Sky Grove proposes closing six Morpho allocations and onboarding a replacement vault

What happened

Grove Labs published the technical scope for a proposed 8 October 2026 spell aligning Grove's Ethereum and Base Morpho allocations with the Atlas Morpho Vault Curation Framework.

What changed

The proposal would close six vaults to new Grove deposits and remove their Grove allocations, onboard a Grove x Steakhouse PYUSD Morpho Vault V2, and authorize configuration work for three continuing vaults.

What did not change

The spell has not executed. Withdrawal limits would remain available at the rate-limit layer, subject to vault and market liquidity.

Confirmed

• Six named vaults are intended to end with deposit rate limits set to zero and no Grove allocation.
• A new PYUSD Morpho Vault V2 would receive bounded deposit and withdrawal limits plus a maximum exchange rate.
• The proposal relies on prerequisites, post-execution checks, and a later Safe transaction for three vault configurations.

Still open

• Whether all prerequisites will be met before spell inclusion.
• Whether the executive vote, spell, Base relay, and later Safe transaction will execute as specified.
• Final allocations and any unwind friction during the transition.

What it means for an advisor

• Review Sky's dependency and allocation map if the spell executes.
• Confirm that discontinued vault exposure reaches zero and that withdrawal paths remain operational.
• Do not interpret framework compliance or audit references as establishing suitability or safety.