DOLA

Overview

DOLA is a dollar stablecoin issued by Inverse Finance, a DAO that also operates the lending market DOLA is minted from. The documentation says DOLA is created exclusively through overcollateralized borrowing on FiRM and direct reserve swaps through the Peg Stability Module, against a 1:1 target with the US dollar. Among stablecoin designs it sits with the crypto-collateralised ones. No bank deposits stand behind it.

Supply moves through Feds, contracts that governance authorises to mint or burn DOLA. DIA's registry records 101.9 million DOLA outstanding on Ethereum at $0.9994.

Sources: Inverse Finance docs, DOLA token overview

Backing and reserves

What backs it

The docs state that every DOLA in circulation is backed by collateral, either locked by a borrower in a FiRM market or offset by reserve assets held in the PSM. The transparency documentation puts the split at over 97% of DOLA backed by collateral deposited on FiRM. The rest sits in the PSM, which accepts USDS at 1:1 and mints DOLA against it. PSM reserves are held in sUSDS, Sky's yield-bearing version of USDS, and that yield goes to the DAO treasury.

What is published

Backing is shown as a live on-chain dashboard, not a periodic report. Inverse runs a transparency portal covering treasury holdings, DOLA supply by Fed, liquidity pools and bad debt. The bad-debt page renders its values in the browser and they are not readable from the page source, so no figure is quoted here from it. The documentation itself states that 81.02% of DOLA bad debt has been repaid, without giving the date of that reading.

What is not published

There is no reserve attestation and no accountant's opinion on backing. The audits Inverse lists are contract reviews: a Code4rena FiRM contest in October 2022, Nomoi on FiRM in April 2023, yAudit on sDOLA in January 2024, and Sherlock, ChainSecurity and Electisec engagements on the Monolith and junior-tranche code in 2025. They review code.

Sources: Inverse Finance docs, DOLA token overview, Inverse Finance docs, Transparency portal, Inverse Finance docs, Peg Stability Module, Inverse Finance docs, Audits

Peg behaviour

The PSM prices the two directions differently. USDS to DOLA swaps at 1:1 with no fee when DOLA trades above $1. DOLA to USDS swaps at 1:0.998 when DOLA trades below $1, a 20 basis point fee that routes to the DAO treasury. Governance can adjust that fee and can migrate the reserves to a different yield vault. The registry price for DOLA is $0.9994.

Sources: Inverse Finance docs, Peg Stability Module

Risks

Concentration in one lending market

Over 97% of DOLA's backing is collateral posted by borrowers on FiRM, and the docs call that concentration intentional. The backing is whatever FiRM's markets hold and can liquidate. FiRM's defences are documented: a Pessimistic Price Oracle that values collateral at the lower of the current Chainlink price and the 48-hour low, adjusted by the collateral factor, a borrow controller that whitelists which contracts may borrow DOLA, personal collateral escrows that isolate deposits per user and per token, and a rolling 24-hour borrow limit. Comparable lending markets and vaults are tracked separately.

The 2022 oracle attacks

Those defences exist because the earlier market, Frontier, lost twice to oracle manipulation. In April 2022 an attacker inflated the INV price and took 1,588 ETH, 94 WBTC, 39 YFI and 3,999,669 DOLA, which the docs record as $15.6M in losses. In June 2022 the yvcrv3crypto market priced collateral off Chainlink data rather than Curve's internal exchange rate, and a flash-loan manipulation of the tricrypto pool produced a net loss of $5.83 million in DOLA against roughly $1.2 million of attacker profit. Borrowing is paused on Frontier. The DOLA bad debt those attacks created is still being repaid.

The reserve leg

PSM reserves sit in sUSDS, so the non-FiRM portion of DOLA's backing carries Sky's USDS exposure.

Sources: Inverse Finance docs, Frontier/Anchor legacy product and 2022 incidents, Inverse Finance Risk Working Group, FiRM security features, Inverse Finance docs, Transparency portal

What this map tracks

What the map reads

The Global Stablecoin Map reads DOLA from the Ethereum contract at 0x865377367054516e17014ccded1e7d814edc9ce4. Supply, holder count and price are DIA first-party registry data: 101.9 million DOLA outstanding, about 1,800 holding addresses, and a price of $0.9994. Inverse's contract documentation lists that address for Ethereum alone.

What it does not read

The registry carries six chains for DOLA: Ethereum, Arbitrum, BNB Chain, Fantom, Base and Optimism. The supply read covers Ethereum, so any balance bridged to the other five sits outside the figure above. Collateral composition per FiRM market, the PSM reserve balance and outstanding bad debt are not read on chain for this page. Those live in Inverse's transparency portal. Other crypto-backed coins are listed in the stablecoin explorer.

Sources: Inverse Finance docs, smart contract addresses by chain

Common questions