Getting Started with FiRM

This guide walks you through borrowing your first DOLA on FiRM. The entire process takes 5-10 minutes and involves four main steps: deposit collateral, buy DBR, borrow DOLA, and monitor your position.

First time? Read Core Concepts if terms like "collateral factor" or "liquidation" are unfamiliar.

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What You'll Need

Before starting, make sure you have:

• Supported collateral - WETH, wstETH, or another accepted asset

• ETH for gas - $10-20 worth for transaction fees

• 10 minutes - For your first borrow (faster after)

Risk Warning: Borrowing involves liquidation risk if collateral value drops. Start with conservative amounts and maintain safe loan-to-value ratios below 70%.

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How FiRM Works

FiRM's fixed-rate borrowing works in four steps:

1. Deposit collateral → Choose Your Collateral Select from 20+ approved collateral types including stable and volatile assets, staking derivatives, governance tokens, yield-bearing assets, principal tokens, and liquidity pool tokens. Each has different collateral factors and risk profiles. Your collateral goes into an isolated smart contract (PCE) specific to you and your token type. This isolation prevents issues in one market from affecting your other positions.

2. Buy DBR tokens → Buy DBR tokens equivalent to your intended borrow amount × duration. DBR can be purchased on Curve, through the XY=K auction, or from DEX aggregators. (1 DBR = borrow 1 DOLA for 1 year)

3. Borrow DOLA → With collateral deposited and sufficient DBR in your wallet, borrow DOLA up to your collateral factor limit. DOLA appears in your wallet immediately.

4. DBR streams over time → Your DBR balance decreases continuously while you have an outstanding loan. Monitor your DBR balance to avoid forced replenishment.

Manage Your Position Add collateral to increase borrowing capacity, repay debt to reduce risk, purchase more DBR to extend your loan, or close your position entirely anytime. Unlike traditional fixed-rate loans, FiRM loans never expire. You can hold positions indefinitely as long as you maintain sufficient DBR and collateral.

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Method 1: One-Transaction Borrow

This method deposits collateral, purchases DBR, and borrows DOLA all at once.

Step-by-Step Process

1. Navigate to FiRM

   • Go to app.inverse.finance/firm

   • Connect your wallet

   • Select your desired collateral market from the list

2. Open the Borrow Interface

   • Click the "Deposit & Borrow" tab

   • You'll see the integrated borrowing interface

1. Configure Your Position

The interface shows multiple input fields that work together: Deposit collateral, Borrow DOLA, Duration to cover (check "Auto-buy DBR" to include purchase in transaction).

1. Review the Transaction

Before confirming, check the Summary tab to ensure values make sense.

1. Execute

• Click "Approve [Collateral Token]" (first time only)

• Wait for approval transaction

• Click "Borrow" (or "Deposit & Borrow" if depositing new collateral)

• Review the transaction summary in your wallet and confirm the transaction

What just happened in one transaction:

• ✅ Your collateral was deposited into your Personal Collateral Escrow

• ✅ DBR was purchased and added to your wallet

• ✅ DOLA was borrowed and sent to your wallet

• ✅ Your position is now active and DBR begins decaying

Success! Your borrowed DOLA is in your wallet. View your position at inverse.finance/dashboard.

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Method 2: Pre-Purchase DBR

If you believe DBR prices will rise, or want to lock in today's rates for future borrowing, buy DBR separately first.

Where to Buy DBR

Option A: XY=K Auction

1. Go to inverse.finance/xykauction

2. Enter DBR amount

3. Review DOLA cost

4. Click "Buy DBR" and confirm

Option B: Curve Finance

1. Go to curve.fi and find triDBR pool

2. Swap DOLA/USDC → DBR

Option C: DEX Aggregator

• Use CowSwap, 1inch, or LlamaSwap

• DBR address: 0xad038eb671c44b853887a7e32528fab35dc5d710

After buying DBR:

When you're ready to borrow, follow Method 1 but uncheck "Buy DBR" - the interface will use your existing DBR balance instead.

