Reward Vault Request (non-BEX) for sweETH by Sumer Money

Proposals Reward Vaults
1

1. Proposer Details

2. Protocol Details

  • Protocol Name: Sumer Money

  • Type: Lending & Synthetic Asset Protocol

  • X Profile: @SumerMoney

  • Docs: Sumer Docs

  • Audits: Audit Reports

  • Relationship with Berachain validators: No

3. Reward Vault Details

How the Contract Works:

  • Key Focus: Driving revenue from the Bera ecosystem by enabling capital-efficient user activity.

  • Action-Based Incentive Vault: Uses staking of a dummy ERC-20 token to represent the following user actions:

    1. Deposit weETH

    2. Borrow BERA

    3. Swap for iBGT

    4. Deposit iBGT

    5. Loop

  • Token Characteristics:

    • Has no market value

    • Requires no user interaction

    • Auto-staked on behalf of users to accumulate BGT rewards

    • Resets weekly, based on pro-rata user activity

    • Enables BGT rewards to be claimed and delegated via the Hub

  • Components for sweETH:

    • Deposit weETH

    • Borrow BERA

    • Deposit iBGT

    • Loop

  • Contract Fees: Up to 10% of staking rewards as protocol revenue

  • Existing Liquidity / TVL: $1.16M (DefiLlama)

  • Major Token Holders: None at present (dynamic, based on weekly strategy participation)

  • Contract Upgradeability: Yes (if distribution logic needs adjustment)

  • Contract Control: Multisig

  • Verification: Yes

  • Pause Capability: Yes

  • Oracle Dependency: No

4. Staking Token Details

Non-Major Token:

Tokenomics, Distribution, and Vesting:

  • Dummy ERC-20 staking token used solely to track and reward user participation.

  • Purpose: Represents user activity (deposit weETH, borrow BERA, swap + deposit iBGT, loop).

  • Utility: Auto-staked to accumulate BGT rewards; enables claiming and delegation via Berachain Hub.

  • Minting & Distribution:

    • No market value or tradability

    • Auto-minted weekly, based on pro-rata user activity

    • Auto-staked, no user action required

  • Reset Mechanism: Balances reset weekly to reflect current participation

  • Supply: Dynamic and unbounded — supply expands and resets weekly based on participation. There is no fixed cap or circulating supply.

  • Vesting: Not applicable. sweETH is not held or owned—it only functions as a staking proxy for user activity and reward logic.

Other Details:

  • Major Holders: None at present

  • Relationship with Berachain Validators: No

  • Total Supply Cap: None

  • Circulating Supply: None (Dynamic and resets weekly based on user activity. No fixed circulating supply, as sweETH is auto-minted and auto-staked on behalf of users.)

  • Token Type: Governance / RV Staking Token

  • Upgradeability: Yes, for security reasons

  • Control: Multisig

  • Verification: Yes

  • ERC20 Compliance: Yes

  • Pause Capability: Yes, for security reasons

5. Incentive Token Whitelist

  • Incentive Token Name: Berachain

  • Symbol: BERA

  • Planned Allocation: $10,000 USD/month for minimum 2 months

  • Token Control: Multisig

  • Incentive Manager Address: 0x8cafd0397e1b09199A1B1239030Cc6b011AE696d

  • Duration Manager Address: 0x8cafd0397e1b09199A1B1239030Cc6b011AE696d

6. Growth, Community & Ecosystem Impact

Why This Contract Matters

  • Capital Efficiency for Native Assets: While the reward vault currently proposes iBGT/BERA looping, Sumer has the ability to engage users to loop correlated assets like iBERA, gBERA, BERA, and BGT derivatives (LBGT, yBGT, etc.) through a correlation-aware risk engine—maximizing TVL and on-chain velocity without excess risk.

  • Aligned Incentives: sweETH incentivizes productive user behavior directly supporting Berachain’s Proof of Liquidity goals in multiple ways - incentivize iBGT/BERA looping, promote transaction volume on DEXs, generate yield for native asset holders, invite non-native asset holders to participate in native assets yield opportunities

  • Revenue Potential: The contract will generate potential revenue to Sumer from BERA Borrowing, iBGT staking yield and reward vault fees

  • Product-Market Fit: We currently have liquidity partners who have deposited weETH into Sumer and participated in looping along with iBGT loopers. BERA Deposit APY on Sumer has been consistently above 35% for over a month. However, we want to scale our BERA deposits

Potential TVL / Volume:

  • Current TVL: $1.16M (weETH, without incentives - This TVL is in anticipation scaling BERA deposits into Sumer through generating constant demand for profitable iBGT-BERA loop)

  • Expected Growth: +$500K BERA deposits

  • With 200K BERA deposit + 3 loops → ~3–5% in iBGT staking yield + reward vault APR

Synergies:

  • While the sweETH token itself is not designed for direct integration with other protocols (as it is action-based), Sumer maintains strong and growing synergies across the Berachain ecosystem through its support for native assets and integrations:

    • Supported Native Tokens

      • Infrared: iBGT, iBERA

    • Protocol Integrations

      • DEX Volume: iBGT/BERA loops

      • Staking & Yield: Infrared (deposit staking)

    These integrations position Sumer as a composable liquidity layer that supports and amplifies the use of Berachain-native assets across the ecosystem.

Marketing & Promotion:

  • Sumer will actively work on building awareness and adoption through:

    • Co-marketing with ecosystem partners, including Infrared

    • Educational content on capital-efficient looping with iBGT and BERA

    • Ecosystem campaigns, such as Max Boop and Sumer Points

    These initiatives are designed to deepen user engagement with Berachain-native assets.

Long-Term Vision:

Sumer’s long-term vision is to drive revenue for Sumer from the Bera ecosystem while fueling value-added and capital-efficient user activity of native Berachain tokens.

  • Positioning sweETH as the staking token to reward productive on-chain behavior (not idle capital).

  • Serving as a capital-efficient DeFi primitive that enables looping, borrowing, and staking of BERA, BGT derivatives, and LSTs

Expanding composability across the Berachain ecosystem by integrating additional native tokens as collateral (Other BGT derivatives)

7. Verification

  • Required Post for X Verification:

    Submitted Reward Vault Request for sweETH [Sumer weETH Reward Vault staking token] on protocol Sumer Money with incentive tokens BERA

  • Verification Post Link: Tweet