//Inverse Finance FiRM
B-

Inverse Finance FiRM

Risk Score 35/100·D+Value
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$23MTVL·$11MFDV·LendingWebsite →

Moderate risk — innovative fixed-rate design with strong security improvements after 2022 exploits, balanced against untested DBR mechanism and historical vulnerability pattern.

Risk Breakdown

Top Risks

1

Historical oracle manipulation exploits — Inverse Finance suffered two oracle manipulation attacks in 2022 ($15.6M and $5.8M) on its now-retired Anchor product. While FiRM was redesigned with a dual-oracle system (Chainlink + 48h PPO low), the pattern of oracle-related vulnerabilities warrants continued scrutiny.

2

DOLA Borrowing Rights (DBR) sustainability — DBR is a novel DeFi primitive that decays over time and must be replenished to maintain borrowing positions. If DBR market liquidity dries up or prices spike, borrowers could face forced position closures.

3

Personal Collateral Escrow complexity — FiRM uses per-user escrow contracts to isolate collateral, preventing co-mingling. While this improves safety, the proliferation of individual contracts increases smart contract surface area.

4

DOLA stablecoin peg dependency — all borrowing on FiRM is denominated in DOLA. A DOLA depeg event would disrupt borrowing costs and potentially trigger liquidations.

Frequently Asked Questions

Is Inverse Finance FiRM safe to use?
Inverse Finance FiRM receives a B- risk grade (35/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — innovative fixed-rate design with strong security improvements after 2022 exploits, balanced against untested DBR mechanism and historical vulnerability pattern. Inverse Finance FiRM is a fixed-rate lending protocol that uses a novel DOLA Borrowing Rights (DBR) mechanism to let borrowers lock in interest rates. With $48M TVL and a redesigned architecture after two 2022 exploits on its predecessor, its B- grade reflects innovative design improvements (dual oracle, personal collateral escrows) offset by the untested nature of the DBR mechanism and the protocol's exploit history on earlier products.
What are the main risks of using Inverse Finance FiRM?
The key risks identified for Inverse Finance FiRM are: (1) Inverse Finance suffered two oracle manipulation exploits in 2022 totaling $21M on its old Anchor product. While FiRM is a complete redesign with improved oracle protections, the historical pattern of vulnerabilities is a risk factor. (2) FiRM uses DOLA Borrowing Rights (DBR) tokens that decay over time to maintain your borrowing position. If the DBR market becomes illiquid or prices spike, you may be forced to close your position even if your collateral is healthy. (3) All borrowing on FiRM is in DOLA stablecoin. If DOLA loses its peg, your borrowing costs could change unpredictably.
What is Inverse Finance FiRM's risk score breakdown?
Inverse Finance FiRM scores 35/100 across eight risk dimensions: Mechanism Novelty: 6/15, Interaction Severity: 6/20, Oracle Surface: 2/10, Documentation Gaps: 2/10, Track Record: 8/15, Scale Exposure: 3/10, Regulatory Risk: 2/10, Vitality Risk: 6/10. The highest risk area is Vitality Risk at 6/10.
How does Inverse Finance FiRM compare to other Lending protocols?
Among 90 rated Lending protocols on Hindenrank, Inverse Finance FiRM ranks #44 by safety (lowest risk score = safest). Its 35/100 risk score and B- grade place it in the middle tier of Lending protocols.
Has Inverse Finance FiRM ever been hacked or exploited?
Inverse Finance FiRM scores 8/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.

Incident History

1incident
Last scanned 2026-02-25

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