SDGP-61: Strategic veBAL Boost Acquisition from Tetu

Governance Proposals (SDGP)
1

Introduction

In alignment with Stake DAO’s long-term strategic vision to strengthen its influence within the Balancer ecosystem and enhance yield efficiency for protocol participants, this proposal seeks community approval to acquire a strategic veBAL boost position from Tetu, representing approximately 10% of total veBAL supply.

This transaction aims to consolidate Stake DAO’s governance position on Balancer, bringing the DAO’s aggregate boost exposure to approximately 15% of total veBAL, and ensuring sustained competitiveness ahead of the OnlyBoost launch.

Summary

  • Objective: Secure and utilise a veBAL boost position from Tetu (~10% of total supply) for one year.

  • Scope: Temporary rental of voting power and boost rights — not a transfer of ownership.

  • Consideration: 30,000 SDT payment from the Rewards Allocation Pool.

  • Execution: Entirely on-chain via transparent and verifiable smart contracts.

  • Duration: 12 months from the date of execution, with optional renewal subject to DAO vote.

  • Governance: Oversight by veSDT holders through the standard governance process.

Rationale

Enhancing Stake DAO’s veBAL exposure provides the following strategic advantages:

  • Optimised Yields: Increases the effective boost and liquidity rewards for sdBAL and future OnlyBoost users.

  • Ecosystem Leadership: Strengthens Stake DAO’s standing within the Balancer ecosystem.

The collaboration mirrors Stake DAO’s proven model on Curve and accelerates the OnlyBoost rollout, supporting broader cross-protocol integrations.

Legal and Compliance Framework

To ensure regulatory and operational compliance, the following safeguards will apply:

  1. Non-Custodial Structure:
    All actions will be executed via non-custodial smart contracts, ensuring Stake DAO does not hold or manage third-party funds.

  2. No Financial Product Offering:
    This proposal does not constitute an investment, loan, or profit-sharing agreement. It is a temporary delegation of voting and boost rights executed transparently via decentralised protocols.

  3. Transparency and Auditing:
    The transaction, including SDT transfers and veBAL boost delegation, will be verifiable on-chain and publicly auditable.

  4. Risk Mitigation:

    • Any failure by Tetu to deliver the delegated veBAL position will render the agreement void and trigger an automatic refund mechanism via smart contract safeguards.

    • The DAO will not bear any liability for third-party operational failures, smart contract bugs, or external protocol risks.

Proposal Specifications

Admin(s): veSDT holders
Community Feedback: Minimum 3 days
Voting Duration: 7 days

Disclaimers

  • This proposal does not represent a financial solicitation or investment product.

  • Execution will be performed by the DAO’s on-chain governance framework and relevant authorised entities.

  • All participants interact at their own discretion and risk, in accordance with DeFi’s open-access nature.

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