BA Labs supports the Infinifi siUSD asset onboarding to SummerFi as it essentially doesn’t bring exposure to any additional collateral assets based on the allocation breakdown of siUSD at the time of writing.
However, due to the liquidity mechanisms put in place, and general TVL level (~$75m) of Infinifi protocol, we suggest listing this ARK in a Higher Risk USDC Fleet on Mainnet due to potential withdrawal limits, depending on the SummerFi type of allocation to iUSD.
Considering the current “Instant Liquidity” available for SummerFi depositors of ~$68m, representing ~57% of the current TVL, we propose taking the senior tranche allocation within Infinifi (siUSD), as proposed above, to avoid secondary market exits and mitigate slashing risks the holders of liUSD are taking.
Pending the governance vote, BA Labs will provide details about proposed ARK parameters in timely manner below.