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

> 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.

- URL: https://riadefi.com/on-chain/2026-09-24-sky-grove-morpho-curation-spell/
- Type: Economic change
- Stage: Proposed
- Evidence: confirmed
- Materiality: material
- Event date: 2026-09-24
- Version: 1, published 2026-09-25 (first published 2026-09-25)
- Follow-up: 2026-10-08
- Advisor-relevant: no
- Affects: Sky (protocol)

## 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.

## Sources

1. [[October 8, 2026] - Proposed Changes to Grove for Upcoming Spell](https://forum.skyeco.com/t/october-8-2026-proposed-changes-to-grove-for-upcoming-spell/28255) · Sky Forum / Grove Labs · 2026-09-24


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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.