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.