[RFC] Offboard low usage Vaults across HyperEVM, Sonic and Arbitrum

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

After a number of issues and exploits across DeFi recently, TVL has dropped significantly across DeFi and Summer Vaults. As such, this RFC proposes to remove and offboard a number of Vaults which have very low TVL and fairly little activity.

This proposal would also mean dropping the supported networks down to just Ethereum and Base where the Summer Protocol has experienced it’s most active areas.

2. Context & Motivation:

Since hitting 200M TVL, the Summer Protocol has struggled with issues within DeFi and users losing trust leaving their capital, as well as the low yields on offer due to the reducing demand of DeFi and leverage in general as the market has struggled since late summer last year (2025).

As such, we now have a number of vaults with less than $100k TVL, and with less than 25 active users with > $100 deposited. For this reason, it is suggested to offboard these vaults.

Also, with the current SUMR rewards ending on the 10th May, this feels a good time to address this concern, and focus SUMR rewards on those Vaults which drive the most TVL and activity.

At present, the vaults in question would only represent 242,000 USD of TVL - less than 1% of the protocols TVL.

Should DeFi and the markets start to recover, and activity/demand start to appear, these vaults can easily be reactivated simply by increasing the deposit caps and enabling new or existing markets and the automated rebalancer keepers.

3. Proposal:

In order to offboard, it is proposed to do the following;

  • Set deposit caps to 0 so no new deposits can be made into the Vaults
  • Set the fee’s to 0, as these vaults will not be actively rebalanced
  • Move all funds into one market, so users in these Vaults continue to gain some yield. Proposal to work with Block Analitica to choose the best and most liquid market.
  • Disable the automated rebalancer, unless the deposit caps are set to 0 on the market used, in which case they will continue to remove the assets as required.

With the deposit caps set to 0, they will then be removed from the main Summer.fi Earn list, only appearing on the portfolio page should users have deposits, or previously deposited, into the Vault.

Vaults to remove;

Network Vault $ TVL (as of 27/4/26) Users above $100
HyperEVM USDC 51,410 10
HyperEVM USDT 32,120 13
Sonic USDC 45,690 17
Arbitrum USDT 44,240 21
Arbitrum USDC 69,500 20
Total 242,960

4. Open Questions:

  • Does the community agree with this step?
    • A poll is below for each one to signal intent to suppot the offboarding
  • Does the proposed offboarding process sound sufficient?

5. Next Steps:

  • Gather community feedback, incl. polls below
  • Iterate based on discussion
  • Promote to SIP (with clear, formal specification) (Target date: 5th May)

6. Informal Support Indicator

Should the DAO Offboard USDC on HyperEVM?
  • Yes
  • No
0 voters

–

Should the DAO Offboard USDT on HyperEVM?
  • Yes
  • No
0 voters

–

Should the DAO Offboard USDC on Sonic?
  • Yes
  • No
0 voters

–

Should the DAO Offboard USDC on Arbitrum?
  • Yes
  • No
0 voters

–

Should the DAO Offboard USDT on Arbitrum?
  • Yes
  • No
0 voters

Tagging @Recognized_Delegates and @BlockAnalitica for input.

2 Likes
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2

Probably also worth bringing into the conversation, USDT on Ethereum.

It is by far the lowest used vault on Ethereum network, at 166k TVL, with the last deposit being 14 days ago. Compared with USDC, it typically has lower yields and has always been a fairly low usage product.

Should the DAO offboard USDT on Ethereum?
  • Yes
  • No
0 voters
3

Thanks for the proposal @chrisb, I agree with the sentiment that low TVL fleets should be offboarded. Personally, the Sonic vault is at the top of my list of vaults that should be offboarded, given the extremely low DeFi TVL on the chain.

I am not, however, happy to see the HyperEVM and Arbitrum vaults go, given that those chains do have significant DeFi TVL, but given that deposits have been under $100k for some time, perhaps it is better to admit that Summer does not have PMF on those chains.

I do think the USDT vault on Ethereum mainnet should stay however, despite its relatively low usage. My thinking is that a vault should only be offboarded once it is below $100k TVL for more than 3 - 6 months. USDT is also the biggest market cap stablecoin on Ethereum, so I think we should have atleast one USDT product at a minimum.

4

I agree with Brian here. I voted No though for the USDC on the HyperEVM chain though, and No on USDT on Eth mainnet, I voted yes for the rest.

2 Likes