[RFC] Onboarding Medium Priority Morpho v2 Vaults - Mainnet

[samehueasyou]

Note I am aware that bundling multiple ARKs is frowned upon, but I believe this an exception, given that V1 versions of most of these ARKs already exist. However, I am wiling to provide further prioritization in the coments, starting with the top 1-3 ARKs

Summary

Onboarding Medium Priority Morpho v2 vaults. These vaults pursue “Growth” strategies, often lending against a wider range of collateral types or utilizing newer optimization strategies to achieve higher APYs than Prime vaults.

Motivation

To diversify the yield sources of the Lazy Summer Protocol and capture higher upside during favorable market conditions. These vaults offer a balance between the ultra-safety of Prime vaults and the aggressive nature of Frontier vaults.

Specifications

Network: Ethereum Mainnet

Asset	Vault Name	Contract Address	Link	Risk Level
USDT	Steakhouse High Yield Instant	0xbeeff07d991C04CD640DE9F15C08ba59c4FEDEb7	Link	Higher
USDC	Yearn OG USDC v2	0xB885F6d448dA7E2C642Ec31190B629E40E87B069	Link	Higher
USDC	Hyperithm USDC Midcurve	0x0229dB3921dE71CFa43Cfe9fb6A87b403647A9ae	Link	Higher

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Individual Vault Specifications

Steakhouse High Yield Instant (USDT)

Field	Value
Token	USDT
Network	Ethereum Mainnet
Contract Address	0xbeeff07d991C04CD640DE9F15C08ba59c4FEDEb7
Risk Level	Higher

Yearn OG USDC v2

Field	Value
Token	USDC
Network	Ethereum Mainnet
Contract Address	0xB885F6d448dA7E2C642Ec31190B629E40E87B069
Risk Level	Higher

Hyperithm USDC Midcurve

Field	Value
Token	USDC
Network	Ethereum Mainnet
Contract Address	0x0229dB3921dE71CFa43Cfe9fb6A87b403647A9ae
Risk Level	Higher

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Informal Support Indicator

Should Lazy Summer DAO proceed with drafting a SIP to onboard these markets as Higher Risk Ethereum Mainnet Vaults?

[Sixty]

@Sixty

I am supportive of transitioning the listed Morpho v1 ARKs to their v2 counterparts. In addition to the improved architecture of the v2 vaults, the v2 incentive campaign adds additional yield to upgraded ARKs through MORPHO token incentives.

The current APY of the MORPHO rewards is currently 2.04% for USDT vaults and 0.71% for USDC vaults. Since these rewards are captured and distributed as yield to depositors on SummerFi, transitioning these vaults is a no-brainer.

Echoing my comments from the Transitioning Morpho Arks/ Yield Sources from v1 to v2 on Ethereum Mainnet post here. This should be moved to SIP after a final sign-off from @BlockAnalitica, ideally, after the High Priority ARK Onboarding SIP.

[BlockAnalitica]

Onboarding Medium Priority Morpho v2 vaults

Lazy Summer already has Morpho exposure onboarded, so this proposal is not a new protocol category. That said, these Morpho v2 vaults can expand the effective collateral and strategy surface on the HR fleets and we can assess them per asset and fleet fit.

Yearn OG USDC v2 (USDC)

This is the only vault in the set we are comfortable advancing to SIP at this stage. It fits an existing USDC fleet context and can be parameterized under the current risk framework. The only collateral asset being added by this ARK to the overall SummerFi exposure is YFI, which according to the risk model is suitable for HR fleets, with corresponding caps.

Steakhouse High Yield Instant (USDT)

We do not recommend moving this to SIP right now because there is currently no Higher Risk fleet with USDT as the asset.

Hyperithm USDC Midcurve (USDC)

We do not recommend moving this to SIP at this stage. Relative to existing onboarded ARKs, it appears to introduce too many additional risky collateral exposure and strategy complexity that requires deeper review before a recommendation.

Conclusion

Block Analitica supports proceeding to SIP for Yearn OG USDC v2 only. We recommend not advancing Steakhouse High Yield Instant (USDT) due to lack of a USDT Higher Risk fleet, and not advancing Hyperithm USDC Midcurve pending deeper collateral and risk review.