Mechanism review
DOLA dispute review 2026-10-17; evidence D-2/D-3 in BackingD and independently refreshed D-3 in verify-VerifyBacking. CURRENT GROSS FiRM METRIC: collateralizationRatio = 1.2528786141571429 = issuer API firmTotalTvl 89,321,165.41159895 / drawn debt 71,292,752.86711518. TVL observed 2026-10-17T21:31:34.476Z (payload timestamp 1792272688836), fixed-markets observed 2026-10-17T21:31:34.440Z (payload timestamp 1792272424141). These nearby but distinct issuer clocks do not establish same-pin independently priced whole-system solvency or net external backing; the API omits approximately 88.0122 DOLA of yv-USR debt. Idle pre-minted DOLA is protocol inventory, not independent collateral, and any liability netting must symmetrically remove the matching own-token assets. CURRENT CIRCULARITY (D-2): balances(uint256) and stored_rates() at Ethereum block 26214783, hash 0xd8de05d65dd285a6482739aeee16a7ee5a9a492fb9d8a0f0edf784957f94caee, timestamp 2026-10-17T20:51:59Z, measured through the cited Alchemy RPC, show DOLA/sUSDe is 75.7122% DOLA, DOLA/sUSDS 76.9298% DOLA, and scrvUSD/sDOLA 75.1979% sDOLA by normalized constituent value, not roughly half. These are rate-normalized shares, not independent USD marks. reUSD/sDOLA differs materially at 26.3163% sDOLA and must not inherit the dominant pools' approximately 75% circularity. BackingD's fixed-markets observation 2026-10-17T20:52:45.065Z (payload timestamp 1792270364354) shows LP-secured debt 96.1846% of drawn debt; sUSDe-related markets (including direct sUSDe) are 75.3205% of drawn debt. Its TVL observation 2026-10-17T20:53:04.626Z (payload timestamp 1792270299730) gives sUSDe-related gross collateral TVL 60,747,716.60121238 / 89,337,841.40984431 = 67.9977%. These composition denominators and clocks are distinct from the later refreshed gross ratio. COLLATERALIZATION PARAMETERS and LIQUIDATION MECHANICS remain limited: governance-set collateral/liquidation factors, incentives, debt ceilings, rolling borrow limits, Pessimistic Price Oracles and permissionless liquidators are documented, but the measured dominant-pool circularity reinforces rather than removes the 2026-07-22 reflexivity deficiency. No independent liquidation stress replay or recovery valuation was established; neither a favorable upgrade nor a new weak/failed grade follows from the constituent shares alone. BACKSTOP REFRESH 2026-10-18: Ethereum block 26218090, hash 0x34bd6a2053f765627143843da128f7fc8d1f2680028cc2c5344bca4c2afc3488, timestamp 2026-10-18T07:55:59Z, through the cited Alchemy RPC, independently identifies current jrDOLA v2 0x6f80a22a57c7f0257094ea8d426af3f747defbc7 and FiRMSlashingModule 0x316a01f878aa6d5a4c7ea2080d64d364f9538aa2: module.JUNIOR_POOL() points to v2 and v2.slashingModules(module) is true. asset() is sDOLA 0xb45ad160634c528cc3d2926d9807104fa3157305; totalAssets() is 127,925.798305387814640250 sDOLA, converted at the same pin to 182,132.678089102624028235 DOLA. The slash ceiling after MIN_ASSETS of 1 sDOLA is 182,131.254352213726053747 DOLA. Superseded v1 0x633821b8e003344e5223509277f2084ea809a452 still holds 438.754495829790683000 sDOLA (624.670960882705508263 DOLA at this pin), not the current buffer. Permissionless slash(market,borrower) requires an allowed, DBR-registered, activated market; debt greater than collateral value, debt at least 5 DOLA and residual collateral value at most 100 DOLA. Governance approves markets with a minimum/current 604800-second activation delay; no governance or guardian action is required for each eligible repayment. Governance can remove active markets or revoke modules; guardian can remove only pre-activation markets. NewMarket events from deployment block 25377640 through the pin enumerate 19 markets, all joined to the issuer API's 49-address universe observed 2026-10-18T07:58:52.601Z (payload timestamp 1792310194230); getters confirm 18 activated and one pending. Same-pin totalDebt() across all 49 markets is 71,285,363.760826413327509144 DOLA, of which activated markets hold 70,445,168.378071525849741745 (98.8213634%). ysyBOLD is approved but activates only at 2026-10-19T21:37:59Z. Market eligibility is not loss-capital coverage: the slash ceiling is only 0.2554960% of this drawn debt, and borrower eligibility further limits use; no guaranteed stressed loss recovery follows. Retain limited, not adequate financial assurance. Withdrawals require escrow 0x8554d8a6bcc5b6d6eb7bea2189e6a8f8d24c7e45, a currently configured 1-to-10-day queue, 2-day exit window and 5-bps queue fee; governance can pause queueing and completion for up to 90 days per action and can renew the pause. Queued shares remain slashable. RETAINED HISTORICAL EVIDENCE (not refreshed): BRANCH ISOLATION adequate remains based on documented Personal Collateral Escrows isolating borrower collateral by market while bad debt is mutualized through jrDOLA/reserves. SHUTDOWN AND BAD DEBT weak retains the July observation of unresolved approximately 2.75M DOLA legacy Frontier debt, revenue-dependent DBR-auction repayment and no documented global holder settlement path; the old v1 balance is not a current-capacity premise, and the v2 FiRM module does not establish legacy Frontier recovery. That historical debt observation is not a current balance. STRUCTURAL REDEMPTION limited: historical PSM 0x4dfd662622d766304cb539e66f893c4defa19398 source and block 25572058 reads established permissionless DOLA-to-USDS sells at 20 bps, sUSDS vault identity and zero sold supply/capacity, not a current execution guarantee; no redemption for FiRM collateral is documented. Liquidation funding remains structurally external rather than a committed DOLA-dedicated pool; jrDOLA absorbs eligible bad-debt shortfalls, not ordinary liquidation funding. Removed stale analogous supply-wide and first-loss ratios rather than renew them without matching fresh evidence. The global metric clock and unchanged components retain their original evidence-pin dates. The refreshed backstop component becomes score-bearing only after the 2026-10-18 UTC day elapses, per the mechanism-overlay evidence standard.
