Reward Vault Request for OverlayStakingToken

Reward Vaults
1

TL;DR

Overlay submits this RFRV application with $OvlSTK—an ERC20 staked receipt token minted and burned by the protocol’s router. The Shiva router (controlled by a multisig) mints OvlSTK equivalent to user positions and burns them upon position closure or liquidation. No direct fees are taken by OvlSTK or Shiva; instead, a 7.5 bp fee applies at the Market level. The contract is non-upgradable, relies on verified code, and has no pause mechanism, though the router can be paused.

Overlay (OVL) is the governance and utility token for the Overlay Protocol, with an initial supply of 88,888,888. It’s non-upgradable, controlled by a multisig, and functions for both trading and governance. The team plans to incentivize activity using BERA, and eventually OVL. Incentives will be managed by a SAFE address and overseen by a multisig initially, then transition to full DAO governance.

The protocol’s vision is to bring new, exotic markets to Berachain—including unique NFT index derivatives—and drive significant volume. The team estimates short-term daily volume on par with other major protocols (e.g., $5M), aiming for higher flows over time.

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 - ursus@overlay.foundation
  • Proposer’s project name - Overlay
  • Proposer’s X account (you will be required to make a post from the X account provided for verification purposes) https://x.com/overlayprotocol

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) Overlay
  1. Protocol Details
  1. Contract/Pool Details

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

  • Contract Address: Insert the contract address. 0xBbfe83CD5dB2b8279858DAaa8ba7Cf079744C6A5

  • Contract Type / Configuration: Is it a standard AMM pool, a lending pool, a derivatives pool, a custom contract ERC20

  • Describe how the contract works (e.g., how to mint and redeem shares of the contract, if tokens can be exchanged within the contract…) - The protocol mints the OvlSTK and stakes on behalf of the user (equal to the notional of their position) and when it closes or liquidates the OvlSTK are unstaked and burned

  • Contract Fees: Outline the fee structure (e.g., 10% of staking rewards) - No fees taken by the OvlSTK contract or Shiva (router) contract but by Market contract downstream: each tradable market sets fees as a tunable parameter. Currently all markets are set at 7.5 bp fees

  • Existing Liquidity / TVL: current liquidity and volume stats (if applicable). - N/A

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

  • Is the contract upgradable? no

  • Contract Control: (Multisig/Single Owner/RBAC/Permissionless/Governance) - Shiva (router) - which is controlled by a multisig

  • Additional details on Contract Control - N/A

  • Is the contract verified? yes

  • Can the contract be paused? OvlSTK no - but the Shiva (router) is pausable

  • Does the contract rely on oracles?- OvlSTK and Shiva contract do not rely on oracles, but the Market contract downstream does. The OvlSTK does not depend on the oracle prices, but the users might be affected by the oracles if their positions are liquidated.

    • (If yes, explain oracle dependency)

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 OverlayStakingToken
  • Symbol OvlSTK
  • Contract Addresses (on Berachain and bridging addresses if cross-chain):
    chain / address 0xBbfe83CD5dB2b8279858DAaa8ba7Cf079744C6A5
  • Tokenomics, Distribution, and Vesting (links to official docs, website, etc.) N/A
  • Identify any address(es) controlling more than 10%
    (address / type: team, foundation, investor, etc.) N/A
  • Does the project issuing the token have any relationship with current Berachain validators? yes
  • If yes, which one? Infrared, nocturnal labs
  • Total Supply Cap (if any) N/A
  • Circulating Supply 0
  • Token Type:
    (Governance, Utility, Memecoin, Stablecoin, LST, RWA, Other) Receipt Token
  • Provide extra details (e.g. Use case, Redemption mechanics, Peg stability) Receipt Tokens to be used for PoL mechanism - the router mints OvlSTK amount equivalent to the notional of the user’s position.
  • Are token contracts upgradable? No
  • Token Control: (Multisig/Single Owner/RBAC/Permissionless/Governance) - Shiva (router)
  • Additional details on Token Control N/A
  • Is the token contract verified? Yes
  • Is the token a standard ERC20 or any functions have been customized? (e.g. transfer, balance, mint, burn…) Ownable ERC20 with mint and burn
    (If custom, provide a link to an audit.)
  • Can the token be paused? No

For completeness we included the OvlSTK above and the OVL token below – likely you are interested in the below.

