General (non-BEX) Reward Vault Request for LBGT-WBERA island on Kodiak

  1. Proposer Details

The proposer should be affiliated with the protocol or at least one of the tokens in the contract.

For example if the contract is a $EXAMPLE / $BERA pool on XYZ DEX, the proposer should be affiliated with the protocol (XYZ DEX) or one of the tokens in the pool (in this case, $EXAMPLE).

  • Affiliation (protocol / one of the tokens in the contract):
  1. Protocol Details:
  • Protocol Name (Example: XYZ DEX): BeraPaw
  • Protocol Type (DEX/Lending/Staking/Derivatives/Other): Staking/Derivatives
  • Protocol X profile link: https://x.com/0xBeraPaw
  • Protocol docs link: https://docs.berapaw.com/
  • Protocol audits links (multiple links): BeraPaw Docs
  • Does the protocol have any relationship with current Berachain validators? Yes
  1. Contract/Pool Details
  • Contract Name (Example: $EXAMPLE / $BERA): WBERA-LBGT island
  • Contract Address: 0x337eF1eB6c8BBeD571170Fc2b468608ab9e2Aac8
  • Contract Type / Configuration: Is it a standard AMM pool, a lending pool, a derivatives pool, a custom contract: Kodiak island
  • Describe how the contract works (e.g., how to mint and redeem shares of the contract, if tokens can be exchanged within the contract…): LP token can be minted/burned by providing/withdrawing liquidity into/from the island
  • Contract Fees: Outline the fee structure (e.g., 10% of staking rewards): Typical Kodiak island fees
  • Existing Liquidity / TVL: current liquidity and volume stats (if applicable):
  • Identify any address(es) controlling more than 10% of the contract shares
    (address / type: team, protocol-owned liquidity, etc.):
  • Is the contract upgradable? Yes
  • Contract Control: (Multisig/Single Owner/RBAC/Permissionless/Governance): Multisig
  • Additional details on Contract Control: Kodiak team
  • Is the contract verified? Yes
  • Can the contract be paused? Yes, dependent on alerts from Hyper Native security monitoring system and other risk control systems in place for asset management
  • Does the contract rely on oracles? No.
    • (If yes, explain oracle dependency)
  1. Token Details

Provide the following details for each token in the contract (up to 5):

Token 1: WBERA

Token 2:

  • Name: LBGT
  • Symbol: LBGT
  • (if the name and symbol match one of the tokens already provided or a major token, skip the next steps)
  • Token Contract Addresses (on Berachain and bridging addresses if cross-chain):
    chain / address: 0xbaadcc2962417c01af99fb2b7c75706b9bd6babe
  • Tokenomics, Distribution, and Vesting (links to official docs, website, etc.):
  • Identify any address(es) controlling more than 10%
    (address / type: team, foundation, investor, etc.): No majority control
  • Does the project issuing the token have any relationship with current Berachain validators? Yes
  • Total Supply Cap (if any) and Circulating Supply: Infinite Total Supply Cap; Current circulating: 500k
  • Token Type: LST
    (Governance, Utility, Memecoin, Stablecoin, LST, Other)
  • If either token is a native stablecoin, LST, or governance token, provide extra details on Use case, Redemption mechanics, Peg stability: LBGT is backed to BGT 1:1 and can be redeemed for 1 BERA just as BGT.
  • Are token contracts upgradable? No
  • Token Control: (Multisig/Single Owner/RBAC/Permissionless/Governance): Multisig
  • Additional details on Token Control: Token Mint is controlled by BeraPawForge contract, which is controlled by BeraPaw’s multisig.
  • 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 implementations with custom Mint and Burn functions that can only be called by BeraPawForge.
    (If custom, provide a link to an audit.): BeraPaw Docs
  • Can the token be paused? No
  1. Token / Project Background / Incentive Token Whitelist

Only two tokens can be whitelisted for use as incentives in a Reward Vault. Indicate which tokens will be used and provide all relevant information below.

Required Data for Incentive Token:

Incentive token 1:

  • WBERA

Incentive token 2:

  • Symbol: LBGT
  • (if the name and symbol match one of the tokens already provided or a major token, skip the next steps)
  • Token Contract Addresses (on Berachain and bridging addresses if cross-chain):
    chain / address: 0xbaadcc2962417c01af99fb2b7c75706b9bd6babe
  • Tokenomics, Distribution, and Vesting (links to official docs, website, etc.):
  • Identify any address(es) controlling more than 10%
    (address / type: team, foundation, investor, etc.): No majority control
  • Does the project issuing the token have any relationship with current Berachain validators? Yes
  • Total Supply Cap (if any) and Circulating Supply: Infinite Total Supply Cap; Current circulating: 500k
  • Token Type: LST
    (Governance, Utility, Memecoin, Stablecoin, LST, Other)
  • If either token is a native stablecoin, LST, or governance token, provide extra details on Use case, Redemption mechanics, Peg stability: LBGT is backed to BGT 1:1 and can be redeemed for 1 BERA just as BGT.

