[RFC] Onboard ETH (Gearbox, Morpho) and USDC (Morpho) kpk-curated vaults

General Discussion Request for Comment [RFCs]
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[RFC] Onboard ETH (Gearbox, Morpho) and USDC (Morpho) kpk-curated vaults

Oct 27, 2025

EDIT: Proposal edited to add new vaults and highlight the existing SIP for the ETH Gearbox vault.

Summary

A proposal to onboard kpk-curated vaults as underlying yield sources for the mainnet ETH and USDC (lower risk) vaults on the Lazy Summer Protocol, specifically the kpkWETH pool from Gearbox, and the kpkWETH and kpkUSDC vaults from Morpho.

Proposal

We invite the DAO to:

  • Signal continued support for the existing SIP regarding the Gearbox integration, which is aligned with this broader strategy.
  • Add two new vaults, kpkWETH (Morpho) and kpkUSDC (Morpho Prime), as additional curated strategies for SummerFi’s mainnet ETH and USDC vaults.

Motivation

kpk, the leading on-chain treasury manager, is expanding into curatorship, managing multiple curated lending pools across different protocols.

The addition of kpk-curated vaults to SummerFi’s mainnet ETH and USDC strategies can benefit the protocol in several ways:

  • Yield enhancement: current yields on Gearbox and Morpho vaults (including incentives) outperform comparable options in the same risk category.
  • Yield diversification: expanding the number of whitelisted curators and protocols reduces reliance on a single market or yield source.
  • Airdrop potential: The upcoming KPK Rewards Programme will make SummerFi eligible to receive KPK tokens distributed during the first reward season.

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Improved performance through automation

kpk vaults feature a Rebalancing Agent that actively redistributes exposure across markets to maximise efficiency and maintain target utilisation ranges.

An additional Exit Agent monitors utilisation and liquidity conditions in real time, ensuring timely exits from high-utilisation or risk-degrading markets — a key differentiator that enhances both performance and capital safety.

When market stress hits and liquidity tightens, KPK’s agents automatically rebalance positions within seconds, unlocking idle capital and maintaining full withdrawal capacity, while manual strategies may remain constrained for hours.

In our observations, automated execution consistently delivered higher realised yields, showing how speed and discipline enhance performance.

Vaults

kpkWETH (Gearbox)

A passive Earn Pool that channels WETH deposits into Gearbox’s Credit Account system under kpk-defined risk parameters. Depositors earn yield from borrower interest and occasional token incentives. Strict utilisation caps, quota limits, and dual-oracle pricing help preserve liquidity and mitigate market risks.

kpkWETH (Morpho)

A non-custodial ERC-4626 vault allocating ETH across selected Morpho markets under kpk-defined risk limits. Yield comes from lending rates in underlying markets. Exposure is capped per market, with 24/7 automation and buffers to preserve smooth withdrawals and stable, risk-adjusted returns. Designed for institutional capital seeking low-risk ETH yield.

The ETH Morpho vault is in its initial growth phase, with deposits expected to increase as it becomes available through new partner deployments.

kpkUSD Prime (Morpho)

A non-custodial ERC-4626 vault allocating USDC across selected Morpho markets under kpk-defined risk parameters. Yield comes from lending rates in underlying markets. Exposure is capped per market, with automated rebalancing and exit mechanisms preserving liquidity and enhancing stability. Designed for institutions seeking conservative, real yield in USDC.

Specifications

kpkWETH (Gearbox)

Description Parameters
Token kpkWETH
Network Ethereum
Protocol Gearbox
Curator kpk
Address 0x9396dcbf78fc526bb003665337c5e73b699571ef

kpkWETH (Morpho)

Description Parameters
Token kpkWETH
Network Ethereum
Protocol Morpho
Curator kpk
Address 0xd564F765F9aD3E7d2d6cA782100795a885e8e7C8

kpkUSDC (Morpho)

Description Parameters
Token kpkUSDC
Network Ethereum
Protocol Morpho
Curator kpk
Address 0xe108fbc04852B5df72f9E44d7C29F47e7A993aDd

Next Steps

Gather feedback and suggestions from the DAO. If consensus is achieved, propose a SummerFi Improvement Proposal (SIP). Note: the Gearbox ETH vault already has a SIP requesting its integration.

5 Likes
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great to have you here @kpk

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Welcome @kpk thank you for bringing your strategy to the forum. This looks like a solid upgrade, the existing Lazy Summer Protocol ETH fleets on mainnet offer 30-day APY at 2.38% for Lower Risk and 3.58% for Higher Risk. If risk (@BlockAnalitica) checks out, I believe this could be a great addition to the ETH mainnet Fleet.

Exciting to hear about the KPK Rewards Programme, which could be an interesting opportunity for the protocol and the users as well! Curious to hear thoughts from @Recognized_Delegates!

1 Like
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I’m all for the integration of the new markets.

I have one question regarding the rewards: What is the distribution mechanism? Will they be airdropped, or will users have to claim them? If they need to be claimed, will that be a permissionless process?

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We have known kpk for a long-time and have always been amazed by their thorough risk-off approach to DeFi and treasury management. They’re one of the most trusted teams in treasury management for a reason.

Regarding the Gearbox and Morpho vaults for ETH and the Morpho USDC vaults, we’re highly supportive of adding them to the strategies.

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Thanks for your question @halaprix.

Rewards will be distributed through Merkl. The first season will last 90 days, during which each depositor earns points based on the TVL contributed, followed by a token claim. The only prerequisite for eligibility is that the depositor (in this case, SummerFi) accepts the terms and conditions of the rewards programme. More details to follow.

2 Likes