[SIP2.59] Offboard legacy Arks across BA-managed Fleets

1. Overview:

Offboard the legacy Arks that are already at deposit cap 0 across the ba-risk-managed Fleets, and re-open those Fleets for withdrawals. Each Fleet is handled in its own sub-SIP and its own Governance vote (SIP2.59.1–11).


2. Motivation:

As a follow-up to the July 6th incident I propose winding down the old Ark set. Many legacy Arks have already had their deposit caps set to 0, but remain registered on their FleetCommanders and are still counted in NAV; precisely the state the exploit abused. The two affected Mainnet USDC Fleets (LowerRisk and HigherRisk) are excluded from this batch and are being remediated through their own separate votes (SIP1.7 & SIP1.8).

Only Arks currently at cap 0 are in scope. An Ark cannot have its cap set to 0 while paused, so paused/non-zero Arks are deliberately excluded and will be handled in a later round if the community wishes to continue. Removing the zero-cap Arks and unpausing the Fleets restores withdrawal access for depositors while cleaning up the Fleet configuration.

Connected RFC: [RFC] Offboard legacy Arks and re-open paused Fleets for withdrawals - #4 by cinetismi


3. Specification:

Each sub-SIP, per Fleet, executes: unpause() the Fleet (except Fleets that are not currently paused) → removeArk() for each listed legacy Ark → setTipRate(0). Proposals originate on the Base governor and, for non-Base Fleets, relay via LayerZero to the destination-chain timelock. Per-Fleet details, addresses and Ark lists are in the sub-SIPs below.


4. Risk Assessment:

Mechanical/low-change; @BlockAnalitica to confirm. Key points: the listed Arks are already at cap 0, so their removal creates no new deposit exposure; removing them takes them out of the Fleet’s active set and out of NAV, closing the donation/price-manipulation vector identified in the post-mortem; unpausing only re-enables withdrawals. No user funds are moved by these votes beyond making them withdrawable.


5. Voting:

Each sub-SIP is voted independently.

If YES - execute that Fleet’s cleanup.

If NO - leave that Fleet unchanged.


Sub-SIPs BA-managed (SIP2.59.X)

[SIP2.59.1] Offboard legacy LazyVault_HigherRisk_WETH Arks (Mainnet)

Parameter Value
Fleet LazyVault_HigherRisk_WETH
Network Mainnet
FleetCommander 0x2E6abcbCCeD9Af05bc3B8a4908e0c98c29A88e10
Arks removed 17
Unpause fleet Yes
Set tip rate 0
Risk mgmt ba-risk-managed
Execution Base governor → LayerZero → mainnet timelock

Actions (in order):

unpause() the fleet (re-enables withdrawals); removeArk() × 17; setTipRate(0).


Arks removed:

ERC4626-Fluid-weth-1, ERC4626-Euler_Prime-weth-1, ERC4626-Euler_Swaap_Lend-weth-1, MorphoVault-weth-Gauntlet_WETH_Core-1, MorphoVault-weth-Mev_Capital_WETH-1, MorphoVault-weth-Re7_WETH-1, ERC4626-Term_Summer_WETH-weth-1, MorphoVault-weth-Smokehouse_WETH-1, MorphoVault-weth-SingularV_WETH-1, MorphoVault-weth-Indexcoop_HyETH-1, MorphoVault-weth-TAC_WETH-1, MorphoVault-weth-Alpha_WETH_Core-1, MorphoVault-weth-Avantgarde_WETH_Core-1, ERC4626-Euler_Frontier_Upshift-weth-1, ERC4626-Euler_Alterscope_LRT_WETH-weth-1, FluidFToken-weth-1, MorphoVault-weth-kpk_WETH_Prime-1


Voting:

If YES - execute the above for LazyVault_HigherRisk_WETH on Mainnet (unpause + remove the listed zero-cap Arks + zero tip rate).

If NO - leave the fleet unchanged.


[SIP2.59.2] Offboard legacy LazyVault_LowerRisk_USDT Arks (Mainnet)

Parameter Value
Fleet LazyVault_LowerRisk_USDT
Network Mainnet
FleetCommander 0x17Ee2D03e88b55E762c66C76ec99C3A28A54AD8d
Arks removed 11
Unpause fleet Yes
Set tip rate 0
Risk mgmt ba-risk-managed
Execution Base governor → LayerZero → mainnet timelock

Actions (in order):

unpause() the fleet (re-enables withdrawals); removeArk() × 11; setTipRate(0).


