SIP (#009): USDC Market Launch (Post-Euler)

As a follow up to our governance post: https://gov.swivel.finance/t/sip-008-usdc-market-launch-post-euler

The Swivel DAO will need to launch a new USDC market in the near future alongside a new integration partner. With this in mind, the core team has identified a number of potential partners, with descriptions available below:

Aave (v2): Current APY: 1.06% Current TVL: $838m Aave offers a “safe” solution that has been battle tested for years (and the highest TVL). With this has come superfluous deposits that tend to sit in Aave regardless of the current rates – activity that may be negative while rates are low but positive while rates are high.

Compound (v2) Current APY: 2.68% + 0.84% COMP Current TVL: $424.54M Compound offers a similarly “safe” solution that has been around the longest in DeFi. Compound seems to offer a competitive APY while also offering additional COMP rewards that may buffer the Swivel DAO treasury over time.

Yearn Current APY: 2.82% Current TVL: $27m Yearn offers an aggregated yield source that will generally “always” be competitive with the market, assuming the market doesnt crunch completely (and the yearn fee eclipses what they can offer as an aggregator). Further, as an aggregator Yearn also diversifies their yield origination sources which may be of relevance in context of the recent Euler hack (e.g. Yearn was exposed to Euler but only ~2m if I remember correctly)

Morpho (Compound) Current APY: 2.77% + .77% COMP + 140 MORPH / 1000 USDC Current TVL: $7.14m Morpho generally always offers equivalent or higher APYs compared to Compound given their P2P layer can offer slight optimization. There is also the additional MORPH tokens which may be of value at some point as well. The downside is if there is little P2P activity, we are taking on the risk of the Morpho layer purely for the MORPH tokens.

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Which integration partner should we launch our upcoming fixed-rate USDC market alongside?