Written by: Web3 Farmer Frank
The mainnet is about to be launched, how can I easily and effortlessly capture the most BGT/BERA on the Berachain?
With the successive launch of tokens such as Movement and Fuel, Berachain, relying on the on-chain liquidity "flywheel" designed based on the PoL (Proof of Liquidity) mechanism, has become one of the few emerging public chains that still receive widespread attention. However, for ordinary users, this has also built a "high wall" for participation:
From how to participate in the Boyco pre-deposit to the selection of DApps, the calculation of yield strategies, and the dynamic participation in governance voting, each step requires a higher level of on-chain experience and operational capabilities, which has hindered the majority of users from maximizing the capture of BERA, and there are currently almost no available simplified tools.
Interestingly, StakeStone has just launched the market's first one-stop Berachain liquidity provision product "Berachain Vault", which is designed to simplify the process from Berachain pre-deposit activities to liquidity mining (Yield Farming) under the POL mechanism, aiming to help ordinary users easily participate in the Berachain ecosystem and seize the early benefits through a one-stop nanny service.
Can this Vault product become a "fast track" for retail investors to participate in Berachain? This article will start from the demand of the emerging Berachain ecosystem, combined with the core design of the StakeStone Berachain Vault, to explore the potential and value of this product in lowering the threshold and optimizing yield management.
Berachain: The "Flywheel" and "High Wall" of the POL Mechanism
When it comes to Berachain, its core innovation point, the Proof-of-Liquidity (POL) mechanism, is inseparable. Users must provide liquidity to specific liquidity pools to receive corresponding BGT (a governance token that can be converted to BERA) rewards. And which liquidity pools can receive more BGT emissions are determined by the voting of the validator nodes delegated by BGT holders.
Doesn't it sound familiar? If we replace Berachain with Curve, the POL mechanism with the ve model, and BGT with CRV, the two have surprisingly similar operating logic - on Curve, CRV holders can obtain veCRV with voting weights based on different lock-up periods. The obtained veCRV with voting weights can then be used to vote and determine which trading pair pools can receive the subsequent CRV token emissions. In other words, Berachain can be simply understood as a "public chain version of Curve", or a public chain operating based on the ve model:
Under the POL mechanism, the voting of the validator nodes directly affects the emission and distribution of BGT, which will undoubtedly greatly stimulate the ecosystem projects to actively create various liquidity incentive programs to actively compete for more BGT emissions, forming a "vote-buying" ecosystem similar to Curve.
However, Berachain has embedded this logic into the underlying architecture of the chain, forming a highly collaborative "community of shared interests" between users, validator nodes, and DApps:
Ideally, the success or failure of the validator nodes and DApps is in the same interest, as the former have the motivation to allocate more BGT emissions to DApps with high trading volume and high activity, and the DApps will then increase the incentive rewards for LP users to attract more users to participate in the liquidity pools, generating more substantial returns for these high-volume pools.
As more users flock to the liquidity pools due to the high returns, the governance support and liquidity scale of the DApps will further increase, allowing them to secure more BGT emission rights. This continuous expansion of liquidity and governance weight not only strengthens the protocol scale, but also in turn attracts more users and capital into the ecosystem, gradually forming a powerful positive flywheel.
But new problems also arise, once the Berachain mainnet is launched, how can ordinary users judge and choose where to provide liquidity to maximize their returns?
Whether it's the choice of validator nodes, the choice of ecosystem projects, or the choice of liquidity pools, each layer of choice requires in-depth research on dozens of options. This undoubtedly constitutes a "high wall" for participants.
Compared to Curve, the Berachain ecosystem also undoubtedly needs a whole ecosystem of projects to support users, among which the voting delegation platform Convex and the one-stop yield platform yearn.finance will also be indispensable components in Berachain to solve the core pain points of ordinary users.
