Summary
This proposal seeks to allocate up to 500,000 SDT from theRewards Allocation Pool (SDGDP-40) to support the launch of sdYB, the Liquid Locker for Yield Basis (YB).
The allocation will serve exclusively for incentive distribution and liquidity bootstrapping during the initial six-month launch phase.
Yield Basis is a DeFi protocol offering impermanent-loss-free yield on assets such as Bitcoin (BTC) by leveraging Curve’s crvUSD stablecoin and BTC liquidity. It distributes trading fees and emissions to users through its veYB governance model.
This proposal enhances Stake DAO’s Liquid Locker suite and reinforces its role as a key infrastructure layer across major DeFi ecosystems.
Context
Launching sdYB extends the Liquid Locker model to YB, enabling users to lock, boost, and collect veYB-derived rewards through Stake DAO’s infrastructure while reinforcing integration between both ecosystems.
This expansion further strengthens Stake DAO’s cross-protocol integrations and broadens exposure to BTC-based yield strategies within Balancer, Curve, and related ecosystems.
Proposal
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Allocate up to 500,000 SDT for up to six months to bootstrap sdYB adoption.
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Rewards distributed via standard Locker Rewards contracts.
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The Treasury multisigs coordinate disbursements and reporting.
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A regular usage report and performance summary shall be presented to the DAO community as part of the monthly reports published by the Association.
Rationale
This allocation serves to:
Bootstrap the sdYB locker liquidity and user participation, ensure early adoption.
Expands Stake DAO’s Liquid Locker product suite, and diversifies yield opportunities.
Supports YB ecosystem growth and governance decentralisation.
Align long-term incentives without increasing total SDT inflation or altering the emission schedule.
Legal and Compliance Framework
To ensure regulatory and operational compliance, the following safeguards apply:
Non-Custodial Structure
All operations will be executed through non-custodial smart contracts. Stake DAO does not hold or manage third-party funds.
No Financial Product Offering
This proposal does not constitute an investment, loan, or profit-sharing agreement. It represents a transparent, on-chain distribution governed by the DAO’s approved emission framework.
Transparency and Auditing
All SDT transfers and reward distributions will be verifiable on-chain and publicly auditable.
Risk Mitigation
In case of any operational or technical failure, undistributed SDT remains under DAO control within the Rewards Allocation Pool.
The DAO. Stake DAO bears no liability for third-party protocol risks or smart contract vulnerabilities, smart contract bugs, or market volatility.
All counterparties (e.g., Yield Basis contributors) act as independent, decentralized participants and not as agents or representatives of Stake DAO.
Proposal Specifications
Admins: veSDT holders
Community Feedback: Min 3 days
Voting Duration: 7 days
Voting Options
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YAE — Approve the 500,000 SDT allocation from the Rewards Allocation Pool to bootstrap the sdYB Liquid Locker launch..
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NAE — Reject the allocation and maintain current SDT distribution parameters.
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ABSTAIN: No preference.
Disclaimers
This proposal does not constitute a financial product or investment solicitation.
All SDT transfers are executed on-chain through transparent and auditable smart contracts.
No third-party funds are managed or held by the DAO beyond the governance-approved emission schedule.
Stake DAO acts solely as a decentralised coordination framework, not as a financial intermediary.
- YAE
- NAE
- ABSTAIN