Summary
This RFC proposes integrating Yield Basis’s ETH vault into the ETH Mainnet (Higher Risk) vault in the Lazy Summer Protocol.
Adding Yield Basis will diversify ETH yield strategies with a novel impermanent-loss-free AMM model that has processed $1.63B+ in trading volume since launch. The protocol’s leveraged rebalancing mechanism via crvUSD integration represents a differentiated yield source that complements existing ARKs.
Strategic timing: Yield Basis has demonstrated demand that exceeds current deposit caps. By onboarding this ARK now, Lazy Summer can be positioned to deploy capital programmatically when caps are raised, capturing yield opportunities ahead of competitors.
Motivation
- Expand yield sources – Provides exposure to Yield Basis’s IL-free AMM model with ~2x leverage via crvUSD, adding a complementary ETH yield stream that operates on fundamentally different mechanics than standard lending or staking ARKs.
- First-mover on cap raises – Yield Basis vaults have experienced high demand relative to caps. By integrating the ARK infrastructure now, Lazy Summer can programmatically deploy capital when caps increase, rather than scrambling to integrate after the opportunity window narrows.
- Proven economic model – In 2025, Yield Basis proved its leveraged AMM pool model eliminating impermanent loss is economically viable, with costs of IL elimination lower than profits generated. The protocol processed $1.63B in trading volume.
- Strong backing – Partnerships with Kraken, Legion, and Curve add institutional credibility. The protocol launched in October 2025 with a $200M FDV and has demonstrated sustained adoption.
- Increase TVL – Adds an ETH ARK supporting Lazy Summer’s ETH vault growth objectives on Mainnet.
Specification
| Parameter | Value |
|---|---|
| Vault | ETH |
| Network | Mainnet |
| New ARK | Yield Basis ETH |
| Contracts | Vault: 0x931d40dD07b25B91932b481B63631Ea86d236e09 |
| Risk Level | Higher Risk |
| $SUMR Rewards | In line with ETH Higher Risk SUMR Rewards |
- Yes
- No
- Abstain
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