Arks removed:

MorphoVault-usdt-Smokehouse_USDT-1, CompoundV3-usdt-1, ERC4626-Fluid-usdt-1, ERC4626-Gearbox-usdt-1, ERC4626-Euler_Prime-usdt-1, ERC4626-Euler_Yield-usdt-1, MorphoVault-usdt-Flagship_USDT-1, MorphoVault-usdt-RE7_USDT-1, Syrup-usdt-1, FluidFToken-usdt-1, ERC4626-Morpho_V2_Steakhouse_Prime_Instant-usdt-1


Voting:

If YES - execute the above for LazyVault_LowerRisk_USDT on Mainnet (unpause + remove the listed zero-cap Arks + zero tip rate).

If NO - leave the fleet unchanged.


[SIP2.59.3] Offboard legacy LazyVault_LowerRisk_WETH Arks (Mainnet)

Parameter Value
Fleet LazyVault_LowerRisk_WETH
Network Mainnet
FleetCommander 0x67e536797570b3d8919Df052484273815A0aB506
Arks removed 10
Unpause fleet Yes
Set tip rate 0
Risk mgmt ba-risk-managed
Execution Base governor → LayerZero → mainnet timelock

Actions (in order):

unpause() the fleet (re-enables withdrawals); removeArk() × 10; setTipRate(0).


Arks removed:

ERC4626-Fluid-weth-1, ERC4626-Gearbox-weth-1, ERC4626-Euler_Prime-weth-1, MorphoVault-weth-Re7_WETH-1, Origin-weth-1, ERC4626-Euler_Frontier_Puffer-weth-1, FluidFToken-weth-1, ERC4626-Gearbox_KPK_WETH_Pool-weth-1, ERC4626-Morpho_V2_Steakhouse_Prime_Instant-weth-1, ERC4626-Morpho_V2_KPK_ETH_Prime_v2-weth-1


Voting:

If YES - execute the above for LazyVault_LowerRisk_WETH on Mainnet (unpause + remove the listed zero-cap Arks + zero tip rate).

If NO - leave the fleet unchanged.


[SIP2.59.4] Offboard legacy LazyVault_LowerRisk_USDC Arks (Base)

Parameter Value
Fleet LazyVault_LowerRisk_USDC
Network Base
FleetCommander 0x98C49e13bf99D7CAd8069faa2A370933EC9EcF17
Arks removed 15
Unpause fleet Yes
Set tip rate 0
Risk mgmt ba-risk-managed
Execution Direct on Base timelock

Actions (in order):

unpause() the fleet (re-enables withdrawals); removeArk() × 15; setTipRate(0).


Arks removed:

ERC4626-Fluid-usdc-8453, MorphoVault-usdc-Gauntlet_USDC_Core-8453, MorphoVault-usdc-Re7_USDC-8453, MorphoVault-usdc-Seamless_USDC-8453, Moonwell-usdc-8453, MorphoVault-usdc-Steakhouse_High_Yield_USDC-8453, MorphoVault-usdc-Extrafi_XLend_USDC-8453, MorphoVault-usdc-Universal_USDC-8453, MorphoVault-usdc-Clearstar_High_Yield_USDC-8453, MorphoVault-usdc-Clearstar_Reactor_OpenEden_Boosted_USDC-8453, MorphoVault-usdc-Gauntlet_USDC_Frontier-8453, ERC4626-Euler_Base_USDC-usdc-8453, FluidFToken-usdc-8453, Aera-Gauntlet_Alpha-usdc-8453, ERC4626-Extrafi_XLend_USDC-usdc-8453


Voting:

If YES - execute the above for LazyVault_LowerRisk_USDC on Base (unpause + remove the listed zero-cap Arks + zero tip rate).

If NO - leave the fleet unchanged.


[SIP2.59.5] Offboard legacy LazyVault_LowerRisk_WETH Arks (Base)

Parameter Value
Fleet LazyVault_LowerRisk_WETH
Network Base
FleetCommander 0x2bb9ad69FEBA5547b7cD57aAfe8457D40bF834af
Arks removed 10
Unpause fleet Yes
Set tip rate 0
Risk mgmt ba-risk-managed
Execution Direct on Base timelock

Actions (in order):

unpause() the fleet (re-enables withdrawals); removeArk() × 10; setTipRate(0).


