Stake DAO

Author : Hubert, Chago

Introduction:

The veBoostDelegation yield sharing for the CRV liquid locker is a smart-contract allowing any veCRV holder to delegate their veCRV boost to the Stake DAO CRV Liquid Locker. The delegation will boost the CRV yield across all Stake DAO OnlyBoost strategies thanks to an improved overall veCRV boost position.

The CRV performance fees accrued from boosting Curve LP on Stake DAO, typically reserved for sdCRV holders, are automatically shared between the Stake DAO CRV Liquid Locker staked sdCRV holders and the veCRV delegators.

Summary:

This proposal aims to activate this mechanism and initiate it with a 52 million veCRV boost delegation from Michael Egorov, Curve’s founder, in an automated exchange for 40% outperformance on Stake DAO’s Curve boosted strategies under current conditions, resulting in:

500k SDT to be locked as veSDT (4 years) subject to approval of SDGP-44

The share of Stake DAO’s CRV Liquid Locker performance fees in CRV, proportional to the delegated veCRV boost’s contribution to Stake DAO’s total veCRV boost, accrued from the veBoostDelegation smart contract.

Transactions will be executed through smart contracts deployed within Stake DAO, ensuring all flows will remain entirely within the DAO, with no manual intervention and maximum decentralisation.

Rationale:

This delegation of significant veCRV boost represents a strategic allocation to improve Stake DAO’s position within the Curve ecosystem, bringing Stake DAO to over 20% of Curve’s total boost supply. It will increase the share of Onlyboost TVL going through the Stake DAO locker and paying fees to veSDT, sdCRV and the treasury. It should also help grow the TVL of those Onlyboost.

The move aims to increase TVL for Stake DAO and solidify Onlyboost’s position as the leading CRV rewards yield provider.

Furthermore, it aligns even more Stake DAO’s interests with Curve’s long-term success while fully deploying the Onlyboost architecture on Curve Finance.

Proposal Specifications:

Michael Egorov to delegate for 4 years 52 million veCRV boost via Stake DAO veBoostDelegation smart contract to share CRV performance fees.

Stake DAO to allocate 500k SDT from its treasury to Michael Egorov to lock as veSDT using smart contract as part of the 40% outperformance on Stake DAO’s Curve boosted strategies as compensation.

The delegated boost will be used to increase yields across all Stake DAO Curve boosted strategies.

A share of Liquid Locker performance fees in CRV will be allocated to Michael Egorov based on the delegated boost. The distribution will follow the Liquid Locker fee structure and be fully automated, with no manual steps required.

Conclusion

This proposal leverages Stake DAO’s decentralized framework to execute a strategic delegation of 52 million veCRV, enhancing yields and reinforcing its competitive position in the Curve ecosystem. The automated, smart contract-based process ensures transparency and efficiency, aligning with DeFi principles while maximizing financial performance.

Administrators: veSDT holders Community Feedback: Minimum of 3 days Voting Duration: 7 days