[RFC] Fund Arrakis Liquidity Vault on Base via Foundation Execution

General Discussion Request for Comment [RFCs]
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1. Summary:

This RFC proposes the utilization of $100,000 USD equivalent in liquid assets (USDC) and a variable quantity of SUMR tokens (equivalent to ~$500,000 USD {80/20 SUMR to USD} value at the time of deployment) to fund an Arrakis Finance liquidity vault on the Base network.

To ensure precise execution timing relative to the Token Transferability Event, this proposal seeks authorization to transfer these assets from the DAO Treasury to the Lazy Summer Foundation Multisig (0xB0F53Fc4e15301147de9b3e49C3DB942E3F118F2) . The Foundation will then be mandated to deploy these assets into the Arrakis vault to facilitate the “Stability Phase” of the launch immediately following the initial price discovery period.

Read more about the Arrakis architecture: here.

2. Context & Motivation:

For the upcoming SUMR token launch, I recommend a two-phase liquidity strategy designed to balance efficient price discovery with deep, sustainable liquidity depth.

  • Phase 1 (First 24 Hours): Organic price discovery via Aerodrome Ignition.
  • Phase 2 (Day 2 Onwards): Implementation of an Arrakis Modular Vault. This vault acts as a “stability layer,” utilizing algorithmic market making to deepen liquidity and damp volatility once the initial market price has been established during the first day of trading.

Arrakis Pro has successfully supported over 100 protocols including Maple, MakerDAO, Lido, Morpho, Gelato, and more, making it a proven infrastructure for early-stage token launches and sustained liquidity management.

2.1 How this complements Aerodrome Ignition and CEX Listings?

  • Aerodrome Ignition: Main vehicle for incentivized distribution and community participation.
  • CEX Listings: Provides wider exposure and additional liquidity.
  • Arrakis: Ensures protocol-owned, sustainable on-chain liquidity for SUMR after the transferability event, reducing sell-side pressure and improving trading experience.

This approach does not replace Aerodrome or any potential CEX pools; it is a supplementary, trustless layer to improve long-term liquidity depth and capital efficiency.

2.2 Why utilize the Foundation?

The Arrakis vault is designed to go live approximately 24 hours after TGE (Day 2). To execute this deployment efficiently and react to real-time market pricing without the latency of on-chain governance timelocks during the launch window, operational agility is required.

Transferring the assets to the Foundation Multisig prior to launch allows the Foundation to act as the execution agent for the DAO, deploying the liquidity precisely when the Day 2 stabilization phase begins.

3. Proposal:

3.1 Asset Transfer & Allocation

Governance authorizes the transfer of the following assets from the DAO Treasury to the Lazy Summer Foundation Multisig:

  • Spoke chain assets: Transfer all current assets from spoke chains (Ethereum, Arb and Sonic) to the Hub Chain (Base)
  • Liquid Assets: A total value of $100,000 USD (USDC).
  • SUMR Tokens: A variable quantity of SUMR tokens equivalent to ~$100,000 USD value.

Note: The exact number of tokens will be determined based on the Spot Price established after the first 24 hours of trading. Unused/Surplus tokens will be returned to the Lazy Summer DAO treasury.

3.2 Execution Mandate

Once assets have been bridged to Base, the Foundation is instructed to utilize these assets for the sole purpose of initializing the Arrakis Standard Vault on the Base Network.

Vault Configuration:

  • Network: Base
  • Pair: SUMR / USDC
  • Strategy: “Bootstrap” Configuration (Active Liquidity Management)
  • Deployment Timing: Target of TGE + 24 Hours (Start of Day 2).

Financials:

  • Management Fee: 0% (Lazy Summer DAO discounted offer for first 6 months).
  • Performance Fee: 50% of trading fees generated by the vault will return to the Lazy Summer Protocol.

Fees are only earned if liquidity actively generates value, aligning Arrakis incentives with Summer protocol success.

