Forum Proposal

Add Morpho v3 and Spark Protocol to Lite Allocation Pools and stETH Direct Withdrawals

Summary:

This is a proposal for the on-chain vote IGP#6 - Lite Update: Update implementation to add Morpho v3, Spark Protocol and stETH Direct Withdrawals. The proposal will integrate Morpho v3 and Spark into the allocation pools for the ETH Lite vault and update the stETH withdrawal mechanism.

Proposal:

Adding Morpho v3 and Spark Protocol:

The integration of Morpho v3 and Spark into the protocol allocation pool will enhance the ETH vault by providing additional yield sources and increased diversification. With this addition, the ETH strategy can now be executed in these protocols.

stETH Lido Direct Withdrawals Update:

The proposed stETH update will modify the withdrawal mechanism for stETH from the vault. With this change, the vault will now be able to directly redeem stETH from Lido. At any time when the users withdraw the user can first withdraw from the available idle liquidity if more is needed, the vault can redeem from Lido directly. This update makes the Lite vault fully withdrawable at any time.

Code Changes

This updates the Lite implementation by adding direct stETH withdrawals, protocol ID 6 (Morpho v3) and protocol ID 7 (Spark).

New Implementations

• User Module: ‘0xFF93C10FB34f7069071D0679c45ed77A98f37f21’,
• Admin Module: ‘0x06feaa505193e987B12f161F1dB73b1D4d604001’,
• Rebalance Module: ‘0xc6639CE123d779fE6eA545B70CbDc1dCA421740d’,
• Refinance Module: ‘0x390936658cB9B73ca75c6c02D5EF88b958D38241’,
• Leverage Module: ‘0xA18519a6bb1282954e933DA0A775924E4CcE6019’,
• DSA Module: ‘0xE38d5938d6D75ceF2c3Fc63Dc4AB32cD103E10df’,
• Withdrawals Module: ‘0xbd45DfF3320b0d832C61fb41489fdd3a1b960067’,
• Dummy Implementation: ‘0x5C122207f668D3fE345465Ac447b3FEF627f4963’

Reason:

These updates aim to improve the quality and efficiency of the Lite Vaults. The inclusion of Morpho v3 and Spark Protocol will provide users with more diverse strategies for their ETH holdings within the vault optimizing returns and efficiency. Integrating Lido enables the Lite vault to be extremely liquid and ensures all users of any size can exit their vault positions at any time.

Result:

Integration of Morpho v3 and Spark Protocol into the ETH Lite vault strategies and enables direct redemption of stETH from Lido.