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What version of calibre are you planning on installing? You will still need to have ADE installed to download the epub associated with the .acsm file sent by Overdrive. I haven't used BorrowBox so no idea of what it does.
BTW, newer Kobo ereaders such as the Forma, Libra H2O and Clara HD will allow you to borrow from Overdrive libraries from your device.
As for the firmware version, calibre 5.8.1 has no issues with Kobo firmware 4.25.15875. For calibre 4.23, you will need to enable the Attempt to support newer firmware option on the Metadata, on device & advanced tab of the KoboTouch or KoboTouchExtended driver configuration.
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