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 supports (PoL) by being one of a few dApps that are whitelisted to receive rewards in the form of Berachain Governance Token ($BGT).

In Berachain, a dApp is whitelisted whenever a Rewards Vault address is added as an option for Validators to choose to direct their $BGT emissions to.

More addresses can be whitelisted as Rewards Vaults, as long as they are approved through governance.

Berps bHoney Vault & $BGT

To qualify for earning $BGT with Berps, a user would need to deposit $HONEY into the Berps $bHoney Vault, which allows traders to create leveraged trades. Users will receive $bHONEY for their $HONEY deposit and can stake their $bHONEY to earn $BGT.

How much $BGT a $bHONEY staker earns over time is dependent on whenever a validator distributes emission to Berps and that validator's contribution percentage defined in their distribution contract Berachef.

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?

$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.