Author: Stake DAO Association
Category: A — Stake DAO Governance Proposal (SDGP)
Summary
As anticipated in the Stake DAO roadmap, this proposal activates the fee-sharing framework on Stake DAO’s OnlyBoost vaults, carved exclusively out of the treasury portion of the performance fee. OnlyBoost vaults currently charge a total performance fee of 16.1%, of which 5.5% accrues to the Stake DAO treasury.
Under this framework, up to the full treasury share, 5.5 percentage points of the 16.1% performance fee, generated by TVL originated by an approved partner may be redirected to that partner’s treasury. Fees accruing to sdTKN stakers and vlSDT holders are not affected. For clarity: no new fee is introduced. This proposal only re-routes part of an existing protocol fee via a governance-set parameter, and creates no entitlement, offer, or contractual obligation for any party (see the Legal Annex).
As the first application of this framework, the proposal approves a revenue share to Inverse Finance equal to the full treasury portion, 5.5 percentage points of the 16.1% performance fee (~34% of total performance fees collected), on TVL originated through FiRM markets using Stake DAO escrows (Stake DAO OnlyBoost vaults).
Motivation
1. Redeploying part of the treasury fee to support protocol integrations
OnlyBoost vaults performance fees are currently split as follows:
| Allocation | Share |
|---|---|
| Distributed to sdTKN stakers (e.g., sdCRV) | 5% |
| Distributed to vlSDT holders | 6% |
| Treasury | 5.5% |
| Harvester | 0.1% |
| Total performance fee | 16.1% |
The treasury share is the only component the DAO can deploy strategically without diluting stakers or lockers. Redirecting part of it to integration partners allocates a portion of protocol-level fees to protocols that bring additional TVL to Stake DAO. The allocation is calculated solely from the performance fees that the partner-originated deposits themselves generate; it is a protocol fee parameter set by governance, not a promise of profit, yield, or return to any person.
2. Attracting new TVL and making Stake DAO the preferred yield source
Protocols choosing a yield venue for their collateral, treasury, or LP strategies compare net yield, boost quality, and alignment. A revenue share tips this comparison in Stake DAO’s favor: building on top of Stake DAO becomes a decision that also reflects the protocol-level fee allocation available to integrating partners. The framework is designed to incentivize protocols to integrate Stake DAO as their preferred yield source, and to make each new integration self-reinforcing: the more TVL a partner routes, the larger the fee allocation calculated from that partner’s originated TVL.
This fee sharing aims to only incentivise liquidity that would otherwise not be deployed on Stake DAO, so that it doesn’t ever destroy value for the DAO.
Because the share is carved solely out of the treasury portion, every dollar of partner-originated TVL remains strictly accretive to sdTKN stakers and vlSDT holders. Revenue the treasury “gives up” applies only to TVL that would otherwise be going to the competition.
3. Inverse Finance and FiRM
Inverse Finance is the issuer of DOLA, a decentralized stablecoin, and the developer of FiRM (Fixed Rate Market), a fixed-rate lending protocol where borrowing costs are paid via DBR (DOLA Borrowing Rights) and each borrower’s collateral is held in an isolated, per-user escrow contract. This escrow architecture is what makes FiRM uniquely compatible with Stake DAO: collateral can remain productive while securing a loan.
Inverse has already taken the first step. Proposal #363 re-onboards the sDOLA/scrvUSD Curve LP as FiRM collateral using Stake DAO’s OnlyBoost escrow, the first FiRM market to do so. For depositors, this means optimized boost between Stake DAO and Convex, improved reward capture, instant reward crediting after harvest, and continued reward accrual while the LP is used as collateral. For Inverse, the revenue share approved in this proposal is the fee-share benefit referenced in that proposal.
What this partnership can bring to Stake DAO:
-
Immediate TVL: the sDOLA/scrvUSD market launches with a 5,000,000 DOLA supply ceiling, with looping demand expected given the LP’s combined sDOLA, scrvUSD, and boosted CRV yields (a forward-looking expectation only, not a commitment or assurance — see the Forward-Looking Statements notice in the Legal Annex).
-
Potential migration of all FiRM Curve LP markets to OnlyBoost: if the first market performs as expected, Inverse may, at its sole discretion, route additional current or future Curve LP collateral markets through Stake DAO OnlyBoost escrows. This is a possibility only; neither Inverse nor Stake DAO commits to it.
-
A public reference integration demonstrating the “build on Stake DAO, share the revenue” model to other lending markets, stablecoin issuers, and yield aggregators.
