Sky MorphoV2 Risk Assessment for Mainnet USDT Fleets, with Additional View on USDC Risk Capital
Block Analitica reviewed sky.money USDT Savings and sky.money USDT Risk Capital, the two vaults covered by this RFC. We also include a risk view on sky.money USDC Risk Capital, which is not part of the RFC but is relevant for the Mainnet USDC HR fleet.
All three vaults allocate into a single dedicated Morpho market and therefore have fully concentrated exposure. These markets are exclusively collateralized by Sky protocol tokens, either sUSDS or stUSDS. sUSDS is already used across multiple approved ARKs in existing Lazy Summer deployments on Mainnet and Base and does not introduce a new collateral exposure. stUSDS, by contrast, is not currently an approved collateral type in the Lazy Summer risk universe and therefore introduces a new source of collateral risk.
Morpho V2 vault infrastructure is production grade and well audited. Given the single market design of these vaults, the key risk factors are market concentration, collateral quality, and curator-controlled allocation constraints.
Collateral Exposure
| Vault | Underlying Market | Collateral | LLTV |
|---|---|---|---|
| sky.money USDT Savings | sUSDS/USDT | sUSDS | 96.5% |
| sky.money USDT Risk Capital | stUSDS/USDT | stUSDS | 86% |
| sky.money USDC Risk Capital | stUSDS/USDC | stUSDS | 86% |
stUSDS (Sky Forum, community overview) is a riskier token compared to sUSDS. Users deposit USDS to mint stUSDS, and that capital is used to fund USDS borrowing by SKY stakers posting staked SKY as collateral. Its yield is utilization-sensitive and adjusted by the BEAM rate setter toward a target utilization near 90%. stUSDS holders can be exposed to losses if bad debt builds up in the underlying system. In addition, Sky governance retains direct control rights over the contract, which adds governance risk. On that basis, Block Analitica classifies stUSDS-collateralized markets as Higher Risk.
Fleet Classification
- sky.money USDT Savings (0x23f5E9c35820f4baB695Ac1F19c203cC3f8e1e11): classified as Low Risk (LR) and eligible for the USDT LR fleet.
- sky.money USDT Risk Capital (0x2bD3A43863c07B6A01581FADa0E1614ca5DF0E3d): classified as Higher Risk (HR) due to its stUSDS collateral exposure. Since no USDT HR fleet currently exists, Block Analitica does not recommend onboarding it for the time being.
- sky.money USDC Risk Capital (0x56bfa6f53669B836D1E0Dfa5e99706b12c373ecf): classified as Higher Risk (HR) and eligible for the USDC HR fleet.
Conclusion
Block Analitica supports moving sky.money USDT Savings to SIP for the USDT LR fleet. Block Analitica does not recommend onboarding sky.money USDT Risk Capital for the time being, given its Higher Risk classification and the absence of a USDT HR fleet. Block Analitica also supports onboarding sky.money USDC Risk Capital to the USDC HR fleet, although this vault is outside the scope of the current RFC and would require separate governance action. Final initial caps and allocation parameters will be defined prior to execution.