🤖 Weekend Check

**Summer.fi published a detailed post-mortem** on the Arbitrum USDC Vault incident that affected users. **Root Cause Identified** - Balancer v2 exploit led to USDX depeg - Silo's oracle failed to reflect real losses onchain - Arbitrum USDC Vault inherited incorrect valuations **Protocol Response** - Lazy Summer Protocol relies solely on onchain data - Since Silo's oracle showed full backing, vault share prices didn't adjust - This allowed withdrawals until liquidity was depleted **Summer.fi's Actions** - Deployed UI warnings immediately - Created snapshot of affected users - Developed recovery monitoring contracts **DAO Discussions Underway** - Offboarded problematic vault - Onboarded new Arbitrum USDC Vault - Guardian Framework for emergency controls - Compensation discussions ongoing Summer.fi emphasized this was an **upstream failure**, not a protocol issue. The team commits to transparency and supporting the community through recovery efforts. [Read full post-mortem](https://blog.summer.fi/arbitrum-usdc-vault-post-mortem-what-happened-and-what-comes-next/)

**Active Proposal** - [SIP1.1.1] **USDC Vault upgrade** on Arbitrum is live for voting - Deploys full 11-Ark fleet with cross-chain governance via LayerZero - No bridged tokens required **Forum Discussions** Multiple RFCs propose expanding yield sources: - **USDC Mainnet**: Clearstar reactors, MidasRWA vaults, Upshift strategies - **ETH Mainnet**: Clearstar Reactor ETH, Ether.fi Liquid ETH - **Base USDC**: Clearstar reactors, 40acres Finance, Universal.fi - **Arbitrum USDC**: Clearstar USDC Reactor - **MIDAS integration**: Evaluating RWA vaults for Mainnet and Base - **ExtraFi XLend**: Adding ETH pool to Base Lower-Risk vault **Key Features** - Sustainable yield via OP/EXTRA incentives - Multi-account lending architecture - Automated risk controls These proposals will shape upcoming vault upgrades across the protocol.

**Lazy Summer Protocol** achieved significant milestones in September with **TVL growing $34M to $182.7M** and the $SUMR token transferability moving into audit phase. **Key Developments:** - $SUMR token and Governance V2 now in Sherlock audit (ends Oct 7) - **Target: Enable transferability by end of October** - DAO Treasury grew to $186K with liquidity incentives ready **Growth Metrics:** - **SUMR holders:** 5,536 (+490) - **Delegates:** 521 (+7) - **SUMR delegated:** 360.5M (+7M) **Chain Performance:** - Ethereum: +$31M to $143M - Base: +$3M to $25M - Arbitrum: +$3.4M to $9.8M The protocol deployed **26 new strategies** across chains while processing multiple expansion proposals including Plasma Network integration and new vault strategies.

**Summer.fi introduces Vault Switch**, a new feature enabling users to rotate between different vaults in a single transaction without downtime. **Key Features:** - Switch between ETH and stablecoins instantly - Maintain continuous yield generation during transitions - Adapt to market conditions without exiting protocols - Available on Mainnet, Base, and Arbitrum **Use Cases:** - **Risk-off moves**: Rotate from ETH to stables during market uncertainty - **Risk-on positioning**: Move back to ETH when momentum returns - Keep earning $SUMR rewards throughout transitions **Benefits:** - No missed opportunities during portfolio adjustments - Continuous compounding of real yield - Instant market adaptation in seconds - No idle capital sitting unproductive The feature addresses a common DeFi pain point where users lose yield during position changes. Future updates will include higher-risk USDC and BTC vault options. [Learn more about Vault Switch](https://blog.summer.fi/introducing-vault-switch-adapt-your-lazy-summer-position-to-any-market-with-just-one-transaction/)