Integrate syrupUSDC on Euler Prime Market

Summary

Objective Labs recommends integrating syrupUSDC as collateral on Euler Primel. syrupUSDC captures the growing demand for risk-adjusted yield-bearing stablecoin strategies. With strong institutional backing, deep liquidity, and a good track record, syrupUSDC is a high-quality addition to Euler DAO’s market.

Fundamentals

syrupUSDC is issued by Maple Finance, a leading on-chain credit protocol with ~$2B in AUM, backed by robust underwriting and top-tier institutional investors. It is a yield-bearing ERC-4626 token that accrues interest from overcollateralized institutional loans, offering returns in the 6–10% APY range. With rising demand for USDC-native yield strategies, syrupUSDC enables capital-efficient exposure to stablecoin yield.

Maple currently reports a 161% collateralization ratio and over $1B in onchain collateral, with major positions in BTC, SOL, and tokenized LP assets, demonstrating strong borrower quality and prudent risk management. Withdrawals are handled by the Maple Direct and funds are auto-sent to lenders without needing a second transaction. Most redemptions are processed in under 24 hours.

Liquidity

On Ethereum mainnet, syrupUSDC is liquid against USDC on Uniswap v4 which holds approximately $14.9M in TVL. An additional $5M in TVL is held in a Balancer pool paired with Aave USDC, offering a secondary liquidity venue, though with lower historical trading activity. Combined, instant liquidity amounts to ~$20M with a $10M swap executed at 0.13% slippage, indicating sufficient depth for efficient collateral liquidations.

Parameters

Caps

Asset Supply Cap Borrow Cap
syrupUSDC 20M 0

We recommend an initial supply cap of 20M for syrupUSDC. This reflects the current on-chain liquidity and allows for meaningful growth while preserving risk controls. No borrow cap is recommended at this time as syrupUSDC will be collateral-only.

LLTVs

Collateral Debt LLTV
syrupUSDC USDC 90%
syrupUSDC USDT 90%
syrupUSDC USDtb 90%
syrupUSDC RLUSD 90%
syrupUSDC USDS 89%
syrupUSDC USDe 87%
syrupUSDC wM 85%
syrupUSDC WBTC 81%
syrupUSDC cbBTC 81%
syrupUSDC WETH 80%
syrupUSDC LBTC 79%
syrupUSDC wstETH 78%
syrupUSDC cbETH 75%
syrupUSDC weETH 75%
syrupUSDC rETH 72%
syrupUSDC ezETH 72%
syrupUSDC rsETH 72%
syrupUSDC tETH 72%

In line with the rest of the market, Objective Labs recommends that the borrow LTV should be set to two percentage points lower than liquidation LTV.

Oracles

We propose using an exchange rate oracle via syrupUSDC’s ERC-4626 convertToAssets method, by setting syrupUSDC as a resolved vault in the Euler Prime oracle router. This configuration ensures the price resolves to USDC, leveraging the same oracle setup as for USDC in Euler Prime.

Gauntlet in favour of moving forward with Objective Labs recommendations with the below observations:

Supply Caps

  • The proposed 20M syrupUSDC supply cap is within the bounds of current liquidity, but we note it is sizeable for an inaugural launch.
  • We recommend closely monitoring uptake and reserve the right to provide a CRS proposal to adjust caps if we see low demonstrated user demand within the first 30 days.

LTVs

  • The proposed LLTVs strike a conservative balance with stablecoins but adopt more aggressive thresholds for volatile assets (e.g., WBTC and ETH derivatives).
  • We assume this approach is intended to incentivize providing collateral against non-stable assets.
  • Gauntlet will review performance after 60 days; if borrow demand for volatile tokens remains low, we’ll recommend reducing the LLTVs accordingly.

Next Steps

  • We welcome community feedback.

This proposal has been implemented: Ethereum Transaction Hash: 0xfc8ffde7bc... | Etherscan