# Inverse Finance in 2026: FiRM Fixed Rates, DOLA and sDOLA Explained

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**Publisher:** Decentralized Finance Publication (https://decentralized-finance.io)
**Author:** James Thornton
**Category:** Top DeFi Protocols
**Updated:** June 2026
**Trust:** Independent, ad-free editorial research. No display advertisements, no paid protocol coverage, no affiliate-driven rankings.

## Summary

Inverse Finance's FiRM (Fixed Rate Market) lets you borrow DOLA at a rate fixed at loan opening — unlike variable Aave/Compound rates. Each borrower gets an isolated Personal Collateral Escrow (PCE). DOLA is Inverse's DAO-minted stablecoin; sDOLA is the yield-bearing wrapper (~6–7% APY from borrow interest). INV token holders govern the protocol.

Inverse Finance is a community-governed lending protocol on Ethereum distinguished by one feature most DeFi lenders lack: fixed borrow rates. FiRM (Fixed Rate Market) lets users borrow DOLA against ETH, LSTs, CVX derivatives, and other approved collateral at a rate set when the loan opens — eliminating surprise rate spikes during volatile markets.

After restructuring post-2022, Inverse shipped FiRM as a more resilient architecture with Personal Collateral Escrow (PCE) — each position isolated in its own contract. By 2026 the protocol reports substantial TVL, DOLA circulation, and active FiRM borrows.

## FiRM: why fixed rates matter

- Borrow rate locked at origination — plan long-term strategies without utilization-driven spikes
- PCE isolation — one user's liquidation does not directly touch another's escrow
- Collateral continues earning yield inside escrow where applicable
- Governance adjusts market rates on schedule, not every block

## DOLA and sDOLA

DOLA is minted when FiRM users borrow and burned on repayment — supply tracks real lending demand. Fed contracts (governance-authorised) deploy or recall DOLA in Curve and other venues to defend the peg.

sDOLA wraps DOLA into a yield-bearing token earning FiRM borrow interest and protocol revenue — competitive passive yield for stablecoin holders who want Inverse ecosystem exposure without managing borrow positions.

## INV governance

INV holders vote on collateral listings, Fed authorisations, rate changes, and treasury use. sINV stakers share protocol revenue. Inverse's community-first structure — without VC majority control — has supported continuous product iteration through multiple market cycles.

## Inverse vs variable-rate lending

Aave and Compound excel at flexible, multi-asset markets with deep liquidity. Inverse targets users who prioritise rate certainty — treasuries, long-term borrowers, and strategists hedging funding cost. Fixed rates complement rather than replace variable markets in a mature DeFi stack.

DOLA/sDOLA also integrate with broader DeFi as stablecoin building blocks, similar to DAI or crvUSD.

## Frequently Asked Questions

- What is FiRM? FiRM is Inverse Finance's Fixed Rate Market for DOLA borrowing.
- What is DOLA? DOLA is Inverse's decentralised dollar stablecoin minted through FiRM loans.
- What is sDOLA? sDOLA is yield-bearing DOLA — deposit DOLA, earn borrow-interest yield.
- What is INV? INV is Inverse's governance token; holders control protocol parameters.
- Inverse vs Aave? Aave uses variable rates and broad asset lists; Inverse FiRM offers fixed-rate DOLA borrowing with PCE isolation.
- Is Inverse Finance active in 2026? Yes — FiRM, DOLA, and sDOLA continue operating on Ethereum with ongoing governance.

## Sources

- [Inverse Finance](https://www.inverse.finance): FiRM, sDOLA, governance
- [Inverse on DeFiLlama](https://defillama.com/protocol/inverse-finance): TVL and borrows

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