VeloLiquidLocker

A liquid staking solution for VELO tokens with NFT representation, enabling users to maintain liquidity while participating in Velodrome's governance and earning rewards.

Overview

VeloLiquidLocker is a smart contract system that allows users to:

• Stake VELO tokens and receive NFTs representing their stake
• Participate in Velodrome governance through voting
• Earn rewards from pool fees and bribes
• Maintain liquidity through NFT transferability

Architecture

Core Contract

The VeloLiquidLocker contract implements:

• ERC721 standard for NFT representation
• Integration with Velodrome's VotingEscrow and Voter contracts
• Staking and unstaking mechanisms
• Vote delegation system
• Reward distribution logic

Key Features

1. Staking Mechanism

   • Users stake VELO tokens and receive NFTs
   • 4-year lock period (matching Velodrome's maximum lock duration)
   • NFTs are transferable, enabling secondary market liquidity

2. Voting System

   • NFT holders can vote on multiple pools
   • Voting power is proportional to locked amount and time
   • Vote delegation through NFT transfers

3. Reward Distribution

   • Automatic tracking of rewards per vote
   • Proportional distribution based on voting power
   • Claim mechanism for collecting rewards
   • 20% fee on bribes (BRIBE_FEE_PERCENTAGE)

Usage

Staking VELO

// Approve VELO tokens first
veloToken.approve(veloLiquidLocker, amount);

// Stake tokens and receive NFT
uint256 tokenId = veloLiquidLocker.stake(amount);

Voting on Pools

// Vote with NFT on multiple pools
address[] memory pools = new address[](2);
pools[0] = pool1Address;
pools[1] = pool2Address;

uint256[] memory amounts = new uint256[](2);
amounts[0] = amount1;
amounts[1] = amount2;

veloLiquidLocker.vote(tokenId, pools, amounts);

Claiming Rewards

// Claim rewards from specific pools
address[] memory rewardPools = new address[](1);
rewardPools[0] = poolAddress;

veloLiquidLocker.claimRewards(tokenId, rewardPools);

Unstaking

// Unstake after lock period ends
veloLiquidLocker.unstake(tokenId);

Security Features

• Reentrancy protection using OpenZeppelin's ReentrancyGuard
• Access control through Ownable pattern
• Safe token transfer handling
• Comprehensive input validation

Contract Addresses

Optimism:

• VeloLiquidLocker: [Contract Address TBD]
• VELO Token: [Velodrome Token Address]
• VotingEscrow: [Velodrome VotingEscrow Address]
• Voter: [Velodrome Voter Address]