diff --git a/vyper/venom/passes/algebraic_optimization.py b/vyper/venom/passes/algebraic_optimization.py
index 159be1a2cb..f9097b3319 100644
--- a/vyper/venom/passes/algebraic_optimization.py
+++ b/vyper/venom/passes/algebraic_optimization.py
@@ -220,12 +220,6 @@ def _handle_inst_peephole(self, inst: IRInstruction) -> bool:
             return False
 
         if inst.opcode == "exp":
-            if self._lit_eq(operands[0], 0):
-                return self._store(inst, 1)
-
-            if self._lit_eq(operands[1], 1):
-                return self._store(inst, 1)
-
             if self._lit_eq(operands[1], 0):
                 return self._update(inst, "iszero", operands[0])
 
diff --git a/vyper/venom/passes/sccp/eval.py b/vyper/venom/passes/sccp/eval.py
index 7180e99590..4684ce6c45 100644
--- a/vyper/venom/passes/sccp/eval.py
+++ b/vyper/venom/passes/sccp/eval.py
@@ -199,6 +199,15 @@ def wrapper(ops: list[IROperand]) -> IRLiteral | None:
 
     return wrapper
 
+def _exp(ops) -> IRLiteral | None:
+    if isinstance(ops[0], IRLiteral) and ops[0].value == 0:
+        return IRLiteral(1)
+
+    if isinstance(ops[1], IRLiteral) and ops[1].value == 1:
+        return IRLiteral(1)
+
+    return _wrap_lit(_wrap_binop(evm_pow))(ops)
+
 
 ARITHMETIC_OPS: dict[str, Callable[[list[IROperand]], IRLiteral | None]] = {
     "add": _wrap_lit(_wrap_binop(operator.add)),
@@ -208,7 +217,7 @@ def wrapper(ops: list[IROperand]) -> IRLiteral | None:
     "sdiv": _wrap_multiplicative(_wrap_signed_binop(evm_div)),
     "mod": _wrap_mod(_wrap_binop(evm_mod)),
     "smod": _wrap_mod(_wrap_signed_binop(evm_mod)),
-    "exp": _wrap_lit(_wrap_binop(evm_pow)),
+    "exp": _exp,
     "eq": _wrap_abstract_value(_var_eq, _wrap_binop(operator.eq)),
     "lt": _wrap_comparison(signed=False, gt=False, oper=_wrap_binop(operator.lt)),
     "gt": _wrap_comparison(signed=False, gt=True, oper=_wrap_binop(operator.gt)),