This AELIP proposes extend AELIP 28 indefinitely for Velodrome AMM incentives for the AELIN/ETH pool. Aelin treasury will be distributing $4,000 USD per week, paid for in OP tokens received in the Phase 0.
This AELIP proposes to continue the trial in AELIP-28 indefinitely.
Aelin treasury will be distributing voting rewards (also called "bribes") in OP in order to maximise the VELO rewards emitted to the AELIN/ETH pool. This means LPs will be earning VELO instead of AELIN.
Direct incentives with AELIN tokens have been highly capital inefficient because of a "farm and dump" behaviour observed in the last few months increasing the sell pressure, but also because the value of the rewards distributed each month became too low to keep the interest of the LPs, leading to a drop in liquidity.
It was important for the original incentive program to be terminated (see AELIP-26) and replaced by another one with a larger token emission which could avoid a sell pressure on AELIN at the same time.
The proposal will be submitted per the Optimism network guidelines.
The Aelin dApp will show a redirect and APY to the Velodrome pool.
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