Typical user dilemmas include:
- Information asymmetry: The yield situation and governance weight distribution of different DApps/liquidity pools are in dynamic change, and retail investors need to invest effort and time to track and research the dynamics of each project in order to make the optimal choice;
- Disadvantage of scale effect: The liquidity contribution of individual retail investors is relatively small, and it is difficult for them to compete with large-scale capital projects or professional players in the process of competing for emission rights, making it difficult to obtain scale effects through individual participation;
- Operational complexity: To simultaneously manage liquidity, participate in governance voting, and optimize yields, the threshold is relatively high for ordinary users, and even a slight mistake may miss the best opportunities, such as failing to adjust the voting direction or reallocate liquidity in a timely manner, which can directly affect the overall returns.
In response to this demand, the cross-chain liquidity asset protocol StakeStone has launched an innovative product Berachain Vault designed specifically for the Berachain ecosystem, becoming the earliest one-stop Berachain mining service platform officially launched by Berachain.
StakeStone Berachain Vault: One-time Deposit, Two Networks, Multi-dimensional Yields
In the context of DeFi, a "Vault" is an automated investment strategy aimed at simplifying the user experience, where users only need to deposit assets and the protocol will automatically execute a series of financial transactions to maximize returns. However, traditional Vault products, while providing convenient asset management, have obvious limitations in terms of yield enhancement and liquidity release.
On the one hand, the assets deposited are usually non-interest-bearing native assets like ETH, which, although highly recognized by the market, cannot directly generate yields; on the other hand, the liquidity deposited in the Vault is often locked, making it difficult to further utilize, limiting the investment flexibility of users.
As interest-bearing assets like stETH, pufETH, and rzETH have gradually become mainstream, Vault products have also evolved, beginning to support these embedded yield logic assets, allowing them to not only capture the basic yields of PoS staking, but also further stack yields through liquidity mining, lending, and other composite strategies to maximize the investment returns of users.
Then, extending the thought, if on this basis, the liquidity locked in the Vault is also released in the form of Vault LP Tokens, and allowed to participate in various DeFi yield scenarios, wouldn't it be able to stack multiple layers of yields to the extreme?
Taking the Berachain StakeStone Vault launched this time as an example, it is precisely such an innovative product. Not only does it continue the asset management function of the Vault, but also through the innovation of Vault + Vault LP Token, it has completely opened up all dimensions of multi-dimensional yields for users:
- Encapsulate the LP assets of the Berachain Vault into interest-bearing assets: It allows users who want to participate in the Berachain ecosystem to deposit ETH, STONE, and other LP assets (interest-bearing or non-interest-bearing). After receiving the assets, the Vault will, through the liquidity mining and governance yield strategies under the POL mechanism, maximize the returns of the LP assets for specific liquidity scenarios, and then encapsulate them into Vault LP Tokens (such as beraSTONE) with interest-bearing capabilities.
- Further stack DeFi yields based on the encapsulated interest-bearing assets: Subsequently, the Vault LP Tokens can be used for various mature DeFi infrastructure on the Ethereum mainnet, to realize a brand new unique parallel universe structure, where the source of yields is on chains like Berachain, while the financing activities for the yielding operations occur on the Ethereum mainnet. This structure combines the advantages of high yields on new chains and abundant capital as well as mature DeFi infrastructure on the Ethereum mainnet, and has the potential to become a new paradigm in the DeFi market.
In the design mechanism of Stakestone, the encapsulated Vault LP Tokens, like ETH, have top-notch composability - they can participate in Uniswap liquidity mining, Aave/Morpho collateral lending, and even be decomposed into PT and YT on Pendle, etc., further amplifying the returns.
Here is the English translation of the text, with the specified terms retained and not translated:So if you look closely, the real innovation of the StakeStone Berachain Vault lies in the fact that by re-utilizing and deeply releasing an asset, it connects the emerging Berachain ecosystem and the mature Ethereum (or other EVM chain) network, forming a "multi-level yield" flywheel effect:
- First-layer yield, the PoS yield of the underlying interest-bearing assets: Users can deposit ETH to obtain STONE and other cross-chain liquid assets, covering the underlying PoS yield of ETH;
- Second-layer yield, the POL yield of the Berachain ecosystem: STONE deposited in the StakeStone Berachain Vault earns liquidity mining rewards under the POL mechanism in the Berachain ecosystem, and further encapsulates this layer of yield as Vault LP Token (such as beraSTONE);
- Third-layer yield, the diversified DeFi strategy yield on Ethereum: The Vault LP Token in the form of beraSTONE can be further leveraged and earn liquidity mining rewards on Ethereum through various strategies.
