General (non-BEX) Reward Vault Request for SX Bet

Reward Vaults
1

1. Proposer Details

SX Bet [bera.bet] is the leading on-chain sports prediction market with over $650,000,000 wagered all time. The peer-to-peer exchange caters to whales, degens and professional bettors with the deepest liquidity on NFL, NBA, NHL, MLB, Soccer, tennis and more. All bets on Berachain will be placed in HONEY. SX Bet has a clear plan to generate sustainable fees and re-invest the proceeds into the Berachain ecosystem via vault rewards.

  • Affiliation (protocol / one of the tokens in the contract) Co-Founder

2. Protocol Details

3. Contract/Pool Details

  • Contract Name: SX Bera Receipt Token Staking
  • Contract Address: 0xd1dca482d1af3c2e23749a965db3a74c4e29b928
  • Contract Type / Configuration: The SX.bet reward vault is a specialized rewards vault designed to incentivize prediction market trading on Berachain through SX Bet. It uses an ERC-20 staking token (SXBRT) to reward active bettors, rewarding a combination of frequency, success and size.
  • Describe how the contract works: The vault incentivizes traders by distributing SXBRT based on prediction market volume. The SXBRT is distributed automatically alongside the payment of a winning bet using the following formula (Return - Stake). Ie. If a user bets $100 to return $220 and wins, they would receive 120 SXBRT along with their $220 in HONEY bet payout. The SXBRT can then be staked in the SX Bet Rewards vault to earn and claim BGT via Bera’s Hub. Once there is sufficient SXBRT supply, the team plans to create a liquidity pool of SXBRT/HONEY on BEX.
  • Contract Fees: No fees
  • Existing Liquidity / TVL: N/A
  • Identify any address(es) controlling more than 10% of the contract shares: None
  • Is the contract upgradable? Yes
  • Contract Control: (Multisig/Single Owner/RBAC/Permissionless/Governance) Multisig
  • Additional details on Contract Control
  • Is the contract verified? Yes
  • Can the contract be paused? No
  • Does the contract rely on oracles? No

4. Token Details

For Non-Major Tokens:

  • Name: SX Bera Token
  • Symbol: SXBRT
  • Contract Addresses (on Berachain and bridging addresses if cross-chain): 0xe87E5456Cc78578D1FcD95048FA639e5e32eE63A
  • Tokenomics, Distribution, and Vesting (links to official docs, website, etc.)
  • Identify any address(es) controlling more than 10%: None
  • Does the project issuing the token have any relationship with current Berachain validators? No
  • If yes, which one? NA
  • Total Supply Cap (if any): Unlimited (can only be minted via prediction market use)
  • Circulating Supply: 0
  • Token Type: Utility
  • Provide extra details (e.g. Use case, Redemption mechanics, Peg stability)

Use Case: This ERC-20 staking token is distributed via an on-going basis to Berachain bettors weekly, proportional to their trading volume - rewarding active participation on SX Bets prediction market exchange. Users can stake their SXBRT to the SX.bet reward vault enabling bettors to earn BGT rewards, aligning incentives to increase chain activity and prediction market volume.

Redemption Mechanics: The SX Bera Receipt token has no direct redemption value for traders, as it functions solely to be staked within the vault.

  • Are token contracts upgradable? Yes
  • Token Control: (Multisig/Single Owner/RBAC/Permissionless/Governance) Multisig
  • Additional details on Token Control
  • Is the token contract verified? Pending
  • 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

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:

  • Name: Honey
  • Symbol: $HONEY

Additional Requirements:

  • Specify how many tokens you plan to allocate for incentives and over what period of time.

During 2025, SX Bet plans to allocate the GREATER of $10,000 worth of $HONEY per month or 42.69% of protocol fees earned on Berachain to remain competitive in BGT emissions. These allocations can adjust based on the BGT bribe market and incentives to ensure securing BGT emissions.

  • Outline how decisions about token incentives are made: Team Multisig
  • Incentive Manager address (this address will manage the incentive token, being able to add incentive tokens to the reward vault and change the incentive rate)
    • 0xaCdcA6DEA09C9DBAD0348F41062FC15e2e204f78

6. Growth, Community & Ecosystem Impact

Why This Contract Matters:

The SX.bet reward vault elevates the betting experience for traders on SX Bet’s sport prediction market by using Berachain’s Proof-of-Liquidity flywheel to issue rewards to traders for their rewards, which will increase protocol fees, which will in turn increase rewards and then further increase trading volume.

