Inversefinance
Inversefinance DBR lets you budget FiRM borrowing costs for a chosen loan duration
Inversefinance DBR lets you budget FiRM borrowing costs using DOLA Borrowing Rights purchased for a chosen debt amount and duration. One DBR covers one DOLA for one year. The price paid fixes the cost of those rights; later purchases add coverage at their own acquisition prices.
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A FiRM collateral withdrawal remains blocked by an existing DBR deficit, even after the loan's DOLA debt is fully repaid.
Borrowing time measured in DBR
FiRM consumes DBR in proportion to outstanding DOLA debt and elapsed time, using a 365-day year in its accounting. For unchanged debt, the relationship is
R = D * t / 365
. Here,
R
is DBR consumed,
D
is DOLA debt, and
t
is elapsed days. The annual unit describes borrowing time, so a shorter period uses a proportional amount of DBR.
Changes in debt require separate time intervals in the calculation. Accrued consumption from earlier intervals remains due when the outstanding balance changes. Budgeting only from the latest debt figure can therefore understate rights already consumed. The relevant inputs are the debt recorded by the DBR contract and the time for which each balance remained outstanding.
DBR coverage choices and their stopping conditions
A wallet closing its only FiRM loan faces different withdrawal conditions before and after DBR exhaustion. With sufficient DBR, full DOLA repayment stops further consumption. When a deficit already exists, repayment alone does not settle that missing DBR. That deficit must also be covered before collateral withdrawal.
| Position choice | Borrowing-cost effect | Coverage or stopping condition |
|---|---|---|
| Buy planned coverage upfront | Cost uses the price paid for the acquired DBR | Covered duration assumes the planned debt stays unchanged |
| Purchase additional DBR later | New coverage carries its later purchase price | At unchanged debt, only DBR left after covering any existing deficit provides future coverage. |
| Partly repay DOLA debt | Consumption rate falls with the remaining debt | Remaining DBR lasts longer at the lower debt |
| Repay all DOLA debt | Repayment reduces recorded debt to zero | Consumption stops; any earlier DBR deficit remains |
| Complete a forced replenishment | Configured replenishment cost increases DOLA debt | Clearing the entire deficit leaves no prepaid borrowing time |
Check that DOLA debt is zero, the DBR deficit is cleared, and the wallet has received the withdrawn collateral. A confirmed repayment does not establish that the collateral has also returned. If debt is zero but a deficit remains, enough additional DBR to cover that deficit clears the remaining withdrawal block.
How do DBR purchases set the borrowing rate?
DBR purchases establish borrowing costs through the token price paid, so acquiring rights upfront fixes that expense for the quantity purchased.
Price and units
The DBR price must be expressed in the asset used to measure the borrowing budget. If
p
is DOLA paid per DBR, then
R * p
is the DOLA cost of
R
rights. Comparing that cost with the corresponding DOLA debt gives the financing cost for the chosen period. For a 365-day loan with unchanged debt, this DBR-only cost divided by the borrowed DOLA equals
p
.
Acquisition timing
Rights already purchased
A later change in the DBR market price does not change what the borrower previously paid for existing coverage. An already funded borrowing period therefore has a known token acquisition cost. That statement assumes the planned debt and duration stay within the rights acquired. More debt or a longer loan consumes more of that finite balance.
Rights purchased later
Additional purchases carry the price available when they occur. A staged purchase schedule therefore leaves the unpurchased portion of future borrowing costs exposed to DBR prices. The token purchase cost also excludes transaction fees and any separate exchange costs. Fixed borrowing rights do not fix collateral prices, liquidation exposure, or DOLA's market value.
Consumption recorded in the borrowing wallet
DBR uses non-standard ERC-20 accounting that deducts consumed rights as time accrues, without requiring a separate burn transaction for every interval. The contract calculates available balances after subtracting accrued rights. A token balance can consequently fall even when the wallet has made no new transfer. Ordinary consumption uses the outstanding DOLA debt as its base, and does not itself increase that principal. Use the debt that the relevant DBR contract records for the borrowing address. The remaining balance represents rights that have not yet been consumed, distinct from collateral or borrowed DOLA.
What happens when a DBR deficit is forcibly replenished?
