[RFC] Onboarding Extrafi XLend USDC into Summer.fi USDC Base vault

[Extrafi_Cecilia]

Summary

Onboarding Extrafi XLend USDC to be allocated for the Base USDC vault on the Lazy Summer Protocol.

Extrafi XLend USDC provides a competitive USDC yield solution throughout the Base network, and the protocol’s yield is sustainably incentivized with OP/EXTRA token rewards projected to continue for an extended duration, ensuring long-term stability for vault participants.

What is Extrafi XLend:

Extrafi XLend is a smart lending protocol offering multi-accounts and advanced lending/borrowing strategies.

In a long-term vision, XLend aims to be the liquidity layer empowering composable DeFi strategies.

Core Features

Lending market based on a battle-tested codebase

• Newly designed user interface

• A lending market built on a battle-tested codebase.

• Multi-account system

  • Sub-accounts: Enabling flexible portfolio management

  • Simplified on-chain experience powered by smart accounts

• Automation & Liquidation-free strategies [*]

• Gas-free transactions [*]

New staking module offering sustainable yields [*]

• Single-asset staking with USDC or ETH

• Supercharged APY from sustainable yield sources (protocol risk absorption, incentives, and revenue sharing)

Comprehensive risk management

• Built on a highly battle-tested codebase with subsequent enhancements and fixes.

• Ongoing security improvements:

  • Additional audits

  • Work with industry-leading risk management experts

  • Work with proactive security monitoring platforms

• A robust shortfall-protection mechanism [*]: liquidation + safety module + rainy-day-fund

• Backed by a team with over 3 years of DeFi risk management expertise

Motivation:

• Enhancing Yield: Extrafi XLend USDC currently offers 8% Supply APY(OP Reward APY + Lending APY), higher than most Base USDC vaults.

• Diversifying Opportunities: Extrafi XLend USDC provides a competitive USDC yield solution throughout the Base network, offering users access to higher returns compared to other USDC vault options. The protocol’s yield is sustainably incentivized with OP/EXTRA token rewards projected to continue for an extended duration, ensuring long-term stability for vault participants.

Specifications

• Token: USDC

• Network: Base

• Contract Address: 0x589A7339C6d0c8777E7429F57f2f95c069c37288

• Risk Level: Lower risk

[MasterMojo]

I have been using Extra Fi for a few years now, and very supportive of this proposal.

I am tagging @Recognized_Delegates as well for any input/comments.

[jensei]

Welcome to the Lazy Summer Protocol family @Extrafi_Cecilia, great to see new protocols and contributors exploring how to plug into the Lazy Summer ecosystem.

XLend looks like a nice addition to the Base USDC vault family, especially with the ongoing OP/EXTRA incentives that could bring extra (no-pun intended) yield diversity.

Adding a direct link to the strategy for increased transparency: Extra Finance → Base, USDC

Would love to hear @BlockAnalitica’s view on the current risk profile of XLend (esp. shortfall-protection module and any reliance on external liquidity).

If aligned, this could definitely move toward SIP stage once the diligence and yield sustainability checks are wrapped. Looking forward to hear thoughts of other @Recognized_Delegates as well

[Extrafi_Cecilia]

Hey @jensei, thanks for the input! The link is Extrafi XLend, and we’ve secured an OP grant this season. It will continue to help grow our lending markets and user incentives.

[rspa_StableLab]

Looking good! Just wanted to point out that avg APY on Base is (was?) closer to 10%.

[MasterMojo]

Can this be moved to a SIP? Looks good on my end or does @BlockAnalitica need to do a risk profile?

[jensei]

I was just checking on this, and is this a different vault than the one brought up in SIP2.25?

@samehueasyou

Morpho Extrafi XLend USDC

This one can be already found in USDC Vault on Base:

Or is this a different ark?
@Extrafi_Cecilia @MasterMojo @halaprix

[Extrafi_Cecilia]

Hey @jensei, yes, it’s different, the pool mentioned in this proposal is our USDC lending pool, not the Extrafi XLend USDC Vault on Morpho.
You can find it on the XLend website under Borrow/Lend → Base → USDC pool: XLend | Extrafi

[jensei]

Thank you @Extrafi_Cecilia, this clears it up! Imo it should get promoted to SIP stage, to review specifications and also, of course important to get @BlockAnalitica review on this one!