[RFC] Onboard Lagoon Finance ETH Vault to ETH Mainnet (Higher Risk) Vault

Summary

This RFC proposes integrating Lagoon Finance’s ETH vault into the ETH Mainnet (Higher Risk) vault in the Lazy Summer Protocol.

Adding the Lagoon ETH vault will diversify ETH yield strategies, leverage Lagoon’s institutional-grade ERC-7540 vault infrastructure, and expand Lazy Summer’s yield-generating sources with a curator-managed approach that has demonstrated strong performance across $84M+ in platform TVL.


Motivation

  • Expand yield sources – Provides exposure to Lagoon’s curator-managed ETH strategies, adding a complementary ETH yield stream alongside existing ARKs. Lagoon’s ERC-7540 standard enables asynchronous deposit/withdrawal management optimized for institutional-scale operations.
  • Institutional-grade infrastructure – Lagoon is built on Safe with Zodiac modules, providing battle-tested security infrastructure. The protocol has undergone 7 security audits and manages $300M+ in platform TVL.
  • Attract new user types – Engages current Lagoon depositors and institutional allocators who prefer the ERC-7540 standard, deepening penetration into the ETH staking ecosystem.
  • Increase TVL – Adds an ETH ARK supporting Lazy Summer’s ETH vault growth objectives on Mainnet.

Specification

Parameter Value
Vault ETH
Network Mainnet
New ARK Lagoon Finance ETH
Contracts Vault: 0x07ed467acd4ffd13023046968b0859781cb90d9b
Risk Level Higher Risk
$SUMR Rewards In line with ETH Higher Risk SUMR Rewards

Protocol Overview

About Lagoon Finance

Lagoon provides open, general-purpose, secure vault infrastructure to build and scale on-chain yield products. Key features include:

  • ERC-7540 Standard – Curators manage deposits and withdrawals asynchronously, enabling sophisticated yield strategies that aren’t possible with synchronous vault models
  • Built on Safe – Leverages battle-tested Safe infrastructure with Zodiac modules for security
  • Curator Model – Professional curators deploy capital across DEX LP, money markets, yield-bearing assets, and governance incentives
  • 7 Security Audits – Extensively audited codebase
  • $84M+ TVL on Ethereum – Demonstrated market adoption

Yield Strategy

The Lagoon ETH vault deploys capital across:

  • Liquidity provision on DEXs
  • Lending on money markets
  • Yield-bearing and fixed-income assets
  • Points, airdrops, and governance incentives

Risk Considerations

  • Curator dependency – Performance depends on curator decision-making
  • Multi-protocol exposure – Underlying strategies span multiple DeFi protocols
  • ERC-7540 complexity – Asynchronous model adds operational complexity
  • Smart contract risk – Standard DeFi protocol risks apply

These risks are appropriate for a Higher Risk vault classification.


Informal Support Indicator

Should Lazy Summer DAO proceed with drafting a SIP to onboard Lagoon Finance ETH to the ETH Mainnet Higher Risk Vault?

  • Yes
  • No
  • Abstain
0 voters
1 Like

The Lagoon Finance ETH vault looks very attractive: $11M+ in TVL, plus a 30D yield of 200bps above the benchmark. The underlying strategy also seems relatively safe, with the largest allocations to Spark and Aave.

2 Likes