Voting Strategy
Overview
The iAERO voting strategy optimizes veAERO voting power allocation across Aerodrome gauges to maximize returns for iAERO stakers. Unlike manual voting, our system uses data-driven decisions based on bribes, fees, and strategic value.
Core Principles
1. ROI Maximization
Every vote aims to generate maximum value per unit of voting power
2. Automated Execution
No manual intervention - votes execute programmatically each epoch
3. Transparent Allocation
All voting decisions are on-chain and verifiable
The Optimization Algorithm
Step 1: Data Collection
Each epoch, the system collects:
Bribe Values: USD value of all bribes per pool
Historical Fees: Past fee generation by pool
Base Revenue: Strategic value assignments
Pool Health: TVL, volume, and gauge status
Current Votes: Essential for calculating ROV (Return on Vote)
Step 2: Score Calculation
Components:
Bribes: Current epoch bribes converted to USD via oracles
Discount Factor: Usually 100%, can be adjusted for risk
Base Revenue: Keeper-assigned strategic value
Historical Performance: 30-day average fees generated
Current Votes: Votes given to pool so far during epoch
Step 3: Weight Allocation
Step 4: Rebalancing
Remaining weight after constraints is redistributed using the "largest remainder" method to ensure exactly 100% allocation. Constraints and Limits Minimum Vote Weight
Threshold: 0.05% (5 basis points) Reason: Gas efficiency and impact threshold Pools below minimum receive no votes
Maximum Pool Allocation
Cap: 70% of voting power Reason: Risk diversification Prevents single pool domination
Eligible Pools
Must have active gauge Must be whitelisted by keeper Must have sufficient liquidity
Oracle Integration Price Feeds All bribes valued using Chainlink oracles:
Real-time price discovery Manipulation resistance Multi-token support
Supported Bribe Tokens
AERO USDC/USDT ETH/WETH Major protocol tokens
Staleness Protection
Maximum oracle age: 3600 seconds Fallback: Skip pools with stale prices
Strategic Considerations
Base Revenue Assignments Keepers can assign base revenue to pools for strategic reasons: High Priority Pools:
iAERO/AERO - Maintain protocol liquidity AERO/USDC - Core ecosystem pair Strategic partner pools
Example Assignments:
iAERO/AERO: $10,000 base revenue (ensures consistent votes) AERO/USDC: $5,000 base revenue Partner pools: $1,000-3,000 based on agreements Multi-Epoch Planning Bribes can be deposited for multiple epochs:
Provides vote certainty for bribers Smooths out weekly volatility Enables long-term partnerships
Execution Timeline
Weekly Cycle Wednesday 23:00 UTC: Epoch ends Thursday 00:00 UTC: New epoch begins Thursday 00:00-23:59 UTC: Voting window
00:00-12:00: Data collection and calculation 12:00-18:00: Keeper review period 18:00-23:59: Vote execution
Friday: Rewards distribution Performance Metrics Key Indicators
Vote Efficiency: $ earned per veAERO voting power Bribe Capture Rate: % of available bribes earned Execution Rate: % of epochs successfully voted
Historical Performance Typical returns by source:
Bribes: 60-70% of total Trading fees: 20-30% of total AERO emissions: 10-20% of total
Manual Override While fully automated, the system includes safety overrides: Keeper Intervention Authorized keepers can:
Adjust base revenue values Add/remove eligible pools Execute votes with custom weights
Emergency Procedures If automation fails:
Keeper alerts triggered Manual vote execution Post-mortem analysis
Competitive Advantages vs Manual Voting
Never misses epochs (100% participation) Optimizes across all pools (not just familiar ones) Responds to real-time bribes (data-driven)
vs Other Managers
Transparent algorithm (fully on-chain) No hidden deals (all bribes visible) Decentralized execution (multiple keepers)
Future Improvements
Machine Learning Integration
Predict future bribe patterns Optimize for multi-epoch outcomes Adapt to market conditions
Cross-Protocol Voting
Coordinate with other protocols Joint voting strategies Shared liquidity initiatives
Governance Integration
LIQ holder input on strategy Community pool priorities Revenue sharing adjustments
Example Allocation
Here's a typical epoch allocation: PoolBribesBaseScoreWeightAERO/USDC$50,000$5,000$55,00027.5%iAERO/AERO$20,000$10,000$30,00015.0%ETH/USDC$40,000$0$40,00020.0%WBTC/ETH$35,000$0$35,00017.5%Others (10 pools)$40,000$0$40,00020.0%Total$185,000$15,000$200,000100% This allocation maximizes returns while maintaining strategic positions in key pools. Verification All votes can be verified on-chain:
Check VotingManager contract for execution View vote transaction on Basescan Verify weights on Aerodrome UI Calculate expected vs actual returns
The strategy is fully transparent and auditable, ensuring alignment with iAERO staker interests.
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