[SIP2.7] Integrate Morpho Smokehouse ETH as a New ARK in Summer ETH Vault

Governance Summer Improvement Proposals
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Summary

This SIP proposes integrating the Morpho Smokehouse ETH strategy as a new ARK into the ETH Mainnet vault on the Summer Protocol. There is an open question as to whether this ark should be implemented into the ETH Higher risk or Lower risk fleet.

Motivation

  • Expand ETH Yield Sources: Adds exposure to new Steakhouse strategy market not currently included in Summer.

  • Attract new capital: Given Steakhouse strong reputation, the ark could attract more users to one of Lazy Summer’s most popular fleets. (ETH)

  • Maintain Yield Competitiveness: The current APY offered is competitive versus other “vanilla” ETH lending opportunities, and is designed to be sustainably higher than benchmarks. (eg. Staking)

Specifications

Parameter Value
Vault ETH Mainnet Vault
Network Ethereum Mainnet
New ARK Morpho Smokehouse ETH
Strategy Contract 0x255c7705e8BB334DfCae438197f7C4297988085a
Risk Level TBD — Pending final assessment. Could fit in either Higher or Lower Risk ETH vaults depending on leverage profile, liquidity, and borrower quality.
Underlying ETH

Next Steps

  1. Risk Review Request a sense check from @BlockAnalitica or community to classify the strategy as suitable for the Lower Risk or Higher Risk ETH Vault based risk criteria.

  2. Submit to Tally for DAO Vote Once the risk category and parameters are finalized, submit this SIP to the Summer DAO for on-chain approval and activation.

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Thank you @samehueasyou for the proposal!

I lean more towards Higher Risk by default, especially given the layered complexity and the fact that borrower quality and leverage dynamics can evolve quickly. That said, happy to defer to a proper review from @BlockAnalitica to help slot this into the right fleet.

Would love to see this ARK live soon—feels like we could add it into this weeks proposals, to be published on Wednesday.

–jensei

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Thanks @samehueasyou !

Mark from Steakhouse here. The Smokehouse ETH vault is part of our “Smokehouse” product line, which embraces a broader and more diverse set of collateral types compared to our institutional-grade “Steakhouse” series. This vault accepts a wide array of exotic and emerging assets as collateral, enabling exposure to dynamic borrowing markets that traditional vaults may overlook. This approach allows lenders to capture higher yields, albeit with increased risk.

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Welcome @steakhouse! Thanks for joining our community and providing details on Smokehouse ETH. It’s always valuable to have insights directly from the team behind the product. Looking forward to your continued contributions and discussions

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We’ve collected data such as current TVL, collateral quality, and exposure, among other metrics, and integrated it into our risk model to assess the Morpho Smokehouse ETH Ark on Mainnet under the Higher Risk Fleet Mainnet ETH. We have reviewed the results, and the following initial parameters are being proposed:

Ark Symbol/Vault maxCap Max. %TVL maxInflow maxOutflow
morpho morpho_smokehouse_weth 76 40.0% 76 76

The cooldown period for all Arks in this Fleet is 10 minutes.

These parameters ensure the fleet operates within controlled risk limits while accommodating expected demand. We will closely monitor market metrics going forward and adjust as needed.

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