  • Name Overlay
  • Symbol OVL
  • Contract Addresses (on Berachain and bridging addresses if cross-chain):
    chain / address 0xaeD2f0c7AaCfE2B59Cc70964833EA4C28C2CdbDB
  • Tokenomics, Distribution, and Vesting (links to official docs, website, etc.) docs.overlay.market - overlay.market
  • Identify any address(es) controlling more than 10%
    (address / type: team, foundation, investor, etc.) PlanckCat DAO - 30% (community reserve stewarded by foundation)
  • Does the project issuing the token have any relationship with current Berachain validators? yes
  • If yes, which one? Infrared, Nocturnal labs
  • Total Supply Cap (if any) Initial Supply: 88,888,888
  • Circulating Supply 88,888,888
  • Token Type:
    (Governance, Utility, Memecoin, Stablecoin, LST, RWA, Other) Governance + Utility
  • Provide extra details (e.g. Use case, Redemption mechanics, Peg stability) OVL is the proposed native token of Overlay Protocol. It is an ERC-20 token. OVL serves a dual purpose and will be used to participate in trading and DAO governance after launch.
  • Are token contracts upgradable? No
  • Token Control: (Multisig/Single Owner/RBAC/Permissionless/Governance) - Multisig
  • Additional details on Token Control N/A
  • Is the token contract verified? Yes
  • Is the token a standard ERC20 or any functions have been customized? (e.g. transfer, balance, mint, burn…) AccessControl ERC20 with mint and burn
    (If custom, provide a link to an audit.)
  • 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 BERA

  • Symbol BERA

  • Name HONEY

  • Symbol HONEY

To be added after TGE:

  • Name Overlay
  • Symbol OVL

Additional Requirements:

  • Specify how many tokens you plan to allocate for incentives and over what period of time.
  • BERA: This is subject to economic realities on the ground, we are working it out. We will be incentivizing activity for 12 months with up to 50% of RFA allocation (18000 BERA)
  • OVL: This is subject to economic realities on the ground, we are working it out. We will be incentivizing activity for a minimum of 12 months with a minimum 1% of OVL supply dedicated for this purpose, as well as a fixed portion of all trading fees.
  • Outline how decisions about token incentives are made (DAO, multi-sig, etc.). Protocol decides at first stage via multisig, once decentralization phase starts, the DAO will decide
  • 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) SAFE - 0x0F908Cc335Da6cc2bF0f939465f9413FcE45d02a

6. Growth, Community & Ecosystem Impact

Why This Contract Matters:

  • How will this contract benefit Berachain? - Providing incentive streams to traders is a powerful lever to user acquisition which with PoL can be actually sustainable resulting in a flywheel. More volume → more fees → more bribes → more BGT → more users → more volume.

  • Will it deepen liquidity for a major ecosystem token (e.g., BERA, core stable asset)? Not initially but upon protocol maturity we may have significant adoption from Web2 users whose stablecoin flows drive volume to USDC-BERA in order to interact with Overlay downstream.

  • Does it enable important trading pairs that drive adoption or integrate with other Berachain projects? Absolutely, we are making new markets that never existed (e.g. Bera Bong Rebase NFT Index, Honeyjar NFT Index, etc.) and partnering with various Berachain projects to make new markets with special incentives.

Potential Volume / TVL:

  • Provide metrics or estimates on liquidity you expect to attract. Short term PMF should result easily in volume similar to Parcel ($5m daily volume). Longer term adoption and integration with distribution channels (VOOI, Kinguin etc.) should put us on track to compete with Polymarket flows ($15m daily volume)
  • Highlight any known liquidity commitments. (If you or partners plan to seed the contract, provide proof of funds or a statement of intent.) No commitments as our GTM focuses on retail flows.

Synergies with Other Protocols:

  • Will this contract feed into any yield aggregators, lending markets, or liquid staking derivatives on Berachain? OvlStk only interacts with our own markets. The Overlay token will be widely distributed within the Bera ecosystem

Marketing / Promotion:

  • Are there plans to co-market with another project to bootstrap liquidity? We have many connections in the ecosystem and are building more everyday. We also have meaningful Web2 partnerships in place. We will co-market with everyone.

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.) Our protocol is designed to make Overlay the gateway for exotic markets worldwide, enabling access to markets that no one else can create. Over time, it could evolve into a core liquidity hub for data derivatives, attracting institutional and DAO participation.

7. Verification

Please post the following text with the provided X account:

“Submitted Reward Vault Request for OverlayStakingToken on protocol Overlay with incentive tokens BERA, HONEY”

Insert post link https://x.com/OverlayProtocol/status/1900167511506670031

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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2

Hi team, thanks for the proposal.

Could you please help address the following concerns?

  • the protocol does not appear to be live
  • vault liquidity 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