Specification
1. Activation of the revenue-sharing framework
Revenue sharing is hereby enabled on Stake DAO OnlyBoost vaults, subject to the following constraints:
-
The revenue share is carved exclusively out of the 5.5% treasury portion of the performance fee. The allocations to sdTKN stakers (5%), vlSDT holders (6%), and the harvester (0.1%) are unchanged.
-
The revenue share applies only to performance fees generated by TVL originated by the partner (deposits routed through the partner’s contracts, escrows, or integrations), not to the vaults’ total TVL.
-
Each partner allocation (partner, rate, scope) must be approved by Stake DAO governance, either through this proposal or a subsequent SDGP.
-
Partner terms are recorded on-chain in the PartnerRegistry contract, owned by Stake DAO governance. The registry stores each partnership’s parameters (fee share in bps, payout recipient, active status), either per vault or per integrator/referrer, and holds no funds. Terms can only be set, updated, or paused by governance.
-
Compliance condition. Activation of, and each distribution under, any partner allocation is conditional on the payout recipient not being a Restricted Person (as defined in the Legal Annex) and on the distribution being lawful. Stake DAO governance may pause or revoke any allocation, and its PartnerRegistry entry, if the recipient becomes subject to sanctions or if distribution would otherwise be unlawful.
2. Inverse Finance revenue share
-
Partner: Inverse Finance
-
Rate: 5.5 percentage points of the 16.1% performance fee (i.e., 100% of the 5.5% treasury share, or ~34% of total performance fees collected) generated by TVL originated through FiRM markets using Stake DAO escrows
-
Scope: the sDOLA/scrvUSD FiRM market (0xC45E9c231ab5D9Bd3F1131E7901B100D8D236C4d) and any future FiRM market using a Stake DAO OnlyBoost escrow
-
Recipient: Inverse Finance Treasury (0x926dF14a23BE491164dCF93f4c468A50ef659D5B), such address to be verified and recorded in the PartnerRegistry by Stake DAO governance before any amounts accrue or are made claimable. No amounts will be made claimable to any address not so recorded, and no Released Party (as defined in the Legal Annex) shall be liable for amounts directed to an address confirmed through that process.
3. Payment mechanics
Revenue-share amounts are computed autonomously by Stake DAO’s keeper infrastructure from on-chain harvest data attributable to partner-originated TVL, based on the terms recorded in the PartnerRegistry. Accrued amounts are made claimable through a Merkle-claim contract (Universal Rewards Distributor), updated monthly, in the reward tokens collected (e.g., CRV). Inverse Finance will be able to claim its accrued share each month to its treasury. Stake DAO will publish the methodology for transparency.
The StakeDAO Association does not custody or take title to these tokens at any time; amounts are made available for the partner to claim on a pull basis directly from the smart contract. All amounts are gross: the partner is solely responsible for any taxes arising on amounts it claims, no amount will be grossed up, and Stake DAO neither withholds nor accounts for any tax.
4. Duration and termination
The revenue share remains in force as long as the corresponding partner integration is live. The revenue-share allocation is an on-chain governance parameter, not a contract: it confers no vested or contractual right on any partner, and Stake DAO governance may amend, pause, or revoke it at any time by SDGP or other authorized governance action. It may also cease automatically if the underlying integration is discontinued. As an operational courtesy only, and not as a binding obligation, Stake DAO will endeavour to give 30 days’ notice before any discretionary discontinuation where practicable. Rates may be revised by a subsequent SDGP.
Fee structure after this proposal (partner-originated TVL)
| Allocation | Share |
|---|---|
| Distributed to sdTKN stakers | 5% |
| Distributed to vlSDT holders | 6% |
| Partner (Inverse Finance) | 5.5% |
| Treasury | 0% |
| Harvester | 0.1% |
| Total performance fee | 16.1% |
Non-partner TVL keeps the current split (5% / 6% / 5.5% / 0.1%).
Vote
-
For (Yes): Activate the OnlyBoost vaults revenue-sharing framework on the treasury fee portion, and approve a revenue share to Inverse Finance equal to the full 5.5% treasury share (5.5 percentage points of the 16.1% performance fee) as described.
-
Against (No): Reject the proposal.