4. Open Questions:

  • Is the community aligned with the strategy where we use Arrakis Finance to deploy the stability layer on Day 2, allowing for a 24-hour window of pure price discovery?
  • Are there any objections to utilizing the Foundation as the logistical execution layer for this specific liquidity event?

5. Next Steps:

  1. Community discussion and feedback on this RFC.
  2. I will reach out to the Arrakis Finance team to answer technical questions (if any) regarding their vault architecture, here on the Forum.
  3. Promote to SIP stage and vote for execution (Asset Transfer).

6. Informal Support Indicator:

Are @Recognized_Delegates and the community broadly supportive of progressing this proposal toward a formal SIP?

Options:

  • In favor of the direction outlined
  • Open, but would like more discussion or clarity
  • Not ready to progress yet
0 voters
2 Likes
[RECAP] Community Call #6: DAO-Managed Vaults & Yield Sources
[SIP5.16] Enable transferability of the SUMR Token
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I like this idea, but we need it the AVault to be monitored for losses.

Assuming the LP crabs, its great, but if volatility causes a lot of rebalances, we need a human, or council to adjust the ranges, especially during high inflation and hype.

I manually run CLPs for the majority of my assets, and I am very conservative with my ranges. I think this is best. We dont need the SUMR LP to be a cash cow.

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Why not just run a Basic Volatile pool on Aerodrome for the first couple weeks, then explore CL pools?

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i think vAMM pools have become underrated.
IMHO.. ALL tokens need to have full range LPs (or VERY wide ranges) and just use CLPs for

  • selling coins for raising (coins placed above price, sell the pamps)
  • providing floor prices (USDC, ETH bundled as floor)
  • earning APR/Fees to boost treasury.
  • peg strength on stable coins.
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This could be a good thing! Our main issue here is that it will be hard to measure what works and what doesn’t if the DAO decides to do the Aerodrome incentives AND the Arrakis pools at the same time…

Maybe better to have a staggered launch of these incentives. Aerodrome first, then Arrakis overlapping but extending the effects of the Aerodrome incentives.

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What’s the reasoning for doing this on Base instead of ETH mainnet?

Eth mainnet right now has 2.13x the DEX volume, 35.4x the stables mcap, and 15.85x the defi TVL of Base

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SUMR staking and governance is on Base. But good question nevertheless

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as @rspa_StableLab mentioned the governance and staking is on BASE but predominately the Lazy Summer Protocol is Base native → deployed on Base which then got expanded onto other satellite chains like: Ethereum, Arbitrum, Sonic.

I def. do agree on the DEX volume and mcaps across the board, at the same time I think utilizing Base first should be the priority from the accessibility POV - needless to say that the transferability of SUMR token on satellite chains should follow shortly after Base imo.

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For the following I would love to see some input / clarification from @Arrakis:

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If deepening liquidity is a priority, I believe my idea on a yield forwarding pool from Jul 2025 (When, and under what circumstances should SUMR transfers be enabled - #19 by pete) might achieve that goal without having to spend any DAO funds on vault management or incentives

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Hey @jensei, two questions from me,

  1. Since Arrakis Pro is used to manage concentrated liquidity, where will the SUMR/USDC vault be set up? Uniswap v4?

  2. The Management Fee is set at 0% for the first 6 months. What will this fee be after the first 6 months?

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Regarding your questions:

Vault Monitoring: A group of DAO Delegates receives access to an advanced monitoring dashboard provided to Arrakis customers.

Strategy Adjustments: Arrakis team monitors our customer vaults in real time and there are automated adjustments to the strategy based on market conditions.

Aerodrome Liquidity: Arrakis vaults usually are connected to pools without incentives. There is a world were this pool co-exists with incentivized pools. The downside of incentivized liquidity is that liquidity dries out, when incentives decrease.

Base vs. Ethereum: Arrakis can support the Summer DAO on both Base and / or Ethereum. The request was for liquidity concentration on one chain, to utilize and pool funds most efficiently, where Base as low-gas chain has several advantages.

