Title: Onboarding Steakhouse sUSDS Vault on Base
Author: Shadow_Holder
Submission Date: 10-March-2025
Summary Onboarding Steakhouse sUSDS Vault on Base Low Level strategies
Overview
The newly introduced Steakhouse sUSDS vault aims to optimize yields by lending sUSDS against blue chip crypto and real world asset (RWA) collateral markets, depending on market conditions. It is called the “dual engine.”
How does the vault works
The Steakhouse sUSDS Vault has, at the moment of posting, Total Deposits 3.37M and overall APY 14.4%. Sky’s SSR of 6.5% and 7.9% native APY from Morpho borrowers. Native APY includes also additional rewards distributed within the Morpho protocol, currently MORPHO and USDS.
What is the Sky Savings Rate (SSR)?
The Sky Savings Rate (SSR) is a variable rate determined by the decentralised Sky Ecosystem’s on-chain governance, and configured on the Ethereum blockchain. Sky Ecosystem governance is able to adapt the SSR and other relevant parameters at any time at its discretion and without notice, based on market conditions, protocol surplus and other factors. The rate provided is an estimate of the SSR expressed in expected compounded rate per annum, should be automatically updated every 5 minutes, and is powered by data provided by a third party (BlockAnalitica).
How sUSDS works?
When you supply USDS to the Sky Savings Rate module of the decentralised Sky Protocol, you receive sUSDS. These sUSDS tokens serve as a digital record of your USDS interaction with the module and any value accrued to your position.
The Sky Protocol dynamically and automatically adds USDS tokens to the entire pool of USDS supplied to the module every few seconds, in accordance with the Sky Savings Rate. As a result of the tokens auto-accumulating in the pool over time, the value tends to accrue within the sUSDS you hold.
When you choose to redeem your sUSDS for USDS or USDC—which you can do anytime—the total USDS or USDC you will receive will equal the amount you originally supplied, plus any additional USDS accumulated.
Main Risks
As with other DeFi lending and borrowing protocols, Sky Protocol and Morpho markets can include bad debt accrual, liquidation risk, and smart contract vulnerabilities.
Technical challenges
The vault uses sUSDS deposits and not USDC at the moment. Since I’m not an expert in this field, Summer’s engineers can further advise on if/how can it be implemented within the USDC Low Level strategies on Base.
Specifications
Vault Deposit Token: sUSDS
Network: Base
Vault Address: 0xB17B070A56043e1a5a1AB7443AfAFDEbcc1168D7
Morpho UI Path: Link to vault
Morpho Block Analitica: Link to dashboard
Risk Level: TBD by Block Analitica
