[SIP2.16] Onboard Morpho Seamless WETH market to BASE WETH Lower Risk Vault

Governance Summer Improvement Proposals [SIPs]
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1. Status:

Proposed

2. Overview:

Add the Morpho Seamless WETH market to the Summer WETH Lower Risk vault on Base network.

3. Motivation:

As proposed by @yellowknife here - this is to add a new competitive weth market to the lower risk weth vault on Base. At the time of the SIP, it would be the second highest ETH APR on the Base ETH LR Vault.

Given we already support Seamless USDC on the base USDC vault too, we already have trusted Seamless in their risk curation, and see no reason why additional markets from them shouldn’t be added, like this.

4. Specification:

Add the new market as an ark to the WETH Lower Risk vault on the Base network. At deploy, all risk caps will be set to 0 (zero), with @BlockAnalitica to set the caps as and when they are ready.

Actors responsible

  • Summer.fi (Labs co) will provide the smart contracts to add the new ark and market to the specified vault, and the required code for the onchain vote.
  • @BlockAnalitica should provide their risk analysis and set the relevant caps once the vote to onboard the market if and when passed and has been executed.

Timing wise, this should go into the vote cycle this Wednesday, 2nd July.

Parameter Value
Vault ETH Base - Lower Risk
Network Base
New Ark Morpho Seamless WETH
Contract(s) Seamless WETH Vault 0x27d8c7273fd3fcc6956a0b370ce5fd4a7fc65c18 / LazyVault_LowerRisk_WETH 0x2bb9ad69feba5547b7cd57aafe8457d40bf834af
Risk Level Lower Risk

5. Risk Assessment:

As with all new arks and markets being onboarded, there are smart contract risks, and risks to the underlying protocol - in this case Morpho. However, the Lazy Summer Protocol is already heavily exposed to many Morpho markets across it’s Vaults so this adds no additional risk.

With Morpho Markets, there is also the added risk of the risk curator which needs to be taken into account. However, as mentioned above, this will be the second Seamless Vault that is being supported, and should be mitigated further by continued analysis by @BlockAnalitica

6. Voting:

If this SIP is approved, and voted YES - the Morpho Seamless WETH market will be enable on the WETH Lower Risk Summer Vault, on the Base Network, with all risk parameters set to 0.

If NO - the market will not be added and the reasons discussed after.

cc @BlockAnalitica @Recognized_Delegates @yellowknife

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Appreciate this Chris. I have no issues with this.

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This is the kind of low-friction, high-impact evolution that strengthens Lazy Summer’s architecture on Base. The Morpho Seamless WETH market is a proven protocol, second-highest ETH APR at time of submission, and already integrated on the USDC side.

Support from me on this one.

*I made couple of edits in terms of formatting and tags.

–jensei

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VOTE: Tally | Lazy Summer DAO (Official) | SIP2.16: Add Ark to LazyVault_LowerRisk_WETH Fleet

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Supportive of adding the Seamless WETH ark to the lower-risk WETH vault. The Seamless WETH vault has consistently been one of the best-performing WETH markets on Base Morpho, and will be a great addition to the vault.

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The proposed Morpho Seamless WETH Ark for the Low Risk Fleet Base ETH has 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
morpho morpho_seamless_weth 880 36.0% 880 880

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.

1 Like