0x3fcb35a1…cb28sent to0xbeccb6bb…9bf6·#21,587,648·view on Etherscan
# Use Frontier DOLA Reserve to Pay Down Bad Debt
# Proposal to Utilize Frontier DOLA Reserve to Pay Down Bad Debt
Forum post: https://forum.inverse.finance/t/use-frontier-dola-reserve-to-pay-down-bad-debt/526
## Summary
Utilize the Frontier DOLA reserve to reduce the bad debt on the account from the Inverse Finance Frontier price manipulation incident of April 2nd 2022, 0xeA0c959BBb7476DDD6cD4204bDee82b790AA1562.
## Background
Frontier, Inverse Finance’s now-deprecated variable-rate lending market, accumulated reserves by taking a 20% fee on the interest paid by borrowers back when it was active. These reserves were/are in the form of DOLA, ETH, WBTC, YFI and xSUSHI.[ Shortly after the April 2nd 2022 exploit, the interest rate on ETH, WBTC and YFI was set to 0%](https://www.inverse.finance/governance/proposals/mills/20) to stop borrow (and supply) balances from accumulating further, so no further reserves accrued in these assets. Given the vast majority of current DOLA borrows on Frontier are bad debt, in [April 2023 the reserve ratio set to 100%](https://www.inverse.finance/governance/proposals/mills/101) in order to direct 100% of borrowers interest to the reserves, this was to stop bad debt from artificially inflating on-chain fed revenue.
Current funds in the Frontier DOLA reserve are at ~$151K. This proposal seeks to use funds from the reserve to repay some of Frontier's bad debt.
## On-Chain Actions
* Reduce reserves on anDOLA by 151,000
* repayBorrowBehalf the DOLA borrow balance of 0xeA0c959BBb7476DDD6cD4204bDee82b790AA1562 by 151k