This proposal seeks to integrate SyrupUSDC, Maple’s liquid yielding dollar, into the ETH Mainnet USDC vault to improve APY, diversify sources of yield, and attract new users to the protocol.
Maple’s SyrupUSDC is a liquid, overcollateralized institutional lending product that is already integrated across DeFi and has a growing TVL base ($350M+). Unlike Maple’s traditional pools, SyrupUSDC does not require KYC, and its redemption mechanisms offer multiple paths for users to exit or access liquidity. This ARK gives Summer.fi users access to institutional-grade yield, with minimal additional integration complexity.
This post serves as the RFC. A formal SIP with finalized specs and parameter settings will be submitted for vote following feedback from the community and Block Analitica.
Proactive Address of syrupUSDC Liquidity and ability to withdraw
It is highly likely that @BlockAnalitica will have questions about @Maple_Finance syrupUSDC ability to have the rebalancer withdraw user funds automatically. It would be greatly appreciated if @Maple_Finance could address these questions.
Thank you for considering SyrupUSDC as an option to power Summer.fi yields. We are looking forward to working together and are of course happy to answer any questions by @BlockAnalitica and the community.
BA Labs supports onboarding syrupUSDC directly to the SummerFi Lazy protocol as an ARK to the low risk USDC fleet on Mainnet as we find that syrupUSDC has an acceptable overall risk profile. Furthermore, we also note the limitations of primary redemption mechanism of syrupUSDC, resulting in liquidity/TSI during potential withdrawals, thus raising the question for the SummerFi community if the direct exposure is neccessary and/or preferable considering current non-direct exposures to syrupUSDC.
BA Labs comments
Onboarding syrupUSDC directly to the low risk USDC fleet on Mainnet, as proposed in this proposal, would imply the type of risk not present at the moment across current active fleets, that being the liquidity/redemption risk considering the Maple protocol design.
We identify two possible ways of withdrawing deposits from Maple Finance:
Primary redemption (not an atomic operation), as stated by Maple team here, “historically withdrawals have been serviced in <24 hours, with the maximum historically taking <7 days. Due to the underlying duration of the loans, the maximum withdrawal time in an event where all SyrupUSDC would want to redeem would be 30 days.”
Exiting via secondary markets via Uniswap and Balancer pools, with the total of ~6m of syrupUSDC available at the time of writing.
Considering the importance of the ability to withdraw (and deposit) in atomic manner due to the architecture of the SummerFi Lazy protocol, accounting for the price impact and liquidity levels in general is crucial when deciding about the potential way of integrating the syrupUSDC product.
Interesting — seeing syrupUSDC considered directly, especially since it already makes a cameo via Morpho routes. Having the convo out in the open about direct vs. indirect exposure feels right as we evolve our vault composition strategy.
Big props to @BlockAnalitica for the clear breakdown — the redemption mechanics definitely introduce new dynamics we haven’t yet had to accommodate in the Lazy vaults. While 24h+ withdrawal times aren’t inherently a blocker (esp. if communicated transparently), it’s fair to question how well this fits the atomic, fluid UX that Lazy aims to uphold.
Seems like this deserves a thoughtful delegate considerations: do we want direct exposure to syrup for the yield boost + simplicity, or is it better kept through existing intermediaries that abstract away some of the edge-case risks?
I do think non-KYC access to institutional yield is a compelling offering — and if we can layer in proper liquidity considerations, it could be a healthy way to experiment with vault diversity while still protecting UX.
Supportive of continued exploration here, but echo the need to clearly weigh redemption friction vs. real APY upside.