# 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. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.iaero.finance/protocol-mechanics/voting-strategy.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. 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