Introduction

Superseed is an Ethereum L2 built on OPStack, with its core application being a CDP lending protocol. On Superseed, users can use various types of assets as collateral to mint and borrow Superseed stablecoins. It introduces two new crypto primitives: Super Collateral and Proof of Repayment. Super Collateral allows borrowers to avoid paying loan interest, while Proof of Repayment programmatically rewards individuals who assist Super Collateral borrowers in repaying their loans.

Funding Background

Funding background (Image source https://www.rootdata.com/Projects/detail/Superseed?k=MTI1NDY%3D)

Superseed has publicly disclosed The Rollup Ventures as an investor but has not revealed specific funding details.

Team Members

Team Members (Image sourcehttps://www.rootdata.com/Projects/detail/Superseed?k=MTI1NDY%3D)

The core team of Superseed consists of founder David Lach and BD lead Adam Browman. Adam was previously the Head of Growth at Loopring, while David is also an investor in Questo.

Key Features

Superseed is an Optimistic Rollup that enhances the on-chain experience through key components such as Super CDP, Super Collateral, Proof of Repayment, Repayment Vault, and Superseed Stablecoin.

If users are bullish on a major asset such as BTC, ETH, or certain governance tokens, they can use the asset as collateral to borrow at zero interest. Over time, the protocol’s revenue is automatically used to repay the loan.

Additionally, Proof of Repayment introduces a daily auction system where new tokens are minted and auctioned off. Anyone can participate, and the highest stablecoin bidder wins the reward for the day. The proceeds from these auctions (i.e., stablecoins used to bid) are then used to repay loans for Super Collateral borrowers.

Super CDP

How Super CDP Works

At the core of Superseed is a native CDP (Collateralized Debt Position) protocol embedded within the rollup network. It serves as the liquidity hub and rewards mechanism of the ecosystem.

A CDP lending protocol allows users to lock assets as collateral and mint or borrow different assets, typically stablecoins. Unlike peer-to-peer (P2P) lending markets, where borrowers get liquidity from lender pools, CDP-based lending derives liquidity directly from the borrower’s collateral.

On the Superseed platform, users can collateralize various assets to mint and borrow Superseed stablecoins. The Super CDP collateral pool includes assets such as Superseed governance tokens, ETH, and WBTC.

When assets are locked into Super CDP, a collateralized debt position (CDP) is created, and Superseed stablecoins are minted. The protocol enforces over-collateralization, meaning the collateral value must exceed 150% of the borrowed stablecoins.

To withdraw collateral, users must first repay their loans. If a CDP fails to maintain the required collateral ratio, the protocol will liquidate part of the collateral through an auction to repay the debt and impose a penalty. Once a user’s CDP is liquidated or their loan is fully repaid, the corresponding stablecoins are burned.

The interest rate within the CDP is determined by governance, aiming to maintain the stability of the stablecoin.

Supercollateral

Supercollateral Repayment Process

Superseed’s governance token plays a special role in the CDP protocol, allowing borrowers who meet specific safety requirements (e.g., a 500% collateral ratio) to obtain interest-free loans. All fees generated across the network are used to pay down the debts of Super Collateral users.

Superseed’s governance token acts as Super Collateral, enabling qualified borrowers (those meeting the 500% collateral ratio) to use it as collateral without incurring interest on loans.

Additionally, all fees generated within the Superseed ecosystem contribute to repaying Super Collateral users’ loans.

Sources of Fees for Automated Loan Repayment:

• Net profits from the L2 sequencer
• Interest generated from loans backed by non-Super Collateral assets (e.g., ETH, WBTC) within the CDP protocol
• Repayment Proof revenue
• Income from the native yield-staking bridge – Users can choose between yield-generating and traditional bridge options (not mentioned on the homepage but referenced in documentation).

Repayment Proof Mechanism

Repayment Proof Mechanism

Repayment Proof is a mechanism designed to programmatically reward individuals who help repay the loans of Super Collateral borrowers. Superseed tokens have an annual supply inflation rate of 2%, which is distributed daily through auctions. In these auctions, repayers compete by committing the highest amount of stablecoins to repay the loans of Super Collateral borrowers in order to win rewards. The stablecoins they commit for repayment are added to the repayment vault, which is used to pay down the loans of Super Collateral users. Meanwhile, unsuccessful bidders in the auction can reclaim their committed stablecoins.

Dynamic Repayment Vault

Dynamic Repayment Vault

One of the core stability modules in the Superseed lending protocol is the Dynamic Repayment Vault. Borrowers can manually repay their loans by directly burning the stablecoins they originally minted as loans. However, for users benefiting from self-repaying loans through Super Collateral, the fees used for repayment are directed to a smart contract called the Repayment Vault. This vault systematically burns the debts of Super Collateral users proportionally according to a predefined schedule. There is only one Repayment Vault in the entire system, which can dynamically adjust the repayment rate.

The advantages of the Dynamic Repayment Vault include reducing repayment rate volatility by following a programmatic debt-burning schedule. Additionally, it acts as a consumption pool for stablecoins, which the protocol can leverage to maintain the peg stability of the stablecoin.

Superseed Stablecoin

Superseed Stablecoin

Users can mint Superseed Stablecoin on SuperCDP using any accepted collateral. Superseed Stablecoin aims to maintain a peg as close as possible to $1. The design of Superseed incorporates multiple structural solutions to support this peg.

First, all fees generated by the Superseed protocol are automatically converted into Superseed Stablecoin and used to burn the debts of Super Collateral users. Regardless of market conditions—whether the fees come from sequencer operations, borrower interest, or Repayment Proofs—there is always a consistent demand for Superseed Stablecoin.

This over-collateralized and decentralized stablecoin will be integrated into the Ethereum ecosystem as a robust and reliable tool, enhancing liquidity and stability across decentralized markets.

Tokenomics

Superseed is committed to developing a community-first token distribution model, aiming to move beyond the era of high FDV and low circulating supply tokens by ensuring broad participation, fair distribution, and long-term sustainability.

Token Supply & Distribution

Token Supply & Distribution

The Superseed Foundation has designed a token allocation model prioritizing community engagement and long-term sustainability. The total supply of $SUPR is 10 billion tokens, distributed as follows:

• Private Investors: 5%
• Public Sale: 20%
• Ecosystem Fund: 18%
• Foundation Treasury: 20%
• Network Participation Rewards: 15%
• Contributors: 22%

Token Unlock Schedule

Token Unlock Schedule

Unlocking Details

• Private Investors: Linear vesting over 1 year
• Public Sale: Fully unlocked at launch
• Ecosystem Fund: 20% unlocked at launch, with the remaining vested linearly over 2 years
• Foundation Treasury: 20% unlocked at launch, with the remaining vested linearly over 2 years
• Network Participation Rewards: Fully unlocked at launch, distributed over 3 years
• Contributors: 6-month cliff, followed by 3 years of linear vesting

Conclusion

The Superseed Protocol introduces a new DeFi experience by integrating Layer 2 with a fixed CDP lending platform and an innovative repayment proof mechanism.

This combination creates an ecosystem that not only enables self-repaying loans but also directs protocol revenue toward further ecosystem development. By combining over-collateralized stablecoins with a dynamic repayment vault, Superseed offers strong stability and the opportunity to create a truly scalable decentralized stablecoin.