[SIP2.55] Onboard CAP Protocol to USDC Higher Risk

[samehueasyou]

1. Overview

This proposal seeks to onboard a new ark, CAP Protocol, in the USDC Higher risk fleet within the BA-Managed vaults.

2. Motivation

The current higher risk fleet seeks to track the best performing yields in DeFi, whilst also providing best in class risk management. CAP protocol falls into this category

3. Specification

Asset	Vault Name	Contract Address	Target Protocol	Risk Level
USDC	Staked cUSD	0x88887be419578051ff9f4eb6c858a951921d8888	Cap Protocol	Higher Risk

4. Risk Assessment

[RFC] Onboard new yields sources and raise caps for USDC Higher Risk

Executive Summary BA Labs proposes moving Cap protocol as a yield source to a SIP stage strictly within a Higher-Risk fleet with conservative parameters due to high counterparty and operation risk. While an innovative economic model and multiple code audits are present, BA Labs believes it’s crucial to acknowledge that this ARK would fall under the most risky collaterals currently available within SummerFi protocol considering that in practice the delegates can underwrite their own loan (delegat…

5. Voting

• Voting YES will whitelist the staked Cap USD ark for the USDC higher risk vault
• Voting NO will maintain the current allocations and will not onboard the new yield strategies.

[Sixty]

[SIP7.1] Add staked Cap USD to USDC DAO Managed vault

Hey @samehueasyou, while this could potentially be a great addition if conditions improve, I don’t currently see much value in onboarding this ARK. [stcUSD 1Y yields] As you can see in the above chart, stcUSD yields have been compressing under 5% over the past year, and there is a high likelihood that this downtrend will continue. [stcUSD yield sources] Also of note, close to 50% of the yield generated by stcUSD is also currently derived from the Morpho - Gauntlet USDC Frontier V2 vault, w…

Given the current yield on the BA Managed USDC Higher Risk Vault, the addition of stcUSD to this ARK makes a lot more sense.