Objective

To strengthen the DAO’s position in Aerodrome by acquiring voting power, optimizing emissions for JARVIS and jEUR pools, and enhancing protocol revenues in alignment with recent platform updates.

Background

Aerodrome provides a valuable opportunity for the DAO to maximize emissions and boost protocol liquidity through voting power acquisition. With the flight school program, Aerodrome incentivizes users to buy and lock AERO by offering a significant bonus—up to 85%.

Voting Power Efficiency:

• Currently, $1 of veAERO redirects around $0.7 of AERO in emissions.
• With the flight school bonus, buying and locking $1 of veAERO enables the DAO to redirect up to $1.3 of emissions toward its pools.

Recent changes in Aerodrome’s rules emphasize the importance of voting power for sustaining yields. Incentives alone are no longer sufficient to maintain high yields on their platform. This shift makes acquiring and utilizing voting power a critical strategy for directing emissions effectively and sustaining liquidity in key pools, including both JARVIS and jEUR pools.

By strategically increasing our veAERO position, the DAO can secure reliable, long-term emissions for these pools, enhancing liquidity and generating sustainable revenue.

Proposal Details

Aerodrome Voting Power

Investing in veAERO ensures sustained yields and supports the protocol’s liquidity and revenue goals.

Emission Efficiency:

• Each $1 in veAERO redirects around $0.7 in AERO emissions.
• With the flight school program bonus, $1 of veAERO can redirect up to $1.3 in emissions.
• Redirected emissions will prioritize both JARVIS pools (e.g., JARVIS-ETH) and jEUR pools (e.g., USDC-jEUR), ensuring liquidity and yield sustainability for the ecosystem.

Investment Overview:

• Allocate $50K USDC to acquire AERO and lock it for veAERO.
• This investment would redirect approximately $66K in emissions to DAO-managed liquidity pools, significantly enhancing yields for both JARVIS and jEUR pools.

Rationale

Investing in Aerodrome’s voting power achieves the following:

• Optimizes Treasury Yield: Redirect emissions to JARVIS and jEUR pools, ensuring sustainable returns for liquidity providers and the DAO treasury.
• Supports Liquidity Growth: Strengthens liquidity for JARVIS and jEUR pools, stabilizing prices and attracting more participants.
• Aligns with Platform Changes: The recent shift toward voting power over direct incentives aligns perfectly with this strategy, ensuring long-term success on Aerodrome.

Stakeholders

• Liquidity Providers (LPs): Higher yields and better incentives in JARVIS and jEUR pools.
• JARVIS and jFIAT Holders: Increased liquidity and utility across DAO-managed pools.
• DAO Treasury: Enhanced yield and sustainable revenues through emissions redirection.

Metrics for Success

Voting Power Acquired:

• $50K in AERO invested, securing veAERO for emission redirection.
• Emissions redirected to both JARVIS and jEUR pools.

Liquidity Metrics:

• TVL growth in JARVIS and jEUR pools.
• Yield generated from redirected emissions.

Revenue Metrics:

• Additional yield from veAERO voting power.
• Long-term revenue generated for the DAO treasury.

Budget

$50K USDC: Invest in AERO through Aerodrome’s veNFT system, leveraging the flight school bonus to maximize emissions redirection for JARVIS and jEUR pools.

Conclusion

This proposal focuses on leveraging Aerodrome’s voting power system to enhance liquidity and generate sustainable revenues for the DAO. By acquiring veAERO and directing emissions to both JARVIS and jEUR pools, the DAO can strengthen its position in the DeFi ecosystem and ensure long-term growth.

Voting Options:

• Yes: Approve the purchase of AERO with the specified budget.
• No: Reject the proposal and maintain current treasury allocations.