# Sky Osero proposes onboarding a Gauntlet-curated USDC Morpho vault

> The proposal would let Osero mint USDS, swap it to USDC through the Lite PSM, and allocate into the new vault under bounded rate limits, diversifying beyond the existing SparkLend USDS allocation.

- URL: https://riadefi.com/on-chain/2026-09-23-sky-osero-gauntlet-usdc-vault-spell/
- Type: Economic change
- Stage: Proposed
- Evidence: confirmed
- Materiality: material
- Event date: 2026-09-23
- Version: 1, published 2026-09-25 (first published 2026-09-25)
- Follow-up: 2026-10-08
- Advisor-relevant: no
- Affects: Sky (protocol)

## What happened

Stablewatch published the proposed technical scope for Osero to add a Gauntlet-curated USDC Morpho Vault V2 to its Ethereum liquidity layer.

## What changed

The proposal would let Osero mint USDS, swap it to USDC through the Lite PSM, and allocate into the new vault under bounded rate limits, diversifying beyond the existing SparkLend USDS allocation.

## What did not change

The spell would not change existing SparkLend or mint-and-burn limits, and it would not itself transfer assets or alter the vault's ownership and curator roles.

## Confirmed

- The proposed vault is Osero x Gauntlet USDC Prime Vault on Ethereum.
- The design preserves an unlimited withdrawal rate limit at the rate-limit layer, subject to actual vault and PSM liquidity.
- Execution depends on risk confirmation, an Atlas edit, Gauntlet readiness, a Sky executive vote, StarGuard plotting, and the GSM delay.

## Still open

- Whether every prerequisite and post-check will be satisfied.
- The final approved caps and rate-limit slopes.
- Whether the required allocation round trip will complete without shortfall before regular allocation.

## What it means for an advisor

- Review the Sky memo's curator, Morpho, Lite PSM, and USDC dependency treatment if executed.
- Confirm the post-execution round-trip test and reconciliation before recognizing the new allocation route as operational.
- Monitor final caps and actual allocation rather than relying on proposed values.

## Sources

1. [[October 8, 2026] Proposed changes to Osero for upcoming Spell](https://forum.skyeco.com/t/october-8-2026-proposed-changes-to-osero-for-upcoming-spell/28253) · Sky Forum / Stablewatch · 2026-09-23


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.