Reward Vault Request for TWIN Finance - iMSTR/HONEY on Kodiak

1. Proposer Details

2. Protocol Details

Protocol Logo URL (image must be 1024x1024 and non-transparent)

3. Reward Vault and Staking Token Details

  • Is the Staking Token located on BEX?
    No

  • Specify the protocol where the Staking Token is located
    Kodiak

  • Link to where the Staking Token is located
    Kodiak Finance

  • Existing Liquidity / TVL
    52k$

  • Describe how a user should acquire this staking token
    Mint the iMSTR (alongside MSTR) TWIN Asset token on aap.twinfinance.io and acquire the staking token by depositing liquidity into the iMSTR-HONEY pool on Kodiak. (LPs are recommended to do the same with the MSTR (long) token, in order to have a hedged, “quasi delta neutral” combined LP position when providing liquidity in both MSTR-HONEY and iMSTR-HONEY.)

  • Reward Duration address
    0x4dBA7bB548d5CEda043Fb3856c54cF357213Ee7b

4. Tokens Information

1st Asset in Pool:
TWIN Asset Token iMSTR
iMSTR
0xE5a08b6F213a7c530E03Ad40522BefcBAa1A7f8C

2nd Asset in Pool:
Honey Token
HONEY
0xfcbd14dc51f0a4d49d5e53c2e0950e0bc26d0dce

5. Incentive Tokens

Incentive Token 1

  • Name
    Bera
  • Symbol
    BERA

Incentive Token 2

  • Name
    Bridged USDC (Stargate)

  • Symbol
    USDC.E

Specify how many tokens per week you plan to allocate for incentives
25 BERA per day, i.e. 175 p week.

USDC will not initially, but only later be allocated for incentives. Background: The TWIN Finance protocol earns its fees in USDC, a.o., and therefore - at a later stage - these protocol earnings shall be used for incentives as well.

Specify for how many weeks you plan to allocate incentives
BERA incentives at least 12 weeks.Target is to have incentives ongoing continuously after that

Once USDC is also used for incentives, this shall be done continuously; on an ongoing basis

Outline how decisions about token incentives are made
Multisig Decision

Incentive Manager address
0x4dBA7bB548d5CEda043Fb3856c54cF357213Ee7b

6. Growth, Community & Ecosystem Impact

Why This Contract Matters:

  • How will this contract benefit Berachain?
    It will incentivize to increase liquidity in the iMSTR RWA (short token) derivative on Berachain, making trading more efficient and giving users the opportunity to gain exposure to short the RWA asset; asset class
  • Will it deepen liquidity for a major ecosystem token?
    In this case iMSTR is paired against Honey, hence creating a demand for Honey from users who want to provide liquidity in such pools.
  • Does it enable important trading pairs that drive adoption or integrate with other Berachain projects?
    Yes, in our opinion. iMSTR, amongst other twin assets, is a unique permissionless trading opportunity on Berachain. Two main user groups can drive adoption:
    A. The LPs looking for yield at manageable risk (When providing liqui in iMSTR and MSTR at the same time, they are hedged to a great extent and can provide liquidity quasi delta neutral, almost like stable coin farming. )
    B. Traders/investors who just buy and sell the TWIN Asset token iMSTR token against Honey, targeting returns from their on-chain investments in (short) synthetic TWIN assets on RWAs like iMSTR.

Potential Volume / TVL:

  • Provide metrics or estimates on liquidity you expect to attract.
    Initial pool target is 100k$ which shall significantly be exceeded over time.

  • Highlight any known liquidity commitments.
    On top of what has been provided already, none by now.

Synergies with Other Protocols

  • Will this contract feed into any yield aggregators, lending markets, or liquid staking derivatives on Berachain?
    Not right now, but going forward this is planned

Marketing / Promotion:

  • Are there plans to co-market with another project to bootstrap liquidity?
    Ongoing Partnership with Kodiak and co-Promotion with target to increase liquidity and user adoption substantially

Long-Term Vision:

How could this reward vault evolve over time?

As TWIN targets to become the hub for RWAs and an on-chain Neobroker on Berachain, iMSTR- as synthetic “short” derivative of one of the major Equity RWAs - should become a cornerstone investment for users searching RWA equities short exposure on chain. The reward vault shall facilitate much higher liquidity in the pair, so in perspective the iMSTR asset tokens could also be used in lending protocols, i.e. lending out and earning yield on top of holding the short asset as well as borrowing against it and loop for leverage. Also, with sufficient liquidity in the iMSTR pair, options could be created on the TWIN Asset iMSTR as an underlying, which Partner protocols of TWIN Finance could facilitate.

7. Verification

Hi team, at the time of review, the following concerns were identified:

• Pool liquidity is below minimum required threshold (Minimum of USD 100,000)
• The proposed incentive amount does not satisfy the requirement to incentivize at least $10,000 per month
• The major staking asset in the pool (HONEY) does not meet the minimum liquidity requirement of $50,000

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.