1. Overview:

This SIP proposes the payout, via Merkl, of 8,700.898 USDC as LVUSDC to those users who have staked SUMR tokens in the SUMR Staking V2 at any point throughout January 2026.

This represents the first full month of SUMR Staking V2, since it was launched on the 11th December 2025.

Throughout January 2026, the Lazy Summer Protocol made $43,504.49 of revenue (per this dune dashboard). As per the outlined launch parameters for Summer Staking V2, 20% of this should be paid out to stakers of the SUMR token.

This payout should be made via MERKL, who have kindly added support for weighted balances in the stSUMR token. Given that MERKL charges a 3% fee for rewards, the actual total being transferred from the DAO Treasury is 8,961.92494 USDC.

As per the original intention of the SUMR Staking V2, these rewards will be paid out as LVUSDC, which is USDC from a Lazy Vault on the Base Network. This means everyone staking SUMR will earn yield bearing USDC, which will start to accrue the yield from the moment the transaction executes.

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2. Motivation:

This Sub-SIP represents a monthly distribution of revenue share to SUMR holders staking in the Staking V2 Module.

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3. Specification:

Total being paid: 8,961.92494 USDC (however the amount will be up to 9,061 USDC depending on the share price at the time of the vote execution. The Share Price used for the calculation is: 1.057826)

Total LVUSDC being minted and transferred to Merkl: 8,472.027641

Reward amount paid out: ~8,700.898 USDC worth of LVUSDC

Start timestamp: 1767225600 (1-Jan-2026 00:00:00 UTC)

End timestamp: 1769903999 (31-Jan-2026 23:59:59 UTC)

Within the vote actions, the following take place;

a) Approve 9,061 USDC for spending on the LVUSDC Contract (0x98c4...9ecf17)

b) Mint 8,472.027641 LVUSDC tokens (8472027641 in full decimals)

c) Approve 8,472.027641 LVUSDC for spending on the MERKL Contract (0x8BB4...B36Fd)

d) Call CreateCampaign with the relevant call data on MERKL Contract (0x8BB4...B36Fd)

Right now, the timelock controller on Base (the Lazy Summer DAO Treasury contract) has less than the required amount of USDC. As such, this SIP should form as instruction to the Lazy Summer Foundation that they should execute two bridge transactions, moving USDC via CCTP from Ethereum (7,699) and Sonic (2,728) to Base Network, which should be completed by the EoD 5th February.

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4. Risk Assessment:

Given the payouts will occur through Merkl, which is already supported widely through the Summer.fi UI and Lazy Summer Protocol, there are no additional risks expected from this SIP by using them as rewards.

However, this will be the first time we have processed rewards in Lazy Vault receipt tokens. This has been communicated to the MERKL team, and the relevant lvusdc token has been whitelisted by the MERKL team on the Base Network.

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5. Voting:

A YES vote will execute the MERKL calldata, transferring up to 9,061 USDC, although expected to be around 8,961.92494 USDC from the Base Timelock Controller to the USDC Vault on Base, which will then transfer the full amount to the MERKL claims contract, and make available the relevant amounts of LVUSDC to claim for users who staked SUMR during the period.

A NO vote will not execute any additional code, and no USDC will be transferred, and no payouts will be made from this vote.