[RFC] Onboard EURC to Base

[Javier]

Title: Onboard EURC to Base
Author(s): Javier
Related Discussions: [RFC] ARK onboarding for proposed EURC Vault on Base
Submission Date: 03-march-2025

Summary
Onboard EURC Vault to Base

Overview
Based on community feedback and the lack of aggregators supporting these vaults and token it’s an excellent opportunity for the Lazy Summer Protocol to be the first large player in these markets.

Motivation
We’re now hovering around $40M in TVL, and it’s time to keep expanding, growing our user base while adding more vaults and Arks to maintain momentum. More options mean greater flexibility for users to deposit assets into the Lazy Summer Protocol, driving organic growth.

With Coinbase’s support at launch and the current stablecoin situation in Europe, EURC’s MiCA compliance positions it for wider adoption in the near future. This presents a unique opportunity for us to establish an early presence in the yield aggregator space for this token.

Specifications
Code changes: To follow by someone who understand the code required.
Specifically what would be added though, as per this proposal:
Vault Deposit Token: EURC
Network: Base
Contract Address: 0x60a3E35Cc302bFA44Cb288Bc5a4F316Fdb1adb42
Supported Arks at launch: Moonwell Flagship EURC, Steakhouse EURC, Fluid.
Risk Level: Lower Risk.

$SUMR Rewards: To be discussed.

Voting:
To be defined as this is the RFC.

Edit: Added ARKs RFC link.

[Shadow_Holder]

Thanks @Javier for this proposal discussion. Indeed EURC is a MiCA compliant stablecoin issued by Circle with a current market cap of 118.2M mainly in Mainnet and Base.
EURC is exchanged as 1:1 to EUR fiat currency in Coinbase (main supporter), with no fees and free transfers to/from Base network. This makes on/off-ramp cost efficient using free SEPA transactions for all European Coinbase account holders.
Total EURC transaction volume is currently at 76.2B with a number of transactions at 1.4M

Protocols using EURC:

1. Morpho
2. Fluid
3. Moonwell
4. Euler
5. Seamless Protocol

Reference links:

1. Circle EURC reserves
2. Artemis
3. Defillama EURC Yields

Afaik, there is no other protocol using EURC yield aggregation other than Harvest Finance.
I strongly support the implementation of EURC Ark on Base.

[FBrinkkemper]

Support the addition of EURC on Base.

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In general it would be great to get a sense of the short & long term vision with regards to asset options for the Lazy Summer Protocol. Perhaps @chrisb would like to share some thoughts here (probably worthy of its own thread).

Currently I’d regard Lazy Summer as a highly curated/opinionated set of options/assets, which I believe sets it apart from some of its more broad competitors. Ultimately I think people want to lazily earn in the asset they save in, whether that’s USD, EUR, GPB, YEN, ETH, BTC, or maybe something more exotic.

With regards to growth of the protocol, there are various directions:

• Increase number of asset options available
• Build out Lazy Summer into a household brand and massively increase the users who use it directly.
• Get integrations from wallets, fintechs, exchanges, etc.
• Get others to build out arks, and vaults on top of the Lazy Summer Protocol, and run their own branded entrances into the protocol
• Thinking a bit ahead here, but hey: create a regulated ETF of one of the vaults, so you can even enter lazy summer with your pension funds.

All of these options have various trade-offs and it doesn’t hurt to try multiple paths in parallel. In this initial phase of the protocol many things should be tried - but having some direction can greatly benefit in choosing the right balance in trade-offs.

[rspa_StableLab]

As someone with a base in Euro I would appreciate seeing EURC but also Monerium’s EURe as assets in Summer.

[Javier]

Appreciate all replies and I’m happy that we all share the vision for Lazy Summer Protocol. Being the 3rd day of the RFC I would like to see @BlockAnalitica parameters for the fleets and ARks proposed in this topic and the ARKs in [RFC] ARK onboarding for proposed EURC Vault on Base

I know EURe because of the Gnosis Card I use, but does it have more integrations outside Gnosis? I’ve looked and only found a small amount of liquidity on Ethereum. It’s also on Polygon and Gnosis, but didn’t find anymore. Probably missed something.

