[RFC] Onboard Wintermute USDC Prime Morpho V2 Vault to USDC Lower Risk Fleet

[Armitage]

1. Summary

This proposal seeks to onboard a new yield strategy to the USDC Lower Risk Vault on Ethereum mainnet. This ARK allocates capital to the vault, built on the Morpho v2 infrastructure, allocating to the bluechip collaterals, and provides a competitive yield compared to other Morpho v2 vaults.

2. Motivation

By integrating the ARK, the USDC Lower Risk Vault can expand the diversification set of bluechip opportunities across Morpho infrastructure. The strategy primarily interacts with markets using cbBTC, WBTC and wstETH as collateral.

Armitage is a dedicated curation arm of Wintermute, global leading algorithmic trading firm in digital assets, founded in 2017 and today trading over $10B in daily volume across 70+ venues. Armitage brings together strong DeFi expertise, end-to-end risk execution and trading informed risk management.

Average APY for the Wintermute USDC Prime vault over the last 30 days is 3.92% while staying fully liquid.

3. Specification

Asset	Vault Name	Contract Address	Target Protocol	Risk Level
USDC	Wintermute USDC Prime	0x5dc53a23AdC9f2Bed98de6F59F7F309a7c71FF2B	Morpho V2	Low

4. Risk Assessment

Lazy Summer Protocol currently has significant exposure to Morpho, and a number of V2 vaults have already been onboarded as ARKs; therefore, it is not expected to create any new risks to the protocol, both from a technical and economic viewpoint.

The Wintermute USDC Prime vault currently has collateral exposure to the following assets:

5. Next Steps

1. Risk Review: Tagging @BlockAnalitica to provide a risk classification and suggest initial deposit caps for this ARK.

2. DAO Signal: Gather feedback from @Recognized_Delegates

3. SIP Promotion: Once risk parameters are defined, promote this to a formal SIP for on-chain execution.

[jensei]

Thanks for putting this together, and welcome to the forum @Armitage!

Its great to see established infrastructure providers like Wintermute engaging directly with the DAO. To me this looks like a sensible addition to continued expansion of the high-quality yield sources available to the Lower Risk USDC Fleet.

Looking forward to @BlockAnalitica assessment of the proposed risk profile and initial exposure caps before considering promotion to a SIP.

[Sixty]

The proposed vault only has exposure to blue-chip DeFi collateral, and I cannot see any issues with onboarding it to the lower risk vault.

[BlockAnalitica]

Wintermute USDC Prime Morpho V2 Risk Assessment for Mainnet USDC Lower Risk Fleet

Block Analitica reviewed the Wintermute USDC Prime vault, curated by Armitage (Wintermute’s onchain vault curation arm), the single vault covered by this RFC for the USDC Lower Risk fleet.

The vault runs on Morpho Vault V2 infrastructure and allocates exclusively to three isolated Morpho markets collateralized by cbBTC, wstETH, and WBTC. This is the same blue-chip collateral stack already backing multiple approved Morpho V2 LR arks on Lazy Summer and does not introduce a new collateral exposure.

Armitage launched on May 19, 2026, giving Prime approximately six weeks of onchain history as of this RFC. Wintermute has also stated it will handle liquidations for its vaults through its own trading infrastructure rather than Morpho’s open liquidator set. Given the short operating history and the concentration of a safety-critical function in the curator itself, the key risk factors are curator maturity and liquidation execution rather than collateral quality or vault infrastructure.

Collateral Exposure

Underlying Market	Collateral	LLTV
cbBTC/USDC	cbBTC	86%
wstETH/USDC	wstETH	86%
WBTC/USDC	WBTC	86%

Armitage’s own documentation restricts Prime to established blue-chip markets and explicitly excludes the RWA and looping markets available to its sibling Select vault, which is out of scope for this report and will be assessed separately. Prime’s disclosed market list contains no Wintermute-affiliated asset. On that basis, Block Analitica does not treat Prime’s risk profile as materially different from other blue-chip Morpho V2 vaults already onboarded, aside from the curator’s limited track record.

Governance follows Morpho Vault V2’s standard role separation. Per safe.yaudit.dev, the Curator Safe (0x4687e45bb5518a995913a24bb2816fe2031d74d8, 3-of-5) scores 92/100 Low Risk, was deployed April 23, 2026, has 13 executed transactions with the most recent 4 days ago, and shows an average signing duration of ~12 minutes; all signers are externally owned accounts. The Owner Safe (0xb83a77677c51aaf6c45b0b64199eae6938559e5e, 4-of-6) scores 87/100 Low Risk, was deployed April 27, 2026, and shows lighter usage: 4 executed transactions, the most recent 47 days ago (May 14, 2026), and an average signing duration of ~40 minutes. Both flag the same two signer addresses (0xE2D91050bbcb9013595B5C1Ec4727A2aFD3ef6eF and 0x910c2847Ee5e636e7592128bc87df8df1ec8a751) for recent non-multisig onchain activity, a minor hygiene note rather than a security finding. Neither Safe uses a transaction guard or recovery module, which is standard for this category of vault multisig. Overall, both multisigs read as newly deployed but adequately configured, with no contract signers and no irregularities in signer composition. Critical curator actions, including new market additions, are timelocked at a minimum of 3 days, with more critical actions delayed 7 days.

Fleet Classification

• Wintermute USDC Prime (0x5dc53a23AdC9f2Bed98de6F59F7F309a7c71FF2B): classified as Low Risk (LR) and eligible for the USDC LR fleet. No LR disqualifiers apply.

Conclusion

Block Analitica supports moving Wintermute USDC Prime to SIP for the USDC LR fleet. Initial caps and allocation parameters will be defined once this moves to governance.