Request for BERA/iBGT Reward Vault

Reward Vaults
1

Here’s our thread for community discussion around our first governance broposal for the creation of a BERA/iBGT reward vault.

General (non-BEX) RFRV

Reward Vault Request for [Contract Name]

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

  • Email: bullabear1@gmail.com
  • Proposer’s project name: Bulla Exchange
  • Proposer’s X account (you will be required to make a post from the X account provided for verification purposes) @BullaExchange
  • Best Telegram Handle for questions/fixes: @bullabear_fi

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): Founder of Bulla Exchange
  1. Protocol Details
  • Protocol Name Bulla Exchange
  • Protocol Type (DEX/Lending/Staking/Derivatives/Other)
    • DEX
  • Protocol X profile link: https://x.com/bullaexchange
  • Protocol docs link: https://docs.bulla.exchange/
  • Protocol audits links (multiple links): Audits | Bulla
  • Does the protocol have any relationship with current Berachain validators? We have team telegram chats open with both Infrared and THJ.
  1. Contract/Pool Details

  • Contract Name: aWBERA-iBGT

  • Contract Address: 0xcffbfd665bedb19b47837461a5abf4388c560d35

  • Contract Type / Configuration: Standard AMM Pool with automated liquidity management

  • Describe how the contract works: Users deposit the base assets of BERA and iBGT and receive a proportionate amount of ERC-20 LP tokens in return. Those assets are then deployed to the Algebra Integral concentrated liquidity AMM pool where they are actively managed around the current price. Those assets can then be redeemed for the ERC-20 LP tokens.

  • Contract Fees: LPs earn trading fees from the fees accrued from the liquidity position. 30% of the fees will be used as bribes to validators. The fees will be earned in the form of WBERA and iBGT from the swaps that accrue in the liquidity position.

  • Existing Liquidity / TVL: Currently $452K of liquidity in the pool. (Bulla - Leading DEX on Berachain). Within the last 24 hours $608K of volumes and $5.38k of fees were generated.

  • Identify any address(es) controlling more than 10% of the contract shares
    (address / type: team, protocol-owned liquidity, etc.): The team/protocol owns less than 10% of the liquidity. In the link above, 0x6f73c41dcb658a15e2faa14d2f575960586fe462 and 0xe5bd64bf97c4fea40df98317aa35a200cf905b71 own more than 10% of the liquidity each, but they are members of the Berachain public who are supplying liquidity.

  • Is the contract upgradable? No

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

  • Additional details on Contract Control: The contract is permissionless to deposit/withdraw. Only deposits may be paused and withdrawals can never be paused. Active management of liquidity is controlled by Gamma Strategies, and rebalances are further proxied via a RebalanceProxy contract which dictates the extent to which liquidity may be rebalanced. The contract is noncustodial in that the admin only has rebalancing/compounding rights and cannot migrate the liquidity or withdraw liquidity to any other address but the LP token holder.

  • Is the contract verified? Yes

  • Can the contract be paused? Only deposits, not withdrawals

  • Does the contract rely on oracles?

    • Yes, the deposit proxy contract (UniProxyETH.sol) uses the Algebra Integral TWAP oracle, among 3 other safety measures, to ensure that price change prior to a deposit isn’t too high to protect deposits from price manipulation.

4. Token Details

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

For Major Tokens:
  • Name: BERA
  • Symbol: BERA
For Non-Major Tokens:
  • Name: Infrared BGT
  • Symbol: iBGT
  • Contract Addresses (on Berachain and bridging addresses if cross-chain):
    0xac03caba51e17c86c921e1f6cbfbdc91f8bb2e6b
  • Tokenomics, Distribution, and Vesting (links to official docs, website, etc.)
    • iBGT is a liquid wrapper for BGT tokens.
    • It is backed 1:1 by the BGT earned by liquidity deposited to Infrared’s vaults.
    • iBGT does not earn the rewards associated with BGT unless staked.
    • iBGT is not redeemable for BGT.
    • iBGT allows holders to stake (via Infrared’s staking vault) and earn all associated BGT rewards.
  • Identify any address(es) controlling more than 10%
    (address / type: team, foundation, investor, etc.)
    • 0x9b45388fc442343de9959d710eb47da8c09ee2d9 / RewardVault - 76.51%
    • All other addresses are under 10%
  • Does the project issuing the token have any relationship with current Berachain validators?
    • Yes, Infrared operates a few validator nodes, including but not limited to Luganodes powered by Infrared and Infrared by StakeLab
  • Total Supply Cap (if any) : N/A
  • Circulating Supply: 1,191,827.97374715362355791
  • Token Type: LST
  • Provide extra details (e.g. Use case, Redemption mechanics, Peg stability)
    • Liquid wrapper for BGT tokens
    • It’s not redeemable for BGT
    • It is used as a liquid form of BGT yield.
  • Are token contracts upgradable? No
  • Token Control: (Multisig/Single Owner/RBAC/Permissionless/Governance): Multisig
  • Additional details on Token Control: The minter and burner role is controlled by an upgradeable proxy contract which uses the InfraredV1_2 implementation. The pauser role is controlled by the team Gnosis Safe.
  • 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.)
    • Standard ERC-20 that inherits from AccessControlEnumerable and CustomPausable.sol
  • 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.

Required Data for Incentive Token:

  • Name: BERA

  • Symbol

  • (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

  • Tokenomics, Distribution, and Vesting (links to official docs, website, etc.)

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

  • Does the project issuing the token have any relationship with current Berachain validators?

  • Total Supply Cap (if any) and Circulating Supply

  • Token Type:
    (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

  • Are token contracts upgradable?

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

  • Additional details on Token Control

  • Is the token contract verified?

