Various ways to earn and play with BERA rewards.
Written by: 1912212.eth, Foresight News
Bitcoin stands above $100,000, and the altcoin market is heating up again. The emerging public chain Berachain token has been rising for three consecutive days from its bottom of $2.7, reaching as high as $4.7. If you have a portion of BERA that you don't plan to sell in the short term and want to earn higher returns, this article will help you explore ways to earn passively.
First, it's necessary to popularize Berachain's three native tokens again. BERA is the gas token used to pay transaction fees and is also the core asset for liquidity mining and staking. BGT is the governance token obtained by staking BERA or providing liquidity, used for participating in ecological governance and sharing protocol revenue.
BGT cannot be purchased or transferred in the market and can only be earned by providing liquidity. Users can exchange BGT for BERA at a 1:1 ratio, but this process is one-way, meaning BERA cannot be exchanged back to BGT. HONEY is the native stablecoin anchored to the US dollar, used to reduce market volatility risks, and commonly used in lending and yield optimization scenarios.
Interact with Infrared for Double Benefits
Infrared is a liquid staking protocol on Berachain. Official data shows its total TVL has risen above $900 million. In March this year, it completed a $16 million Series A funding round led by Framework Ventures, bringing its total funding to $18.75 million, with YZi Labs having participated in its investment in June 2024.
Infrared has currently launched a points program to incentivize user participation before token listing. The official statement suggests a token launch in Q3, so contributing to Infrared's liquidity proof vault, providing liquidity for key trading pairs on decentralized exchanges (such as Kodiak and BEX), and staking iBGT and iBERA can earn points and potentially receive official airdrops.
Infrared has customized wrapped tokens iBGT and iBERA for BGT and BERA to enhance market liquidity.
Participate in BERA or iBGT Staking
Users can directly stake BERA on the Infrared website, receiving its wrapped token iBERA. BERA is staked to the validator network, generating staking rewards. iBERA can be used for liquidity on decentralized exchanges, lending, or as collateral, continuing to earn staking rewards while generating other yields. It's worth noting that Infrared currently does not support unstaking, so users can only wait for the official function to be launched.
Official data shows that its staking TVL has risen to $340 million, with an annual rate of 4.8%. Binance's current savings product yields only around 3%.
BGT is a governance token that cannot be transferred or traded, but iBGT provides a more flexible and practical "liquid" version of BGT that can be freely bought and sold within the Berachain ecosystem.
Staking iBGT on Infrared earns rewards generated by the underlying BGT, distributed in HONEY. Additionally, users can add iBGT to liquidity pools on decentralized exchanges like Kodiak or use it for lending on platforms such as BeraBorrow, Gummi, and Dolomite.
Official data shows that iBGT's total TVL has reached $28.73 million, with an annual rate of 245%, including 9% distributed in HONEY and 236% in WBERA.
Build Liquidity Pools on Infrared
Building liquidity pools not only earns transaction fees but also generates significant interest income. For example, on DEXs like Kodiak and BEX, creating WBERA-iBERA pools yields over 50% annually. Moreover, participating on Infrared offers a 1.5x points multiplier. (https://infrared.finance/portfolio)
The base annual yield for this liquidity pool is 1.4%-2.26%, with a 50% annual yield distributed in iBGT.
In the management page, users can claim HONEY, WBERA, and iBGT periodically and then restake the rewards (such as staking iBGT rewards to earn HONEY and WBERA rewards).
When participating in liquidity pools, it's important to note that if the annual rate is extremely high but the TVL is low, the yield often quickly decreases as significant funds flow in.
Kodiak DEX Protocol Liquidity Pools
Kodiak is the DEX protocol in the Berachain ecosystem, with a current TVL of $538 million. (https://app.kodiak.finance/#/liquidity/pools?chain=Berachain_mainnet)
Users can earn significant returns through gradual liquidity pools, such as the iBGT-iBERA pool earning 1.04% in transaction fees and a 127.91% annual yield in HONEY. The iBERA-BERA pool has a 1.41% transaction fee yield, with a relatively lower HONEY yield of 44.76%.
Deposit BERA on Dolomite Lending Protocol
Berachain's lending protocol Dolomite has launched its native token, with the official website showing a lender's annual yield of 18.97%, allowing users to deposit and earn high iBGT returns. (https://app.dolomite.io/balances)
Additionally, for even higher returns, users can borrow HONEY at a 6.64% annual rate and then deposit it at a 9.62% annual yield, earning the difference.
