FiRM Features
Last updated
Last updated
is Inverse Finance's flagship lending protocol that offers fixed-rate borrowing. Unlike variable-rate markets, where interest rates fluctuate based on market dynamics, FiRM ensures borrowers secure loans with fixed interest rates of any duration. This certainty attracts a broader range of users, including those who prefer traditional financial products with stable costs. FiRM supports various collateral types, each with specific parameters tailored to its risk profile.
Security is paramount in FiRM, featuring multiple layers of protection for users. These include:
Personal Collateral Escrows (PCEs) ensure that each user’s deposits are completely isolated by user and token type, replacing traditional shared collateral pools. This design eliminates the possibility of large-scale vulnerabilities, as there is no single, centralized pool for attackers to target. Additionally, PCEs allow users to stake their assets and hold sTOKENS (e.g., governance tokens that accrue rewards), granting them full participation rights—voting, reward claiming, and more—while those assets are simultaneously used as collateral. Since deposited collateral cannot be re-lent, potential oracle manipulation exploits that target artificially inflated collateral prices are further contained. PCEs thus combine granular segregation with utility for staked tokens, enhancing both security and user empowerment within FiRM.