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Hi @Sixty

  1. Our recommendation would be to deploy the pool on Uniswap V4 on Base if the DAO decides to incentivize an Aerodrome pool via Ignition.
  2. The Management Fee is charged on a quarterly basis on the TVL in the vault and is 1% yearly (4x 0.25%) of the TVL in the vault.
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Jumping in here as an alternative solution for DAO-managed liquidity, since many of the concerns raised in this thread are exactly what led us to build Arcadia.

A few points that may be relevant to Summer.fi:

Account monitoring & accountability

In Arcadia Pro, liquidity is managed through DAO-controlled smart Accounts where all actions (rebalances, range updates, parameter changes) are either:

  • executed by DAO-multisig, or

  • automated within clearly defined, DAO-approved constraints (enforced onchain)

While automation should be the default, we agree with the sentiment here that high-volatility phases or one off events (launches, migrations…) often require human judgment. The DAO can set explicit constraints around rebalancing strategies, defining what can and cannot be done by automated rebalancing, while keeping full control to intervene manually and override the automation.

Fee alignment

One design choice we made was to avoid fixed management fees on TVL. Instead, fees are taken only on realized yield, so the DAO does not pay for capital simply being parked in an Arcadia Account during low-activity periods.

Phased approach

Liquidity strategies are not a one-off decision, it should evolve as the campaign matures.

You can start with a combination of a very broad range position (or even a basic pool) and a mid sized position deepening liquidity around current price.

You can also mix incentivized and non incentives positions to compare impact.

These can all be combined in a single Account, but if measurement becomes a concern, it’s equally possible to use an isolated Account per strategy type.

If you prefer to not combine different strategies, you can still evolve your liquidity strategy over time (e.g. basic pool incentivized → clAMM incentivized → clAMM non-incentivized). Arcadia supports atomic migration between pools, for example from a basic pool to a clAMM, without periods of downtime.

Looking forward to joining the call on Thursday to further discuss.

4 Likes
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thank you @Thomas and everyone involved for sharing your thoughts. for now I will refrain from promoting this proposal to a SIP and am looking forward for discussions during the Community Call #7: Hyperliquid Update, SUMR Preparation & More

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Thanks for the response @Arrakis. And welcome to the forum @Thomas. It would be great to hear from both teams on Thursday’s community call. Both Arrakis and Arcadia have promising solutions.

Btw, @jensei

Does this mean all liquid assets on spoke chains will be transferred to the treasury on Base, or transferred to the Foundation multisig?

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FWIW i have had good interactions with the Arcadia team

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the idea there was to move the assets / concentrate liquid assets on Base so the needed amount for transfer would be ready for the foundation to utilize

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(post deleted by author)

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Thanks to Arcadia for joining the discussion. The decision for the Summer DAO to deploy DEX liquidity should be centered around the key dimensions of Security, Operations, Execution, Ownership, and Accountability. Putting things in perspective, while Arcadia currently manages around $8M in TVL, Arrakis manages over $140M for +80 token issuers at the highest security standards. This gap reflects differences in production maturity and operating scale and accounts for the significant difference in pricing for a premium product.

Below is a practical comparison for the community to highlight the differences between the two solutions.

Screenshot 2026-01-14 at 20.24.03
Screenshot 2026-01-14 at 20.24.031938Ă—1092 340 KB

Arcadia executes liquidity management on-chain under direct DAO control, which places operational responsibility and real-time risk under DAO governance. Arrakis minimizes on-chain exposure by delegating day-to-day execution to experienced operators in our team, acting within clearly defined mandates. This structure enables faster reactions during market stress, clearer ownership and accountability, and a lower coordination burden for the DAO, while preserving strategic control and flexibility over time.

Thanks for considering Arrakis PRO in your preparation for the token launch, and we are looking forward to an in-depth discussion during the upcoming community call.