NOTE: Although the RFC used a 12% example, given recent market downtown and reduction in TVL because of it, the numbers have been updated to retain a 25% reduction, which now resets all vaults to 16% APY.
2. Motivation:
To maintain incentives on the Vaults while the protocol continues to grow.
3. Specification:
The following rewards will be added to the vaults;
As previously, all rewards will be distributed through MERKL, starting on 11th November (when the current rewards end) and last for 90 days, taking us through to the 9th February 2026. All rewards will again be distributed on Base, regardless of the vault network.
The existing staking contracts (which are no longer used) remain as ‘forwarder’ contracts for the purpose of the MERKL rewards, so users who have continued to stake will still benefit from the rewards.
4. Risk Assessment:
No new additional risks identified.
5. Voting:
Voting YES will trigger the MERKL reward creation and transfer a total 22,478,338 SUMR tokens to the Reward Contracts.
Thanks @chrisb! Def. makes sense to extend SUMR rewards, and with a 25% reduction it keeps incentives flowing while accounting for current market conditions and the upcoming upgrades!
I support this SIP as imo it is a good way to keep vaults attractive for users.
[EDIT]:
In light of the recent events and the potential risk exposure of the Arbitrum USDC Vault via the Silo Swaap Lend market (susdx 127), I will be voting AGAINST this proposal in its current form. Before extending rewards, we should revisit and reassess the rewards flow into the Arbitrum USDC Fleet to ensure no indirect exposure to markets that might carry elevated or opaque risk.
This should be a swift follow-up discussion, as the current Lazy Summer Protocol vault rewards expire on 11.11.2025. The aim should be to avoid any gap in incentives while maintaining a sound and transparent risk posture. I’d welcome the thoughts of other delegates and contributors on the best way to structure this reallocation to keep the ecosystem both safe and continuously incentivized.
