[SIP2.11] - Adding new Silo Vaults to USDC.e Sonic vault

Governance Summer Improvement Proposals
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Summary This SIP proposes the integration of three existing Silo Finance USDC vaults, currently deployed on the Sonic network, into our protocol’s “earn side” offerings. The vaults—USDC - Re7 USDC, USDC - Varlamore USDC Growth, and USDC - Apostro USDC—offer users yield composed of native interest, wS tokens, and SILO tokens, currently estimated around 9.5% APR. This initiative aims to diversify and bolster yield generation options for our users, particularly in light of recent adjustments to other reward structures.

Motivation The primary driver for this proposal is to enhance the yield-earning opportunities available to the protocol’s users. With changes such as the removal of previous Euler wS rewards, introducing new, competitive yield sources is essential. The three selected Silo Sonic USDC vaults present attractive blended APRs (currently ~9.5%) through a combination of native interest, wS token rewards, and SILO token rewards. Integrating these vaults on the “earn side” will provide users with robust options to grow their USDC holdings and benefit from the Silo ecosystem, helping to maintain the protocol’s competitiveness and address any potential yield gaps.

Specification This proposal is to whitelist and integrate the following Silo Finance Sonic vaults for earn-side deposits within our protocol:

Parameter Vault 1: USDC - Re7 USDC Vault 2: USDC - Varlamore USDC Growth Vault 3: USDC - Apostro USDC
Vault Name (Protocol) Silo Sonic USDC Earn - Re7 Silo Sonic USDC Earn - Varlamore Silo Sonic USDC Earn - Apostro
Network Sonic Sonic Sonic
Underlying Asset USDC USDC USDC
Silo Vault Address 0xF75AE954D30217B4EE70DbFB33f04162aa3Cf260 0xF6F87073cF8929C206A77b0694619DC776F89885 0xcca902f2d3d265151f123d8ce8FdAc38ba9745ed
Yield Components Native Interest + wS tokens + SILO tokens Native Interest + wS tokens + SILO tokens Native Interest + wS tokens + SILO tokens
Reported APR ~9.5% (Verify at implementation) ~9.5% (Verify at implementation) ~9.5% (Verify at implementation)
Integration Type Earn-side deposits enabled Earn-side deposits enabled Earn-side deposits enabled
Risk Level To be reviewed by Risk Committee; not for collateralization in this scope. To be reviewed by Risk Committee; not for collateralization in this scope. To be reviewed by Risk Committee; not for collateralization in this scope.

Technical Implementation: The integration should focus on creating a seamless pass-through mechanism for users to deposit USDC and receive the accrued native interest, wS tokens, and SILO tokens directly.

Risk Considerations: While these vaults are being integrated for yield generation on the earn side, this proposal does not include them for use as collateral or for borrowing against within our protocol at this stage. A thorough risk assessment of these vaults as earn options should be conducted by the relevant risk committee prior to implementation.

Voting It is proposed that these three Silo Finance Sonic USDC vaults (USDC - Re7 USDC, USDC - Varlamore USDC Growth, and USDC - Apostro USDC) be integrated into the protocol’s earn-side offerings as specified above. A formal governance vote (e.g., on-chain or Snapshot, per DAO procedures) will be initiated to authorize this integration, pending community and delegate feedback.

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Thank you @halaprix for a solid follow-through on the RFC. Big +1 from me on this direction — good balance of optionality and capital efficiency.

–jensei

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Thank you @halaprix,

Looks attractive to me (though I’m not fully familiar with the technical or risk details of these vaults).

Just a quick reminder: any Summer.fi Sonic liquidity is currently eligible for the 12x AP Sonic Points campaign, which is expected to run until June 2025, with a likely follow-up in subsequent Sonic Points campaigns, should they be run.

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I think this is a solid add to the low risk vaults.

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The proposed Silo Vaults for the Low Risk Fleet Sonic USDC.e have been evaluated using our risk model, which incorporates metrics such as TVL, collateral quality, and exposure. Following this assessment, we propose the following initial parameters:

Ark Symbol/Vault maxCap Max. %TVL maxInflow maxOutflow
siloV2 re7-usdc 135,000 34.00% 135,000 135,000
siloV2 varlamore-usdc-growth 2,000,000 35.00% 2,000,000 2,000,000
siloV2 apostro-usdc 3,200,000 36.00% 3,000,000 3,200,000

The cooldown period for all Arks in this Fleet is 10 minutes. These parameters ensure the Fleet operates within controlled risk limits while accommodating expected demand.

Note that this Fleet already integrates isolated Silo markets, and the proposed vaults will be managed by third parties who allocate liquidity to other specific Silo-listed markets. Each vault’s exposure has been evaluated individually, and the proposed parameters reflect conservative limits aligned with the Fleet’s low-risk profile.

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