What is Fira?

Fira is a fixed-rate and variable-rate lending and borrowing protocol on Ethereum. It lets lenders lock in a known return and borrowers lock in a known cost — using a maturity-based AMM rather than a floating utilization curve.

Who owns Fira?

Fira is owned by Usual DAO and governed by USUAL token holders. Usual Labs is a service provider that built and operates the protocol on behalf of the DAO — it does not own Fira.

What chain is Fira on?

Ethereum Mainnet only. All contracts are verified on Etherscan.

Is there a FIRA token?

No. Fira does not have its own governance token. The protocol is governed by Usual DAO via the USUAL token.

How do I earn a fixed return?

You supply USDC to a fixed-rate market. The protocol issues Bond Tokens (BT) that trade at a discount to par. Hold them until maturity and they redeem 1:1 — the discount is your locked-in yield.

What is the difference between fixed-rate and variable-rate lending?

Fixed-rate lending has a defined maturity and a return you know upfront; your rate does not change regardless of market conditions. Variable-rate lending has no end date, and your interest rate floats with utilization — more flexible, but less predictable.

Can I exit a fixed-rate position before maturity?

Yes. You can sell your BT tokens on the AMM at any time. The price you receive depends on current market rates, so your realized return may be higher or lower than your entry yield.

Is my fixed-rate return guaranteed?

Your return is contractually fixed if you hold BT to maturity, assuming no bad-debt event. Variable-rate returns carry no guarantee — they depend on market utilization. Neither market eliminates smart contract or protocol risk.

What assets can I use as collateral?

It depends on the market. Fixed-rate markets accept Pendle Principal Tokens: PT-USDe, PT-sUSDe, and PT-USDG. Variable-rate markets accept wstETH and cbBTC (debt token is USDC in both cases). The UZR market accepts bUSD0 as collateral to borrow USD0.

What happens if I get liquidated?

Liquidators repay part of your debt and seize a proportional amount of your collateral plus a liquidation penalty. Depending on how far your position has moved, you can lose a meaningful portion of your collateral — avoid borrowing close to the liquidation threshold.

Can I repay early?

Yes. Variable-rate and UZR loans can be repaid at any time with no penalty. For fixed-rate loans, repaying early closes your position, but your effective cost is recalculated at the current implied rate — which may be higher or lower than your original rate.

What is the difference between Max LTV and LLTV?

Max LTV is the maximum you are allowed to borrow against your collateral at entry. LLTV (Liquidation LTV) is the threshold at which your position becomes eligible for liquidation. Always keep your position well below LLTV — for example, PT-USDe has a Max LTV of 89% and an LLTV of 90%, while wstETH has a Max LTV of 87% and an LLTV of 89%.

What is UZR?

UZR (Usual Zero Rate) is Fira's first market. It lets bUSD0 holders borrow USD0 at 0% interest, paying only a 0.10% annual service fee. The DAO is the sole lender in this market.

Why is the borrow rate 0%?

bUSD0 is yield-bearing USD0 collateral. The DAO provides USD0 liquidity and earns the yield generated by the bUSD0 collateral in return — making a 0% borrow rate economically viable for both sides.

Where does LP yield come from?

LP yield on Fira comes from three sources: swap fees collected on every AMM trade, net lending interest accrued as BT converges to par at maturity, and rehypothecation yield earned by deploying a portion of idle USDC reserves into variable-rate markets.

Is LP yield guaranteed?

No. All three sources are variable: swap fees depend on trade volume, lending interest depends on pool composition and market rates, and rehypothecation yield depends on variable-rate borrowing demand. Indicative range for V1 is 5–13% APR.

What is the LP equivalent of impermanent loss on Fira?

As interest rates move, the pool rebalances between BT (bonds) and FW (cash). Exiting before maturity while rates have moved against you can result in a shortfall versus simply holding BT. Unlike Curve IL, this loss fully reverses if you hold until maturity — BT converges to par.

What are BT, CT, and FW?

FW (FiraWrapped) is USDC wrapped inside Fira — it earns passive rehypothecation yield. BT (Bond Token) is the principal component: it trades at a discount and redeems 1:1 for FW at maturity. CT (Coupon Token) is the yield component: it captures the floating interest earned by FW over the remaining life of the market.

Why do I see BT or CT tokens in my wallet?

They represent your active position in a Fira market. BT reflects your principal claim; CT reflects your entitlement to yield. Do not send them to arbitrary addresses — they are not standard stablecoins and have no intrinsic value outside the Fira protocol.

What is a Coupon Token (CT)?

CT represents the present value of expected future yield on a fixed-rate position. Its price reflects market expectations about how much floating yield will accrue between now and maturity — making it a tradeable rate instrument.

Can I lose money trading CT?

Yes. CT's value decays to zero at maturity if no additional yield accrues. If rehypothecation rates fall or you paid too much for CT upfront, you can lose your entire investment. CT is a high-risk, high-optionality position.

Who is yield trading (CT) designed for?

CT suits experienced DeFi traders who want leveraged exposure to variable yield rates, protocols hedging their interest rate exposure, or users who want to sell their yield upfront and take a known fixed return instead. It is not recommended for passive users.

Has Fira been audited?

Yes. Fira has completed six independent security audits by four firms — Sherlock, Spearbit/Cantina, Hexens, and yAudit — conducted between November 2025 and March 2026. All audit reports are publicly available at docs.fira.money.

Is there a bug bounty?

Yes. Fira operates a bug bounty program through Sherlock with rewards up to $500K for critical vulnerabilities in the deployed smart contracts on Ethereum Mainnet. Note: the $7.5M bug bounty referenced elsewhere covers the broader Usual Protocol ecosystem, not Fira specifically.