[RFC] Raise Base risk caps and add new yield sources to win Base market

Summary

This RFC proposes actions to make Lazy Summer Protocol’s Base vaults competitive against YO Protocol, which currently dominates the Base yield aggregator landscape with 27.32% market share.

The proposal includes:

  1. Raise allocation caps on existing ARKs in Base USDC and ETH vaults
  2. Onboard new yield sources that are winning on Base right now

Lazy Summer currently holds just 7.55% of yield aggregator TVL on Base. This is easy ground to make up by onboarding the right yield sources and deploying capital more aggressively.


Motivation

YO Protocol Dominates Base

As of January 2026, the yield aggregator landscape on Base shows clear market leaders:

Protocol Market Share
YO Protocol 27.32%
vfat.io 18.55%
Beefy 15.58%
Lazy Summer Protocol 7.55%
Autopilot 6.62%
Harvest Finance 6.31%
IPOR Fusion 5.05%
Vesper 4.74%
Superform 4.04%
Others 4.24%

Source: YO Protocol tweet

YO Protocol has grown to $80M TVL total, with ~27% of assets on Base (roughly $21.6M). Their yoUSD alone has $25M TVL with yield sourced from 100+ strategies across Pendle (18.5%), Tokemak (15.6%), and Morpho (15.1%).

We’ve got this

  1. Lazy Summer already has Base infrastructure - Just needs better yield sources and higher caps
  2. YO’s lead is narrow - Moving from 7.55% to 15%+ is achievable with the right strategies

The Problem: conservative configuration

Current Base vault configuration mirrors the Mainnet issue, caps are too conservative and yield sources don’t reflect market winners. Users choosing Summer.fi on Base are getting suboptimal exposure while competitors like YO, Harvest, and vfat.io capture the alpha.

Part A: Raise caps on existing Base ARKs

Similar to the Mainnet Higher Risk vault, Base vaults likely have approved ARKs sitting at 0% caps. I propose raising caps to allow meaningful allocation to higher-yielding strategies.

Specifications

Shift Protocol ext-USD (Base)

Field Value
Token USDC
Network Base
Contract Address 0x4cE3ec1b7B4FFb33A0B70c64a0560A3F341AA2E1
Risk Level Lower
Est. APY 7-12%
Link Shift Protocol - Tokenizing Yield

Revert Lend USDC (Base)

Field Value
Token USDC
Network Base
Contract Address 0x3895e33b91f19B279D30B1436640c87E300D2DAc
Risk Level Lower
Est. APY 8-25%
Link revert

Harvest 40 Acres USDC (Base)

Field Value
Token USDC
Network Base
Contract Address 0xC777031D50F632083Be7080e51E390709062263E
Risk Level Lower
Est. APY 8-15%+
Link https://app.harvest.finance/base/0xC777031D50F632083Be7080e51E390709062263E?chain=base
2 Likes

+1 on this, I am not sure if its possible to raise risk caps through governance, but we should definitely start thinking of opening some of these ARKs back up. The USDC fleet on Base currently has 63% of its ARKs with allocation caps set to 0.

Given the broader risk off stance in the market, this is the perfect time for SummerFi to shine as the set it and forget it protocol for stables. We can’t however, get that exposure if we are not offering competitive yields.

2 Likes