[RFC] Onboard new Silo Vaults to Sonic, Mainnet and Arbitrium fleets

General Discussion Request for Comment [RFCs]
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Proposal to Integrate Additional Silo Finance Vaults Across Mainnet, Arbitrum, and Sonic

A new Request for Comments (RFC) has been drafted to expand the protocol’s yield-generating options by incorporating three additional Silo Finance USDC vaults from the Mainnet, Arbitrum, and Sonic networks. This proposal aims to provide users with a broader range of competitive, single-asset staking opportunities.

The proposed vaults for integration are:

  • Mainnet: Apostro USDC Frontier (0xed9278c5188f37670b33ef3B00729E38260cd5D5) with a reported Annual Percentage Rate (APR) of 11.5%. A discounted APR of 6.8% is available for users who redeem their xSilo rewards to Silo tokens withut any redemption period.
  • Arbitrum: Varlamore USDC Growth vault at address 0x2BA39e5388aC6C702Cb29AEA78d52aa66832f1ee, offering a significant 16.8% APR, which is discounted to 11.1% for those utilizing the xSilo/Silo redemption feature.
  • Sonic: The Greenhouse USDC vault (0xf6bC16B79c469b94Cdd25F3e2334DD4FEE47A581), providing a 12.8% APR, with a discounted rate of 9% for redemptions with the protocol’s native tokens.

The initiative seeks to enhance user choice and earning potential within the ecosystem. By integrating these vaults, the protocol can offer a more diverse and attractive suite of “earn side” products. The structure of the proposal mirrors previous successful integrations, outlining the summary, overview, motivation, and technical specifications for adding these new yield sources.

The motivation behind this RFC is to continuously source and integrate high-quality, reliable yield opportunities for users. The selected Silo Finance vaults are presented as offering competitive returns, further bolstered by the discounted redemption option for xSilo/Silo holders, which aims to create a synergistic relationship between the protocols.

The technical specification will focus on the seamless integration of these vaults, ensuring that users can easily deposit their USDC and that the underlying yields, composed of native interest and token rewards, are accurately passed through to the depositors. As with previous integrations, the proposal will be subject to community discussion and a formal governance vote to authorize the implementation.

@Recognized_Delegates @BlockAnalitica

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I am OK with this RFC.

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I support this proposal

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Let’s gooooo!

Support.

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In support of these additional strategies! They seem to have juicy APR% as well. Let’s see how will they perform.

–jensei

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Summary

BA Labs supports listing three Silo vaults to the higher risk fleets on their corresponding networks if available. While there is a higher risk USDC fleet available on Mainnet, the Arbitrum network has only lower risk USDC fleet at the time of writing this, implying waiting with Varlamore USDC Growth Silo vault listing, as proposed by BA. The current Sonic USDC low risk USDC fleet is proposed to be relabeled to higher risk by BA, mainly due to its current collateral structure, thus enabling listing the proposed Greenhouse USDC Silo vault only after switching/relabeling to higher risk.

Evaluation

The proposed Silo USDC ARKs on three networks (Mainnet, Arbitrum, and Sonic) have been evaluated using our risk model, which considers metrics such as TVL, Lindy score, and collateral quality and exposure. Based on this assessment BA proposes classifying all three ARKs as “higher risk”.

Apostro USDC Frontier vault (Mainnet)

We propose listing Apostro USDC Frontier vault as an ARK to the higher risk USDC fleet
on Mainnet.

Varlamore USDC Growth vault (Arbitrum)

Considering the absence of higher risk summerfi fleet on Arbitrum network, we advise waiting with Varlamore USDC Growth vault listing until the higher risk USDC fleet is deployed on Arbitrum.

The Greenhouse USDC vault (Sonic)

Currently, there is a single summerfi USDC fleet on Sonic network, labeled as lower risk fleet, consisting of significantly riskier collateral, based on our model, when compared to all other lower risk fleets on all networks.

Here BA Labs proposes relabeling the Sonic lower risk USDC fleet to the higher risk fleet, considering both the lindiness of the underlying network (Sonic) and the collateral distribution among the underlying ARKs onboarded to this fleet.

This would essentially enable the listing of the proposed Silo Greenhouse USDC vault as an ARK, as it falls in line of the risk profile of currently onboarded Sonic ARKs.

Initial Parameters

BA Labs will provide the initial parameters for the Apostro USDC Frontier ARK (Mainnet) and the Greenhouse USDC ARK (Sonic) to be added to higher risk fleets (pending the governance vote) in the form of reply to this thread below soon.

Note: If changed to higher risk, the overall parameters for the Sonic USDC fleet could also be a subject of change, according to the model, including the Greenhouse USDC ARK. As a reminder, the higher risk fleets offer higher keepers flexibility by setting more aggressive parameters aiming to capture higher yield.

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