1. Proposer Details
Email: kobble@beraborrow.com
Proposer’s project name: Beraborrow
Proposer’s X account: https://x.com/beraborrow
Best Telegram Handle for questions/fixes: Kob_Class
Affiliation: POLLEN
2. Protocol Details
Protocol Name: Beraborrow
Protocol Type: CDP
Protocol X profile link: https://x.com/beraborrow
Protocol docs link: What is Beraborrow? | Beraborrow
Protocol audits links: Audits | Beraborrow
Relationship with Berachain validators: Yes, in talks with the following (and more), Infrared, Kodiak, THJ, Smilee, NodeInfra, Stakelab
3. Contract/Pool Details
Contract Name: POLLEN/BERA Island at Kodiak
Contract Address: 0xD6620E78B89E8fdB5dFA675D55001C7FaD424bDc
Contract Type / Configuration: Kodiak island (ALM) Proxy contract
Contract Fees: 1% trading fee
Existing Liquidity / TVL: $188,000 just seeded, will be increasing
Identify any address(es) controlling more than 10% of the contract shares: 0x10F57760CA521Fd8360b53c9f9B7749C3a0c4025 - Protocol Owned Liquidity
Is the contract upgradable? No
Contract Control: RBAC
Is the contract verified? Yes
Can the contract be paused? Yes
Does the contract rely on oracles? NO
4. Token Details
Major Token: BERA
Name: BERA
Symbol: BERA
Non-Major Token:
Name: POLLEN
Symbol: POLLEN
Contract Addresses (on Berachain and bridging addresses if cross-chain): 0xC99e948E9D183848a6c4F5E6C1d225F02f171d79
Tokenomics, Distribution, and Vesting (links to official docs, website, etc.): Tokenomics vesting details can be found in the docs: What is POLLEN? | Beraborrow
Identify any address(es) controlling more than 10% - Here
(address / type: team, foundation, investor, etc.): Investors/Team/Future Incentives
Does the project issuing the token have any relationship with current Berachain validators?: Yes
If yes, which one?: Infrared, Kodiak, THJ and many more.
Total Supply Cap (if any): 420,000,000
Circulating Supply: 41850000 (at time of writing)
Token Type: Beraborrow Governance token
Provide extra details (e.g. Use case, Redemption mechanics, Peg stability):
POLLEN is the Beraborrow governance token, enabling active participation in the protocols governance and liquidity incentives.
It serves as a way for the protocol to utliise Proof of Liquidity to further the adoption of NECT, without having to create a new rewards vault for every NECT (our stablecoin) use case.
POLLEN is a means to increase exposure to Berachain governance through the utility of the Beraborrow protocol.
Creating a flywheel where more NECT utility enables more users to use Beraborrow for leverage, thus increasing total interest rates/fees to the Rewards Vault meaning more value can be passed through to incentivise liquidity. And the flywheel repeats.
Are token contracts upgradable?: No
Token Control: (Multisig/Single Owner/RBAC/Permissionless/Governance): Permissionless
Is the token contract verified?: Yes
Is the token a standard ERC20 or any functions have been customized? (e.g. transfer, balance, mint, burn…): Standard ERC20
Can the token be paused? No
5. Token / Project Background / Incentive Token Whitelist
Incentive Token I: 0x1cE0a25D13CE4d52071aE7e02Cf1F6606F4C79d3
Name & Symbol: NECT
Weekly Incentive Allocation: 25000 minimum (all protocol interest rates)
Duration: Indefinite period, dependent interest rates.
Governance: Multisig -
Incentive Manager Address: 0xCE7d3fd53C0510325B3CEbB96298522e6c538753
Incentive Token II:
Name & Symbol: BERA
Weekly Incentive Allocation: TBD
Duration: TBD
Governance: Multisig
Incentive Manager Address: 0xCE7d3fd53C0510325B3CEbB96298522e6c538753
6. Growth, Community & Ecosystem Impact
Why This Contract Matters / Benefit to Berachain:
Beraborrow has two main user types:
- Those looking for Leverage - paying interest rates to borrow against collateral.
- Those looking for stablecoin yield - creating demand for NECT
Finding the optimal balance between these two, where demand for leverage generates enough incentives to drive demand for NECT is ultimately what we are trying to solve for. Pollen sits at the intersection of these two users, enabling NECT users to benefit from PoL which facilitates more rehypothecation and leverage.
