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$bHoney Vault ๐Ÿ”’ โ€‹

$bHoney Vault

The first $bHONEY was developed to bolster the Berps trading protocol.

The $bHONEY Vault operates in accordance with ERC-4626, a standard API for tokenized vaults that generate yield and represent shares of a single underlying ERC-20 asset. In this case, $bHONEY shares are indicative of the underlying HONEY asset.

This vault acts as the counterpart for all transactions on the platform:

  • Profits (positive PnL) earned by traders are paid out from the vault.
  • Losses (negative PnL) incurred by traders are transferred to the vault.

The vault obtains a share of the trading fees, which are evenly distributed among $bHONEY shares, providing an incentive for stakers to remain in the vault.

In scenarios where the overall PnL is negative, the vault begins to form a buffer with these funds, adding an extra layer of security for both the stakersโ€™ deposits and the protocol against unusual PnL fluctuations.

In scenarios where the overall PnL is positive, the stakers may incur a loss on their staked $HONEY.

To accurately gauge the real collateralization ratio and reduce risks for the protocol and stakers, the vault employs an epoch system.

Epoch System โ€‹

The epoch system delivers open PnL information to the vault in a decentralized way, aiding the vault in accurately determining its collateralization ratio. Performing real-time, on-chain computation of open PnL is possible due to Berachainโ€™s on-chain oracle system, Slinky.

This system operates in one distinct phase:

  • Withdraw Window - Stakers are allowed to engage in withdrawal-related activities, including both requests and actual withdrawals.

Withdraw Locks โ€‹

To safeguard the vault and avert the possibility of stakers preempting PnL fluctuations, immediate withdrawal of HONEY is not feasible. It must instead pass through a withdrawal request system.

The timeline for a staker to withdraw their HONEY depends on the vault's collateralization ratio. A staker may be able to withdraw after 1, 2, or 3 epochs following their request, with a higher collateralization ratio allowing for a shorter waiting period.

Should a staker fail to utilize their withdrawal window, they are required to submit a new request.