[SIP2.32] Add Morpho Strategy to USDC Arbitrum – Lower Risk Vault

[samehueasyou]

Summary

This SIP proposes integrating Hyperithm’s Morpho USDC Strategy into the USDC Arbitrum – Lower Risk vault within the Lazy Summer Protocol.

Following comprehensive technical review and risk diligence, the Hyperithm Morpho USDC Strategy aligns with Lazy Summer’s standards for inclusion. The strategy leverages Morpho’s institutional-grade Blue lending infrastructure to generate stable yield opportunities, while maintaining a lower risk profile compared to higher-risk DeFi yield strategies.

By adding this strategy, Lazy Summer’s vault offering is diversified across chains and gains exposure to Morpho’s efficient, liquidity-optimizing lending design, broadening Lazy Summer’s lower-risk product lineup.

Motivation

• Expand Yield Sources – Incorporates a proven Morpho Blue lending strategy on Arbitrum, adding institutional-grade yield opportunities to the Lower Risk vault family.
• Attract New Users – Appeals to conservative DeFi users, institutional investors, and liquidity providers seeking stable, lower-risk yield generation.
• Increase TVL – Supports Lazy Summer’s strategic objectives by strengthening the USDC vault lineup on Arbitrum with a distinct, Hyperithm-operated lower-risk strategy.

Specification.

Parameter	Value
Vault	USDC Arbitrum – Lower Risk
Network	Arbitrum
New ARK	Hyperithm USDC (Morpho)
Contract Address	0x4B6F1C9E5d470b97181786b26da0d0945A7cf027
Risk Tier	Lower Risk

@Recognized_Delegates @jensei @0xtucks

[jensei]

Thank you @samehueasyou. Great to see continued expansion on Arbitrum, now posing as the highest yielding fleet.

Another Morpho integration fitting for the lower-risk vault set. Diversifying chain exposure while keeping yield stability front and center is exactly the kind of balance we should be striking.

Attaching a direct link to the strategy for @Recognized_Delegates to review:

Hyperithm USDC | vaults.fyi

[BlockAnalitica]

Please find BA Labs 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 Morpho Hyperithm USDC vault as an ARK to the LR USDC fleet on Arbitrum 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.

[samehueasyou]

do you @BlockAnalitica see it as plausible for the higher risk vault?

[Shadow_Holder]

Agree with BA to hold back. 86.6% of current vault allocation is in PT mHYPER 20NOV2025