How this works practically:
- POLLEN incentives are distributed to NECT users, encouraging increased demand for NECT.
- This keeps NECT liquidity sticky, aligned and enables more leverage and rehypothecation through the protocol.
- Interest paid from leverage flows as incentives to the POLLEN/BERA rewards vault.
- Enabling POLLEN/BERA stakers to earn BGT (this includes users of other protocols that may not be whitelisted for PoL but earned POLLEN from using NECT)
Creating a flywheel where more NECT utility enables more users to use Beraborrow for leverage, thus increasing total interest rates/fees to the Reward Vault meaning more value can be passed through to incentivise liquidity. And the flywheel repeats.
This will ultimately lead to more market driven borrowing costs as adjustments to interest rates are based on the level of NECT being sold using Daily Loss to Volume. Simply put, this ratio tells us how much NECT is being sold (negative pressure on peg) and then allows to determine 2 important factors:
- POLLEN emission - to drive incentives to create demand for NECT
- Interest rates - to recoup the value emitted, back from borrowers creating sell pressure
Example:
In the image above we would need to drive incentives to create buy pressure to the value of 15.2% of the total volume for NECT per day.
So if there was $1m in volume we would need to drive enough POLLEN incentives to NECT usecases (e.g. dexs, lending markets, derivitive platforms ) that creates $152,000 worth of buy pressure for NECT.
This also allows us to calculate how much we need to accrue in interest to be used to incentivise the Rewards Vault to counteract the POLLEN that we emitted to drive the NECT buy pressure.
Due to the added efficiency of the PoL rewards vaults ($1 worth of incentives can equate to more than $1 worth of BGT emitted), incentives received by the stablecoin users could supersede that of what was originally captured creating additional demand for NECT.
Decreasing daily loss to volume, and therfore lowering the cost to counteract sell pressure. Not only decreasing the cost to borrow on beraborrow, but stablecoins throughout the eco due to the addition of supply that can be used on other lending platforms or money markets.
Liquidity for Ecosystem Tokens:
Yes, for $WBERA and helps indirectly bootstrap liquidity in other protocols as POLLEN is used to incentivise the adoption of NECT.
Enables Key Trading Pairs / Ecosystem Integration:
Yes, facilitates deep liquidity for POLLEN, which will be used as a proxy for capturing value from Beraborrow interest rate revenue.
Potential Volume / TVL:
Its tough to estimate, but if you look at the amount of liquidity that bribes have been able to bring to other pools, and then compare that to the amount that we will be bribing, its very reasonable for the pool to reach 5m+ tvl in the short team and 10m+ in the long term.
Synergies with Other Protocols:
Direct:
Kodiak - Liquidity is hosted there
Infrared- Staking
Indirect: all protocols that use NECT or drive NECT demand will get POLLEN incentives to help grow their liquidity.
Marketing / Promotion Plans:
Yes – co-marketing with Kodiak, Infrared, and other partner products. Making a series of promotional image and video posts to bring attention to the reward vault and the purpose it serves.
We will also look at utilising a wider distribution network to try onboard new users to the Bera ecosystem.
Long-Term Vision:
POLLEN is the life blood and intersection between the Beraborrow core protocol and its set of users, those who want to earn yield and those who want to create (cost effective) synthetic leverage positions on collateral. We want POLLEN to grow over time, as Beraborrow brings together the two primary types of market participants in crypto: Speculators, and those who want to earn yield from speculating.
Rewards vault for Pollen enables us to pass through BGT emissions to those who provide liquidity and stability for NECT without needing to submit multiple reward vaults for every NECT use case. This is especially useful whilst a protocol is new and POLLEN acts as a bridge between PoL for those who use and LP NECT.
E.g. new small project building out early liquidity cannot afford to bribe rewards vaults with Fees / protocol rev just yet. By using NECT in their protocol, Beraborrow emits POLLEN to their users. Enabling users to then stake their pollen LP earn BGT (benefiting from PoL).
This enables new projects to benefit from incentives on day 1. Enabling their users to get access to BGT before the protocol is whitelisted and therefore helping foster their growth.
For more on the vision read here.