[SIP2.31] Add Euler Earn Strategy to USDC Mainnet – Higher Risk Vault

Governance Summer Improvement Proposals [SIPs]
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Summary

This SIP proposes integrating Hyperithm’s Euler Earn USDC Strategy into the USDC Mainnet – Higher Risk vault on Ethereum within the Lazy Summer Protocol.

Following comprehensive technical review and risk diligence, the Hyperithm Euler Earn USDC Strategy aligns with Lazy Summer’s standards for inclusion. The strategy leverages Euler’s permissionless money markets to capture enhanced yields through dynamic lending and borrowing opportunities, while acknowledging the higher risk profile relative to standard DeFi lending strategies.

By adding this strategy, Lazy Summer’s vault offering is diversified and gains exposure to Euler’s innovative risk-isolated lending architecture, expanding beyond traditional DeFi yield sources.

Motivation

  • Expand Yield Sources – Incorporates an institutional-grade Euler Earn strategy, leveraging Euler’s liquidity markets to complement existing vault opportunities in the Higher Risk category.
  • Attract New Users – Appeals to sophisticated DeFi participants and institutional allocators seeking higher-yielding strategies with greater risk/reward trade-offs.
  • Increase TVL – Supports Lazy Summer’s strategic growth goals by strengthening the USDC vault family with a distinct, Hyperithm-operated higher-risk strategy.

Specification

Parameter Value
Vault USDC Mainnet – Higher Risk
Network Ethereum
New ARK Hyperithm USDC (Euler Earn)
Contract Address 0x3cd3718f8f047aA32F775E2cb4245A164E1C99fB
Risk Tier Higher Risk

@jensei @Recognized_Delegates @0xtucks

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I like this directionally. The USP, for me, of Summer is that I get to enjoy those gigabrain yields while lazy-staking. Imo we could be even more vocal about the amount of risk management and thinking that goes into these Summer vaults.

Recently I have often seen some new vault on X where I was thinking: I should probably move some funds there, but then I remember I have Summer and I don’t need to chase fads. Which is just a great feeling.

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Nice one, thanks for the proposal @samehueasyou. The Euler Earn integration looks like a solid addition to the higher-risk USDC lineup. Good to see Hyperithm strategies continuing to expand the vault mix.

Could you please share a direct link to the strategy? It is always good to hyperlink these into the proposal contract address for transparency.

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BA Labs shared a risk assessment of couple of yield-bearing stable asssets, including Hyperithm’s mHYPER, available here.

TL;DR: BA Labs proposes holding back from onboarding Euler Earn Hyperithm USDC vault as an ARK to the HR USDC fleet on Mainnet at this point, due to recursive collateral risk exposure of assets listed in the vault, and outlined in detail in the assessment above.

We’ll be monitoring the collateral structure, and, in case of reduced risk, propose lifting the caps accordingly.