[RFC] Add Extrafi XLend’s Eth Pool to Lower Risk Eth Vault

General Discussion Request for Comment [RFCs]
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Summary

Onboarding Extrafi XLend Eth to be allocated for the Base Eth vault on the Lazy Summer Protocol. Link: https://xlend.extrafi.io/

Extrafi XLend Eth provides a competitive Eth yield solution throughout the Base network, and the protocol’s yield is sustainably incentivized with OP/EXTRA token rewards projected to continue for an extended duration, ensuring long-term stability for vault participants.

What is Extrafi XLend:

Extrafi XLend is a smart lending protocol offering multi-accounts and advanced lending/borrowing strategies.

In a long-term vision, XLend aims to be the liquidity layer empowering composable DeFi strategies.

Core Features

  • Lending market based on a battle-tested codebase

  • Newly designed user interface

  • A lending market built on a battle-tested codebase.

  • Multi-account system

  • Sub-accounts: Enabling flexible portfolio management

  • Simplified on-chain experience powered by smart accounts

  • Automation & Liquidation-free strategies [*]

  • Gas-free transactions [*]

New staking module offering sustainable yields [*]

  • Single-asset staking with USDC or ETH

  • Supercharged APY from sustainable yield sources (protocol risk absorption, incentives, and revenue sharing)

Comprehensive risk management

  • Built on a highly battle-tested codebase with subsequent enhancements and fixes.

  • Ongoing security improvements:

  • Additional audits

  • Work with industry-leading risk management experts

  • Work with proactive security monitoring platforms

  • A robust shortfall-protection mechanism [*]: liquidation + safety module + rainy-day-fund

  • Backed by a team with over 3 years of DeFi risk management expertise

Motivation

Enhancing Yield: Extrafi XLend Eth currently offers 2.6 % Supply APY(OP Reward APY + Lending APY), higher than most Base Eth vaults.

Diversifying Opportunities: Extrafi XLend Eth provides a competitive Eth yield solution throughout the Base network, offering users access to higher returns compared to other Eth vault options. The protocol’s yield is sustainably incentivized with OP/EXTRA token rewards projected to continue for an extended duration, ensuring long-term stability for vault participants.

Specifications

Token: Eth

Network: Base

Contract Address: 0x3DFab48957692Ea210A882cD50dd7044C608384C

Risk Level: Lower risk

Informal Support Indicator

Should Lazy Summer DAO proceed with drafting a SIP to onboard this market to the Base Lower Risk ETH Fleet?

  • [YES] - promote to SIP
  • [NO] - needs more discussion
0 voters
4 Likes
2

Hey @MasterMojo I appreciate you putting this RFC together and laying out the details so clearly.

Extrafi XLend’s ETH market on Base looks interesting, especially given the combination of a battle-tested codebase and the sustained OP/EXTRA incentive runway. The current APY is competitive for the lower-risk bucket. I believe a similar strategy is already present in Base ETH LR Vault (morpho_extrafi_xlend_weth) wrapped in Morpho.

I would appreciate if @BlockAnalitica can chime in with a risk assessment, that would help us promoting this proposal to a SIP. Overall, I am leaning supportive pending that risk review!

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