SDGP-61: Strategic veBAL Boost Acquisition from Tetu

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:

Non-Custodial Structure: All actions will be executed via non-custodial smart contracts, ensuring 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 is a temporary delegation of voting and boost rights executed transparently via decentralised protocols.

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

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.