A successful forced DBR replenishment adds its configured cost to the borrower's DOLA debt. The amount replenished cannot exceed the deficit that exists when the call executes. Success requires the resulting debt in that market to stay within collateral value discounted by the market's liquidation-incentive and liquidation-fee percentages. Anyone can initiate this function, although the contract's checks determine whether it succeeds.
The replenishment price is a protocol parameter, not the spot price that a voluntary DBR purchase might obtain. If the entire deficit is replenished, the borrower's DBR coverage returns only to zero. Outstanding DOLA debt then starts accruing another shortfall as time passes. Added debt can also worsen the position's collateralization, so replenishment does not provide a prepaid extension.
Collateral restrictions alongside a DBR budget
DBR covers the time attached to existing DOLA debt; permission to open or increase a FiRM loan comes from the selected market. Borrowing still depends on collateral value, the market's collateral factor, available borrowing capacity, and controller restrictions. A DBR deficit also blocks new DOLA borrowing. A fixed DBR acquisition cost cannot prevent liquidation when a position's debt exceeds its credit limit. Stale-oracle rules can also block new borrowing without stopping repayment or collateral additions.
New INV-backed borrowing is paused
Mill 389, executed on June 24, 2026, paused new DOLA borrowing against INV on FiRM's Ethereum market. Existing positions retain repayment, withdrawal, and staking functions, subject to their position requirements.
Holding DBR does not bypass that pause. INV staking rewards and DBR streaming remain separate from permission to open new INV-backed debt.
Reward income and DBR market exposure
DBR can enter a budget through rewards as well as purchases, although expected rewards differ from rights already available in a wallet. INV staking distributes DBR streaming rewards. The DOLA Savings Account also provides a route to receive DBR directly. Those arrangements expose a holder to the quantity and value of DBR earned, which differs from purchasing a specified balance upfront.
sDOLA gives savings rewards a different treatment: its wrapper converts allocated DBR into DOLA through an auction and compounds the proceeds. An sDOLA balance is therefore not itself a spendable DBR balance for FiRM borrowing. Holding sDOLA leaves a separate FiRM DBR shortfall unchanged.
Inversefinance DBR: what people ask
Does DBR expire simply because it stays in a wallet?
Unspent DBR does not expire merely through the passage of time when the address has no DOLA debt recorded in that DBR contract. Consumption follows debt and elapsed time. Retaining a positive token balance does not itself create borrowing-time charges. Holding the token still leaves its market value exposed to DBR price movements.
Can DBR that a loan has already consumed be transferred?
Only the available positive DBR balance can be transferred after the contract accounts for accrued consumption. An earlier token receipt does not establish how much remains transferable. The transfer function checks the sender's current available balance, so consumed rights are unavailable for transfer. Moving remaining DBR also does not move the sender's DOLA debt to the recipient.
Is a zero DBR token balance proof that no deficit exists?
A zero token balance does not prove that the address has no DBR deficit. The contract's balanceOf function reports zero both at exhaustion and when accrued consumption exceeds the tokens credited to the address. Its deficitOf function reports the shortfall separately, while signedBalanceOf can show the negative balance. A positive balanceOf result confirms that no deficit exists at that moment; a zero result requires checking deficitOf or signedBalanceOf.
Are borrowing rights tracked separately for each FiRM collateral escrow?
The FiRM DBR contract tracks borrowing rights by address across the markets registered with that contract. Separate collateral escrows do not create separate DBR wallet balances. A coverage estimate uses the address's debt recognized by that contract, including its relevant market positions. Borrowing from another registered market changes the debt base used to consume the same address's DBR balance.
Will a DBR spending allowance let someone borrow against my FiRM collateral?
A DBR spending allowance authorizes token transfers, not DOLA borrowing against collateral. FiRM's borrowOnBehalf function requires a borrower signature that binds the caller, borrower address, DOLA amount, nonce, and deadline. Approving a spender for DBR transfers does not supply that market signature. Transferring away DBR can still reduce coverage while a loan remains open.
How is the caller paid after a successful forced replenishment?
The market pays the caller a DOLA incentive calculated from the replenishment cost. The calculation multiplies that cost by the market's incentive rate in basis points and divides by 10,000. The borrower incurs the full replenishment cost as additional DOLA debt. The DBR shortfall limits how many rights can be replenished; the caller's incentive uses the resulting DOLA cost as its base.