General Assessment of Newly Proposed Arks

Risk
1

General Assessment of Newly Proposed Arks

On the following posts: SIP 2.24, SIP 2.25, and SIP 2.26, new Arks were proposed for the Mainnet LR and HR fleets, as well as for Arbitrum and Base.

We evaluated each Ark proposal using financial risk metrics such as TVL, backing collateral quality, withdrawal limits, and by running scripts to identify correlations with currently deployed Arks. Given the large number of proposals, it is out of scope to provide a detailed explanation for each. However, those classified as high risk were mainly due to weaker collateral quality and smaller TVL. Note that some label names may differ from the post, as they did not match the protocol link provided.

Following this assessment, we propose the following classification:

chain protocol fleet asset vault assessment
ethereum morpho USDC morpho_falcon_usdc_core HR
ethereum morpho USDC morpho_avantgarde_usdc_core HR
ethereum morpho USDC morpho_clearstar_usdc_core Low TVL
ethereum morpho USDC morpho_edge_ultrayield_usdc Low TVL
ethereum morpho USDC morpho_gauntlet_usdc_rwa HR
ethereum morpho USDC morpho_mev_capital_pts_usdc HR
ethereum morpho USDC morpho_fx_protocol_re7_usdc HR
ethereum morpho USDC morpho_steakhouse_infinifi_usdc HR
ethereum morpho USDC morpho_tac_usdc HR
ethereum morpho USDC morpho_vault_bridge_usdc LR
ethereum morpho USDC morpho_openeden_usdc_vault HR
ethereum morpho USDT morpho_singularv_usdt Low TVL
ethereum morpho USDT morpho_pendlend_usdt HR
ethereum morpho USDT morpho_hyperithm_usdt Low TVL
ethereum morpho ETH morpho_singularv_weth HR
ethereum morpho ETH morpho_indexcoop_hyeth HR
ethereum morpho ETH morpho_tac_weth HR
ethereum morpho ETH morpho_alpha_weth_core HR
ethereum morpho ETH morpho_y_og_weth HR
ethereum morpho ETH morpho_avantgarde_weth_core HR
base morpho USDC morpho_steakhouse_hy_usdc Low TVL
base morpho USDC morpho_extrafi_xlend_usdc LR
base morpho USDC morpho_universal_usdc Low TVL
base morpho USDC morpho_hy_clearstar_usdc HR
base morpho USDC morpho_cs_reactor_oe_boosted_usdc HR
base morpho USDC morpho_gauntlet_usdc_frontier HR
base morpho USDC morpho_re7_usdc DEPLOYED
base morpho ETH morpho_extrafi_xlend_weth LR
base morpho ETH morpho_yearn_og_weth LR
arbitrum morpho USDC morpho_gauntlet_usdc_prime LR
arbitrum morpho USDC morpho_gauntlet_usdc_core LR
arbitrum morpho USDC morpho_y_og_usdc Low TVL
arbitrum morpho USDC morpho_steakhouse_prime_usdc Low TVL
arbitrum morpho USDC morpho_mev_capital_usdc Low TVL
arbitrum morpho USDT morpho_gauntlet_usdt_core Low TVL
arbitrum morpho USDT morpho_mev_capital_usdt Low TVL
ethereum euler USDC euler_frontier_falcon_usdc HR
ethereum euler USDC euler_frontier_mmev_usdc HR
ethereum euler USDC euler_frontier_yieldfi_usdc HR
ethereum euler USDC euler_frontier_hyperwave_usdc HR
ethereum euler USDC euler_frontier_yala_usdc HR
ethereum euler USDC euler_frontier_pareto_usdc Low TVL
ethereum euler USDT euler_yield_usdt DEPLOYED
ethereum euler ETH euler_frontier_puffer_weth LR
ethereum euler ETH euler_frontier_upshift HR
ethereum euler ETH euler_alterscope_lrt HR
base euler USDC euler_frontier_yo_yousdc HR
base euler ETH euler_alterscope_lrt_weth HR
arbitrum euler USDC euler_arbitrum_usdc LR
arbitrum euler USDT euler_arbitrum_usdt HR
ethereum siloV2 USDC varlamore-falcon-usdc HR
ethereum siloV2 USDC varlamore-usdc-growth LR
ethereum siloV2 USDC apostro-usdc-frontier DEPLOYED
arbitrum siloV2 USDC varlamore-usdc-growth DEPLOYED
arbitrum siloV2 USDC greenhouse-usdc Low TVL
arbitrum siloV2 USDC susdx-usdc-127 LR

We also highlighted the Arks already deployed. Some remain blacklisted due to collateral quality, while others are fully operational. There are also Arks leading to vaults/markets with too low TVL, for which we recommend setting caps to zero if deployed, as we believe their contribution to the growth of the fleet is not significant. Additionally, since there are no HR fleets deployed on Base and Arbitrum, those classified as HR on those networks are proposed to be excluded from onboarding at the current stage.

