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Berps & Proof Of Liquidity

Proof-of-Liquidity (PoL) is Berachain's unique consensus mechanism, which revolves around the idea that putting liquidity to work is rewarded.

Berps is a native dApp in the Berachain ecosystem that support (PoL) by being one of a few dApps that are whitelisted to receive rewards in the form of Berachain Governance Token ($BGT).

In Berachain, this dApp whitelisting is whenever an address is added as a gauge, an option, for Validators to choose to direct their $BGT rewards / emissions to.

Berps & Proof Of Liquidity

More addresses can be added as gauges, as long as they are approved through governance.

Berps bHoney Vault & $BGT

Berps bHoney Vault & BGT

To qualify for earning $BGT with Berps, a user would need to deposit $HONEY into the bHoney Vault, to contribute to traders using the vault $HONEY for leverage, receive $bHONEY in exchange, and stake that $bHONEY.

In addition to any profits that would come for contributing to the vault in the form of $HONEY and staking the $bHONEY received, a staker can earn $BGT over time whenever a validator distributes emission to Berps and is divided by contribution percentage.

Withdrawing staked $HONEY requires a waiting period of 1-3 EPOCHs, and requires burning your $bHONEY in the process of withdrawing.

What Can You Do With $BGT?

Berps & BGT Uses

$BGT is used to delegate to validators to increase their weight for receiving $BGT rewards, can be burned for $BERA, or used for governance voting and proposals.

As a Berps vault staker, it would be advantageous to delegate $BGT to a validator that is already directing emissions to Berps to increase the $BGT rewards that vault staker would receive.

Learn more here about $BGT.