1. Summary:
We propose integrating Clearstar Labs’ curated Morpho and Ipor vaults on Ethereum mainnet, Base, and Arbitrum into Summer Protocol’s vault offerings through Lazy Summer.
About Clearstar: Clearstar is an onchain strategy curator with deployed vaults across Morpho, Euler, IPOR, and other leading DeFi protocols. We are backed by a Swiss family office with approximately €1B AUM and combine deep expertise from private equity, investment banking, and DeFi. Our approach has been refined through continuously providing infrastructure, yield optimization, and risk management for a crypto fund managing 30M USD and more than 100M USD TVL across our curated vaults. We design vaults with institutional rigor but package them for seamless integration into consumer-facing products.
These vaults would provide diversified yield sources across both low-risk and high-risk vault categories. Clearstar employs a qualitative-first risk management approach (60% qualitative / 40% quantitative) with active monitoring, focusing on operational due diligence and real-time risk mitigation rather than relying solely on quantitative scoring models. This integration would expand Summer’s yield options while maintaining rigorous risk standards through proper labeling and transparency about each vault’s risk profile.
2. Context & Motivation:
Current Challenge
The DeFi space faces a critical issue in how yield strategies are presented to end users. The primary problem is not necessarily the risk profile of strategies themselves, but rather the lack of proper risk labeling and transparency. Many protocols over-rely on quantitative risk scores that provide users with a false sense of security, reducing complex operational and qualitative risks to simple numerical ratings.
Why This Matters
Frontier DeFi requires more sophisticated risk underwriting than traditional quantitative models can provide. With limited historical data, predictive models often fail to capture the operational, governance, and execution risks inherent in emerging protocols. While quantitative analysis tells you what risk is being taken, qualitative research reveals whether teams will continue managing that risk appropriately over time.
Clearstar’s Approach
Clearstar Labs addresses this gap through:
60% qualitative / 40% quantitative risk assessment focusing on team competence, operational procedures, and governance
Active management and monitoring with automated rebalancing and real-time threat detection
Rigorous due diligence processes aligned with institutional standards (backed by a Swiss regulated asset manager)
Transparent risk communication helping improve how the entire space presents yield opportunities to users
Opportunity
By integrating Clearstar’s vaults, Summer Protocol can offer users:
Access to professionally managed, actively monitored yield strategies
Clear, honest risk labeling that goes beyond superficial scoring
Diversified exposure to quality DeFi primitives vetted through institutional-grade processes
Enhanced safety through Clearstar’s Hypernative integration and automated risk controls
3. Proposal:
Vaults to be Integrated
We propose adding Clearstar’s curated Morpho vaults across three chains:
Ethereum Mainnet
Clearstar USDC Reactor as low/moderate risk. https://app.morpho.org/ethereum/vault/0x62fE596d59fB077c2Df736dF212E0AFfb522dC78/clearstar-usdc-reactor
Clearstar High Yield USDC as high risk.
Clearstar Institutional USDC as low risk.
Clearstar Reactor ETH as low/moderate risk.
Base
High Yield Clearstar USDC as high risk.
Clearstar USDC Reactor as low/moderate risk.
https://app.morpho.org/base/vault/0x1D3b1Cd0a0f242d598834b3F2d126dC6bd774657/clearstar-usdc-reactor
Clearstar ETH Reactor as low/moderate risk.
https://app.morpho.org/base/vault/0x09832347586E238841F49149C84d121Bc2191C53/clearstar-eth-reactor
Clearstar Boring USDC as low risk.
https://app.morpho.org/base/vault/0x43e623Ff7D14d5b105F7bE9c488F36dbF11D1F46/clearstar-boring-usdc
Arbitrum
Clearstar USDC Reactor as low/moderate risk.
Clearstar High Yield USDC as high risk.
These vaults would be categorized appropriately within Summer’s existing low-risk and high-risk vault structure based on their underlying asset composition and strategy parameters.
Clearstar’s Risk Management Framework
Asset Due Diligence Process
Assets listed in Clearstar’s Reactor vaults must meet strict criteria:
1. Issuer Quality & Operational Assessment
Initial calls with teams to understand operational setup, portfolio construction, and systematic risk management
Same DD standards applied by the Swiss regulated asset manager that backs Clearstar.
2. Technical Review
Qualitative understanding of protocol mechanics and design
Quantitative systematic review of smart contract infrastructure
Oracle setup assessment and validation
Collaboration with asset issuers to create properly configured markets when needed
3. Market Configuration
All assets must be liquid, redeemable or otherwise must have a designated liquidator on standby to ensure smooth liquidations
Custom oracle implementations reviewed before deployment
Active Monitoring & Risk Mitigation
Real-Time Position Monitoring
Custom Morpho helper bot connected to Morpho’s API
Tracks positions approaching liquidation thresholds
Monitors secondary effects from listed assets’ underlying backing
Automated Risk Response
Full Hypernative coverage on all Morpho vaults
Tracks all listed collaterals for suspicious activity
Automatic procedures to wind down liquidity and set supply caps to 0 upon threat detection
Designed to mitigate losses through rapid response rather than passive observation
Vault Management
Curated by Clearstar Labs using Fordefi MPCs (attestation available upon request)
Automated allocator bot rebalances approximately hourly
Optimizes for APY within defined risk constraints including:
Asset volatility limits
Maximum concentration per market
Utilization rate thresholds
Borrower concentration limits
Several other metrics
External Dependencies & Verification
Price Feed Underlying Operation Awareness
Examples:
Keepers maintained for all Midas tokens (mf-ONE, mHYPE)
Keepers for yUSD (mainnet) and yoUSD (Base)
Direct contact with all teams whose tokens are listed
Required proof of price reporting and update mechanisms
Off-Chain Component Verification For assets with off-chain components (yield sources, price data, NAV calculations):
Direct communication with teams to assess operational processes and opsec
Verification of who controls off-chain keepers and price feeds
Review of NAV calculation processes and admin relationships
Proof of Reserves via Chainlink or periodic attestations when available
Ongoing monitoring of update mechanisms
Emergency Controls
Primary emergency mechanism: Hypernative integration that automatically derisk the vault upon detection of suspicious activity for any listed collateral.
4. Open Questions:
Categorization Framework: What specific criteria should determine whether a Clearstar vault is classified as “low-risk” vs “high-risk” within Summer’s existing structure? Should we create additional risk tiers?
Risk Label Display: How should we present Clearstar’s qualitative risk assessments to Summer users? What level of detail is appropriate for the UI vs. detailed documentation?
Monitoring & Reporting: What ongoing reporting does the Summer community expect regarding vault performance, rebalancing activity, and risk events?
Emergency Procedures: Should there be additional coordination procedures between Clearstar’s automated risk response and Summer’s own emergency controls?
User Communication: How can we best educate Summer users about the difference between qualitative-focused risk management and traditional quantitative scoring?
5. Next Steps:
Gather community feedback on this proposal and address open questions
Iterate based on discussion, refining categorization, risk labeling, and integration specifications
Promote to SIP with formal specification including:
Specific vaults to be listed with complete risk profiles as listed above
Ongoing governance and monitoring procedures
Success metrics and evaluation criteria