-
Abstain: Take no position.
| Parameter | Value |
|---|---|
| Forum debate period | 3 days minimum |
| Voting period | 7 days |
| Debate and vote | Sequential (debate first, then vote) |
| Quorum | 15% of total vlSDT supply |
| Approval threshold | Simple majority (>50% of votes cast, excl. abstentions) |
| Anticipated execution | If the quorum and approval threshold set out above are met |
References
-
Inverse Finance Proposal #363 — Re-Onboard sDOLA/scrvUSD LP as Collateral [Inverse Governance]
-
Inverse forum post — Re-onboard sDOLA/scrvUSD LP as collateral [forum.inverse.finance]
-
FiRM documentation [docs.inverse.finance]
-
sDOLA/scrvUSD FiRM market [0xC45E9c231ab5D9Bd3F1131E7901B100D8D236C4d]
-
OnlyBoost escrow implementation [0x88df2a32C1130Ae8371Bf6B5d5C644a485FC650B]
-
PartnerRegistry implementation [stake-dao/contracts-monorepo PR #479]
Legal Annex
Nature of this document
This document is a non-binding governance coordination notice published by the Stake DAO Association (a Swiss not-for-profit association) for the benefit of participants in the Stake DAO governance process. It does not create contractual rights or obligations between any person and the Stake DAO Association, between any participants, or with any third party. Where this document refers to actions to be taken by smart contracts, those actions are performed autonomously by code deployed on a public blockchain and are not undertaken by any legal person on behalf of any other legal person.
Regulatory & Legal Notice
This document is a governance coordination notice relating to the operation of a decentralised protocol. It is provided for informational purposes only and does not constitute an offer, solicitation, recommendation, investment advice, or any regulated financial service in any jurisdiction.
The Stake DAO protocol operates through non-custodial smart contracts. The Stake DAO Association does not custody or take title to user funds. Nothing herein is legal, regulatory, accounting, financial, or tax advice. Participation is voluntary and at each participant’s own risk.
Restricted persons. Nothing in this document is directed at, or intended to be acted upon by, any person who is (a) a U.S. Person as defined in Regulation S under the U.S. Securities Act of 1933, (b) ordinarily resident in any jurisdiction in which participation would be unlawful, or (c) the subject of sanctions administered by the United Nations, the European Union, SECO, the United Kingdom, or OFAC. No revenue-share allocation will be established for, and no distribution will be made to, any person who is a Restricted Person under this paragraph.
Forward-looking statements. Statements in this document regarding expected TVL, looping demand, potential migration of markets, anticipated revenue, and similar matters are forward-looking and reflect current expectations only. They are subject to smart-contract, market, counterparty, and regulatory risks and are not guarantees or commitments; actual outcomes may differ materially, and no Released Party undertakes to update them.
Risk Acknowledgement
Participants expressly acknowledge and accept: (a) Smart-contract risk — audited code is not warranted to be free from defects; (b) Market risk — token values and fee revenues may vary materially over time; (c) Counterparty/integration risk — partner protocols operate independently of Stake DAO and may modify or discontinue their integrations; (d) Regulatory risk — applicable regulatory frameworks may evolve; (e) Tax risk — participants are solely responsible for their own tax obligations.
Provisions
Limitation of Liability. To the fullest extent permitted by applicable law, and subject to the mandatory provisions of Swiss law, the aggregate liability of the Released Parties (collectively) to any claimant for all claims arising out of or in connection with this proposal shall not exceed the greater of (i) the total protocol fees actually paid by that claimant to a Released Party in the twelve (12) months preceding the event giving rise to the claim and (ii) USD 100. Nothing in this section limits or excludes liability for death or personal injury caused by negligence, for fraud or fraudulent misrepresentation, for wilful misconduct or gross negligence, or for any other liability that cannot lawfully be limited or excluded under Swiss law.
Force Majeure. No Released Party shall be liable for any failure or delay resulting from causes beyond its reasonable control, including network failure, smart-contract exploits, regulatory orders, or acts of God.
Governing Law and Dispute Resolution. This proposal is governed by the laws of Switzerland. Any dispute that is nonetheless asserted to arise out of or in connection with this proposal shall be finally resolved by arbitration administered by the Swiss Arbitration Centre under the Swiss Rules of International Arbitration. The seat of arbitration shall be Zurich, with a sole arbitrator, in English.
Severability. If any provision is held invalid, illegal, or unenforceable, it shall be severed and the remaining provisions shall continue in full force.
Amendment. This proposal may be amended only by a subsequent proposal adopted in accordance with the Stake DAO governance framework.
Notices. Official communications will be published through (i) gov.stakedao.org, (ii) @StakeDAOHQ on X/Twitter, or (iii) stakedao.org.
This proposal follows the Stake DAO Proposal Framework.