Beefy provides $OP incentives for STG liquidity.

Background Beefy is a multi-chain yield optimizer present on 21 different blockchains (8 of which are shared with Stargate). Currently offering more than 650 vaults that compound rewards generated by almost $250M TVL. Beefy has many strong traits, two of the most outstanding ones are a big focus on security, and great user experience. Beefy is a recipient of a Grant from the Optimism Governance Fund. One of the purposes of the grant is to showcase Optimism protocols to our multichain user base.

Proposal This proposal aims to allocate Beefy’s $OP tokens to boost the STG-USDC Velodrome autocompouding vault, with the goal of attracting more $STG liquidity and tokenholders on Optimism. We will introduce the boost along with some marketing and educational pieces, which will aim to increase awareness and understanding of Stargate’ s protocol and $STG token among Beefy users. As a result of the boost, the users will earn more $STG tokens, as the liquidity incentives from Velodrome are swapped into more $STG and redeposited, plus an extra APR in the form of $OP tokens for staking into the boost.

Beefy’s proposal is to allocate 12,500 $OP tokens to be distributed in the STG-USDC Vault. Beefy will also create the educational and marketing pieces about Stargate, and our development team will create and manage the contracts related to the boost. In return, we are asking for Stargate to stake $3M of STG-USDC as protocol-owned liquidity into the autocompounding Beefy vault, (and not into the boost). This will allow the $OP rewards tol be distributed amongst more users.

Execution 12,500 OP will be allocated to be distributed over 2 to 4 weeks into all users who stake into the boost. The boost would start on 22 July, and the marketing/educational pieces will be released during the boost period to maximize attention.

$3M of STG-USDC POL will be provided into the Beefy vault on Optimism before 22 July.