Finally, this assessment is based on current market conditions. We may reassess in the future if those Arks improve their financial risk metrics or increase their TVL where applicable.

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2

Parameters for the Whitelisted & Deployed Arks on Base & Arbitrum

The parameters for the proposed and whitelisted Arks on Base and Arbitrum (see SIP 2.25, and SIP 2.26) were computed with our risk model, which considers TVL, collateral quality, and exposure. Based on this assessment, we propose the following initial parameters:

Fleet Base USDC LR

Ark Symbol/Vault maxCap Max. %TVL maxInflow maxOutflow
morpho morpho_extrafi_xlend_usdc 1,900,000 31.2% 1,900,000 1,900,000

Fleet Base ETH LR

Ark Symbol/Vault maxCap Max. %TVL maxInflow maxOutflow
morpho morpho_extrafi_xlend_weth 1,140 35.0% 1,140 1,140
morpho morpho_yearn_og_weth 25 31.5% 25 25

Fleet Arbitrum USDC LR

Ark Symbol/Vault maxCap Max. %TVL maxInflow maxOutflow
morpho morpho_gauntlet_usdc_prime 7,000,000 40.00% 2,400,000 4,800,000
morpho morpho_gauntlet_usdc_core 1,120,000 33.00% 1,120,000 1,120,000
euler euler_arbitrum_usdc 1,530,000 34.00% 1,530,000 1,530,000
siloV2 susdx-usdc-127 1,490,000 36.00% 1,490,000 1,490,000

The cooldown period for all Arks in this Fleet is 10 minutes. These parameters keep the Fleet within controlled risk limits while accommodating expected demand. Arks with very low TVL have been excluded, as they do not improve fleet performance, but we will monitor them and set non-zero caps if their TVL increases in the future. In general, these are initial values, and will change dynamically according to market conditions.

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3

Parameters for the Whitelisted & Deployed Arks on Mainnet

The parameters for the proposed and whitelisted Arks on Mainnet (see here and SIP 2.24) were computed with our risk model, which considers TVL, collateral quality, and exposure. Based on this assessment, we propose the following initial parameters:

Fleet Mainnet ETH LR

Ark Symbol/Vault maxCap Max. %TVL maxInflow maxOutflow
euler euler_frontier_puffer_weth 630 33.0% 630 630

Fleet Mainnet USDC LR

Ark Symbol/Vault maxCap Max. %TVL maxInflow maxOutflow
morpho morpho_vault_bridge_usdc 30,600,000 30.3% 10,000,000 15,200,000
siloV2 varlamore-usdc-growth 40,000 29.0% 40,000 40,000

Fleet Mainnet ETH HR

Ark Symbol/Vault maxCap Max. %TVL maxInflow maxOutflow
morpho morpho_singularv_weth 1,560 45.0% 1,560 1,560
morpho morpho_indexcoop_hyeth 1,430 45.0% 1,430 1,430
morpho morpho_tac_weth 5 40.0% 5 5
morpho morpho_alpha_weth_core 830 45.0% 830 830
morpho morpho_y_og_weth 4,600 30.0% 3,000 4,500
morpho morpho_avantgarde_weth_core 690 45.0% 690 690
euler euler_frontier_upshift 850 46.0% 850 850
euler euler_alterscope_lrt 154 45.0% 154 154

Fleet Mainnet USDC HR

Ark Symbol/Vault maxCap Max. %TVL maxInflow maxOutflow
morpho morpho_avantgarde_usdc_core 5,200,000 12.0% 2,400,000 2,400,000
morpho morpho_gauntlet_usdc_rwa 4,300,000 42.0% 4,000,000 4,300,000
morpho morpho_mev_capital_pts_usdc 11,600,000 43.0% 4,000,000 8,600,000
morpho morpho_fx_protocol_re7_usdc 1,180,000 43.0% 1,180,000 1,180,000
morpho morpho_steakhouse_infinifi_usdc 6,800,000 43.0% 4,000,000 6,800,000
morpho morpho_tac_usdc 7,500,000 12.0% 2,400,000 2,400,000
euler euler_frontier_falcon_usdc 58,000,000 46.0% 4,000,000 9,200,000
euler euler_frontier_mmev_usdc 4,900,000 42.0% 4,000,000 4,900,000
euler euler_frontier_yieldfi_usdc 133,000 42.0% 133,000 133,000
euler euler_frontier_hyperwave_usdc 14,600,000 43.0% 4,000,000 8,600,000
euler euler_frontier_yala_usdc 6,200,000 43.0% 4,000,000 6,200,000

The cooldown period for all Arks in these Fleets is 10 minutes, except for Mainnet ETH HR, which is set to 1 hour. These parameters keep the Fleets within controlled risk limits while accommodating expected demand. Arks with very low TVL have been excluded, as they do not improve fleet performance, but we will monitor them and set non-zero caps if their TVL increases in the future. In general, these are initial values, and will change dynamically according to market conditions.

3 Likes