General (non-BEX) RFRV Reward Vault Request for Kodiak Island AVL-HONEY-1%

Reward Vaults
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General (non-BEX) RFRV

RFRV Reward Vault Request for Kodiak Island AVL-HONEY-1%

Summary of RFRV Criteria

  • Deployed Contract: Must already be live.
  • Deployed Tokens: Must have the incentive tokens live.
  • Economic Value: Show significant TVL, trading volume potential, or strategic benefit.
  • Security: Use standard or audited contracts; tokens must be reputable.
  • Decentralization: Each token in the pair must show sufficient decentralization.
  • Transparency: Team/project info, audits, and open communication.
  • Synergy: Integrate with or benefit the broader Berachain ecosystem.
  • Community Support: Demonstrate genuine interest/demand.
  • Operational Safety: Clear ownership, upgradeability details, and compliance considerations.
  • Pair with a Major (Recommended for DEX pools): Major tokens are BERA, HONEY, BYUSD, USDC, wETH, and wBTC.
  • Verification: The proposer should be affiliated with the protocol or at least one of the tokens in the contract

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): AVL
  1. Protocol Details
  1. Contract/Pool Details

  • Contract Name (Example: $EXAMPLE / $BERA): AVL-HONEY

  • Contract Address: Insert the contract address: 0x8795b70aDcE3d81035e99d095e805Ea38c836fc3

  • Contract Type / Configuration: Is it a standard AMM pool, a lending pool, a derivatives pool, a custom contract: Standard v3 AMM

  • Describe how the contract works (e.g., how to mint and redeem shares of the contract, if tokens can be exchanged within the contract…): Shares can be minted/ burned via the island contract: 0xbfbEfcfAE7a58C14292B53C2CcD95bF2c5742EB0

  • Contract Fees: Outline the fee structure (e.g., 10% of staking rewards): 1%

  • Existing Liquidity / TVL: current liquidity and volume stats (if applicable): 0.04 TVL

  • Identify any address(es) controlling more than 10% of the contract shares
    (address / type: team, protocol-owned liquidity, etc.

BOYCO: 0x3A4288b2776B2C2fE7570d987BeF5865C1f39e4d

  • Is the contract upgradable?: No

  • Contract Control: (Multisig/Single Owner/RBAC/Permissionless/Governance): Multisig

  • Additional details on Contract Control:3/6 multisig

  • Is the contract verified?: Yes

  • Can the contract be paused?: Yes

  • Does the contract rely on oracles?(If yes, explain oracle dependency): No

4. Token Details

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

For Major Tokens:

  • Name: HONEY

  • Symbol: $HONEY

For Non-Major Tokens:

  • Name: AVL

  • Symbol: $AVL

  • Contract Addresses (on Berachain and bridging addresses if cross-chain):
    chain / address: Berachain 0x89d2E832EDaAfF8C228A57a1602a1f7950Ea2D39

  • Tokenomics, Distribution, and Vesting (links to official docs, website, etc.): Users can provide liquidity with HONEY and AVL in Kodiak.

  • Identify any address(es) controlling more than 10%
    (address / type: team, foundation, investor, etc.): sUSDa holders - Google Sheets

  • Does the project issuing the token have any relationship with current Berachain validators? If yes, which one?:

  • Total Supply Cap (if any)

  • Circulating Supply

  • Token Type:
    (Governance, Utility, Memecoin, Stablecoin, LST, RWA, Other): Governance

  • Provide extra details (e.g. Use case, Redemption mechanics, Peg stability): Staking AVL as sAVL unlocks exclusive perks, including fee rebates, governance power, special incentives, and AVL rewards. sAVL holders influence protocol decisions, control AVL emissions, and earn yield through a bribing marke

  • Are token contracts upgradable?: Yes

  • Token Control: (Multisig/Single Owner/RBAC/Permissionless/Governance): Multisig

  • Additional details on Token Control: Multisig â…š

  • Is the token contract verified?: Yes

  • Is the token a standard ERC20 or any functions have been customized? (e.g. transfer, balance, mint, burn…) (If custom, provide a link to an audit.): The token is standard OFT.

  • Can the token be paused?: Yes

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.

USDC

  • Budget: $25k each week for 52 weeks
  • Incentives Decisions: Avalon Treasury
  • Incentive Manager address: 0x3b47b6a52e2C5bd4ca23eF7295Af7c435E63FC92

Required Data for Incentive Token:

  • Name: AVL

  • Symbol(if the name and symbol match one of the tokens already provided or a major token, skip the next steps): AVL

  • Token Contract Addresses (on Berachain and bridging addresses if cross-chain):
    chain / address: Berachain: 0x89d2E832EDaAfF8C228A57a1602a1f7950Ea2D39

  • Tokenomics, Distribution, and Vesting (links to official docs, website, etc.): AVL has sAVL and all otherinformation can be found here.

  • Identify any address(es) controlling more than 10%
    (address / type: team, foundation, investor, etc.): sUSDa holders - Google Sheets

  • Does the project issuing the token have any relationship with current Berachain validators?:No

  • Total Supply Cap (if any) and Circulating Supply

  • Total Supply Cap: 1B AVL

  • Circulation Supply: 161.88m AVL

  • Token Type:
    (Governance, Utility, Memecoin, Stablecoin, LST, Other): Governance

  • Are token contracts upgradable?: Yes

  • Token Control: (Multisig/Single Owner/RBAC/Permissionless/Governance): Multisig

  • Additional details on Token Control: Multisig 5/6

  • Is the token contract verified?: Yes

  • Is the token a standard ERC20 or any functions have been customized? (e.g. transfer, balance, mint, burn…) (If custom, provide a link to an audit.): The token is standard OFT.

