Thanks @chrisb for posting this SIP and clearly laying out the context.
Given the recent events with the Silo 127 market and the substantial bad debt (~$1.48M), as expressed in the RFC poll, I support offboarding this market via sweep and Timelock.
IMO this approach:
- Removes the market cleanly from the Arbitrum USDC Vault, isolating risk.
- Allows any remaining liquidity to be redistributed fairly based on a snapshot at execution.
- Minimizes ongoing exposure and reduces governance burden from trying to manage a compromised asset in the Vault.
I am definitely for (after potential off-boarding) to onboard new strategies and revive the Fleet. Also, I would further consider the comment made by @samehueasyou:
, or otherwise make sure that a snapshot has taken place and allows the Lazy Summer DAO to reimburse the users that has incurred the loss - in case that the funds will be recovered.
From a risk perspective, this seems to be the most responsible and transparent path forward but am curious about thoughts from other @Recognized_Delegates!