🅱️Kodiak-Boyco

Q4.69 is here.

Boyco Overview:

As Berachain makes its final spring towards Mainnet launch, the Boyco campaign takes center stage as a chain-wide initiative designed to help applications such as Kodiak seamlessly bootstrap liquidity from day one. Through Boyco, Kodiak can effortlessly onboard liquidity directly into our protocol upon mainnet deployment. This ensures that we can focus on innovation and growth within the Berachain ecosystem without being bogged down by early liquidity challenges.

The program also empowers liquidity providers (LPs) by offering a streamlined way to explore and allocate their capital across a variety of protocols. LPs can easily filter opportunities based on asset types, lock durations, application categories, and return profiles, ensuring flexibility and alignment with their personal yield strategies.

Berachain has committed 2% of the BERA supply for the Boyco program. More details can be found in their blog post here.

Berachain Boyco Website: https://boyco.berachain.com/

Kodiak x Boyco:

Kodiak is one of the whitelisted protocols participating in the Boyco campaign. 3% of the Kodiak token supply (in the form of xKDK) is allocated to participating Boyco markets, allocated proportionately to Bodiak Points. Bodiak Points are allocated proportionately to $ TVL * Multiplier. The Bodiak Points Multiplier varies for each market and ranges between 1-12x.

There are 48 Boyco markets where all or a portion of the user deposits will flow into the Kodiak DEX on Berachain Mainnet. All of these Boyco markets will have a lock-up period of 90 days, starting from Berachain's Mainnet launch.

In congruence with the Berachain and the other ecosystem rewards for Boyco, the xKDK incentives will be awarded on a cliff at the end of the market expiration. xKDK is Kodiak’s non-transferable escrowed governance token. Until Kodiak’s official TGE, xKDK neither can be staked nor converted to KDK (the liquid version of the Kodiak token).

All liquidity deposited in Kodiak Boyco markets will be bridged over to Berachain and deposited into a corresponding Kodiak Island.

Every Island has a pre-defined strategy, by which the liquidity will be deployed in Kodiak pools (concentrated liquidity). Each island has a receipt token (ERC20). In some select Boyco markets, these receipt tokens are also staked with Infrared, and are additionally incentivized by Infrared. These are our "Flagship" pools and "Infrared x Kodiak."

Regarding how liquidity is deployed, this is different for stable-pairs vs volatile pairs, and within stable-pairs.

Stable Pairs:

These include BTCLST-WBTC, ETHLST-WETH, Stablecoin-HONEY, and similar pairs.

All of these will have range centered at "fair price" and a concentrated liquidity range, that ranges from 0 to +/- 15%, determined in conjunction with the asset issuer, and lending protocols.

For example:

• USDT-HONEY, centered at 1.0, range determined with USDT0 team (probably +/- 5%)

• sUSDe-HONEY, centered at ~1.15 (actual price of sUSDe on Ethereum Mainnet), range determined with Ethena team and lending protocols (probably +/- 15%). Note that as the "fair price" of sUSDe increases over time, Kodiak Islands will re-center the periodically.

Volatile Pairs:

These include WETH-HONEY, WBTC-HONEY, and WETH-WBTC.

All of these will start full-range, and move to "very wide but effectively full range." The reason to keep at effectively full range is because there is no other liquidity on Berachain to rebalance with initially, so it must never risk going out of range. From a economic exposure standpoint, the IL experienced on these should be similar to full-range LP.

The specific ranges we are committing to is - centered around "fair price" and a range of 1/5 to 5x of price.

For example:

• WBTC-HONEY: Centered around ~100k, range 20k-500k.

• WETH-HONEY: Centered around ~3100, range 620-15k.

• WBTC-WETH: same thing.

At no point will these Islands be more "concentrated" or risk higher IL than this during the Boyco period. The goal of the Kodiak Islands is to keep liquidity active and in-range at all times in order to be eligible for Berachain's Proof-of-Liquidity / BGT. The goal is to be the baseline liquidity - not to be a fee farm / high IL option. Other ALM providers specialize in these kind of pools, and those options will be made available to interested users through our partner ALM program after mainnet launch.

1. Infrared x Kodiak Markets

For these exclusive markets, Infrared will provide additional incentives.

Boyco users will be providing liquidity into the corresponding Kodiak Islands and the Island receipt tokens will also be staked in their respective Infrared iBGT-compatible Vault. The following Boyco Markets fall under this category:

