SDGP-47: Proposal for Strategic vlCVX and vlAURA Voting Optimization Through Stake DAO Delegation

SDGP-47: Proposal for Strategic vlCVX and vlAURA Voting Optimization Through Stake DAO Delegation

Author: @Tube, @chago0x

Summary:

This proposal seeks to allocate up to 100,000 SDT from the Rewards Pool to establish a new Stake DAO delegation focused on vlCVX and vlAURA voting optimization. This strategic initiative aims to maximize voting incentives across various platforms, particularly leveraging the enhanced capabilities of Votemarket V2’s vlCVX and vlAURA integration, which represents a significant improvement over Votemarket V1’s limitations.

Rationale:

Stake DAO operates in an environment where optimizing voting power and incentives is crucial for maximizing returns and maintaining competitive advantage. The integration of vlCVX and vlAURA voting in Votemarket V2 presents a strategic opportunity that this delegation will capitalize on by:

  • Maximizing voting incentives through comprehensive market coverage for Curve and Balancer.

  • Optimizing voting power allocation to generate maximum value for Stake DAO participants

  • Creating additional revenue streams for Votemarket

  • Strengthening Stake DAO’s position in the Curve and Balancer ecosystem

Proposal Details:

  1. Allocation:
  • Up to 100,000 SDT will be allocated from the reward allocation pool (established in SDGP#40) to fund this new delegation initiative
  • The allocation will be used specifically for vlCVX and vlAURA voting optimization activities
  • The use of those 100,000 SDT would start with a 50,000 SDT allocation for vlCVX delegators, with a target to reach at least 1,000,000 vlCVX delegated.
  • The remaining 50,000 SDT can be used for later utilization, for example when Votemarket v2 goes live on Aura, or to seal deals.
  1. Delegation Structure:
  • Establishment of a dedicated Stake DAO delegation focused on vlCVX and vlAURA voting

  • Implementation of automated optimization strategies to maximize voting incentive rewards

  • Integration with Votemarket V2 and other relevant platforms

  • Note: The delegation structure will be implemented while adhering to data protection laws, such as but not limited to GDPR. This includes:

  • Ensuring all data shared with Votemarket or other third-party platforms is protected under their Privacy Policy.

  • Liability for integration failures or misuse of voting power rests with the relevant platform as governed by its Terms and Conditions.

Implementation:

  • Automated distribution of WETH rewards for vlCVX and vlAURA votes delegated to Stake DAO on a bi-weekly basis (per voting round)
  • Integrate the delegation possibility in the UI, as well as the claiming interface
  • Implementation of an automated claim system using merkle trees for efficient distribution
  • Integration with existing vote incentive rewards optimization system for streamlined rewards claiming

Reminder:

  • Stake DAO is not responsible for any risks or losses related to third-party platforms, regulatory changes, or market conditions affecting this initiative. Participants are encouraged to review Votemarket’s Terms and Conditions and Privacy Policy and ensure they comply with any applicable tax or legal obligations.

  • Users who will delegate their voting rights to the delegation acknowledge and agree to Stake DAO’s terms and conditions. All interactions with Stake DAO, including data handling and incentive distribution, are governed by Stake DAO’s Terms and Conditions and Privacy Policy, accessible on the official website.

Governance Process:

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

  • YAE
  • NAE

0 voters

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https://snapshot.box/#/s:stakedao.eth/proposal/0xc1d7693316ce988db301013fe2cb4bec607444af0eaf7bb91ef54ffd05beaae8