Stake DAO

As a result of The Herd depositing 2M veCRV into the PPS, Stake DAO is eligible for an airdrop every week of approx 57k EPS (currently worth approx $280k/week for a year).

Given the high yield available for farming EPS at launch (circa 3,000% at the time of writing), Stake DAO has undertaken the following steps for the very first airdrop:

1. Claimed the EPS tokens now and been slashed 50%
2. Staked the remaining 28,999 EPS tokens and locked them for 3 months in order to benefit from the high APY.

It must be noted that, whilst the claimed EPS are locked for 3 months, any rewards farmed are not subject to a lock.

As these airdrops will be repeated every week for a year, Stake DAO will now delegate to its governance to decide what shall be the best course of action for the upcoming airdrops.

Three questions need to be answered:

- What should we do with the weekly airdrop? (subject of this proposal) - What should we do with the rewards from farming? - How should the rewards be distributed to the Herd?

The subject of this proposal is as follows:

“What should we do with the weekly airdrop?”

• Option 1: Do nothing; wait for 3 months for the tokens to unlock, and then claim 100% of the airdrop.

• Option 2: Claim the EPS tokens immediately and incur a 50% penalty for early exit, then stake these without lock to earn an APY of ~35% (at time of writing).

• Option 3: Claim the EPS tokens and incur a 50% penalty for early exit, then stake with a three month lock, and earn an APY of ~3,000% (at the time of writing).

Further proposals will be submitted once the community has voted on this first topic.