  • 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.)

  • Can the token be paused?

Additional Requirements:

  • Specify how many tokens you plan to allocate for incentives and over what period of time.
    • We plan to allocate 30% of the weekly fees every week indefinitely as bribes to the validator
    • At current, the weekly fees for the past week was $52,270 (source: Bulla - Leading DEX on Berachain)
    • 30% of that is $15,681 in WBERA and iBGT
      • $7,841 in WBERA / week (based on current metrics)
      • $7,841 in iBGT / week (based on current metrics)
  • Outline how decisions about token incentives are made (DAO, multi-sig, etc.): 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)
    • 0x8Ec9F5d1d44b49431ddbdAEd9bad2dAbD4920f37

6. Growth, Community & Ecosystem Impact

Why This Contract Matters:

  • How will this contract benefit Berachain?
    • This contract will deepen the liquidity for iBGT, which is the premier LST on the Berachain network. Given the prevalence of iBGT as a source of yield, maintaining a deep liquidity pool for iBGT will not only help iBGT keep a stable value, but also provide a stable yield source to DeFi users on Berachain and a source of liquidations of iBGT on lending markets.
    • Because iBGT is not redeemable for BGT, it is even more important to have a deep liquidity source which this contract can provide. Because the contract is an actively managed liquidity position, it will provide deep liquidity even during volatile times.
    • Lastly, this contract derives a high Fees / TVL ratio which is directly tied to the bribes that the validators will be receiving in exchange for BGT emissions. The more we can back the emissions with true sustainable yield, the greater the backing and utility of BERA and BGT.
  • Will it deepen liquidity for a major ecosystem token (e.g., BERA, core stable asset)?
    • Yes, iBGT will be paired with BERA, which will deepen liquidity for BERA on the network.
    • The current Bulla Exchange BERA/iBGT position is the deepest liquidity currently on the network and the actively managed position on Berachain will be much more capital efficient (source: https://dexscreener.com/berachain)
  • Does it enable important trading pairs that drive adoption or integrate with other Berachain projects?
    • Yes, as the deepest liquidity pool currently on Berachain, this BERA/iBGT pool would likely be the primary liquidation route for iBGT
    • Deeper liquidity for iBGT will enable BGT to be used more prevalently in lending markets like Beraborrow and Dolomite.
    • Additionally, given Infrared’s prevalence, iBGT will be a common yield token which will require deep liquidity in order to provide a sustainable source of yield.

Potential Volume / TVL:

  • Provide metrics or estimates on liquidity you expect to attract.
    • Currently the pair is generating > $600k volumes and > $6k in fees per day on only $445k of TVL
    • We expect the POL integration and every Infrared vault that utilizes iBGT to drive more volumes to the iBGT/BERA trading route.
    • Assuming conservatively that iBGT issuance increases by 5x once governance goes live, we can expect at least a 5x increase in TVL at $2M. This is likely a conservative estimate given that the usage of iBGT within the ecosystem will likely increase volumes and thus fees/TVL by a higher factor.
    • Additionally, we are integrating with Brevis’s zk-coprocessor which will allow LPs to receive Bulla Points while being staked in the POL Rewards Vaults, so we can bolster the fees earned from the vaults that will be directed to validators for bribes.
  • Highlight any known liquidity commitments. (If you or partners plan to seed the contract, provide proof of funds or a statement of intent.)
    • We plan to seed this vault with at least $100k of our own liquidity, while also incentivizing the LP’s with Bulla Points
    • We’re currently providing $238K of liquidity in stable-stable vaults, using this address here: 0xd7877918bdc1c64c73aa22c33d681c67fbb1331e. We’ll be redirecting these funds to BERA-iBGT if/when POL for this pair goes live.

Synergies with Other Protocols:

  • Will this contract feed into any yield aggregators, lending markets, or liquid staking derivatives on Berachain?
    • Yes, this pool will be the primary liquidation route for iBGT given that it currently has the deepest liquidity on the market, so it facilitates collateral integrations with lending markets such as Beraborrow, Dolomite, and others.
    • We’re also talking with Infrared who has stated to us that they are really looking forward to integrating with us on Mainnet once we are whitelisted.

Marketing / Promotion:

  • Are there plans to co-market with another project to bootstrap liquidity?
    • Yes, Ooga Booga has let us know that they plan on listing high yield products on their frontend. They have also been a great partner and proponent thus far in promoting the capital efficiency of Bulla Exchange
    • Gamma Strategies who is our main automated liquidity partner will also list this pair on their own frontend and promote the yield across their socials

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.)
    • We believe this pair, which is currently the main trading route on Ooga Booga, to be the core liquidity pool for iBGT. The capital efficiency of this pair along with the dynamic fees adjustment and range adjustment allow this pair to be highly adaptable to the market without the need to migrate liquidity.
    • In the future, we see this reward vault being one of the premier sources of yield on BERA & BGT that will attract other yield generating protocols to build on top of us. Yield farmers and protocols may build pseudo-delta neutral strategies on top of us which involve providing liquidity to BERA-iBGT while also shorting BERA on a perp DEX.
    • Lastly, we wish to become an example of sustainability of the POL system, where BGT emissions are backed not by our own protocol emissions but by the fees generated from actual usage of the network. The more usage that iBGT gets, the higher the volumes, the higher the fees, and the higher the bribes that support the BGT emissions from the validators.

7. Verification

Please post the following text with the provided X account:

“Submitted Reward Vault Request for [Contract Name] on protocol [Protocol Name] with incentive tokens [incentive token 1], [incentive token 2]”

Insert post link: https://x.com/BullaExchange/status/1894656630803107979

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!

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Pool has been Whitelisted