Key Developments This Week:
- INV Buybacks Progress: Second week of buybacks totals 2,320 INV (~$40K) removed from circulation
- Monolith Security Review: Entering final security review by Chain Security before launch
- Curve Llamalend Incident: Bug force-liquidated sDOLA leveraged-long positions; affected holders received donations
- Risk Management Action: crvUSD LP collaterals removed from FiRM, all positions repaid following Risk Working Group de-risking decision
Recent Context:
- INV buybacks launched at $1.1M annual rate
- jrDOLA now live offering 40% APY
- Sherlock audit competition completed
- Inverse Finance Foundation operational in Cayman Islands
STATE OF THE DAO UPDATE 09/02/26 Starting today, we’ll post a weekly DAO update here every Monday: - Monolith final audit is now in escalation phase by @sherlockdefi and is expected to be finalized next week. - A draft proposal to reduce bad debt repayments and start INV
STATE OF THE DAO UPDATE 16/02/26 - INV buybacks have begun at an initial rate of $1.1M per year. 75 INV worth $1.3k have already been purchased in the first few hours. - Monolith audits are in progress and are expected to continue for a couple more weeks - Proposal to launch
STATE OF THE DAO UPDATE 24/02/26 - 1,400 INV (~$25K) were removed from circulation since INV buybacks started last week - Sherlock audit competition of Monolith contracts is complete. Now pending a final security review before launch. - jrDOLA is now live and currently offering
Here are the results of the @InverseFinance Audit Contest! 1. @0xdmanwalking - $1,833 🥇 2. bughuntoor - $8,312 🥈 3. @ValvesSec - $1,691 🥉 $35,500 in rewards, bringing Sherlock's total researcher payouts to $19.6M+. Link below for the full results 👇
STATE OF THE DAO UPDATE MONDAY 02/03/2026 1⃣ Second week of INV buybacks reaches a total of 2,320 INV (~$40K) bought 2⃣ Monolith enters its last security review by @chain_security before launch 3⃣ Curve Llamalend bug force-liquidates sDOLA leveraged-longs. A large donation was
DOLA Borrowing Opportunity: 3.5M Available with 37% Max-Looped Net Yield

**Current Status:** - 1.5M DOLA borrowed - 3.5M DOLA still available for borrowing - Max-looped net yield: **37%** **Key Details:** - Fixed rate lending opportunity through FiRM - Isolated markets with no rehypothecation of collateral - Accelerated looping available **Background:** This follows the recent addition of Pendle PT-USDe and PT-sUSDe tokens as collateral options, expanding borrowing opportunities for users. *Connect your wallet to explore current borrowing rates and available collateral options.*
sDOLA Outperforms Cash and Major DeFi Yields with 22% Gain Since 2024
**sDOLA delivers 22.09% returns** since January 2024, significantly outpacing traditional cash which lost 7.27% over the same period. **Performance comparison:** - Beat U.S. Treasuries - Outperformed Aave lending rates - Exceeded Yearn Finance yields - Topped all major savings products tracked The yield advantage stems from sDOLA's organic revenue generation through Inverse Finance's fixed-rate lending market, FiRM. This approach has proven more effective than variable-rate protocols during the period. **Recent momentum:** sDOLA's total value locked surpassed $20 million, marking a 62% increase in just 30 days as of April 2025.
Loop Staked sUSDe-DOLA on FiRM: Fixed 3.96% Borrow Rate with Up to 35.14% Net APY

Inverse Finance's FiRM platform now offers a compelling DeFi strategy combining fixed borrowing costs with variable yields. **Key Features:** - Borrow at a **fixed 3.96% rate** against sUSDe-DOLA collateral - Earn up to **35.14% net APY** through looping strategies - Stack Ethena sats (points) throughout the process - **One-click leverage** up to 10x - Isolated markets ensure your collateral stays protected **How It Works:** Users can deposit staked sUSDe-DOLA as collateral, borrow DOLA at the fixed rate, and reinvest to amplify returns. The platform autocompounds positions via Convex Finance and Yearn, maximizing efficiency. This represents a significant improvement from October 2025's 6.24% fixed rate, now down to 3.96% while maintaining high yield potential. The fixed borrowing cost provides predictability while the variable yield offers upside exposure. [Learn more about FiRM](https://inverse.finance)
Inverse Finance Launches Season 6 with Leveraged sUSDe Looping Strategy
Inverse Finance has launched **Season 6** of its FiRM lending platform, introducing a leveraged looping strategy for sUSDe collateral. **Key Features:** - Loop staked sUSDe-DOLA with **3.96% fixed borrowing rate** - Earn up to **35.14% net APY** on positions - Farm Ethena sats simultaneously: **30x base rate**, boosted to **375x at maximum leverage** - No trade-off between yield generation and points accumulation The strategy allows users to deposit sUSDe as collateral, borrow against it, and redeploy borrowed funds to create leveraged positions - all while earning both yield and Ethena loyalty points throughout the process. [Start looping on FiRM](https://www.inverse.finance/firm)
Morpho Enables sDOLA Yield Looping with frxUSD Borrowing

Morpho now allows users to **loop their sDOLA yield** by borrowing frxUSD against their positions. This functionality comes through a collaborative market between Frax Finance and Alphaping. **Key Details:** - Users can leverage their sDOLA holdings to borrow frxUSD - The Alphaping Enhanced frxUSD Vault currently offers **28% APY** with sDOLA exposure - sDOLA is provided by Inverse Finance, a veteran DeFi protocol This looping strategy allows users to maintain exposure to sDOLA yields while accessing additional liquidity through frxUSD borrowing, potentially amplifying returns through leverage. [Access the vault](https://app.morpho.org/ethereum/vault/0xd8CD72A2eB7A4312404C00AeD5172C0026da0C27/alpha-frax-usd-enhanced-v2)