The most unpopular opinion in crypto right now is that the number of layer-2s [L2s] launched since Sam Bankman-fraud was put in jail is not jarring.

If you want to test how unpopular this opinion is, simply attend the next crypto conference and yell, “We need more L2s,” right in the middle of one of those weird, more-socially-awkward-than-you side events and see if you don’t get mogged.

The truth, however, is that the way L2s are viewed in this space is largely shaped by two factors:

• The performance of the tokens of VC-infested projects that offer little beyond poorly designed airdrops and recycled applications
• A general lack of understanding of tech path dependency

The latter issue stems from the industry's failure to recognize that the gap between developing and deploying L2s has narrowed. This is largely because they’ve become easier to build, thanks to the advancement of existing tech stacks.

This was not entirely possible before, highlighting the path dependency theory in technological trajectories.

The bottom line is that the outrage isn’t entirely justified. End users don’t hate L2s any more than they dislike seeing 20 memecoins pop up within minutes of an Elon Musk tweet.

What users really want are L2s that stand out, offering something different — something that genuinely improves their on-chain experience.

This “something” could be an L2 with a gas-free network, or one that offers you rebates on fees over time, or, like the center of today’s discourse — repays your debt for you.

And just in case that sounded a bit too promising, in the next few paragraphs, we will dissect how Superseed makes it work. Sit tight, it gets exciting for sure.

What is Superseed?

Superseed is an open-source, permissionless L2 OP chain network built on the OP Stack. It is EVM-compatible and offers a superior environment for developers to build unique applications.

But here’s the twist: it repays users’ loans. That’s right — take a loan, and the network handles repayment on your behalf. Unbelievable, right?

By doing so, Superseed unlocks years' worth of yield upfront with zero interest, repaid through protocol-generated fees like net sequencer profits, CDP interest, and inflationary rewards.

Superseed offers a fresh take on rollups — designed to benefit token holders, promote a sustainable DeFi ecosystem, and create positive-sum outcomes for all participants.

At the heart of this system are its Supercollateral and Proof-of-Repayment primitives, ensuring every bit of protocol revenue flows directly back to DeFi users, with nothing siphoned off by the core team or locked in a DAO for fee decisions.

In the following sections, we’ll break down all of this in detail. Get comfortable — there’s a lot to unpack.

What is the OP Stack?

If you have noticed, the definition of Superseed doesn’t describe it as a blockchain but rather as an OP chain. While this doesn’t necessarily imply that Superseed isn’t a blockchain [it is!], it does bring a new perspective to what Superseed actually is.

An OP chain is a highly-compatible L2 or L3 built on the Optimism Stack, aka OP Stack.

Optimism is an L2 Ethereum rollup that scales the Ethereum network as an optimistic rollup. This means that Optimism increases transaction throughput while reducing Ethereum fees by processing transactions off-chain under the assumption that all transactions in a rollup are, by default, valid.

The OP Stack is an open-source, modular framework designed to power Optimism’s version of the future of blockchain evolution, the 'Superchain.'

It is on this framework that OP chains exist, one of them being Superseed.

How does Superseed repay on-chain loans?

The first thing to understand is that Superseed focuses on end-user logic. By this, we mean that users don’t really care about network layers, throughput, or the technical jargon devs often yap about.

As a protocol, you have one shot to earn user attention.

So, Superseed goes, “How about we build a blockchain that’s not like any other blockchain out there because it’ll be the first OP chain to have an application underneath powering a flywheel and acting as a catalyst to attract power users?”

Technically, they didn’t say this, but you get the point.

To achieve this, Superseed is building a collateralized debt position (CDP) protocol on top of its OP chain. This protocol will function as Superseed's foundational dApp and create a value chain that attracts users, especially DeFi users.

It’s okay if you have no idea what a CDP protocol is. We will delve into it.

CDP is in the niche of on-chain lending. On a CDP protocol, users must deposit collateral to mint or borrow an asset. Usually, this collateral deposit has to be multiple times bigger than the amount being borrowed or minted — a concept known as over-collateralization.

Firstly, on Superseed’s CDP protocol, users can use different types of assets as collateral to mint and borrow the Superseed stablecoin.

Whatever this collateral is, it must exceed 150% of the Superseed stablecoin to be minted.

But this is also where the plot twists. Not all collateral assets have the same status or value. Specific assets are accorded Supercollateral status, allowing them to enjoy special privileges that are unavailable to borrowers with non-supercollateral CDPs.

The catch is that as long as Supercollateral users maintain their positions over-collateralized — by 500% or more — their loans will be repaid automatically over time. The Superseed native token will be the first token to be accorded the Supercollateral status.  

Woah! This has never been done before, so it’s only logical to ask: REPAID BY WHO? and WHY WILL ANYONE DECIDE TO RANDOMLY REPAY USERS’ LOANS?

Well, the way this works is that Superseed leverages its native token’s tokenomics to create a mechanism called ‘Proof-of-Repayment’ where a percentage of the Superseed token is distributed via daily auctions, thanks to a yearly 2% inflation rate of the Superseed token.

During the auction, users compete for the daily token reward. To compete, users must outbid each other by committing the highest amount of Superseed stablecoin.

This stablecoin is to be used to repay the loans of Supercollateral borrowers (those whose positions are over-collateralized by up to 500%).

At the end of the auction, the winner receives the reward (token emission of the day), and the winner’s stablecoin will be added to the loan repayment vault, which will be later used to offset the loans of Supercollateral depositors.

The auction losers will then receive their committed stables back.  

But this isn’t the only way loans will be repaid. 🙂‍↔️

You see, L2 scaling solutions like Superseed have this thing known as a sequencer, and it’s responsible for ordering, batching, and validating transactions that get sent to the base layer for processing.