Boyco Market	Rewards
WETH-HONEY LP	Berachain: 4.20x Bucket 2 Multiplier Kodiak: 12x Bodiak Points Infrared: 6x Points DEX Fees: Estimated 15-30% APY
WBTC-HONEY LP	Berachain: 4.20x Bucket Two Multiplier Kodiak: 12x Bodiak Points Infrared: 6x Points DEX Fees: Estimated 15-30% APY
WBTC-WETH LP	Berachain: 4.20x Bucket Two Multiplier Kodiak: 10x Bodiak Points Infrared: 5x Points DEX Fees: Estimated 15-30% APY
USDT0-HONEY LP	Berachain: 1.35x Bucket Two Multiplier Kodiak: 4x Bodiak Points Infrared: 1x Points DEX Fees: Variable Rate
USDC-HONEY LP	Berachain: 1.35x Bucket Two Multiplier Kodiak: 3.5x Bodiak Points Infrared: 1x Points DEX Fees: Variable Rate
WETH-beraETH LP	Berachain: 2.69x Bucket One Multiplier Kodiak: 3x Bodiak Points Infrared: 2.5x Points Dinero: 520k Points per Week, Pro-Rata ETH (Re)Staking Rewards: Variable Rate (for eligible assets) DEX Fees: Variable Rate
USDe-HONEY LP	Berachain: 2.69x Bucket One Multiplier Kodiak: 3x Bodiak Points Infrared: 1x Points Ethena: 30x Sats DEX Fees: Variable Rate
sUSDe-HONEY LP	Berachain: 2.69x Bucket One Multiplier Kodiak: 3x Bodiak Points Infrared: 1x Points Ethena: 5x Sats Ethena sUSDe Yield: Variable Rate (on sUSDe portion) DEX Fees: Variable Rate
MIM-HONEY LP	Berachain: 2.69x Bucket One Multiplier Kodiak: 2.5x Bodiak Points Infrared: 1x Points Abracadabra: 500M total SPELL tokens, pro-rata DEX Fees: Variable Rate
beraETH-STONE LP	Berachain: 1.369x Bucket One Multiplier Kodiak: 2x Bodiak Points Infrared: 2x Points Dinero: 150k Points per Week, Pro-Rata StakeStone: 6x Boyco Bonus ETH (Re)Staking Rewards: Variable Rate (for eligible assets) DEX Fees: Variable Rate
WETH-STONE LP	Berachain: 2.69x Bucket One Multiplier Kodiak: 2x Bodiak Points Infrared: 1.5x Points StakeStone: 6x Boyco Bonus ETH (Re)Staking Rewards: Variable Rate (for eligible assets) DEX Fees: Variable Rate

1. Standard Kodiak Markets

For these markets, Boyco users will be providing liquidity into the corresponding Kodiak Islands (automated liquidity management vaults). Each Kodiak Island represents a tokenized V3 liquidity position within an underlying liquidity range on the Kodiak DEX and facilitates the automated management of this liquidity position. The following Boyco Markets fall under this category:

• pumpBTC.bera-ylpumpBTC LP (1x Bodiak Points)
• pumpBTC.bera-ylBTCLST LP (1x Bodiak Points)
• WBTC-waBTC LP (2x Bodiak Points)
• USDa-HONEY LP (2x Bodiak Points)
• sUSDa-USDa LP (1x Bodiak Points)
• USDe-USDa LP (1x Bodiak Points)
• rUSD-HONEY LP (2x Bodiak Points)
• beraETH-RSWETH LP (1x Bodiak Points)
• WBTC-uniBTC LP (2x Bodiak Points)
• SBTC-WBTC LP (2x Bodiak Points)
• WBTC-SolvBTC LP (2x Bodiak Points)
• SolvBTC-SolvBTC.BBN LP (1x Bodiak Points)
• WBTC-pumpBTC.bera LP (2x Bodiak Points)
• WBTC-stBTC LP (2x Bodiak Points)
• uniBTC-ylBTCLST LP (1x Bodiak Points)
• FBTC-SolvBTC LP (1x Bodiak Points)
• pumpBTC.bera-FBTC LP (1x Bodiak Points)
• WBTC-FBTC LP (2x Bodiak Points)
• rsETH-beraETH LP (1x Bodiak Points)
• rsETH-ylrsETH LP (1x Bodiak Points)
• beraETH-ylstETH LP (1x Bodiak Points)

1. Beraborrow x Kodiak Markets

These are markets that are additionally incentivized by Beraborrow for actions that involve the minting of their stablecoin, NECT. The following Boyco Markets fall under this category:

• Kodiak x Beraborrow WBTC-HONEY to mint NECT (6x Bodiak Points)
• Kodiak x Beraborrow WETH-HONEY to mint NECT (6x Bodiak Points)
• Kodiak x Beraborrow WBTC-WETH to mint NECT (5x Bodiak Points)
• NECT-HONEY LP (2.5x Bodiak Points)
• USDe-NECT LP (1x Bodiak Points)

1. Concrete x Ethena & Concrete x Lombard Markets

These are markets additionally incentivized by Concrete x Ethena and Concrete x Lombard, deploying a portion of the deposited TVL into their respective Kodiak Islands. Only the portion of the TVL deposited into these markets that are then deposited into Kodiak Islands are eligible for the Bodiak Points. The following Boyco Markets fall under this category:

• Supply WBTC to Concrete x Lombard Vault (3x Bodiak Points for Eligible Assets)
• Supply LBTC to Concrete x Lombard Vault (3x Bodiak Points for Eligible Assets)
• Supply sUSDe to Concrete x Ethena Vault (3x Bodiak Points for Eligible Assets)
• Supply USDe to Concrete x Ethena Vault (3x Bodiak Points for Eligible Assets)

1. Ether.Fi x Veda Markets

These are markets additionally incentivized by Ether.Fi x Veda, deploying a portion of the deposited TVL into their respective Kodiak Islands. Only the portion of the TVL deposited into these markets that are then deposited into Kodiak Islands are eligible for the Bodiak Points. The following Boyco Markets fall under this category:

• Veda x Ether.fi eBTC Vault - wBTC Supply (3x Bodiak Points for Eligible Assets)
• Veda x Ether.fi eBTC Vault - LBTC Supply (3x Bodiak Points for Eligible Assets)
• Veda x Ether.fi weETH Vault (3x Bodiak Points for Eligible Assets)
• Veda x Ether.fi weETH Vault - wETH Supply (3x Bodiak Points for Eligible Assets)

1. Goldilocks Markets

These are markets not incentivized by Kodiak directly, but instead by Goldilocks and relevant asset issuers. The following Boyco Markets fall under this category:

• Supply uniBTC into Goldilocks
• Supply solvBTC.bbn into Goldilocks
• Supply rsETH into Goldilocks