Inverse Finance Fixed Rate Market
The Fixed Rate Market or “FiRM,” is Inverse Finance’s new Fixed Rate Market lending protocol that implements a new DeFi primitive called DOLA Borrowing Rights, and a novel money market architecture, Personal Collateral Escrows.
DBR's provide the holder the right to borrow DOLA in FiRM. DBR’s solve issues of highly volatile interest rates in traditional variable rate lending and DBR removes many of the constraints of conventional fixed rate interest lending in DeFi. Users benefit from the certainty of fixed-rate loans while gaining both short and long-term optionality and opportunities from DOLA Borrowing Rights.
PCE's isolate collateral deposits by individual wallet address. This removes the need for shared collateral pools which carry increased risks, and grants users the ability to use yield bearing collateral tokens and the voting power of governance tokens deposited as collateral, or in DeFi incentives voting schemes such as Convex.
PCE's are a new DeFi lending market architecture. The user experience for depositing collateral (e.g. ETH) and borrowing DOLA in the PCE paradigm is virtually identical to that of cross-collateral markets with a few important exceptions. The user experience remains simple as the underlying PCE smart contracts are hidden from the user.
For each new market a user enters, a new escrow contract specific to that user and that collateral token is created.
An example structure for a single user with borrowing positions in multiple FiRM markets:
The user retains the functionality of the collateral tokens as they do not have to be sent to smart contracts controlled by Inverse Finance. This means that: Holders of governance tokens like INV, COMP and UNI will retain their voting power while at the same time using the tokens as collateral in FiRM. FiRM markets can support liquidity pool tokens and yield farming vault tokens as collateral.
Read more in the following pages: