Steakhouse vault as new yield source for USDC BY

The following is an extract of the proposal posted on the Idle governance.

Summary

A proposal to add the USDC Steakhouse MetaMorpho vault as a new yield source for the USDC Best Yield vault.

References

• Clearpool YTs as a new yield source for USDC BY - Portofino post
• Best Yield revamp: Junior BY vaults wind down post
• Steakhouse Financial website

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Proposal

This proposal aims to add the Senior Steakhouse tranche as a new underlying yield source to the Best Yield USDC vault:

• Steakhouse USDC vault, with specs available on GitHub here and wrapper contract available here

Similar to previous yield source integrations, Steakhouse's one would benefit doubly the Idle users

1. The USDC BY strategy can add a new yield source, besides the usual Aave and Compound, able to offer an average APY in the 5% to 10% range. Currently, Aave and Compound offer APYs lower than 1%. This significant increase in yield can benefit current BY LPs and attract new users to the protocol.
2. The USDC BY funds flowing to the Senior side of Clearpool PYTs can create a stable source of funding for the Senior tranches and consequently incentive new Junior liquidity deployments thanks to the boosted APYs available (with an expected average APY in the range of 10% to 20%).

The Steakhouse vault is currently offering ~8.5% yield on Senior (plus additional MORPHO rewards). If integrated into the USDC BY vault, the supported yield sources would be:

Yield source	Vertical
Compound	Overcollateralized lending
Aave v2	Overcollateralized lending
Clearpool-Portofino (Senior)	Uncollateralized lending
Clearpool-Fasanara (Senior)	Uncollateralized lending
Steakhouse (Senior)	Overcollateralized lending

To set up the USDC vault in the most economically efficient way, given the high gas cost on mainnet, Leagues propose to add the Steakhouse Senior tranche, but at the same time, delist the Portofino Senior tranche. This would avoid an overload of rebalances and move back the vault towards an overcollateralized main nature.

Steakhouse Financial details

Our seasoned team of crypto-native collaborators brings a wealth of expertise in financial advisory, strategic planning, investment banking, analytics, accounting, legal research, and coding to help your DAO navigate the challenges and opportunities of the decentralized economy.

Steakhouse serves as a strategic advisor to Morpho Blue and runs a MetaMorpho Vault based on real-world assets.

The Steakhouse USDC pool has been live since the beginning of January and currently holds ~$200,000 in liquidity. It hasn’t any borrowing limit.

Risk rating

The borrower has been already analyzed internally following the risk rating framework. The Steakhouse MetaMorpho USDC vault can be considered a valid market to become a new yield source of the Best Yield USDC market.