Author(s): @TigrisOfGaul

Summary

This proposal seeks to exchange WeVE from the protocol reserves for USDC and VELO on Optimism. Protocol-held USDC and VELO from this exchange may be supplied to lending pools or, in the case of VELO, locked in a veNFT ("veVELO").

Abstract

If adopted, this proposal authorizes an exchange of WeVE from the protocol's treasury on Fantom for USDC and VELO on Optimism using the Velodrome burn mechanism. Protocol-held USDC and VELO resulting from this exchange may be supplied to lending pools on Optimism or locked as veVELO.

Motivation

As part of the launch of Velodrome, the Solidly-based DEX for deep liquidity on Optimism, WeVE holders can burn their WeVE on Fantom and claim USDC and VELO on Optimism. As of June 2, 2022, the protocol treasury has over 177,000 WeVE which may be exchanged for USDC and VELO on Optimism here:

• Velodrome: WeVE Burn

Holders of a Velodrome veNFT may receive protocol fees, bribes, rebases, and governance power on Velodrome. For more information on Velodrome and the mechanism for WeVE holders to burn WeVE for a claim on the proportional veDAO treasury value and Velodrome airdrop, see here:

• Velodrome: Launch
• veDAO: On the Future

Specification

The changes we propose authorize the protocol to:

• Exchange WeVE from the protocol's treasury for USDC and VELO on Fantom
• Allocate any USDC and VELO resulting from the WeVE exchange to lending pools on Optimism
• Lock any VELO resulting from the WeVE exchange in a veNFT ("veVELO")