# \[SIP1.2.1\] Reduce Protocol Fee on EURC Vault (Base)

**URL:** <https://forum.summer.fi/t/sip1-2-1-reduce-protocol-fee-on-eurc-vault-base/765>\
**Category:** Summer Improvement Proposals \[SIPs\]\
**Tags:** sip1, base, eurc, vault-fee\
**Created:** [March 9, 2026, 12:21pm UTC](https://forum.summer.fi/t/sip1-2-1-reduce-protocol-fee-on-eurc-vault-base/765 "2026-03-09T12:21:00Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![jensei](https://yyz1.discourse-cdn.com/flex009/user_avatar/forum.summer.fi/jensei/32/69_2.png) [@jensei](https://forum.summer.fi/u/jensei)\
**Post date:** [March 9, 2026, 12:21pm UTC](https://forum.summer.fi/t/sip1-2-1-reduce-protocol-fee-on-eurc-vault-base/765/1 "2026-03-09T12:21:00Z")

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### 1. Overview:

This SIP proposes reducing the protocol management fee on the **EURC Vault on Base** from **1.0% to 0.3%** in order to improve net depositor yield and strengthen the vault’s competitiveness within the Euro-denominated stablecoin market.

With the recent addition of 2 Morpho V2 arks into the EURC Base Fleet, we should keep monitoring the performance of the Base EURC Vault and add any new/established strategies into this Fleet.

> _ **NOTE** : This proposal builds on [**community feedback**](https://forum.summer.fi/t/please-consider-a-lower-fee-on-eurc-vaults/430) and the [**[RFC]**](https://forum.summer.fi/t/rfc-reduce-the-protocol-fee-on-eurc-vault/) authored by @halaprix._

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### 2. Motivation:

At the current **1% management fee** , the Lazy Summer EURC Vault faces a potential structural disadvantage when compared to competing yield strategies that operate with lower overhead. This reduces the **net APY received by depositors** , which in turn can limit TVL growth and reduce the vault’s visibility across yield aggregators.

Reducing the protocol fee to **0.3%** is expected to:

- Increase **net yield for vault depositors**
- Improve the vault’s **ranking across yield platforms**
- Attract **additional TVL from price-sensitive liquidity providers**
- Strengthen Lazy Summer’s positioning as a **preferred venue for EURC yield**

 ![Screenshot 2026-03-09 at 13.10.24](https://canada1.discourse-cdn.com/flex009/uploads/summer/original/1X/ad6ac49a98715b93e1c98a2e3a35cf62ea75afd7.png)

While the fee reduction decreases margin per unit of capital, the expectation is that **higher vault utilization and TVL growth** will partially or fully offset the reduced fee percentage over time. This change therefore prioritizes **growth and competitiveness of the EURC vault** within the broader Base ecosystem.

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### 3. Specification:

This proposal introduces a **single protocol parameter change** affecting the EURC Vault on Base.

#### 3.1 Parameter Change:

| Parameter | Current Value | Proposed Value |
| --- | --- | --- |
| Management Fee | 1.0% | **0.3%** |

#### 3.2 Vault Details

| Parameter | Value |
| --- | --- |
| Vault | EURC LR |
| Network | Base |
| Address | 0x64db8f51f1bf7064bb5a361a7265f602d348e0f0 |

#### 3.3 Implementation

The proposal requires a **protocol parameter update** to the vault’s management fee configuration. No smart contract upgrades or structural changes are required. The update can be executed through the standard governance execution process.

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### 4. Risk Assessment:

This proposal introduces **minimal technical risk** , as it only modifies a configuration parameter. However, there are several economic considerations:

1. **Treasury Revenue Reduction**

Lowering the management fee reduces the DAO’s fee capture per unit of TVL. The proposal assumes that **increased TVL and utilization** will partially offset the lower fee percentage.

1. **Market Competitiveness**

If the fee remains too high relative to competing strategies, the vault may struggle to attract liquidity. A **0.3% fee aligns more closely with market standards** for low-risk stablecoin vaults.

1. **Governance Flexibility**

If the change does not produce the desired effect on vault growth, governance retains the ability to **adjust the fee parameter again through future proposals**.

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### 5. Voting:

> If **YES** - Reduce the EURC Vault management fee on Base from **1.0% → 0.3%** and execute the parameter update via the DAO governance process.

> If **NO** - Maintain the current **1.0% management fee** for the EURC Vault

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Tagging [@Recognized\_Delegates](https://forum.summer.fi/groups/recognized_delegates) for a checkup as always.

–jensei