Arks removed:

CompoundV3-weth-8453, ERC4626-Fluid-weth-8453, ERC4626-Euler_Base_WETH-weth-8453, MorphoVault-weth-Gauntlet_WETH_Core-8453, Origin-weth-8453, MorphoVault-weth-Seamless_WETH-8453, MorphoVault-weth-Extrafi_XLend_WETH-8453, MorphoVault-weth-Yearn_OG_WETH-8453, ERC4626-Euler_Alterscope_LRT_WETH-weth-8453, FluidFToken-weth-8453


Voting:

If YES - execute the above for LazyVault_LowerRisk_WETH on Base (unpause + remove the listed zero-cap Arks + zero tip rate).

If NO - leave the fleet unchanged.


[SIP2.59.6] Offboard legacy LazyVault_LowerRisk_EURC Arks (Base)

Parameter Value
Fleet LazyVault_LowerRisk_EURC
Network Base
FleetCommander 0x64Db8f51f1bf7064BB5A361a7265F602d348E0f0
Arks removed 5
Unpause fleet Yes
Set tip rate 0
Risk mgmt ba-risk-managed
Execution Direct on Base timelock

Actions (in order):

unpause() the fleet (re-enables withdrawals); removeArk() × 5; setTipRate(0).


Arks removed:

ERC4626-Fluid-eurc-8453, MorphoVault-eurc-Steakhouse_EURC-8453, MorphoVault-eurc-Gauntlet_EURC_Core-8453, Moonwell-eurc-8453, FluidFToken-eurc-8453


Voting:

If YES - execute the above for LazyVault_LowerRisk_EURC on Base (unpause + remove the listed zero-cap Arks + zero tip rate).

If NO - leave the fleet unchanged.


[SIP2.59.7] Offboard legacy LazyVault_LowerRisk_USDC_2 Arks (Arbitrum)

Parameter Value
Fleet LazyVault_LowerRisk_USDC_2
Network Arbitrum
FleetCommander 0x71d77C39dB0eB5d086611a2e950198E3077cf58A
Arks removed 10
Unpause fleet Yes
Set tip rate 0
Risk mgmt ba-risk-managed
Execution Base governor → LayerZero → arbitrum timelock

Actions (in order):

unpause() the fleet (re-enables withdrawals); removeArk() × 10; setTipRate(0).


Arks removed:

AaveV3-usdc-42161, CompoundV3-usdc-42161, ERC4626-Fluid-usdc-42161, ERC4626-Gearbox-usdc-42161, MorphoVault-usdc-Gauntlet_USDC_Prime-42161, MorphoVault-usdc-Gauntlet_USDC_Core-42161, MorphoVault-usdc-Yearn_OG_USDC-42161, MorphoVault-usdc-Steakhouse_Prime_USDC-42161, MorphoVault-usdc-MEV_Capital_USDC-42161, FluidFToken-usdc-42161


Voting:

If YES - execute the above for LazyVault_LowerRisk_USDC_2 on Arbitrum (unpause + remove the listed zero-cap Arks + zero tip rate).

If NO - leave the fleet unchanged.


[SIP2.59.8] Offboard legacy LazyVault_LowerRisk_USDT Arks (Arbitrum)

Parameter Value
Fleet LazyVault_LowerRisk_USDT
Network Arbitrum
FleetCommander 0x98C49e13bf99D7CAd8069faa2A370933EC9EcF17
Arks removed 6
Unpause fleet Yes
Set tip rate 0
Risk mgmt ba-risk-managed
Execution Base governor → LayerZero → arbitrum timelock

Actions (in order):

unpause() the fleet (re-enables withdrawals); removeArk() × 6; setTipRate(0).


Arks removed:

AaveV3-usdt-42161, ERC4626-Fluid-usdt-42161, MorphoVault-usdt-Gauntlet_USDT0_Core-42161, MorphoVault-usdt-MEV_Capital_USDT0-42161, ERC4626-Euler_Arbitrum_USDT0-usdt-42161, FluidFToken-usdt-42161


Voting:

If YES - execute the above for LazyVault_LowerRisk_USDT on Arbitrum (unpause + remove the listed zero-cap Arks + zero tip rate).

If NO - leave the fleet unchanged.


[SIP2.59.9] Offboard legacy LazyVault_LowerRisk_USDCe Arks (Sonic)

Parameter Value
Fleet LazyVault_LowerRisk_USDCe
Network Sonic
FleetCommander 0x507A2D9E87DBD3076e65992049C41270b47964f8
Arks removed 7
Unpause fleet Yes
Set tip rate 0
Risk mgmt ba-risk-managed
Execution Base governor → LayerZero → sonic timelock

Actions (in order):

unpause() the fleet (re-enables withdrawals); removeArk() × 7; setTipRate(0).


