SIP-5: Introduce SuperVaults Institutional Rewards & Renew UP Only

Abstract

This proposal introduces a new SuperVaults Institutional Incentives Program authorizing up to 50M UP and updates UP Only emissions to support the transition from Flagship SuperVault bootstrapping to institutional SuperVault growth.

Flagship rewards helped bootstrap supply on SuperVaults. SIP-5 moves incentives toward institutional, curator-led, and partner-led growth channels that are more aligned with long-term distribution, monetization, and protocol strategy.

What is SuperVaults Institutional? The future of Superform is in bridging the gap between institutions and consumers. SuperVaults Institutional allows curators to permissionlessly create and manage vaults for any asset accessing thousands of yield sources with best in class execution and risk monitoring.

Background

Superform’s incentive system has evolved in stages.

• SIP-1 directed 50% of protocol fees to buybacks with 20% directed to the sUP vault, creating direct fee-share alignment for long-term holders.
• SIP-2 extended the sUP cooldown and formalized the 500,000 $UP/month reward rate, strengthening sUP as a long-term governance commitment mechanism.
• SIP-3 converted UP Only rewards from $UP to sUP, so depositors receiving protocol incentives also became governance participants.
• SIP-4 extended this same alignment to Superform creators through the FTB Club.

SIP-5 is the next step in that sequence focused on Institutional scale.

Proposal 1: Introduce the Institutional Incentive Program

Superform is launching SuperVaults Institutional soon. As part of this launch, Superform aims to incentivize curators to create high quality strategies using SuperVaults Institutional infrastructure. This initial reward program allows curators to compete for UP rewards each quarter.

• Total Program Allocation: 50M UP
• Who Qualifies: Curators of Institutional SuperVaults
• Rewards Vesting: Quarterly
• Rewards Unlock: 100% unlocked
• Minimum Curator Commitment: 1 Year

Initial Reward schedule

• Curators are ranked by their TVL over a quarter calculated using a daily TWAP.
• TVL is calculated by their cumulative deposits across all vaults operated by a curator.
• Only the top 5 curators qualify for rewards.
• The first competition starts this quarter, Q2 2026.

Curator Rank (Scored by TVL)	Quarterly UP Rewards	Yearly UP Rewards
1	250,000 UP	1,000,000 UP
2	125,000 UP	500,000 UP
3	62,500 UP	250,000 UP
4	25,000 UP	100,000 UP
5	12,500 UP	50,000 UP

Note: All schedules, vesting, and rewards are subject change at the end of each quarter per the Superform Foundation.

Proposal 2: Renew UP Only Rewards

The initial rewards authorized by the Superform Foundation for the UP Only Program lasted until Epoch 4. When Epoch 4 ends, no future rewards are currently authorized. This proposal includes an updated target and tapered rewards schedule. The initial goal of UP Only was to bootstrap Flagship vaults, now with the launch of SuperVaults Institutional the goal will to be to grow curator supply and distribution channels.

Current epoch:

• Epoch 4: 2.5M UP

Proposed schedule:

• Epoch 5: 1.0M UP
• Epoch 6: 750,000 UP
• Epoch 7: 500,000 UP
• Epoch 8: 500,000 UP

Note: UP Only rewards are paid in sUP per SIP-3.

Proposal 3: Update SuperVaults Rewards Split

Currently, all SuperVaults are incentivized equally. This means, regardless of revenue to Superform, an equal amount of UP tokens are given per dollar of deposits. Going forward, we propose aligning UP rewards based on expected revenue to the protocol and sUP holders. Stablecoin vaults generally offer the strongest revenue opportunity for Superform, ETH and other L1 vaults are next, and BTC vaults are typically the lowest, so UP Only rewards should be weighted accordingly.

For all future Epochs starting with Epoch 5, rewards will be split across all eligible vaults accordingly:

• 70% to Stablecoin vaults (Ex: USDC, USDT, etc)
• 20% to ETH / L1 vaults (Ex: ETH, HYPE, MON, etc)
• 10% to BTC vaults (Ex: wBTC, cbBTC, etc)

Example Epoch 5 (1M UP):

• 700,000 UP for deposits in SuperUSDC on ETH and SuperUSDC on Base
• 200,000 UP for deposits in SuperWETH on ETH and SuperWETH on Base
• 100,000 UP for deposits in SuperWBTC on ETH and SuperCBBTC on Base

Note: UP Only rewards are paid in sUP per SIP-3.

Rationale

Flagship rewards helped bootstrap SuperVaults. SIP-5 begins the shift toward institutional and partner-led growth by:

• Creating a dedicated long-term incentive pool for Institutional SuperVaults
• Tapering UP Only in a predictable way
• Better aligning emissions with expected protocol value

Voting Options

For

• Approve the 50M UP SuperVaults Institutional Incentives Program
• Approve the initial Institutional reward structure & schedule
• Approve the UP Only rewards transition for Epochs 5 through 8
• Approve the updated rewards split across vault types

Against

• Make no changes. SuperVaults Institutional Rewards are not enacted and no new UP Only schedule is approved.

Abstain

• Abstain from voting.