Summary
This proposal aims to enhance the security measures of Lite v2 vault by removing Euler from one of its allocation pools. Lite had no exposure to the Euler Finance hack, however, this proposal seeks to implement additional security measures and changes in the allocation of funds to build a more diversified portfolio.
Lite ETH Vault had no exposure to Euler Finance at the time of the exploit and did not incur any losses.
Updated ETH Vault Allocations
The distribution of funds has been adjusted to achieve a more diverse portfolio, with Aave v2 at around 49.18%, Morpho Aave v2 at approximately 25.6%, Aave v3 at around 18.17%, and the remaining idle unallocated stETH in the Vault at approximately 7%.
Rebalance Vault into new Ratios transaction hash:
0x9c1d2ad39bda3505daee97457554ce6ac38932da1637aa062df5116de2017f9d.
Proposal
Code Changes:
The Lite v2 implementation will be upgraded to remove Euler by removing the getRatioEuler logic, which will always return 0 for all return values, and disabling protocol ID 4, causing all modules and functions to revert if protocol ID 4 is provided. Protocol ID 4 is associated with Euler.
New Implementations
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userModule: 0xFF1029d2fB178167f1eb9435289a90b324F3BdbC
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leverageModule: 0x27248FEe1c1DD1697F305328B031725e10B8c241
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dsaModule: 0x63AD4D2346B7b1009F888a4708ba66178a8431F0
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refinanceModule: 0x3AECe1878993BBf5AD30547DFd23a58DC11149f1
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rebalancerModule: 0xeb228438D3e5829aCe4D90a6f4D5453B8146b79a
All automations have been paused, and rebalancers will be removed until this proposal passes. After pausing automations, users will only be able to withdraw the unallocated idle stETH balance that is available in the vault. Once the proposal passes, automations will resume and the withdrawal ability will be the same as before.
Users should note that as the automation is paused, profits are collected but not distributed to users, as this will require rebalancers to trigger updateExchangePrice(). All the profits accrued in the meantime will be distributed at once after the proposal passes.
Reason
Overall, this proposal is aimed at improving the security and diversification of the Lite v2 vault, while ensuring that users’ funds remain safe. This proposal outlines specific code changes and allocation adjustments, along with details on the pausing of automations and rebalancers.
Result
This proposal updates the ETH v2 protocol allocations and updates the implementation contracts by removing Euler as an available protocol for Lite.