  • Can the token be paused?: Yes

Additional Requirements:

  • Specify how many tokens you plan to allocate for incentives and over what period of time.: 25,000 in USDC for 52 weeks

  • Outline how decisions about token incentives are made (DAO, multi-sig, etc.): Avalon Treasury

  • 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): 0x3b47b6a52e2C5bd4ca23eF7295Af7c435E63FC92

6. Growth, Community & Ecosystem Impact

Why This Contract Matters:

  • How will this contract benefit Berachain? Will it deepen liquidity for a major ecosystem token (e.g., BERA, core stable asset)? Does it enable important trading pairs that drive adoption or integrate with other Berachain projects?:

By introducing AVL and sAVL, Avalon ensures dynamic, purpose-driven growth through strategic token emissions, incentivized yield mechanisms, and governance participation. The staking mechanism of AVL into sAVL not only aligns long-term investor interests but also creates sustainable liquidity incentives, as sAVL holders control emissions and participate in a bribing market for real yield. Additionally, the yield incentives and strategic partnerships supported by AVL allocations can drive the adoption of important trading pairs, reinforcing Berachain’s overall DeFi ecosystem. The inclusion of fee rebates for sAVL holders using Avalon’s USDa and CeDeFi lending products further enhances utility and adoption, ultimately creating deeper liquidity and a more interconnected Berachain network.

Potential Volume / TVL:

  • Provide metrics or estimates on liquidity you expect to attract: 50M+

  • Highlight any known liquidity commitments. (If you or partners plan to seed the contract, provide proof of funds or a statement of intent.): Pool has already been bootstrapped. Please check here.

Synergies with Other Protocols:

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

  • We’re exploring several key synergies and opportunities with Infrared, focusing on PoL and institutional liquidity. Avalon can position AVL as one of the prime collaterals.

  • Beraborrow (once live) + Dolomite could integrate AVL into structured lending markets.

  • Yield strategies: Combining Infrared vaults with Avalon’s stablecoin mechanics.

  • AquaBera ALM: Optimizing AVL/HONEY liquidity deployment.

  • Bend (Native Lending): Could integrate AVL as both yield-bearing and non-yield-bearing collateral, enabling major stablecoins to borrow Avalon’s assets.

Marketing / Promotion:

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

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.):

By natively enabling AVL minting within Bera’s DeFi ecosystem, we unlock powerful new opportunities for both token holders and the broader BTC community. Users seeking stability can benefit from staking their AVL, earning returns on their AVL holdings through Avalon’s Yield-Generation Vault.

At the same time, BTC holders can leverage AVL’s deep liquidity and by holding enough AVL then their borrowing APR can be lowered! This integration enhances liquidity flow across lending platforms, enabling more efficient borrowing and leveraged strategies while maintaining stability and scalability.

By bridging AVL with Bera’s DeFi infrastructure, we not only enhance the utility of the token but also fuel a more capital-efficient, liquid, and resilient financial ecosystem.

7. Verification

Please post the following text with the provided X account:

Final Reminder

A successful RFRV hinges on demonstrating:

  1. Security: Low smart contract and token risk.
  2. Demand: Community and liquidity providers want this pair.
  3. Ecosystem Benefit: Increases volume, TVL, or strategic positioning for Berachain.

Make sure to cover these points clearly to maximize your chances of passing the governance vote / RFRV!

2

Avalon already has a reward vault ( aUSD - sUSDa on Kodiak)

Avalon has been inconsistent in bribing this vault . They have not captured any BGT for days and they have always deposit small amounts for bribes which depleted fast resulting in fluctuating APR.

Mint/redeem of their stablecoins are not available on Berachain . Users that joined their pool had to buy their stablecoin slightly over peg and now that Avalon stopped bribing they have to exit slightly under peg . [ yes they could bridge out to find the network that Avlon stables are pegged but that’s is bad UX and TVL leak for berachain]

I’d like to ask @jz_avalon why this happened and what is their plan for their current Vault .

I’d like to ask @foundation to communicate with Avalon and make sure their current vault is managed properly before accepting new vault .

thank you

1 Like
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thank you for raising valid points, will take them into consideration. Hope to see you engaging in more forum posts

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Whiskey proposes a number of reasonable questions. It would be useful to see more discourse on this topic as the BGT foundation evaluates this type of a proposal.

Is there any reason to not enable mint/redeem on Berachain? Do you have plans to incentivize more consistently, especially with the expected improvements to incentive UX going live shortly? Is there any reason to pair with HONEY as opposed to BERA?

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
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Hi @whiskey thanks for the questions.

Here is what happened. Avalon Committee proves a 50k bribe budget for the USDa-sUSDa pool. We first added in total ~40k bribe three weeks ago at a rate of 2.5. And due to market volatility, our rate became very attractive to validators. So the entire bribe got consumed in only a few days. This created very high APR > 70% for a pool of TVL over $60M. And our initial plan is to use that 40k for a month. Just like a lot of users, Avalon is also exploring the POL system and tries to create stable and reasonable yield for our users. We have actively engaged with the berachain team to figure out the best way to make the best use of the system. And the berachain team is also working very hard to make the experience better for both users and protocols with incoming upgrades of the systems.

As for the USDa liquidity on Bera, we are also applying for a USDa-Honey reward vault. Once this is approved, we can use the POL to create very deep liquidity for users to enter or exit their USDa or sUSDa position.

6

Thank you @jz_avalon

That makes sense . Hopefully with new POL upgrades experience improves for both users and apps.

It would be much appreciated if Avalon increases communication to us (users) about vault management on X so we know better what to expect .

1 Like
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@moderators bm. Can I get some help closing down this thread. Thank you.