DOLA

Overview

DOLA is a decentralized, debt-backed stablecoin issued by Inverse Finance, a DeFi lending protocol, and is designed to track the value of the US dollar at a one-to-one ratio. Users mint DOLA as debt against collateral such as ether and staking derivatives deposited in the protocol's lending markets, and the tokens are burned when the loans are repaid.

Beyond collateralized borrowing, DOLA's supply expands and contracts through contracts known as DOLA Feds, which mint or withdraw liquidity directly into decentralized exchanges and lending venues. The token is issued primarily on Ethereum and is traded and used across several networks and DeFi protocols. As with collateral-backed stablecoins generally, its peg can deviate due to collateral volatility, smart contract vulnerabilities, or thin liquidity.