non-BEX Reward Vault Request for Spicy HONEY Vault on Wasabi

  1. Proposer Details
  • Email: eren@dkoda.xyz
  • Proposer’s project name: Wasabi Protocol
  • Proposer’s X account: @spicy_aff
  • Best Telegram Handle for questions/fixes: @spicy_af
  • Affiliation: Wasabi Protocol
  1. Protocol Details
  1. Contract/Pool Details
  • Contract Name: Spicy HONEY Vault
  • Contract Address: 0xd948212f077e552533158becbc1882c1b19c40fe
  • Contract Type / Configuration: Custom Contract (ERC4626 w/ custom logic for PoL)
  • Describe how the contract works: When users deposit their assets, our vault mints a corresponding amount of vault shares. Instead of minting these shares to the user, as usually done with ERC4626 vaults, our vault mints the shares to itself and immediately stakes them in the RewardVault. A small portion of the shares (see Contract Fees below) is staked directly using RewardVault.stake, allowing us to take a fee on BGT rewards, and the rest of the shares are staked on behalf of the user using RewardVault.delegateStake. Our vault internally tracks how many of each user’s shares were staked directly for the reward fee, and calling balanceOf(account) on our vault returns rewardVault.balanceOf(account) + _rewardFeeUserBalance[account]. Similarly, when the user withdraws their assets, we use a combination of RewardVault.withdraw and RewardVault.delegateWithdraw to unstake the appropriate amount of shares before burning them.
  • Contract Fees: 10% of staking rewards
  • Existing Liquidity / TVL: $20k deposited after announcement
  • Identify any address(es) controlling more than 10% of the contract shares: Contract shares are given to depositors. 0xc27dd727a68d34f0b688454af9382593fc4587bd holds more than 10%.
  • Is the contract upgradable? Yes
  • Contract Control: Single Owner
  • Additional details on Contract Control: The owner address is a contract inheriting OpenZeppelin’s AccessManagerUpgradeable. In addition to the default ADMIN role, we add roles for LIQUIDATOR, ORDER_SIGNER and VAULT_ADMIN
  • Is the contract verified? Yes.
  • Can the contract be paused? No
  • Does the contract rely on oracles? No
  1. Token Details

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

For Major Tokens:

  • Name: HONEY
  • Symbol: $HONEY
  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:

  • Name: HONEY
  • Symbol: $HONEY

Additional Requirements:

  • Specify how many tokens per week you plan to allocate for incentives: Will be dependent on APY and TVL, the majority of the HONEY yield will be allocated for incentives. On other chains such as ETH and SOL, spicy USDC Vaults yield around 15% interest. If the TVL is $2M, the vault will be bribing $5.5k a week.
  • Specify for how many weeks you plan to allocate incentives: As long as the yield lasts, incentives will be allocated.
  • Outline how decisions about token incentives are made: Team
  • Incentive Manager address: 0x0e3dA0301C354b4046Bbc96604ED8267E709611a
  1. Growth, Community & Ecosystem Impact

Why This Contract Matters:

  • How will this contract benefit Berachain?

This pool will strengthen Berachain by bringing value (funding yield and volume) locked in synthetic perps (e.g Hyperliquid) back onchain. Pool generates significant real yield when funding rate is positive for BERA. The pool also generates yield when users long any token using Wasabi. Since trade executes onchain, the vault increases volume on AMMs, naturally reinforcing token demand and LP incentives.

With PoL incentives, the pool creates a yield flywheel, where:

  • Instant funding yield attracts deposits, reducing circulating supply.
  • Increased deposits unlock more yield, which is used to bribe validators to receive BGT rewards.
  • More BGT rewards reinforce higher yield for deposited HONEY.
  • The cycle repeats, compounding funding yield and BGT rewards for depositors.

Potential Volume / TVL:

  • Provide metrics or estimates on liquidity you expect to attract: Starting with a $1M deposit cap on the vault deposits will scale over time.

Synergies with Other Protocols:

  • Spicy HONEY Vault will settle trades on AMMs such as Kodiak, route trades through Ooga Booga, borrow from lending protocols such as Beraborrow, and feed into yield aggregators such as Euler. We’re happy to work with any protocol to bring more value to Berachain.

Marketing / Promotion:

  • Yes, working very closely with the foundation as well as core projects such as Ooga Booga, Kodiak, Yeet, Ramen, and Henlo.

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.)

Long-term vision is to bring all perp volume back to Berachain. This vault will power all pairs denominated in $HONEY as well as the $BERA/$HONEY pair, which is expected to have the highest volume and deepest liquidity.

  1. Verification

Please post the following text with the provided X account:

1 Like

Hi team, thanks for the proposal.

Could you please help address the following concerns?

  • liquidity for base asset is below minimum required threshold (Minimum of USD 100,000)
  • Number of token holders is below the minimum threshold (Minimum over 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.

1 Like

Strategy Update:

The vault will run basis and funding yield strategies for any token with a positive funding rate on synthetic perps (e.g. Hyperliquid).

The following changes are now implemented with 300+ depositors and $250k in TVL

So far this vault looks suspicious. It’s been approved a few days ago, BGT emissions are crazy high, but the vault is currently capped to only 125k liquidity. I wouldn’t be suprised if only a few protocol owned wallets have most of the deposits… seems very extractive. How difficult can it be to lift the deposit cap?