Additional Requirements:

  • Specify how many tokens per week you plan to allocate for incentives:
    • Kodiak autoBGT feature, as a reference similar pools have generated $100k as incentives per week;
    • 9% of all LBGT minted are used for POL incentives (across all pools) - this will be one of the core pools alongside LBGT-WBERA on Beraswap. Scales as LBGT is minted and liquidity grows. As a reference $500k of incentives have been provided on LBGT-WBERA pool.
  • Specify for how many weeks you plan to allocate incentives: Until death set us apart
  • Outline how decisions about token incentives are made (DAO, multi-sig, etc.): multi-sig
  • Incentive Manager address for WBERA: 0xe105B981bC871c6591a666424FF2368097836469
  • Incentive Manager address for LBGT: 0xe105B981bC871c6591a666424FF2368097836469
  1. Growth, Community & Ecosystem Impact

Why This Contract Matters:

  • How will this contract benefit Berachain?
    • This contract will create a sink for both BERA and BGT in the form of LBGT.
    • Kodiak’s auto-BGT mechanism will be used on this island, which will recycle trading fees into bribes, leading to increased bribe volume
    • Increased liquidity will allow integrations to take place, increasing the utility of LBGT and the number of products available on Berachain.
  • Will it deepen liquidity for a major ecosystem token (e.g., BERA, core stable asset)? Yes, WBERA and LBGT
  • Does it enable important trading pairs that drive adoption or integrate with other Berachain projects? Yes, increased liquidity on kodiak pools will enable lending platforms, perpetuals and many other projects to integrate LBGT strategies. Deepening the DEFI structure of Berachain.

Potential Volume / TVL:

  • Provide metrics or estimates on liquidity you expect to attract: 10-15M TVL
  • Highlight any known liquidity commitments. (If you or partners plan to seed the contract, provide proof of funds or a statement of intent.): No pre-commitments

Synergies with Other Protocols:

  • Will this contract feed into any yield aggregators, lending markets, or liquid staking derivatives on Berachain? Yes, integrations with lending markets, perpetuals and options are already taking place and they require a deep kodiak pool for it to work.

Marketing / Promotion:

  • Are there plans to co-market with another project to bootstrap liquidity? Yes, co-marketing will be undertaken by Kodiak, Berapaw and many other projects that will leverage this pool.

Long-Term Vision:

  • How could this reward vault evolve over time? (E.g., eventually becoming a core liquidity pair or a major stable pool for the chain.): This vault can become a core liquidity pair over time, and exemplify the positive flywheel of recycling swap fees into bribes while permitting a big range of products to leverage it.
  1. Verification

Please post the following text with the provided X account:

3 Likes

Thanks for the proposal.

Can you please verify the distribution of holders of the LP token, and whether it meets the stated requirement of 100 holders?

Please note that the following feedback doesn’t represent the opinions of the BGT Foundation.
It is contextual feedback from the Bera ecosystem team with respect to publicly stated guidelines.

With the following changes implemented, this application should be a better candidate for a Reward Vault.

5 Likes

Currently the pool is not being incentivized, as such all liquidity gravitated torwards LBGT-WBERA BEX pool. As the pool gets incentivized, part of the BEX liquidity should move from BEX to kodiak, meeting the desired standards. We understand that is very important for governance to have the standard met before the pool can be whitelisted, for that reason BeraPaw and Kodiak are starting today an incentivized campaign to meet the requirements in order to get this vault whitelisted as soon as possible to further grow Berachain Eco.

This incentives program will take place as a Kodiak Farm, where users will be able to earn pPAW and xKDK. As the vault is whitelisted, we will be moving from this farm to POL.

Some aditional information on Bex Vault, so the governance know what to expect on the Kodiak Vault:

Most of the liquidity is staked directly on the reward vault and ~25% is indirectly staked through BeraPaw vault and ~6% indirectly staked on infrared vault. Taking the data from all these vault stakers we found:

Number of stakeholder addresses: 1542
Holder with the highest stake: ~9% (Not BeraPaw or Team)

We expect that as emissions start to flow the landscape of sufficient decentralization will be shortly stabilished on the new Pool.

Will be posting new information here as the incentives campaign is rolled out.

3 Likes

Berastotle from Kodiak here - chiming in. Given the feedback received today and in light of the newly released guidelines: Kodiak and BeraPaw are co-incentivizing liquidity in BERA-LBGT via a “sweetened island” prior to BGT whitelist, as we have done for many previous successful applications.

Kodiak / concentrated liquidity has proven to be a successful scaling strategy for the other BGT wrappers, and we’re looking forward to improving the capital efficiency of LBGT via Kodiak island and also an inclusion in Kodiak’s autoBGT program.

Note that on Berascan, the Kodiak Farm will appear as a centralized owner, but we can confirm that no individual entity owns >40% in terms of beneficial ownership, and are committed to meeting the decentralization and scale guidelines.

2 Likes

Kodiak was kind enough to provide us with some indexed data on the stakeholders of the LP tokens. Notice that most of it staked permissionless on their farm contract, so on berascan might look like a big holder when actually it’s not.

https://backend.kodiak.finance/vaults/0x337ef1eb6c8bbed571170fc2b468608ab9e2aac8?allUsersPage=1

(Note to iterate “allUsersPage” param, the limit is 50 per page)

1 Like

Confirming that as of 6AM UTC, April 14: pool is now > $100k TVL ($103K) and >100 unique users (103 users), with largest holder at < 30% concentration. TVL has been steadily growing over the last 48hrs since the Kodiak Farm was started. All data can be verified with the API link provided above, if necessary.

Furthermore, even with a small pool it’s done $46K in 24h volume (almost half of its tvl in volume), demonstrating the demand and capital efficiency for this pool on Kodiak

1 Like