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Method 3: Deposit Collateral First

You might deposit collateral without borrowing if you:

• Are still deciding how much to borrow

• Plan to borrow later when DBR prices are better

• Want to separate the two actions for accounting/tax reasons

Deposit-Only Process

1. Navigate to your market on FiRM

2. Click the "Deposit" tab (not "Borrow")

3. Enter collateral amount

4. Click "Approve" then "Deposit"

Your collateral is now deposited. You can borrow later by:

1. Returning to the same market

2. Clicking "Borrow" tab

3. Following Method 1, but leaving "Collateral to deposit" blank

4. The interface uses your already-deposited collateral

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Flexible Position Management

Once you have an active position, FiRM offers multiple ways to adjust it:

Borrow More DOLA (No New Collateral Needed)

If you have unused borrowing capacity:

1. Go to your market on FiRM

2. Click "Borrow" tab

3. Enter additional DOLA amount to borrow and confirm transaction

Requirements:

• Must have sufficient DBR in wallet (or buy more during transaction)

• Existing collateral must provide the borrowing capacity

Common use case: You deposited $10,000 collateral and borrowed $5,000 DOLA conservatively. Later, you want to borrow another $2,000 against the same collateral without depositing more.

Add Collateral (Improve Your Ratio)

To increase your borrowing capacity or safety margin:

1. Go to your market on FiRM

2. Click "Deposit" tab

3. Enter additional collateral amount and confirm transaction

Your collateral ratio improves immediately, giving you:

• More buffer against liquidation

• Ability to borrow more DOLA if desired

• Peace of mind during volatile markets

Buy More DBR (Extend Your Loan)

Your DBR decreases continuously while borrowing. To extend your loan:

Option A: During any FiRM transaction

• Check "Buy DBR" in the interface

• Adjust the amount/duration

• It's included in your next deposit/borrow/repay transaction

Option B: Standalone DBR purchase

• Buy DBR on Curve, auction, or aggregators

• No need to interact with FiRM

• Your loan automatically extends as long as you have DBR

Pro tip: Check your DBR balance monthly. Buy more when you're down to 30 days remaining to avoid forced replenishment.

Repay Debt

Partial repayment:

1. Go to your market

2. Click "Repay" tab

3. Enter amount to repay and confirm transaction

Full repayment:

1. Click "Repay" tab

2. Click "Max" button and confirm transaction

3. Your debt is cleared and you can withdraw all collateral

After repaying:

• Unused DBR stays in your wallet (keep for future borrows or sell)

• Withdraw collateral if desired, or leave it for future borrowing

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Quick Safety Checklist

Set up these safeguards immediately after borrowing:

• Bookmark the dashboard

• Set price alerts for your collateral (use CoinGecko/TradingView)

• Make note of your liquidation price

• Set calendar reminder to check position periodically

• Note when you need to buy more DBR

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What to Do With Your DOLA

Popular uses for borrowed DOLA:

• Earn yield: Stake in sDOLA or jrDOLA or deposit in DOLA DEX liquidity pools

• Cross-chain: Bridge to Optimism, Base, or Arbitrum for lower-fee operations

• Spend or hold: Use for any purpose while keeping your crypto collateral exposure

Positive carry strategy: If DOLA yield > your DBR cost, you earn the spread while maintaining stable DOLA exposure.

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Next Steps

Learn more about FiRM:

• FiRM Collateral Guide - Compare all collateral options with risk profiles

• Advanced FiRM Features - Accelerated Leverage Engine and optimization strategies

• FiRM Security & Safety - How PCE, PPO, and other mechanisms protect you

• FiRM Liquidations & Replenishments - Understanding and avoiding liquidation and replenishment

• FiRM FAQs - Common questions and troubleshooting

Optimize your strategy:

• Learn DBR mechanics for rate locking and hedging

• Explore multi-collateral positions for diversification

• Join Discord to discuss strategies with other borrowers

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