Lyra has accumulated over $11K in unclaimed voting rewards and 650K unclaimed veVELO rebases on Velodrome, resulting in Lyra missing out on faster growth for its veVELO position and increased ability to attract liquidity for the LYRA/USDC pool. Velodrome has recently deployed Relay, an automated veVELO managing solution that would allow Lyra to automatically claim rewards weekly and effortlessly grow Lyra’s votepower. This proposal seeks approval to deposit Lyra’s veVELO position into a personalized Relay strategy that will vote for LYRA/USDC and compound the resulting rewards.
On Velodrome, VELO emissions are directed to pools based on the amount of votes they receive and this attracts LPs to provide liquidity. Because voters receive 100% of the fees and incentives on Velodrome, Lyra is using its gifted veVELO NFT to not only sustain about 1.2M worth of TVL for free but simultaneously earn swap fees every week.
Like many other projects, however, Lyra is not regularly claiming its weekly rewards (and rebases) from its veVELO position. This is understandable given how time-consuming it can be for multisig signers to execute transactions related to locking VELO, voting and claiming rewards each week—not to mention time-sensitive swaps!
Velodrome Relay solves this problem, streamlining the user experience by automating veVELO management. With Relay, Lyra can create a personalized voting strategy, select how rewards will be managed, and let the Relay vaults do all the work.
Velodrome Relay can automatically compound rewards into veVELO. The screenshot in comment section below shows the rewards the Lyra’s veVELO NFT has accumulated over the past few months i.e. more than $11K worth of rewards.
Velodrome Relay will also automatically claim rebases to further maximise votepower. As of now, Lyra has an unclaimed 650K veVELO rebase available, plus a potential increase in votepower by extending the veVELO lock time. With Relay, Lyra’s veVELO will gain an 11% boost in votepower (8.8M to 9.8M votes) with no user action. Screenshot also linked in comment section below.
More details on Relay can be found in our article here.
Velodrome Relay automates the entire process of weekly claiming of rewards and compounding into more veVELO. Not only will this save Lyra’s multisig signers time to execute these transactions but rewards and rebases will also be automatically compounded into its veNFT to increase the votes its LYRA/USDC pool gets, which means more emissions and deeper liquidity, as well as growing Lyra’s share of fee rewards received every week.
Velodrome Relay is particularly valuable for Lyra since its multisig is not regularly claiming the weekly rewards and rebases from its veVELO position as highlighted above. Relay will also keep Lyra’s votes on the LYRA/USDC pool.
- Velodrome team will create a Relay instance for the Lyra team and transfer the admin role to the Lyra treasury on Optimism: 0xd4c00fe7657791c2a43025de483f05e49a5f76a6
- Lyra multisig will deposit its veVELO NFT into the newly created Strategy
- Velodrome team will provide a transaction for the Lyra multisig to upload in order to allocate 100% of votes to the LYRA/USDC pool
- Done! Relay will now automate weekly reward and rebase claims and compound into more veVELO
Lyra’s veVELO voting has always gone towards its one and only pool on Velodrome, LYRA/USDC so this should be upheld by Relay.
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