This system has the potential to attract users from chains where SX Bet is currently deployed such as Abritrum, as well as users from other chains with prediction markets such as Base and Polygon. Built for authentic activity, the vault positions Berachain as the top choice for PoL-powered prediction market trading by super charging SX Bet’s industry leading liquidity and odds with a Proof-of-Liquidity flywheel.

  • Attracts Liquidity: Draws traders from major ecosystems with PoL rewards for their trading, bringing their capital to Berachain.
  • Rewards Volume: Provides substantial incentives for trading activity, reinforcing the PoL flywheel.
  • Drives Engagement: Encourages profit reinvestment and exploration of Berachain’s ecosystem offerings.
  • Stands Out: Highlights Berachain as a preferred destination for prediction market betting. As no other chain that SX Bet operates on currently has rewards.
  • Sustainability: The SX Bet deployment on Berachain will be a cash flow positive dApp that prioritizes authentic volume and re-invests a large portion of fees earned into the Bera Ecosystem, ensuring long-term sustainability.

The sx.bet vault will serve as an example for app builders, demonstrating that Berachain’s PoL extends beyond traditional DeFi and LP incentives and can be used to drive adoption of a range of apps in the Bera Ecosytem. Success of the sx.bet vault will attract millions of dollars in monthly betting volume, sustainably rewards bettors but it will also encourage other non-DeFi applications to deploy on Berachain.

Potential Volume / TVL:

  • In a conservative scenario, assuming gradual onboarding of new users plus a portion of SX Bets current un-incentivized volume moving over to BeraChain, SX Bet could capture $20M+ in monthly betting volume within three months. 33% or $10M from existing SX Bet volume moving to BeraChain, as all volume is currently organic and unincentivized, plus an additional $10M in volume from new users on Bera (~500 users).

Synergies with Other Protocols:

  • Will this contract feed into any yield aggregators, lending markets, or liquid staking derivatives on Berachain?

The SXBRT can be added to the BEX to increase liquidity on the rewards token. The vault and deployment of SX Bet on Bera will indirectly drive ecosystem growth by incentivizing users to bridge assets onto Berachain. This will subsequently increase validator delegation and usage of other protocols within the ecosystem.

Marketing / Promotion:

  • Are there plans to co-market with another project to bootstrap liquidity?

Yes, sx.bet is actively building and seeking new partnerships within the Berachain GambleFi ecosystem.

Long-Term Vision:

  • How could this reward vault evolve over time?

The reward vault could mature into a critical element of the SX Bet protocol and a way to reward users for their trading activity. A successful integration of Bera’s Proof-of-Liquidity system could see 100% of SX Bet’s trading volume migrate to Berachain over time, as Bera will be the only place SX Bet users have additional incentives to bet on top of our deep liquidity and tight odds.

7. Verification

https://x.com/SX_Bet/status/1909314102872223855

2

Hi team, thanks for the proposal.

This looks like it could be a strong example of an existing app with traction moving to Berachain. However, it doesn’t look like there’s been much attention on SX.Bet’s Bera deployment to date. PoL shouldn’t be the catalyst for this sort of application, but it should help accelerate something showing signs of PMF. It is best to revisit this RFRV after demosntration of additional use on Berachain.

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.

1 Like
3

Thanks for your feedback BeraLabsTeam3,

We soft launched last week with no marketing. The response has been great and we have processed ~$75k in bets along with squashing some initial bugs, but that was not our official launch!

For our launch we have allocated $141,740 in market spend, which we believe would be enhanced by a reward vault that we can promote, especially to our current user base. The rough breakdown of marketing spend is as follows:

Berachain marketing spend

  • Berachain Betting Tournament (Name TBD) June 1 - July 13 - $69,420 prize pool
  • Partnerships with other Berachain Projects - $50,000
  • Paid PR (we have a firm we have had great experience with) - $10,000
  • Dbank (direct free bet offers to whales on Berachain + Prediction market power users on other chain) - $7,500
  • Spaces, Podcasts, etc - $5,000

The above marketing will be accompanied by:

  • An educational email series on Berachain, HONEY, and PoL planned for our own users (~15k verified emails)
  • Twitter, Reddit and Discord posts announcing the launch and benefits of betting on Berachain (a reward vault)
  • Banner on SX Bet driving users to bet on Berachain

Any marketing spend we do will be enhanced by a reward vault, particularly in convincing our users to bet from Berachain.

The vault will also be sustainable indefinitely as we plan to reinvest 42.69% of revenue generated on Bera into the Bera ecosystem via validator incentives.

4

Once you guys are able to ignite initial traction on Berachain, this rvfv will for sure be approved. Keep pushing guys.

5

Thanks for the update here guys, this makes sense.
What do you see as the primary means of bringing users over (or bringing on new users) ahead of the betting tournament for example?