DOLA

Nour Haridy started Inverse Finance in late 2020, and the project introduced the DOLA Stabilizer in February 2021. It let users exchange DAI and DOLA at one-to-one while Anchor, a Compound-derived market, received pre-minted DOLA from a Fed. The dollar unit was therefore born as lending liquidity managed by protocol contracts, not as a tokenized bank deposit.

That arrangement made the peg and the loan book inseparable. When a Fed expanded Anchor, it placed DOLA where borrowers could draw it; when debt was repaid or liquidity was recalled, DOLA could be burned. The token address provided continuity, but collateral prices and the people allowed to operate the Feds determined whether that supply was sound.

On April 2, 2022, an attacker manipulated the thin INV/WETH market used in Anchor’s price path, posted inflated INV and borrowed roughly $15.6 million of assets, including about 4 million DOLA. Inverse’s later make-good discussion estimated a different figure—about $8.8 million—for affected-user liabilities. The two numbers describe different scopes and should not be merged.

The DAO proposed a risk working group and staged repayments. Its own discussion also recognized a constraint: creating DOLA to repay everyone at once could protect individual claims while weakening the peg for every holder. The aftermath turned DOLA supply from a growth tool into a balance-sheet decision.

On June 16, a separate manipulation struck Frontier through yvCurve collateral. Inverse reported a net loss of 5.83 million DOLA, paused DOLA borrowing and called for a broader market review. This was not a second name for the April event; it was another lending product, another oracle route and another hole.

Two failures within eleven weeks changed the question facing Inverse. The project no longer needed only deeper liquidity for DOLA. It needed a credit system in which borrowing cost, collateral custody, oracle behavior and supply ceilings could be isolated market by market.

FiRM, launched on December 16, 2022, became that successor. Borrowers place collateral in personal escrows and consume DBR as fixed-rate DOLA debt remains open. Pessimistic price oracles and market-specific ceilings narrow certain failure paths, although they cannot make collateral, liquidation or governance risk disappear.

Inverse deprecated the original Stabilizer in October 2023. Yet the September 2026 token-state review found the legacy Anchor Fed still authorized as a DOLA minter and tracking 3.1 million DOLA. Deprecating a user product had not automatically erased every permission in the underlying token.

FiRM Fed now dominated the accounting, tracking about 99.564 million DOLA. The Fed Chair was live as a 2-of-6 Safe even though the governance page still said 2-of-7; it could expand or contract approved markets within ceilings. The Treasury operator could both mint directly and alter the minter list. The bytecode is not upgradeable, but the unchanged code was designed to accept changing operators and issuance routes.

The current USDS-based PSM deployed on December 4, 2025, and governance executed the switch on December 20. Its design accepts USDS into an sUSDS vault and sends DOLA at one-to-one with no buy fee; in the reverse direction it returns 0.998 USDS per DOLA under the live 20-basis-point sell fee. Governance can change fees, the controller and the vault.

At the review snapshot, the PSM itself reported zero tracked supply and zero USDS/sUSDS reserves, while its Fed had prefunded the PSM with 200,000 DOLA under a 10 million ceiling. That left up to 200,000 DOLA of USDS-to-DOLA purchase inventory, subject to the controller and minimum-vault check, but zero DOLA-to-USDS reserve capacity. The two directions were not equally liquid.

On March 2, 2026, a price-per-share manipulation affected a Curve LlamaLend market that accepted sDOLA as collateral. The post-mortem described losses to borrowers in that external market; it did not report that DOLA’s token contract or FiRM had been compromised. The boundary of the incident matters because sDOLA is a vault share layered on top of DOLA.

DOLA’s history is thus a sequence of risk moving location. Anchor and Frontier tied it to vulnerable collateral pricing; FiRM reorganized borrowing around DBR, escrows and market limits; the PSM added a reserve swap whose capacity must be checked; sDOLA made the asset useful in integrations that brought their own oracle assumptions. The same address survived, but the meaning of using it kept following the machinery around it.