1. Overview:
This SIP proposes Vault Rewards for the two newly launching Vaults on HyperEVM, USDC and USDT - as originally outlined here: [RFC] Deploy Lazy Summer Protocol to Hyperliquid HyperEVM (and pre-deploy on select new networks with 0 deposit caps)
It is proposed to target the same 16%, with an assumption that around $5M of TVL will be obtained on each vault.
From Thursday 15th Jan, the expected launch day, there are only 25 days left in the current reward cycle.
2. Motivation:
SUMR rewards will be important to get the flywheel going for the new hyperEVM vaults. Given that only 25 days remain in the current rewards cycle, an average of 5M TVL is assumed for both.
With the target 16% APY at this assumed average, this gives around 8,767 SUMR per day to each vault. This is roughly around the same level as the Base USDC Vault.
Given the Vaults will launch prior to the vote passing, it is proposed to start the vault rewards from the launch day, and if passed, all rewards will be backdated from the start point.
3. Specification:
Set SUMR approval to 438,356 Summer (to 18 decimals)
USDC Vault
- 8,767 SUMR per day
- Duration: 25 days
- Start: 15/01/26 16:00 UTC
- Total SUMR: 219,178
USDT Vault
- 8,767 SUMR per day
- Duration: 25 days
- Start: 15/01/26 16:00 UTC
- Total SUMR: 219,178
4. Risk Assessment:
Given the protocol and DAO use Merkl for all Vault rewards, this is not expected to have any impact on Risk to the Lazy Summer Protocol or the DAO.
5. Voting:
A YES vote will execute a MERKL campaign creation, transferring 438,356 SUMR tokens from the Summer Timelock Controller on Base to the Merkl distribution contracts.
A NO vote will not execute any code, and as such no rewards will be set for the HyperEVM Vaults through this SIP Proposal.
