Euler Frontier YO USDC (Base) – ARK assessment
Summary
We reviewed the Euler Frontier YO USDC vault on Base as a potential ARK for the USDC fleet on Base. At current size and yield it does not pass the BA Labs baseline TVL and economic added value test, so we do not recommend onboarding it at this stage.
Vault overview
- Yield source: Euler Frontier YO USDC vault on Base
- Current TVL: ~350k USDC
- Current total APY: ~4.8 percent, coming purely from lending yield on Euler
Baseline TVL and APY screen
Per the BA Labs baseline criteria, a new ARK should have enough TVL and APY so that, if the USDC fleet on Base allocated capital on the same order of magnitude as the protocol TVL and the protocol APY was maintained, the fleet APY would increase by 5% of its current value. This requirement is encoded in the TVL_min formula in the baseline post.
Using the current Base USDC fleet TVL and APY together with Frontier YO USDC metrics, the implied TVL_min from that formula is clearly above the vault’s current TVL of about ~ 350k USDC. In other words, even if the fleet deployed an amount comparable to the current protocol TVL, the expected uplift in fleet APY would be well below a 5 percent target.
Given this, and in line with the “first rule” checklist, we do not proceed to a deeper collateral or risk analysis for this ARK at this time.
Recommendation
BA Labs does not recommend onboarding Euler Frontier YO USDC as an ARK for the USDC fleet on Base in the current conditions. The protocol TVL is too small relative to the fleet and the expected APY uplift is not meaningful enough to justify additional integration and monitoring overhead.
We are open to revisiting this assessment if protocol TVL grows materially and the yield remains attractive relative to the Base USDC fleet APY.