Yearn's Scale-Up Plan for Velodrome STG-USDC.e Incentives

-Background Yearn Finance is a leading decentralized finance (DeFi) protocol offering automated yield-generation services to users. We strive to maximize returns by auto-compounding rewards into additional yield-generating opportunities. Our innovative vault factory allows anyone to deploy an auto-compounding vault specific to any Velodrome V2 liquidity pool. In the recent past, Yearn has been an active participant in the Optimism ecosystem, providing OP incentives to selected vaults.

-Proposal To scale up and drive further activity in the Velodrome STG-USDC.e pool, the following plan is proposed: Stargate commits to depositing a minimum of $3M of protocol-owned liquidity (POL). For every $1M of total value locked (TVL) in the pool, Yearn commits to providing 500 OP tokens weekly. This incentive plan will be active for 26 weeks.

-Vault address: https://yearn.fi/vaults/10/0xf6B272134A193Df5b04332e73184E5b40b8EB810

-Execution Once this proposal is approved, for every $1M of TVL in the Velodrome STG-USDC.e pool, Yearn will provide 500 OP tokens. OP boost will be calculated at the beginning of each week. Concurrently, Stargate will ensure that a minimum of $3M of their STG-USDC protocol-owned liquidity is deposited into the Yearn vault on Optimism. Yearn will also ensure the total yield (compounding + yvOP emission) is at least 15% superior to staking in the velodrome pool only, so long as Stargate keeps voting for that pool.