Author

Chaos Labs

Overview

Chaos Labs recommends listing DOLA as a borrowable asset pool on Gearbox’s Ethereum deployment. Below is our analysis and initial risk parameter recommendations.

Technical overview

DOLA is a decentralized, synthetic stablecoin developed by Inverse Finance, designed to maintain a peg to the U.S. dollar. Dola is debt-backed, meaning that each DOLA token is overcollateralized by assets such as sUSDe, cbBTC, and LP tokens.

While the DOLA token is available on multiple chains, we will focus on its Ethereum deployment in this analysis.

To maintain its peg to USD, Inverse Finance employs a mechanism called DOLA Fed, which adjusts the supply of DOLA in response to market demand. This involves minting additional DOLA when the price on DEX rises over 1 thanks to growing demand and contracting the supply when demand decreases, effectively stabilizing its value. Additionally, Inverse Finance offers sDOLA, a yield-bearing version of DOLA, allowing users to earn returns by staking their DOLA holdings.

Tech specification

IRM

Parameter	Proposed value
r0	2.5
r1	0
r2	0
r3	0
U1	70
U2	90
isBorrowingMoreU2Forbidden	true

Price oracle

DOLA (0x865377367054516e17014ccded1e7d814edc9ce4): the same as Main feed for USDC Trusted: True

Quoted tokens

Asset	USDe	sUSDe	sDAI	USDS	sUSDS	stkUSDS
Quota Limit	8,000,000	7,000,000	7,000,000	7,500,000	4,500,000	4,500,000
minRate	0.05%	0.05%	0.50%	0.05%	0.05%	0.05%
maxRate	25%	25%	15%	25%	25%	25%

Asset	WETH	stETH	WBTC	PT-sUSDe26Dec2024
Quota Limit	7,000,000	3,500,000	7,000,000	3,000,000
minRate	0.04%	0.04%	0.04%	0.05%
maxRate	40%	40%	40%	25%

The following tokens are technical & needed for compatibility. The list of tokens and parameters: Simple ERC20s: USDC, USDT, DAI, FRAX, crvUSD, SKY Curve LP tokens: 3Pool, FRAX/USDe, USDe/USDC, sDAI/sUSDe, USDe/crvUSD, FRAX/sDAI, DOLA/FRAXBP, crvUSD/DOLA, ETH/stETH

Parameter	Value
Quota Limit	0
minRate	0.01%
maxRate	0.01%

Credit Manager

Trade DOLA Tier 1

Parameter	Value
minDebt	20000
maxDebt	400000
feeInterest	0.25
feeLiquidation	0.015
liquidationPremium	0.04
feeLiquidationExpired	0.015
liquidationPremiumExpired	0.04
poolLimit	20000000

Collateral tokens

Token	LT
USDe	90%
sUSDe	90%
sDAI	90%
USDS	90%
sUSDS	90%
PT-sUSDe26Dec2024	90%
WETH	90%
stETH	90%
WBTC	90%

The following tokens are technical & needed for compatibility, add them to Tier 1 CM with LT = 0%: Simple ERC20s: USDC, USDT, DAI, FRAX, crvUSD, SKY Curve LP tokens: 3Pool, FRAX/USDe, USDe/USDC, sDAI/sUSDe, USDe/crvUSD, FRAX/sDAI, DOLA/FRAXBP, crvUSD/DOLA, ETH/stETH

Trade adapters

Curve:

• 3pool 0xbebc44782c7db0a1a60cb6fe97d0b483032ff1c7
• FRAX/USDe 0x5dc1bf6f1e983c0b21efb003c105133736fa0743
• USDe/USDC 0x02950460e2b9529d0e00284a5fa2d7bdf3fa4d72
• sDAI/sUSDe 0x167478921b907422f8e88b43c4af2b8bea278d3a
• USDe/crvUSD 0xf55b0f6f2da5ffddb104b58a60f2862745960442
• FRAX/sDAI 0xce6431d21e3fb1036ce9973a3312368ed96f5ce7 https://curve.fi/#/ethereum/pools/factory-stable-ng-32/deposit
• DOLA/FRAXBP 0xe57180685e3348589e9521aa53af0bcd497e884d https://curve.fi/#/ethereum/pools/factory-v2-176/deposit
• crvUSD/DOLA 0x8272e1a3dbef607c04aa6e5bd3a1a134c8ac063b https://curve.fi/#/ethereum/pools/factory-crvusd-12/deposit
• ETH/stETH 0xdc24316b9ae028f1497c275eb9192a3ea0f67022 https://curve.fi/#/ethereum/pools/steth/deposit

Uniswap V3:

• DAI/USDC 0.01% 0x5777d92f208679DB4b9778590Fa3CAB3aC9e2168
• USDC/WETH 0.05% 0x88e6A0c2dDD26FEEb64F039a2c41296FcB3f5640
• WBTC/WETH 0.05% 0x4585FE77225b41b697C938B018E2Ac67Ac5a20c0
• WBTC/USDC 0.05% 0x9a772018FbD77fcD2d25657e5C547BAfF3Fd7D16
• SKY/WETH 0.3% 0x764510aB1d39CF300e7abe8F5B8977D18F290628

Sky:

• DAI <-> USDS LitePSM
• Staked USDS Vault

sDAI:

• sDAI erc4626 deposit/withdraw

Pendle:

• adapter for market: 0xa0ab94debb3cc9a7ea77f3205ba4ab23276fed08 PT: 0xee9085fc268f6727d5d4293dbabccf901ffdcc29

Partial liquidation bot

It’s proposed to give partial liquidation bot (0x0f06c2bD612Ee7D52d4bC76Ce3BD7E95247AF2a9) permissions to add collateral, decrease debt and withdraw collateral in DOLA Tier 1 CM.

Transaction log

Txn log can be found here Md5 checksum is 1d68c44a675a868e5a8604efa0c6b1ca.