In this way, by combining the ecosystem characteristics of Berachain and the diverse on-chain yield scenarios of Ethereum, the StakeStone Berachain Vault realizes the multi-use of an asset from the emerging market to the mature ecosystem, maximizing the yield while also fully releasing the liquidity potential, significantly improving the utilization efficiency of a single asset, and also bringing higher capital liquidity and market recognition to the Berachain ecosystem.
Through these two assets, users not only can obtain the high BERA rewards under the Berachain PoL mechanism, but also can achieve yield stacking in mature ecosystems such as the Ethereum mainnet. More importantly, users can also pre-lock the future governance token STO by participating in the StakeStone Vault:
During the event, users can participate in the 15 million STO reward pool by holding or using beraSTONE and beraSBTC, which includes 8.25 million Bera-Wave points rewards (distributed in the form of points, settled at TGE) and 4 million STO additional rewards during the Boyco event; in addition, the first 10,000 early bird users (depositing ≥0.042 ETH or ≥0.0015 BTC) will also receive an extra 150 STO incentive each.
1. Basic Points Rules:
- Holding 1 beraSTONE can earn 1 point per hour;
- Holding 1 beraSBTC can earn 25 points per hour (points accumulate hourly, no additional operation required);
2. DeFi Acceleration Rewards - Depositing beraSTONE or beraSBTC into the following DeFi protocols can significantly increase the points accumulation rate:
- Providing liquidity on Uniswap: 5x the base points reward.
- Precise liquidity range (±0.1%): When the liquidity range is maintained within ±0.1% of the current price, you can get 6x the base points reward (requires continuous activity).
- More protocol support: Pendle, Morpho and other protocols will be launched in the future, providing more reward opportunities and further increasing the points earnings.
In general, these rewards cover the Berachain PoL, Boyco protocol and future ecosystem earnings, as well as the future token airdrops of StakeStone, which can be described as "catching multiple fish with one net", providing users with comprehensive participation opportunities in Berachain & StakeStone, and the specific operation process is also very simple:
1. Enter the StakeStone Vault interface, click "Deposit" to enter the StakeStone Berachain Vault interface.
2. Connect your wallet in the top right corner.
3. Enter the referral code to get a 10% points boost reward (you can use 91852), share your personal referral code on Twitter to get more commission rewards (20%).
4. Deposit ETH/STONE/WETH to get beraSTONE; deposit SBTC/WBTC/cbBTC/BTCB to get beraSBTC (not yet enabled), holding beraSTONE or beraSBTC can earn points.
5. Participate in DeFi protocols to get more rewards.
It is worth noting that the Berachain mainnet has not yet been launched, so the initial operation of the StakeStone Berachain Vault will mainly focus on the Berachain pre-deposit protocol Boyco. The pre-deposit funds deployed to Boyco, in addition to obtaining the direct BERA token rewards during the pre-deposit period, will also be 1:1 mapped to the mainnet, laying the foundation for the full integration into the future Berachain mainnet.
Once the Berachain mainnet is launched, the core function of the Vault will switch to the POL system on the Berachain mainnet, providing users with a one-stop Berachain liquidity mining service.
This progressive deployment path not only reduces technical and operational risks, but also provides early users with the opportunity to participate in the construction of Berachain ecosystem liquidity, allowing users to seize the liquidity mining rewards in the Boyco protocol even before the Berachain mainnet is launched.
Will the StakeStone Vault be a new solution for the emerging on-chain ecosystem?
From the perspective of Berachain alone, the Berachain StakeStone Vault provides the earliest pre-deposit channel for Berachain, which is the preferred tool for capturing dividends and maximizing returns.
Especially in the critical window period when the Berachain mainnet is about to be launched and the mining mechanism is about to be activated, it can help ordinary users lock in the early dividends of the new ecosystem without facing complex technical operations, allowing retail investors to fairly participate in the ecosystem earnings of Berachain.
