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Editorial policyInverse 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 offers fixed-rate DOLA borrowing via FiRM's Personal Collateral Escrow, plus sDOLA yield for stablecoin holders — a distinct lending architecture built for predictable cost of capital.
Skip this Inverse Finance in explainer if you wanted a first wallet setup or a CEX account. It covers how the protocol works and who it is not for. How-tos and comparisons are linked where they exist.
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.
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 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.
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.
Convex, Curve, Resupply, Inverse Finance and Frax share collateral, gauges and stablecoin rails. Read the flywheel first if you are new to the stack.
FAQ
FiRM is Inverse Finance's Fixed Rate Market for DOLA borrowing.
DOLA is Inverse's decentralised dollar stablecoin minted through FiRM loans.
sDOLA is yield-bearing DOLA — deposit DOLA, earn borrow-interest yield.
INV is Inverse's governance token; holders control protocol parameters.
Aave uses variable rates and broad asset lists; Inverse FiRM offers fixed-rate DOLA borrowing with PCE isolation.
Yes — FiRM, DOLA, and sDOLA continue operating on Ethereum with ongoing governance.
Inverse’s FiRM offers fixed-rate DOLA borrowing via personal collateral escrows. Verdict-first guide on when Aave’s variable rate is enough, sDOLA, and the 2022 oracle exploits.
DOLA is Inverse Finance's native decentralized stablecoin, minted exclusively through on-chain lending activity in FiRM markets and managed by a network of governance-controlled Fed contracts that actively defend the $1 peg.
Aave is the default multi-chain DeFi lending market. V4 (Ethereum, 30 March 2026) uses a Hub for liquidity and Spokes for the market you actually click. Supply for a variable rate, or borrow and watch health factor — including V4’s target-health-factor liquidations.