@rspa_StableLab

As someone with a base in Euro I would appreciate seeing EURC but also Monerium’s EURe as assets in Summer.

[rspa_StableLab]

You are right, I just double checked and the EURe DeFi options are slim

A more advanced opportunity here would be a complex strategy of using Summer’s USDT, UDSC and USDS/DAI vaults while hedging exchange rate risk via decentralized perps…

One can dream…

[BlockAnalitica]

Hey everyone,

BA Labs is supporting the proposal to add EURC Fleet, as we believe there are no major concerns from risk perspective.

When it comes to initial ARKs and their parameters, we’ll be providing those soon as a reply to this thread.

[Shadow_Holder]

I would like to update and summarise the proposed ARKs for Block Analitica review based on below attributes:

• Chain: Base
• Fleet Asset: EURC
• Single token exposure only
• Audited protocols
• Top 5 in TVL

1. Morpho Moonwell Flagship EURC - TVL 5.8M
2. Moonwell EURC Core market - TVL 4.8M
3. Fluid EURC Lending - TVL 2.5M
4. Morpho Steakhouse EURC - TVL 976k
5. Morpho Gauntlet EURC - TVL 640k

[halaprix]

For visibility, we might proceed with all ARKs except the Moonwell lending market (temporarily) in the initial deployment/proposal.

The Moonwell team is reviewing the ARK code, so we can deploy it and later create a proposal to add it to the fleet.

[Shadow_Holder]

Just announced, EURC is on Aave’s Base market

[actarus]

EURC 8% APY on Ledgity Yield • Ledgity Yield • Invest

[halaprix]

SIP1.2 Onboard EURC Vault on Base

Summary This proposal activates the LazyVault_LowerRisk_EURC Fleet (LVEURC). Motivation This fleet deployment will expand the protocol’s capabilities by adding 5 new Arks to the ecosystem. Technical Details Fleet Commander: 0x257447F5AB34CAC013C517e2F45E6e19ce38f669 Buffer Ark: 0x8ED7a4cE716C88Ab53F9076c8cB8eA36b591a742 Number of Arks: 5 Curator: 0xa16f07B4Dd32250DEc69C63eCd0aef6CD6096d3d arks: morpho vault : Moonwell_Flagship_EURC morpho vault : Gauntlet_EURC_Core morpho vault : Steakhous…

[BlockAnalitica]

We have run our risk model to assess the Arks in the newly proposed vault, Base-EURC, and reviewed the results. We have computed the following parameters:

Fleet Base - EURC

chain	fleetAsset	fleetCap	FleetMinimumBuffer
Base	EURC	7,500,000	100

With arks:

Ark	Symbol/Vault	maxCap	Max. %TVL	maxInflow	maxOutflow
morpho	morpho_moonwell_eurc	3,700,000	100.0%	1,500,000	3,700,000
morpho	morpho_steakhouse_eurc	410,000	43.0%	410,000	410,000
morpho	morpho_gauntlet_eurc	201,000	38.0%	201,000	201,000
aave_v3	EURC	263,000	39.0%	263,000	263,000
fluid	EURC	2,490,000	81.0%	1,500,000	2,490,000
moonwell	EURC	1,260,000	58.0%	1,260,000	1,260,000

The cooldown period for all Arks can be set to 10 minutes. These parameters ensure that the vault operates within controlled risk levels while supporting the anticipated demand.

[Shadow_Holder]

Thanks BA. I strongly suggest that no Ark should have a maximum TVL weight of 100% or even 81%. Therefore, Morpho Moonwel’s EURC and Fluid’s EURC allocations should be reduced accordingly to maintain diversification.

[BlockAnalitica]

Hey @Shadow_Holder, thanks for the observation. We have set these max parameters to manage overall risk, while actual diversification is maintained by the keepers. At lower fleet TVL, these parameters offer great flexibility to optimize for higher APY. However, as the fleet grows, Ark caps become more relevant, naturally enforcing diversification through risk constraints.