopolization.
### **Rationale**
1. **Increased Borrower Demand:** Borrowers in these markets continue to push against the current daily borrow limits, demonstrating sustained and growing interest. Raising the limits will ensure FiRM can meet this demand effectively.
2. **Improved User Experience and Operational Efficiency:** Higher daily borrow limits reduce delays and enable borrowers to access larger loans without needing to split transactions across days.
3. **Alignment with Growth Strategy:** Raising the daily borrow limits complements the recent increase in market ceilings, allowing FiRM to maximize utilization and strengthen its competitive position.
### **Risk Assessment**
The [**Revised Risk Assessment of Stable LP Markets (December 2024)**](https://docs.google.com/document/d/1rQeGZgSiK3tf21JzVbn7qncW-cLwhNhjjQYVT7pUYgs/preview?tab=t.0#heading=h.usvk0t9pbkoo) supports the proposed increase in daily borrow limits based on the following:
* **Collateral and Liquidity Health:** The underlying pools for these markets demonstrate sufficient liquidity to handle higher borrowing volumes without causing instability.
* **Low Liquidation Risk:** The stablecoin-paired nature of these LP markets ensures minimal price volatility, reducing the likelihood of liquidations.
* **Risk Mitigation Measures:**
* **Borrow Controller Update:** The recently implemented rolling 24-hour limit ensures controlled and equitable borrowing.
* **Continuous Monitoring:** The RWG will actively monitor liquidity, utilization rates, and collateral health to adjust parameters as needed.
### **On-Chain Actions**
1. **Increase Daily Borrow Limit** to **2,000,000 DOLA** for the following FiRM markets:
* yv-DOLA-scrvUSD
* DOLA-scrvUSD
* yv-DOLA-sUSDe
* DOLA-sUSDe
* yv-DOLA-sUSDS
* DOLA-sUSDS
* yv-scrvUSD-sDOLA
* scrvUSD-sDOLA