SIP 2 : Enable veBoost for APW Lockers

Summary :

Enable veAPW lockers to boost their APW LP rewards and earn up to 250% of their current APW LP yield.

Context:

Several protocols that use a voting escrow model similar to APW’s model implement the veBoost functionality, i.e the boosting of LP rewards for the voting escrowed token holders (lockers of the token). We believe that enabling this feature would benefit the Spectra protocol.

Rationale:

The veBoost functionality encourages active participation in all aspects of Spectra's ecosystem. By rewarding users who lock their APW tokens to vote on proposals and gauge distributions, and by incentivizing liquidity provision, which enhances the traders’ experience, the veBoost promotes engagement in the protocol, and benefits the overall Spectra platform. Moreover, such an update gives anyone the possibility to build a boost aggregator (eg. convex finance) on top of Spectra.

Proposal:

For all Liquidity Providers holding veAPW, we propose to boost the LP APW incentives using the following formula :

The boost factor of a user depends on the ratio between his provided liquidity and the total liquidity in the pools, aswell as the ratio between his veAPW balance and the total veAPW supply:

Means:

Enable the boosting as described by Curve DAO’s documentation.