Arks removed:

AaveV3-usdce-146, ERC4626-Euler_MEV_Capital-usdce-146, ERC4626-Euler_Re7_Labs-usdce-146, SiloManagedVault-varlamore-usdce-146, SiloManagedVault-re7labs-usdce-146, SiloManagedVault-apostro-usdce-146, SiloManagedVault-greenhouse-usdce-146


Voting:

If YES - execute the above for LazyVault_LowerRisk_USDCe on Sonic (unpause + remove the listed zero-cap Arks + zero tip rate).

If NO - leave the fleet unchanged.


[SIP2.59.10] Offboard legacy LazyVault_LowerRisk_USDC Arks (HyperEVM)

Parameter Value
Fleet LazyVault_LowerRisk_USDC
Network HyperEVM
FleetCommander 0x252E5Aa42c1804b85b2ce6712cd418A0561232Ba
Arks removed 4
Unpause fleet No (not paused)
Set tip rate 0
Risk mgmt ba-risk-managed
Execution Base governor → LayerZero → hyperliquid timelock

Actions (in order):

removeArk() × 4; setTipRate(0).


Arks removed:

Hyperlend-usdc-999, MorphoVault-usdc-Felix_USDC-999, MorphoVault-usdc-Gauntlet_USDC-999, Hypurr-usdc-999


Voting:

If YES - execute the above for LazyVault_LowerRisk_USDC on HyperEVM (remove the listed zero-cap Arks + zero tip rate; this Fleet is not paused, so no unpause is required).

If NO - leave the fleet unchanged.


[SIP2.59.11] Offboard legacy LazyVault_LowerRisk_USDT Arks (HyperEVM)

Parameter Value
Fleet LazyVault_LowerRisk_USDT
Network HyperEVM
FleetCommander 0x2cC190fb654141DfBEaC4c0f718F4d511674D346
Arks removed 6
Unpause fleet No (not paused)
Set tip rate 0
Risk mgmt ba-risk-managed
Execution Base governor → LayerZero → hyperliquid timelock

Actions (in order):

removeArk() × 6; setTipRate(0).


Arks removed:

Hyperlend-usdt-999, MorphoVault-usdt-Felix_USDT0_Frontier-999, MorphoVault-usdt-Felix_USDT0-999, MorphoVault-usdt-Morphobeat_USDT0-999, MorphoVault-usdt-Morphobeat_USDT0_Hyperrithim-999, Hypurr-usdt-999


Voting:

If YES - execute the above for LazyVault_LowerRisk_USDT on HyperEVM (remove the listed zero-cap Arks + zero tip rate; this Fleet is not paused, so no unpause is required).

If NO - leave the fleet unchanged.

2 Likes

The proposals are excuted, when reopen the unaffacted vaults?

2 Likes
SIP Vault Execution Result
SIP2.59.5 Base WETH Local: Unpaused + ArkRemoved OPEN
SIP2.59.6 Base EURC Local: Unpaused + ArkRemoved OPEN
SIP2.59.4 Base USDC Sent LayerZero to Ethereum (dstEid=30101) Still PAUSED

-Dont understand what happened-

sendProposalToTargetChain(
_dstEid = 30101, // ← Ethereum (not Base 30184)
_dstTargets = […, 0x98C49e… USDC fleet, …],
… unpause / removeArk / …
)

So at execute time it did exactly that: success on Base governor → LZ packet to Ethereum. Base vault was never called. That’s why WETH/EURC opened (local Base calls) and USDC didn’t.

2 Likes

when sending the calldata with the proposal, there seemed to be some cached data - therefore the SIP2.59.4: Offboard legacy LazyVault_LowerRisk_USDC Arks (Base) will have to be resubmitted, voted on and executed for the vault to be unpaused.

seems like this is the issue "just" with the Base LR USDC Fleet, and I will bring this proposal onchain later today (@Recognized_Delegates)

2 Likes

Why it should be resubmited? Why not just remove the useless arks and reopen the vault manully because it has already been approved by the DAO?

because it has to go through the timelock who is the governor of the protocol. The proposal was already submitted and is now pending with the vote closing July 26th, 2026.

1 Like

What’s the proposal ID? I can’t find it by the subject.

[SIP2.59.12] proposal ID is: 66651376405972949806290017813363693134893772699317433059885044217779145855897

You can find them live here:

  1. Lazy Summer DAO - Governance Validator
  2. Lazy Summer DAO (Official) - V2 | SIP2.59.12: Offboard legacy LazyVault_LowerRisk_USDC Arks (Base) {RESUBMISSION}
1 Like