DOLA

Inverse Finance says it was founded by Nour Haridy in late 2020 and is now governed by an Inverse Finance DAO. DOLA emerged as the protocol’s debt-backed stablecoin while Frontier provided the original variable-rate lending context.

The protocol’s historical account says a DOLA Stabilizer launched in February 2021 to facilitate 1:1 DOLA–DAI swaps. That mechanism described a market function, not a legal promise that every DOLA holder owned dollars or DAO assets.

On April 2, 2022, REKT reported an Anchor exploit in which an attacker manipulated the thin INV/WETH market used by the lending oracle, deposited inflated INV collateral and borrowed approximately $15.6 million, including about 4 million DOLA. The event links DOLA’s history to oracle design, collateral valuation and bad-debt management rather than to peg mechanics alone.

Inverse’s current documentation says Frontier is deprecated and existing unbacked borrows are being reduced over time, while FiRM replaced the earlier model with fixed-rate markets, collateral escrows, risk limits and liquidation infrastructure. These are documented product states; future upgrades or governance proposals should not be presented as completed remediation beyond what the live contracts show.

The current DOLA documentation identifies FiRM overcollateralized borrowing as the primary issuance channel. Governance-approved supply ceilings and 24-hour rolling borrow limits constrain each market; the PSM provides a secondary USDS reserve swap, with reserves deposited into a yield-bearing USDS vault according to the project’s account.

DOLA’s verified ERC-20 is immutable according to Inverse’s registry, but Etherscan’s verified ABI includes privileged minting administration. Official Fed documentation says a Fed Chair multisig operates Feds within DAO-approved bounds. Thus immutability limits code replacement, not the economic significance of authorized minters. DOLA is transferable token infrastructure, not documented equity, profit-sharing, reserve ownership or a guaranteed fiat redemption contract.

Inverse distinguishes INV governance from DOLA use: the DAO sets protocol decisions and risk parameters, while working groups and multisigs perform delegated operations. Core DOLA is listed on Ethereum and the docs describe L2 availability, but the reviewed smart-contract page specifically warns that historical CCIP shutdowns apply to sDOLA and sINV lanes; no blanket claim that every Inverse asset has a live bridge should be made.

Before using DOLA as collateral or a peg instrument, verify the live market, Fed ceiling, oracle, minter/operator roles, PSM reserves and any chain-specific deployment. The reviewed materials establish the architecture and historical events, not a permanent guarantee that those parameters remain unchanged.