veNFT Management

Primary NFT Management

Selection Criteria

• First valid NFT becomes primary

• Highest balance preferred

• Must not be expired

• Must be owned by vault

Maintenance Schedule

• Rebase every ~3 months

• Merge on new deposits

• Weekly voting execution

• Continuous optimization

Advanced NFT Functions

Merging Operations

Why Merge?

• Consolidates voting power

• Reduces gas costs

• Simplifies management

• Improves capital efficiency

Merge Rules

• Only merge into primary

• Source NFT destroyed

• Balances combined

• Voting power consolidated

Auto-Merge Triggers

• New deposit received

• Maintenance called

• Gas optimization batch

Rebase Operations

Purpose: Maintains maximum voting power by extending lock duration

When Rebasing Occurs

• Lock duration < 3.75 years

• Called by keeper

• Part of maintenance routine

Process Example

if (timeRemaining < MAX_LOCK - 3 months) { extendLock(MAX_LOCK_DURATION); }

Enables:

• Gauge voting

• Bribe claiming

• Fee collection

• Delegation

NFT Security Model

Ownership Structure

• Vault owns NFTs permanently

• Users cannot withdraw NFTs

• Only authorized contracts can execute actions

Protected Functions

• Transfer: Disabled except deposits

• Merge: Only vault-controlled NFTs

• Split: Not supported

• Burn: Never allowed

Emergency Procedures

Stranded NFT Recovery

For NFTs sent outside deposit flow:

• Owner can rescue if not managed

• Requires proof of non-management

• One-time recovery option

Failed Merge Handling

• Retry in next maintenance

• Manual merge by owner

• Skip if consistently failing

Optimization Strategies

Gas Optimization

• Batch merges when possible

• Combine rebase with merge

• Skip unnecessary operations

• Cache state reads

Voting Power Maximization

• Always maintain max lock

• Merge quickly after deposits

• Never let positions expire

• Compound all rewards

Management Efficiency

• Automate via keepers

• Monitor merge success

• Track rebase schedule

• Alert on anomalies

Integration with Aerodrome

Gauge Voting

• Vote on liquidity gauges

• Direct emissions

• Maximize bribes

• Optimize returns

Reward Claims

• Collect trading fees

• Harvest bribes

• Claim emissions

• Process rebases

Compatibility

• Supports all veAERO functions

• Handles permanent locks

• Manages standard locks

• Processes all reward types

User Considerations

Before Depositing NFTs

• Check lock isn't expired

• Disable auto-max lock

• Verify ownership

• Understand permanence

After Depositing

• NFT permanently in vault

• Receive iAERO tokens

• Cannot reclaim NFT

• Voting automated

Benefits vs Direct Holding

• No manual voting needed

• No rebase management

• Liquid iAERO tokens

• Professional optimization

• Compound efficiency

Technical Specifications

Supported Operations

Operation	Supported
Deposit	✅
Merge	✅
Extend lock	✅
Vote	✅
Claim rewards	✅
Withdraw	❌
Split	❌
Reduce lock	❌
Transfer out	❌

Gas Costs (Estimated)

Operation	Gas Cost
Deposit veNFT	~200k gas
Merge NFTs	~150k gas
Rebase lock	~100k gas
Vote execution	~300k gas

These operations are optimized and batched where possible to minimize costs.