Summary
As part of the proposed USDC Vault onboarding proposal onto the Arbitrum network, this SIP suppliments the proposal with the proposed initial arks to deploy it with.
Overview:
This SIP proposes to onboard Aave V3, Compound V3, Fluid and Gearbox as starting Arks with the deployment of USDC Vault onto Arbitrum Network (should it be supported).
All 4 protocols already have USDC supported as lending asset, and with the exception right now of Gearbox, all have at least 10M supplied already. These are also all protocols that are already supported within other vaults, and should easily be deployable and easily to be analysed by both engineering and risk teams.
Motivation
As per the Vault Onboarding SIP, potential integrators and existing users of the protocol have reached out to enquire and request a USDC Vault on Arbitrum for existing capital, and these arks would be proposed starting ones.
Voting
This should be wrapped up with the vote to onboard the USDC Vault onto Arbitrum. If there are no objections from delegates after any proposed changes, then it should move through to the onchain vote to deploy the arks alongside the USDC Vault.
Generally support the Arks for the proposed USDC Vault.
There is less than $50k supplied to the Gearbox USDC market on Arbitrum. Is the belief that this market might still provide additional yield without unnecessary risk?
Curious to hear peoples view on whether there should be minimum market sizes for Arks or whether lazy summer could even help bootstrap markets.
From the technical point of view we could deploy the fleet with the support for all four protocols - and initially set the Gearbox deposit cap to 0. This would allow Block Analitica to easily enable it at later time, without the need of governance support ( given the delegates decide to go with all the markets).
50k seems low, and the fleet would have huge influence on the lending rate.
To both @FBrinkkemper and @halaprix comments. Yea, I saw gearbox was low. My thought here was to onboard it anyway, given we already support them in a few places, and the ceilings could be 0 until there is potentially more capital. Saves a week long process or so to onboard it instead if liquidity does start to arrive. But yea, would be open to hear @BlockAnalitica point on that.
We have run our risk model to assess the Arks in the new vault and reviewed the results. We have the required parameters to support the launch of this new vault with the mentioned Arks:
Fleet Arbitrum - USDC
chain
fleetAsset
fleetCap
FleetMinimumBuffer
Arbitrum
USDC
7,500,000
100
With arks:
Ark
Symbol/Vault
maxCap
Max. %TVL
maxInflow
maxOutflow
aave_v3
USDC
28,800,000
100.00%
1,500,000
7,500,000
compound_v3
USDC
4,900,000
51.00%
1,500,000
3,800,000
fluid
USDC
12,600,000
74.00%
1,500,000
5,500,000
Gearbox
USDC
18,500
36.00%
18,500
18,500
These parameters ensure that the vault operates within controlled risk levels while supporting the anticipated demand.
Additionally, we support the proposal to align SUMR token incentives with this vault to drive adoption while ensuring balanced risk exposure.
We support the onboarding of the Arb vaults with the recommended parameters.
Gearbox at 50k seems very low, as some pointed out already, but at 18,5k this shows goodwill to an established partner.