Unlocking liquidity for soulbound BGT! @stride_zone entering @berachain with stBGT. How? Why? And what does this mean for Berachads? Let’s dive in. 🧵👇

1/ First, let's do a basic overview of the tokenomics, as they're important to understand. Berachain's proof of liquidity flywheel is built on two tokens: - BERA token - BGT (Berachain Governance Token)

2/ Let's start with a brief look at BERA The responsibilities of the BERA token are to secure the chain, be used for gas, and decide which validator proposes the next block. - Higher BERA stake = higher odds to propose the next block. - The range of BERA tokens a validator… x.com/i/web/status/18864092691...

3/ Now let's dig into the BGT token, why it's soulbound, and how Stride makes it liquid. The BGT token determines how much BGT a validator can emit to a reward vault. A reward vault is essentially a smart contract where you can deposit a receipt token you receive when… x.com/i/web/status/18864092710...

4/ If a validator decides to emit BGT to a specific reward vault, he then emits BGT ranging from 1-5.25 and depends on whether the validator already emits BGT to other vaults. Everyone who has deposited the receipt token into these reward vaults receives BGT depending on their… x.com/i/web/status/18864092729...

5/ The BGT the user receives is soulbound, meaning it's not transferable. It can only be delegated to validators like us, or swapped 1:1 to BERA, no revers possible. The more a user delegates to a validator, the more BGT the validator can emit, which leads to more BGT a user… x.com/i/web/status/18864092752...

6/ But what if you want to do other things with your BGT, like borrowing assets against them, using other DeFi protocols, or selling them on the open market? This is where Stride steps in. They've built a solution to make exactly this possible. Stride will have their own reward… x.com/i/web/status/18864092772...

7/ Once you've earned or bought stBGT on the open market, you can pool it together with BERA and deposit this LP receipt token into the Stride vault to earn more stBGT. Additionally, Stride has a points program for specific pools, which provides additional rewards. You earn… x.com/i/web/status/18864092791...

8/ The third way to earn stBGT is via a single-asset reward vault. You can stake stBGT via Stride instead of LP-ing them. This approach gives you access to all staking rewards earned by the protocol. We anticipate that the APR might be higher for this because not everyone will… x.com/i/web/status/18864092811...

9/ In conclusion, stBGT offers the following benefits: - Potentially higher APR - BGT's scarcity means stBGT will likely trade at a premium to BERA, making earning stBGT via PoL more valuable than earning BGT. - Unlike BGT, stBGT is fully transferable and can be sold, LP-ed,… x.com/i/web/status/18864092831...

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