However, from a broader perspective of the emerging blockchain market, the significance of this product goes far beyond this. It not only provides Berachain with an innovative liquidity management solution, but also provides a new development path for the entire emerging ecosystem - encapsulating the earnings of the emerging ecosystem as interest-bearing assets and connecting them with more mature mainnet infrastructure, thereby becoming an important channel for cross-ecosystem liquidity and yield management.
This mechanism is particularly suitable for emerging markets such as Berachain and Movement, as they often face challenges such as insufficient liquidity and incomplete infrastructure in the cold start or early stage of ecosystem development. The Vault products previously launched by StakeStone in collaboration with Plume have already preliminarily verified the feasibility of this model, and this StakeStone Berachain Vault is a further deepening of this model.
Its core value lies in allowing users' assets to be repeatedly utilized across multiple ecosystems, maximizing returns while also releasing liquidity potential:
- Lowering the participation threshold for emerging ecosystems: Users can capture the ecological dividends of Berachain and other ecosystems through Vault without complex operations, allowing more people to efficiently participate in the local yield capture of these ecosystems, thereby achieving broader user coverage;
- Enhancing the attractiveness of emerging ecosystem assets: Through the encapsulation mechanism of Vault LP Token, traditionally locked-in assets are transformed into Ethereum mainnet interest-bearing assets with liquidity and yield capabilities, which not only improves asset utilization efficiency, but also enhances the attractiveness of emerging ecosystem assets;
- Connecting mature networks to achieve value flow: The interest-bearing assets (beraSTONE) encapsulated by Vault can be seamlessly integrated into mature financial infrastructure such as the Ethereum mainnet, with asset yields further amplified, while the Berachain ecosystem can also establish deeper synergistic relationships with the global DeFi market;
This means that the Stakestone Vault product can not only capture the local yields of emerging ecosystems, but also transform LP and other assets into interest-bearing assets with higher financial attributes, and access the more abundant and mature liquidity markets such as Ethereum in the form of structured products, thereby improving capital efficiency.
The complexity of Berachain's POL mechanism and the initial management demand make it the best test bed for the StakeStone Vault model. The Vault mechanism not only effectively solves the liquidity bottleneck in Berachain's cold start phase, but also injects more application scenarios and yield paths into its ecosystem assets:
On the one hand, the automated strategies within the Vault help users efficiently capture local yields such as liquidity mining and governance rewards; on the other hand, the encapsulated interest-bearing assets can participate in more mature ecological multi-level yield scenarios, such as Uniswap's liquidity mining, Aave's collateralized lending, and even Pendle's yield splitting.
This mechanism not only enhances the compound ability of asset yields, but also promotes the acceptance and recognition of emerging ecosystems like Berachain. As more and more emerging ecosystems emerge, the demand of users for asset yields and capital efficiency in these ecosystems will undoubtedly become more complex, which means that the innovative mechanism of StakeStone Vault actually provides a dynamically adaptive asset management approach, allowing it to develop different types of yield stacking and secondary utilization based on any emerging ecosystem, further improving investment returns.
Within this framework, StakeStone Vault is not only an efficient asset management tool, but also an important bridge connecting emerging ecosystems to mainstream blockchain ecosystems.
Conclusion
Whether in traditional finance or the DeFi world, improving capital efficiency has always been the ultimate pursuit of all players.
For on-chain yield products, how to simply and safely maximize yields and fully utilize every penny can also be seen as the eternal "muse" of the market. From this perspective, the StakeStone Berachain Vault and the underlying Stakestone Vault product structure actually provide a very interesting new paradigm for emerging public chains:
By using the Vault with embedded multi-layer yield paths as a bridge, on one hand it simplifies the user participation threshold and enhances the attractiveness to external capital, and on the other hand it packages the local yields within the ecosystem into a liquid interest-bearing asset, thereby realizing the seamless integration of local yield opportunities and the mainstream on-chain DeFi market, exploring a more ideal startup and long-term growth path for the entire emerging ecosystem.
In the future, whether this model can become a universal solution for emerging ecosystems, or even grow into a chain finance narrative of hundreds of billions of dollars, remains to be seen, but the vision and practice of StakeStone Berachain Vault may be one of the best paths to approach the answer.
