1. Overview:
Following on from this RFC https://forum.summer.fi/t/rfc-extend-and-adjust-vault-reward-emissions-may-26/819, the current vault rewards are coming to an end of May 10th 2026. This SIP looks to execute the new merkl campaign to add new Vault Rewards to all active DAO owned Vaults, excluding those that have been put forward for offboarding (https://forum.summer.fi/t/rfc-offboard-low-usage-vaults-across-hyperevm-sonic-and-arbitrum/818) and USDT on Ethereum.
2. Motivation:
In order to remain competitive with similar protocols, especially in this current low yield environment, we need additional rewards to supplement the base APY.
One of the key aspects of this proposal is that it prioritises only the main Vaults that have some sort of traction, ignoring the vaults which low usage including those that have been proposed to be off-boarded.
3. Specification:
The proposal I put forward will slightly reduce the total emissions per day by around 5%, from 280,000 SUMR per day to around 268,056, or around 24.1M in total for the next 90 days.
As with previous extension proposals that have been voted for, this proposal initially set out to target around 0.64% additional yield, but with some exceptions made to meet a minimum of 6,000 SUMR per day. These include EURC and ETH on Base, and USDC HR and ETH DMV on Ethereum.
| Chain | Vault | Current Rewards End | Current SUMR APY | Current SUMR per day | Proposed SUMR @ 0.64% | 90 Days |
|---|
| Base | USDC | 8-Aug-26 | 0.85% | 18,671 | 14,058 | 1,265,228 |
| Base | EURC | 8-Aug-26 | 0.70% | 4,732 | 6,000 | 540,000 |
| Base | ETH | 8-Aug-26 | 2.41% | 12,838 | 6,000 | 540,000 |
| Ethereum | ETH | 8-Aug-26 | 0.75% | 55,024 | 46,953 | 4,225,814 |
| Ethereum | ETH (HR) | 8-Aug-26 | 0.47% | 64,200 | 87,421 | 7,867,931 |
| Ethereum | USDC | 8-Aug-26 | 0.51% | 71,419 | 89,623 | 8,066,100 |
| Ethereum | USDC (HR) | 8-Aug-26 | 2.63% | 23,591 | 6,000 | 540,000 |
| Ethereum | USDC (DAORM) | 8-Aug-26 | 6.81% | 5,000 | 6,000 | 540,000 |
| Ethereum | WETH (DAORM) | 8-Aug-26 | 0.58% | 5,000 | 6,000 | 540,000 |
| | | TOTALS | 260,475 | 268,056 | 24,125,073 |
The end date for this next period would be 8th Aug 2026. The rewards would start 10th May 00:00.
This proposes to use MERKL again for the distribution, and the community is reminded that MERKL charge a 3% distribution fee.
4. Risk Assessment:
Given the extensive use of MERKL across the Lazy Summer Protocol and its use for these rewards previously, it is not expected to introduce any new risk vectors for the protocol.
5. Voting:
Voting YES for this proposal will execute the MERKL campaign creation, and with it transfer 24,125,073 SUMR to the Merkl Rewards Contract. Voting NO will not execute any campaign creation, and as such no additional rewards will continue to flow to the Vaults from 8th Aug.
