Building a standalone UI for claiming rewards, similar to what Aura Finance offers, and allowing users to choose between basic, auto-compound, or custom claim options feels like the right direction. If we move forward with this, we’ll definitely use it as a benchmark. Thanks for sharing it.
As for the second question, we’re not sure we fully understood it.
Right now, sePSP2 tokens are essentially Balancer LP tokens behind the scenes. They earn a share of the swap fees from the pool they’re part of. On top of that, staking rewards are distributed proportionally from 80% of the protocol’s total rewards. After some calculations, a Merkle tree is updated, allowing users to claim their share in wETH directly through the smart contracts built by Velora.
Compared to the value generated through Velora and staking mechanisms, the fees from these swaps are relatively minimal. We don’t expect the impact to be significant in the overall cost-benefit analysis.
@ignas thanks for the support — we agree the benefits you mentioned are important. We’ve also staked with Velora and only compounded after about four months.
That said, we also believe this feature should be optional, keeping the current mechanism as the default.
Regarding the idea of staking via Beefy or Harvest, that’s something we hadn’t considered. We’re now reaching out to contacts at Beefy to explore if it’s feasible and what it would take to make it happen.
We’re aligned with the idea of a one-off build-and-audit grant funded by the DAO. WakeUp Labs has worked under similar models in the past, and we feel confident about our long-term commitment to maintain the system without needing a recurring fee.
That said, to ease the upfront burden on the DAO, one possible structure could be to reduce a portion of the grant and allow the manager contract to gradually recover that amount over time. For example, the final grant could be reduced by $10K, and the contract allowed to collect up to $1,000 per month.
After recovering that amount, the fee could remain in place at a reduced rate to support long-term operations, maintenance, and monitoring without charging an uncapped percentage of total volume.
Ideally, the fee would be sourced from the yield delta: taking a small cut of the extra returns generated via auto-compounding, so users still earn more than they would otherwise. (Where yield delta = APY – APR.)
We believe this structure keeps incentives aligned over time.
We’re still early in the discussion, so we’re sharing this as just one potential approach. We fully understand your perspective.
We’ll work to answer them with solid data or a Dune dashboard since they matter not just for this proposal but for Velora as a whole. There’s no immediate deadline, so we can’t commit to a specific timeline.
That said, we’d love to explore:
What percentage of stakers manually compound (claim, swap and re-stake)?
How many wallets under ~$5 k stake on Ethereum mainnet? (cc: @PGov)
How can we tell if user demand justifies the effort and cost of this feature?
We’ll follow up once we have solid insights to share.
If we take into account the latest epoch 31 revenue deducted from expenses related to Laita + Seed Gov + everything that will be subtracted from the revenue before distribution to stakers from now on, the APR will now very rarely exceed 8 to 9% APR and could even become negative? if the revenue are lower than the expenses voted.
So I think the APY-APR delta will be close to 0.