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

[samehueasyou]

1. Overview

This proposal seeks to onboard a new ark, Cap Protocol in the USDC DAO Managed fleet.

2. Motivation

The current USDC DAO Managed fleet seeks to out perform broader yields in DeFi, whilst also providing best in class risk management through the DAO managed vault risk framework. The proposed ark will help to keep the fleet at the top of the yield ranks.

3. Specification

Asset	Vault Name	Contract Address	Target Protocol	Risk Category
USDC	Staked cUSD	0x88887be419578051ff9f4eb6c858a951921d8888	Cap Protocol	B

4. Risk Categorization

Based on a recent risk assesment, and following the attributes of the DAO managed risk framework, the staked cap USD is proposed as category B.

[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 cUSD ark for the USDC dao managed vault
• Voting NO will maintain the current allocations and will not onboard the new yield strategies.

[Sixty]

Hey @samehueasyou, while this could potentially be a great addition if conditions improve, I don’t currently see much value in onboarding this ARK.

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.

Also of note, close to 50% of the yield generated by stcUSD is also currently derived from the Morpho - Gauntlet USDC Frontier V2 vault, which is already present as an ARK in the USDC DAO Managed Vault. Given this high allocation, I do not see much value in basically onboarding the same vault through a more complex strategy again.