# Optimize Borrow Limits for sDOLA Markets on Resupply Finance

**URL:** <https://gov.resupply.finance/t/optimize-borrow-limits-for-sdola-markets-on-resupply-finance/66>\
**Category:** Proposals\
**Created:** [July 17, 2025, 11:06am UTC](https://gov.resupply.finance/t/optimize-borrow-limits-for-sdola-markets-on-resupply-finance/66 "2025-07-17T11:06:49Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![cryptoharry](https://yyz1.discourse-cdn.com/flex009/user_avatar/gov.resupply.finance/cryptoharry/32/49_2.png) [@cryptoharry](https://gov.resupply.finance/u/cryptoharry)\
**Post date:** [July 17, 2025, 11:06am UTC](https://gov.resupply.finance/t/optimize-borrow-limits-for-sdola-markets-on-resupply-finance/66/1 "2025-07-17T11:06:49Z")

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# Optimize Borrow Limits for sDOLA Markets on Resupply Finance

## Summary

- Decommission legacy sDOLA market at `0x08064A8eEecf71203449228f3eaC65E462009fdF` by reducing its borrow limit to 1 wei. This halts new borrowing but allows all existing positions to repay/close normally.
- Scale the active sDOLA market at `0x27AB448a75d548ECfF73f8b4F36fCc9496768797` by increasing its borrow limit from 25M → 50M reUSD to meet demonstrated demand.
- Net protocol-wide sDOLA credit capacity rises +15M (from 35M to 50M reUSD).
- Consolidation simplifies risk monitoring, reduces liquidity fragmentation, and better aligns with current user behavior (utilization in the newer market has held ~15M–25M since launch, despite modest incentives).

## Motivation

Two sDOLA lending markets currently coexist on Resupply Finance: an older deployment that has seen declining usage, and a newer deployment that has exhibited sustained demand and deeper integrations with Curve Lend and the broader sDOLA liquidity stack. Maintaining two parallel caps fragments risk controls and operational focus. Concentrating capacity into the venue users actually utilize improves capital efficiency and governance clarity. The increased cap for the sDOLA market gives room to grow with new incentivization from Inverse Finance.

## Background & Context

sDOLA is a yield-bearing wrapper of DOLA. Holders accrue yield via an appreciating exchange rate versus DOLA (up only). sDOLA can be redeemed atomically for the underlying DOLA at the current exchange rate, supporting peg confidence and capital efficiency. DOLA is a leading protocol-native stablecoin within the Inverse / DOLA ecosystem and has over $100m TVL of liquidity depth on Curve Ethereum.

Action to be Taken

1. Reduce the borrow limit of pair `0x08064A8eEecf71203449228f3eaC65E462009fdF` to 1 wei.
2. Increase the borrow limit of pair `0x27AB448a75d548ECfF73f8b4F36fCc9496768797` to 50m.

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**Author:** ![CryptoEase\_with\_Mike](https://yyz1.discourse-cdn.com/flex009/user_avatar/gov.resupply.finance/cryptoease_with_mike/32/21_2.png) [@CryptoEase\_with\_Mike](https://gov.resupply.finance/u/CryptoEase_with_Mike)\
**Post date:** [July 17, 2025, 3:57pm UTC](https://gov.resupply.finance/t/optimize-borrow-limits-for-sdola-markets-on-resupply-finance/66/2 "2025-07-17T15:57:21Z")

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Makes sense. Good housekeeping.
