Onboard Avantgarde USDC Core Morpho Vault as OUSD Strategy

Summary

Onboard the Avantgarde USDC Core Morpho Vault as an OUSD strategy to increase OUSD yield and increase exposure diversity.

Background

Avantgarde is a digital asset manager that has recently become a Morpho vault curator. They are currently going through their due diligence process to onboard wOUSD as a collateral to borrow USDC. They’re also exploring utilizing the ARM, and are considering superOETH as an option to generate yield for FunDefi.

As a sign of our willingness to work with Avantgarde and strengthen our relationship for the longterm I am recommending we onboard the Avantgarde USDC Core Morpho Vault as an OUSD strategy. Onboarding this vault will also increase the OUSD USDC yield and will diversify the tokens that OUSD currently has exposure to from the other Morpho vaults.

At time of writing the APY of the Avantgarde USDC Core Morpho Vault is 9.21% APY + MORPHO emissions + 2.5x Yield.fi points, minus a 0.92% performance fees = 9.37% net APY

The Avantgarde USDC Core Morpho Vault currently has exposure to:

srUSD USD0USD0++ RLP yUSD syrupUSDC ETH+ sdeUSD csUSDL

Compared to the Steakhouse USDC Vault (5.33% APY):

cbBTC wBTC wstETH

And the Gauntlet USDC Prime Vault (5.33% APY):

cbBTC wBTC wstETH

Recommendation

• I am recommending we add this Avantgarde vault as a Morpho strategy, but that we initially cap the possible allocation of USDC to 25-50% of the possible USDC that could be allocated to Morpho. I believe this cap will prevent too much exposure to the smaller cap collateral tokens this vault is using for collateral

• I am leaving the initial USDC allocation amount to this vault up to the Guardians to make the call on