This SIP proposes to add two Euler Finance vaults—currently deployed on Ethereum—to our protocol’s whitelist. These are 2 of top 5 the highest yielding eth vaults available across all EVM chains. See the last 30 days avg yield on vaults.fyi.
Overview
The proposal seeks to whitelist the following Euler Finance vaults:
It is proposed that these two Euler Finance vaults be added to the whitelist. Should there be no significant objections or further suggested modifications from delegates, this proposal should proceed to an on-chain vote to deploy the two arks.
Thanks for this proposal @Brenner - great to see some new ark proposals from the community already.
Re. Euler Prime WETH - This ark is actually already onboarded and added to ETh Vault - however it currently has a deposit cap set by the risk manager of 0 - @BlockAnalitica can likely provide more info here.
Re. Swaap Lend ETH Vault - I don’t know much about this vault. I see it currently has only 1.7M deposited into it, so I imagine the cap would be small. But again, would be interested to hear @BlockAnalitica assessment.
My comments will be general here. I am not commenting on these specific vaults, but rather on the approach I find fitting to onboard new vaults.
Lazy Summer should focus on long term sustainable yield - especially for the current ‘Lower risk’ options. In order to onboard billions into Lazy Summer, the onboarding rules should be transparent and predictable. The exact rules can and should be argued about, and may evolve, but only in the direction that they improve/maintain long term sustainable yields.
Therefore, I suggest for @BlockAnalitica to apply the onboarding formulas to these Euler vaults, share the results, and suggest to Euler/@Brenner what could be done in order to increase the caps for these two.
Re. Euler Prime WETH - This ark is actually already onboarded and added to ETh Vault - however it currently has a deposit cap set by the risk manager of 0 - @BlockAnalitica can likely provide more info here.
Where am i able to see this full list? I checked the vault first, and don’t see it listed
Echoing the sentiment by @FBrinkkemper here, that onboarding proposals should be largely automated. @BlockAnalitica can provide clear guidelines, that, if met, would automatically onboard a vault with a 0 cap.
If and when there’s need for the vault, and risk considerations permit it, the 0 cap can be raised.
Hey everyone, definikola here, responding on behalf of @BlockAnalitica.
Euler Prime WETH
As mentioned above, this ARK has already been added to the whitelisted set of yield sources at the SummerFi Lazy Protocol launch, however, it’s cap has been set to 0.
Please note that the cap for Euler Prime WETH ARK has been increased to 2950 of ETH with a max percentage TVL of 35%. More details can be found here.
Euler Swaap Lend ETH
Based on the currently available docs and whitepaper (which seem to be somewhat outdated), Swaap protocol v2 seems to be a Balancer v2 fork using “Boosted” pools for depositing liquidity into external protocol for additional yield, which were exploited back in 2023.
As far as the Swaap Lend protocol is concerned (we indentify Swaap Maker, Swaap Earn, and Swaap Lend protocols), it currently stands at $4.3m TVL and has $1.4m in Euler v2 vault with collaterals using custom oracles.
Considering the Swaap Lend protocol let’s users lend assets like ETH and USDC against Swaap LP tokens, it’s safe to conclude that the Swaap Lend users are exposed to a similar type of risk.
Due to this limited data and documentation of the Swaap protocol, lack of audits (the docs link to the Balancer v2 audits), and our lack of awareness of this project until recently, we recommend not listing this Euler vault as an ARK in SummerFi Lazy protocol.
