1. Summary:
The current Vault SUMR rewards end on November 11th 2025. It is important for governance to approve new Vault rewards by the 11th to ensure the Vaults continue to accrue SUMR rewards - if Governance wants to.
This RFC is to propose two different solutions to continuing the SUMR Vault Rewards, but should no way be taken as the only two options should others want to propose a different way.
I would though encourage the community to conclude the direction and amounts by next Wednesday, 5th December - in time for them to go vote and be ready to be executed on the 10th - to start on the 11th.
2. Context & Motivation:
Because the existing rewards expire on the 11th November, we need to confirm if and how much we want to continue the SUMR rewards by Wednesday 5th December to ensure there is no period where the Vault Rewards stop.
3. Proposal:
I have put together two proposals I think would be suitable for the continuation of the SUMR token rewards into the next phase of the project as SUMR becomes transferable, hopefully a week after these take effect.
I have proposed another 90 day extension, but this could be lowered if the community think it might be needed to make adjustments to the reward rates once the token settles on a price. Personally I think 90 days is fine.
I have also reduced the amount of SUMR emissions on the current Vaults by around 85k (approx 25%). I believe that a number of new Vaults will soon be proposed, and this gives some room to allocate rewards to those vaults too without increasing the rate of emission (which I think would be a mistake)
Proposal 1 - Reset all rewards to target 12 APY based on todays values (similar to last time, targeting 25%.
For context, the weighted average today is around 17.76% APY, and emits 333,505 SUMR tokens per day. This proposal would reduce this to 246,854 a day and reset all markets to 12% APY. This means some markets, such as USDC on Arbirtrum that has seen solid growth recently, doubles it’s rewards APY while others, such as EURC, which has been less popular, reduce.
Proposal one see’s the following values in the ‘Propose’ column per day, with the full 90 day value shown to the right.
Proposal 2 - Reduce each markets emissions by 25% from the value it currently is at today
This is a much more simple, across the board reduction, maintaining the difference in Vaults where more popular vaults since the last reward extension will continue to offer lower APY for rewards.
This option would issue 250,129 SUMR a day, down from 333,505.
My personal preference is Proposal 1, resetting all to 12% APY enabling more popular markets to have increased amounts of SUMR tokens, even though the total amount of SUMR being emitted is being reduced by ~25%
4. Open Questions:
- Firstly, does the community wish to continue to provide SUMR rewards for usage of the Lazy Summer Vaults?
- If yes, do they agree on either Proposal 1 or 2, or potentially align around a third proposal?
- If aligned on daily amounts, should the extension be for another 90 days, or more or less?
5. Next Steps:
- Gather community feedback
- Iterate based on discussion if needed and align around a single proposal (ideally by 5th December 2025)
- Promote to SIP (with clear, formal specification) and move to vote (ideally by 5th
Decembern November 2025)
Tagging all @Recognized_Delegates for their feedback and input and welcome all community members for their input.
Edit 30/10 - Said December instead of November Section 5