OIP-262: Redirect Velodrome and Aerodrome Incentives from OVER-ETH to OVER-USDC

id	Title	Status	Author	Description	Discussions to	Created
OIP-262	Redirect Velodrome and Aerodrome Incentives from OVER-ETH to OVER-USDC	Draft	Danijel	Move DAO-directed DEX incentives from OVER-ETH to OVER-USDC to better align $OVER liquidity with protocol revenue and buybacks.	https://discord.com/invite/overtime-io	2026-05-22

Simple Summary

This OIP proposes moving Overtime DAO-directed Velodrome and Aerodrome incentives from OVER-ETH pairs to OVER-USDC pairs. The goal is to align $OVER liquidity with protocol revenue and buyback flows, reduce unnecessary ETH price dependency, and allow $OVER to better reflect Overtime’s own fundamentals.

Abstract

TIP-238 established the migration from THALES to $OVER, simplified $OVER tokenomics, removed single-side staking, and directed protocol fees toward $OVER buyback and burn. It also established that the DAO would use its veVELO and veAERO NFT positions, alongside protocol-owned liquidity, to support $OVER DEX liquidity.

Currently, incentives are focused on OVER-ETH pairs. While ETH is a natural crypto liquidity route, this also ties $OVER price discovery to ETH performance.

Overtime earns revenue in both USDC and ETH, but USDC represents roughly 90% of earnings. ETH revenue is also converted into USDC, since buybacks are executed in USDC. In practice, protocol buybacks are already USDC-native.

The current buyback rate is 200 USDC every 2 hours, equal to 876,000 USDC per year. At the time of writing, $OVER trades around $0.11, implying roughly 7.96 million OVER of annualized buyback capacity.

Against the original 69.42 million $OVER supply, this equals approximately 11.5% of total supply per year. Since around 17% of supply has already been burned, the remaining effective supply is approximately 57.62 million OVER, making the current annualized buyback rate equal to roughly 13.8% of remaining supply.

This proposal would authorize Treasury DAO to redirect Velodrome and Aerodrome incentives and DEX positioning from OVER-ETH to OVER-USDC.

Motivation

The current setup creates a mismatch:

• The protocol earns mostly USDC.
• ETH revenue is converted into USDC.
• Buybacks are executed in USDC.
• But the main incentivized liquidity pair is OVER-ETH.

This means $OVER can still underperform in USD terms if ETH underperforms, even while Overtime generates revenue and consistently buys back $OVER. In that case, buyback impact can be diluted by the ETH side of the liquidity pair.

As Overtime matures, $OVER should increasingly be valued based on Overtime-specific metrics: volume, revenue, adoption, product quality, market coverage, user growth, and buyback strength.

There is also a treasury-level consideration. If ETH continues to underperform, the protocol is exposed twice: $OVER remains impacted through ETH-linked liquidity, while the treasury’s ETH-denominated balance also underperforms in USD terms.

The main risk is that ETH could strongly outperform. However, Overtime already holds meaningful ETH exposure in its treasury, estimated around 500-600 ETH. If ETH rallies, the protocol benefits from that balance sheet exposure. Treasury DAO can also choose to deploy ETH into future $OVER buybacks if it wants to reinforce upside correlation in a more direct way.

This proposal is therefore not a negative view on ETH. It is a preference for cleaner $OVER price discovery and better alignment between revenue, buybacks, and liquidity incentives.

Specification

This OIP entails Treasury DAO redirecting DAO-controlled Velodrome and Aerodrome incentives and DEX positions from OVER-ETH liquidity pairs to OVER-USDC liquidity pairs.

The proposed changes are:

1. Reduce or phase out DAO-directed incentives for OVER-ETH pairs.
2. Redirect those incentives toward OVER-USDC pairs.
3. Use the DAO’s existing veVELO and veAERO voting power to support OVER-USDC liquidity.
4. Allow Treasury DAO discretion over timing, cadence, execution path, and operational details.
5. Allow the transition to happen gradually if needed to avoid unnecessary liquidity disruption.

This proposal does not mandate forced migration of third-party liquidity providers. It only governs DAO-directed incentives and DAO-controlled DEX strategy.

Rationale

A token whose value accrual is based primarily on USDC-denominated revenue and USDC-executed buybacks should have its main incentivized liquidity route denominated against USDC.

OVER-USDC creates a cleaner structure:

• Protocol earns mostly USDC.
• ETH revenue is converted into USDC.
• Protocol buys back $OVER with USDC.
• $OVER trades against USDC.

OVER-ETH liquidity made sense when crypto-native liquidity was commonly built around ETH pairs. However, Overtime is now a mature, revenue-generating protocol with its own product, brand, user base, and tokenomics. $OVER should increasingly reflect those fundamentals rather than passively inheriting ETH price action.

Test Cases

N/A

Implementation

Implementation is expected to be operational rather than smart-contract heavy.

Treasury DAO should coordinate the migration by adjusting Velodrome and Aerodrome voting, incentives, and DEX positioning from OVER-ETH pools toward OVER-USDC pools.

Exact execution details are left to Treasury DAO discretion.

Copyright

Copyright and related rights waived via CC0.