Sequencers don’t work for free; they generate profit because users pay for their transactions to be given priority or processed much quicker than they would have otherwise. Superseed takes this net profit and uses it to pay off the loans of Supercollateral users.

Also, the borrower interest made from other CDPs backed by non-supercollateral assets like ETH and wBTC is also used to repay loans of Supercollateral users.

But debt repayment isn’t the only perk that Supercollateral users enjoy. They also do not pay any form of interest on their debt positions, basically allowing for interest-free loans for Supercollateral users.

Superseed’s Dynamic Repayment Vaults (DRV)

Typically, to manually repay a loan, users get to burn the stablecoin minted and borrowed, after which they receive their collateral in return.

On the other hand, the DRV is a smart contract vault used as a stabilization mechanism for the Superseed lending protocol.

As we mentioned earlier, the fees generated from all of the aforementioned means are directed to the DRV to repay Supercollateral loans. The DRV, on a pro-rata basis following a programmatic schedule for debt burning, allows Superseed to reduce the volatility of the repayment rate.

The DRV also acts as a system that keeps the Superseed stablecoin (a decentralized overcollateralized stablecoin) pegged to the dollar.

The design for the Superseed stablecoin is quite intentional. The Superseed stablecoin will be integrated across the Superseed and Ethereum ecosystems, allowing it to function as a debt-tracking token, a stable unit of account, and a widely used medium of exchange.

Opening and closing a position/liquidation on Superseed

To open a CDP on Superseed, you have to make a collateral deposit and proceed to mint and borrow a stablecoin, paying attention to the overcollateralized ratio.

To close the position, you will have to repay the loan by manually burning the stablecoin before regaining possession of the deposited collateral. However, as we mentioned above, if you're is a Supercollateral user, the DRV repays the loan programmatically on your behalf.

Also, like most CDP protocols out there, Superseed CDP has a liquidation principle.

If the collateral drops below the required threshold and can no longer maintain the collateral ratio, a portion of your collateral will be auctioned to cover the debt, and a fee will be paid by the debtor.

State of the protocol

At the moment, the Superseed protocol is gearing up towards mainnet release. Superseed has lined up with Velodrome, Pyth, Dune, Stryke, Blast, Socket, Dolomite, Jones, MarginZero, Orange Finance, BulletX, Bebop, and a host of other notable protocols, most of which are ready to deploy on Superseed from day one.

The protocol is positioning itself as the premiere destination for the emerging LPDfi vertical — applications that build sophisticated financial products on top of concentrated liquidity positions.

Superseed’s chain-level DeFi primitives, including the innovative Proof-of-Repayment mechanism and Supercollateral system, create the essential bedrock that makes Superseed the natural home for this next wave of DeFi innovation.

By enshrining these primitives at the protocol level, the protocol provides builders with an opportune, DeFi-centric environment where advanced financial products like on-chain options and non-liquidatable perpetual futures that leverage concentrated liquidity positions can thrive.

This creates a powerful flywheel effect: applications built on Superseed enable higher utilization of LP positions, generating superior yields that attract more liquidity providers to the platform.

The deeper liquidity pool then enables builders to create even more sophisticated financial products and scale usage, which further increases position utilization and yields.

This virtuous cycle not only benefits LPs and builders but attracts new users seeking higher yields to the Superchain ecosystem, creating a sustainable engine for ecosystem growth and innovation.

Supersale (the Superseed token sale event)

Having secured $1.5 million in pre-seed funding, the Superseed Foundation has announced a token sale event guided by unique plans that go against the trend in the current market.

As against the current trend of insider or cabal token launches, the Supersale event will be open to everyone, giving equal opportunity to anyone who decides to participate.

This will account for an even distribution of the Superseed native token. The foundation has also made it clear that investor tokens will be fully unlocked at TGE.

The Superseed token has a number of unique advantages and utility.

Not only will the token be used for governance of the protocol, but profits made from Superseed’s Proof-of-Repayment mechanism, sequencer fees, as well as interest generated from non-supercollateral users, will be used to pay the debt of Supercollateral users.

That’s secured by the Superseed token, which is one of the tokens that will be used as a Supercollateral to overcollateralize users’ positions.

The Supersale event for the Superseed token will run for 30 days or until the tokens are fully sold. The sale will launch with a starting circulating market cap of $20 million and a fully diluted valuation (FDV) of $100 million.

A total of 20% of the token's supply will be made available during this sale, with a maximum contribution of $100,000 and a minimum of $250 per participant. The target raise for the Supersale is $20 million.

The event will take place on the Ethereum mainnet and offer early bird discounts to initial participants, structured into three tiers.

The highest discount tier provides a 10% reduction, followed by 5% for the next tier, and 3% for the final tier. Additionally, if the sale reaches full subscription, all early bird participants will receive a 3% bonus on their token purchases.

Conclusion

Not to chip away from the argument of the complainants protesting every new L2 announcement, we truly need some decorum in the space. But we do think there is a need for open-mindedness.

Actual teams are building cool shit. Not every new L2 is an attempt to grift or dump secretly overbought rounds on unsuspecting retailers. Some are actually here to make an impact.

Superseed is clearly one of these few. Their approach to operating as an OP chain demonstrates a refreshing and creative perspective. It's not just clever, it's potentially groundbreaking.

Integrating an application layer (on-chain lending) that could propel everything built upon it forward smells like the real deal.

We are keen on how things progress with Superseed and we genuinely believe that they’ll do outstanding post the mainnet rollout.

For now, you can join in and participate in testnet activities and experience what the network feels like.