This SIP proposes onboarding ETHPlus, a diversified ETH staking index by Reserve Protocol, as a new ARK in the Lower Risk ETH Mainnet Fleet, improving yield competitiveness and staking diversification while remaining within the Lower Risk mandate.
The Lower Risk ETH Fleet on Ethereum Mainnet has scaled rapidly but currently remains overexposed to lending market yields, which have underperformed ETH staking rates over recent periods.
ETHplus provides:
Competitive baseline ETH yield aligned with the LST market rate
Instant diversification across multiple established ETH staking providers
Reduced reliance on lending protocols, mitigating exposure to bad debt and liquidation-driven loss scenarios observed elsewhere in DeFi
From a governance and engineering perspective, ETH+ allows the DAO to expand staking exposure through a single integration, rather than onboarding and managing multiple LST ARKs independently.
This SIP follows strong informal support in the RFC phase and a completed @BlockAnaliticarisk assessment confirming ETHplus’s suitability for Lower Risk fleets with conservative caps.
NOTE: Composition is governed by Reserve Protocol governance and may evolve over time.
3.2 Execution Plan
Upon DAO approval, ETH+ will be added as a whitelisted ARK to the Lower Risk ETH Fleet.
Initial allocation caps and exposure limits will be set conservatively by @BlockAnalitica, based on ETH+ liquidity, redemption mechanics, and underlying LST withdrawal queues.
Caps may be adjusted over time via governance as liquidity and protocol maturity evolve.
4. Risk Assessment:
@BlockAnalitica has completed a full risk review and recommends ETH+ for inclusion in Lower Risk fleets, noting:
4.1 Strengths
Diversified LST exposure with assets already onboarded to Lazy Summer Protocol
Strong lindiness (live since April 2023, no incidents)
Dual exit liquidity via on-chain redemption and secondary markets
First-loss capital mechanism via RSR staking
4.2 Key Risks & Mitigations
Liquidity & withdrawal delays: Mitigated via conservative caps and gradual rollout
Smart contract & governance risk: Offset by extensive audits, long protocol history, and established emergency controls
sfrxETH exposure: Monitored as the only new underlying asset; acceptable within proposed limits
Overall, ETH+ is deemed appropriate for Lower Risk ETH exposure when introduced with conservative parameters.
5. Voting:
If YES - Approve onboarding ETH+ as an ARK in the ETH Mainnet Lower Risk Fleet, subject to @BlockAnalitica defined caps and monitoring.
If NO - Do not onboard ETH+ at this time; continue with further discussion.
Tagging for review @Recognized_Delegates@BlockAnalitica@Ham as always. Looking forward to delegate and community feedback before moving this to an onchain vote.
Gm, and thank you to both BlockAnalitica for the detailed external risk review and the Summer team for progressing the proposal to SIP.
As the author of the original RFC and a core contributor to ETHplus, I am closely following the governance process and am excited to see this proposal progress. More broadly, I believe inclusion of ETHplus offers Summer depositors a simple and capital-efficient way to diversify exposure across the ETH LST ecosystem, helping to strengthen the competitive yield baseline of the lower-risk ETH fleet while reducing reliance on lending protocol allocations that carry additional dependency risks and a lower 30d yield profile.
I appreciate the clarity of BlockAnalitica’s review and its assessment of both the strengths and current limitations of ETHplus. In particular, I want to reiterate the strong security posture underpinning the Reserve ecosystem. Reserve Protocol has undergone more than ten independent audits and maintains a $10m bug bounty with Immunefi, placing it among the top programs in the industry. The Reserve Yield Protocol has been live since October 2022, reached peak TVL in excess of $500m, and has operated without any security incidents to date.
Regarding the two specific risks highlighted in the review, both are actively being addressed through governance. An updated ETHplus DTF methodology has recently been proposed, introducing clearer criteria for collateral selection, concentration limits, and rebalancing processes, with the explicit aim of improving transparency and clarity on future basket compositions for external capital allocators. In parallel, liquidity across underlying collateral assets is continuously monitored. While current frxETH exposure remains within tolerable bounds, governors are aware that it leaves limited headroom should liquidity conditions deteriorate. As a result, a reduction in frxETH weighting is expected at the next scheduled basket rebalance in late January or early February.
Thank you again for the thoughtful consideration of ETHplus for the lower-risk ETH fleet. I look forward to the outcome of the SIP vote and to continued collaboration between the Summer and Reserve communities.
Sweet, always good to hear people are enjoying our products.
No, sfrxETH was voted into the basket in April 2024. BA flagged it because ETHplus currently holds ~9% of frxETH TVL, we’re aware of the concentration risk and are currently considering a rebalance to reduce our exposure.
You might find our recent liquidity report interesting, it’s an analysis of ETHplus liquidity and the liquidity of its constituent collaterals and includes comments on the frxETH concentration risk.
Thanks Ham! I am in awe of the methodical approach to ETH+ basket composition, and the intellectual humility and dilligence I can see here. Love ETH+ and support this proposal.
Appreciate the kind words and the continued support from you and the team at StableLabs. Your comments have meaningfully shaped how ETHplus has evolved over the past few years and I am grateful for that.
We are now in a strong position to support the onboarding of ETHplus to protocols like Summer.fi enabling diversified exposure to the entire ETH LST ecosystem through a single integration. Ultimately improving the lower risk vaults diversification and yield profiles.
Happy to support any further analysis or discussion as governors evaluate ETHplus for the platform. Hoping to see this SIP progress to onchain voting in the coming weeks.