Velodrome Aelin/WETH Pool 2 Incentives - Trial Program
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July 19th, 2022

With the implementation of AELIP 28 - The Aelin Treasury has just begun incentivizing AELIN/WETH liquidity providers on Velodrome with a trial program of $4,000 USD (paid in Optimism tokens) per week. Please read more if you’re interested in earning LP rewards with your Aelin.

Motivation for Change

Direct AELIN incentives for Pool 2 (AELIN/WETH) will end on July 17th with the implementation of AELIP-26: Staking Rewards Program Termination. Ending incentives for Pool 2 (AELIN/ETH) could drastically decrease the liquidity for AELIN on chain.

To protect investors from too much slippage whenever they are trying to buy or sell AELIN, it is important to keep that liquidity at a sufficient level. While these initial incentivies were cost prohibitive for the Aelin treasury and did not garner fruitful results, incentives through Velodrome look to be more promising.

Withdrawing funds from Sorbet/Arkkais Pool 2

If you have funds in Sorbet/Arkkais Pool 2, you will be able to easily withdraw them and move them over to Velodrome. Please go to the staking Aelin page to withdraw these staked tokens.

Velodrome Trial Program

A trial program will be run for 4 weeks with Velodrome. Aelin treasury will be distributing voting rewards (also called "bribes") in OP in order to maximize the VELO rewards emitted to the AELIN/WETH pool. This means LPs will be earning VELO instead of AELIN.

It is important to note that the Velodrome DAO will be matching rewards with Aelin treasury making emissions of VELO larger than the previous token incentive program.

As described in AELIP-22, the current distribution of OP will follow the plan below:

  • 40% to LP stakers (AELIN/ETH), or equivalent program to maintain liquidity on the AELIN/ETH pair
  • 60% to a pool incentive program

OP tokens will be taken from the 40% kept to reward LPs. A total of $16,000 USD in OP will be taken from this allocation to run this trial. If results are satisfying at the end of the 4 weeks, another AELIP might be presented to extend this program.

How to earn Velodrome LP Rewards with AELIN/WETH

Once emissions begin (they will begin on Wednesday, but please await a further announcement), AELIN/ETH LP’s can deposit their tokens onto https://app.velodrome.finance/liquidity to earn rewards. You MUST stake your LP tokens to earn VELO rewards.

APY and other important information will be shown directly on the Velodrome site.

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