Stake DAO

Proposer: Hubert

Summary This proposal seeks governance approval to authorize a second over-the-counter (“OTC”) veCRV boost delegation from Michael Egorov to Stake DAO, subject to the terms and compliance safeguards set forth herein.

Context and rationale With SDGP-45, Stake DAO engaged in a boost delegation with Michael Egorov, which involved 52m veCRV delegated for four years to Stake DAO, resulting in Stake DAO temporarily controlling approximately 20% of the total veCRV boost supply, thereby enabling competitive boosting over an estimated 25% of Curve’s TVL, subject to market fluctuations. This boost delegation allowed large users to easily deposit straight on Stake DAO, and for certain larger liquidity pools in which Onlyboost allocates funds between Stake DAO and Convex, to increase the share going through Stake DAO’s locker (hence increasing Stake DAO’s fee generation since there is no fee charged on the share allocated to Convex).

Furthermore, the market today, with growing price trends for CRV, and low pegs for all wrappers, makes it challenging for Stake DAO to keep growing its market share in the veCRV market.

Today, Stake DAO has the opportunity to acquire another 48.5m veCRV boost decaying until at least May 2029 from Michael Egorov. Engaging into this boost delegation would allow Stake DAO to exceed 200m veCRV boost, representing 25% of the total veCRV boost supply, and allowing Stake DAO to competitively boost one third of Curve’s TVL with its own locker.

This should allow Stake DAO to increase the surface of its coming Staking v2 deployment on mainnet to 33% of Curve’s TVL, and enable users to deposit even larger amounts on Stake DAO without suffering from boost dilution. It will help Stake DAO reach larger investors, including distributors, institutionals, etc.

The proposed arrangement aims to reflect a performance based allocation of 40% of excess CRV farming proceeds attributable to the delegated boost, and consists of:

An automatic distribution to Michael Egorov via smart contract as detailed in the framework set by SDGP-45 and currently live and permissionless in the user interface, consistent with the Liquid Locker fee structure;

A one-time allocation of 275,000 SDT from the DAO’s strategic reward distribution pool, to be transferred to Michael Egorov’s wallet and locked as veSDT for a minimum of twelve (12) months. The veSDT position may be used by Swiss Stake to enhance its sdCRV strategy.

Regulatory and Compliance Considerations: In entering into this arrangement, Stake DAO shall ensure that (i) no custody of client assets is assumed, (ii) all transactions are executed through deployed smart contracts without manual intervention, and (iii) all reporting and disclosures remain consistent with applicable Swiss association laws, EU financial regulations, and the DAO’s non-custodial operational framework.

Implementation details Michael Egorov shall delegate approximately 48.5 million veCRV boost, vesting and decaying until at least May 2029, via the Stake DAO veBoostDelegation smart contract. Stake DAO shall allocate 275,000 SDT from its pre-designated strategic reward pool, executed exclusively via on-chain smart contracts, as part of the agreed consideration. 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.

Note: All distributions and allocations shall be executed in a fully automated, non-custodial manner, without discretionary intervention by any individual or entity, thereby ensuring neutrality and compliance with applicable financial regulations.

Proposal Specifications: Admin(s): veSDT holders

Community Feedback Period: Minimum of 3 days

Voting Duration: 7 days

All actions and implementations contemplated in this proposal shall be conducted in accordance with applicable Swiss association law, EU financial services regulations (including MiCA where relevant), and prevailing DAO governance standards. Stake DAO shall not assume custody of user assets at any point. All obligations shall be discharged exclusively through audited smart contracts. This framework is designed to safeguard DAO integrity, mitigate regulatory risk, and ensure long-term compliance.