Berachain Ecosystem's Earnings "Gold Mining Guide"

The mainnet is about to launch. How can users efficiently and simply obtain the most BGT/BERA tokens on Berachain? This question is becoming a focus of attention for many users.

Berachain, with its on-chain liquidity "flywheel" designed based on the PoL( liquidity proof) mechanism, has become a highly anticipated emerging public chain. However, for ordinary users, from participating in pre-deposits to choosing applications, calculating yield strategies, and dynamically participating in governance votes, each step poses high demands on on-chain experience and operational capabilities. This inadvertently hinders most users from maximizing their opportunities to capture BERA, and currently, there are almost no available simplified tools in the market.

It is worth noting that the recently launched Berachain Vault product is designed to simplify the transition from Berachain's deposit activities to liquidity mining under the POL mechanism. Its aim is to help ordinary users easily participate in the Berachain ecosystem and seize early benefits through a one-stop service.

So, can this Vault product become the "express lane" for retail investors to participate in Berachain? This article will explore the potential and value of this product in reducing barriers and optimizing yield management, starting from the emerging ecological needs represented by Berachain, in conjunction with the core design of Berachain Vault.

Berachain: The "Flywheel" and "High Wall" Mechanism of POL

When it comes to Berachain, it is naturally inseparable from its core innovation point, the Proof-of-Liquidity ( POL ) mechanism. Users must provide liquidity to specific liquidity pools to earn the corresponding BGT (, a governance token that can be converted into BERA ) as a reward. The liquidity pools that can receive more BGT emissions are determined by votes from the validator nodes entrusted by BGT holders.

This mechanism bears an astonishing similarity to Curve's ve model. Berachain can be simply understood as a "public chain version of Curve", or rather, a public chain operating based on the ve model:

Under the POL mechanism, the voting of validation nodes directly affects the emission and distribution of BGT, which will undoubtedly greatly stimulate ecological projects to actively create various liquidity incentive programs in order to actively strive for more BGT emissions, forming an ecosystem similar to the "bribery" ecology on Curve.

Berachain integrates this logic deeply into the underlying architecture of the chain, forming a highly collaborative "community of interests" among users, verification nodes, and DApps:

Ideally, the interests of the validating nodes and the success of the DApps are aligned. The former is motivated to allocate more BGT to DApps with high transaction volumes and strong activity, while the DApps can attract more users to participate in the liquidity pools by increasing the incentive returns for LP users, resulting in more substantial profits for these high-transaction-volume pools.

As more users flock to liquidity pools due to high returns, the governance support of the DApp and the scale of liquidity further increase, thereby securing more BGT emission rights. This continuously expanding liquidity and governance weight not only strengthens the scale of the protocol but also attracts more users and funds into the ecosystem, gradually forming a strong positive flywheel.

But new problems arise, once the Berachain mainnet is launched, how should ordinary users judge and choose where to provide liquidity in order to maximize their returns?

Whether it's the selection of verification nodes, the choice of ecological projects, or the selection of liquidity pools, each layer of choice faces the need for in-depth research on dozens of options. This undoubtedly constitutes a "high wall" for participants.

Compared to Curve, the Berachain ecosystem undoubtedly needs a whole ecosystem project to serve users, among which the voting delegation platform and the one-stop yield platform will also be indispensable components on Berachain to address 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 a dynamic change, retail investors need to invest time and effort to track and study the dynamics of each project in order to make optimal choices.

• Disadvantages of scale effects: The liquidity contribution of individual retail investors is relatively small, making it difficult to compete with large funding projects or professional players in the process of competing for emission rights, and it is challenging to achieve scale effects through individual participation.

• Complexity of operation: Managing liquidity, participating in voting governance, and optimizing returns simultaneously presents a high barrier for ordinary users. A small mistake could lead to missing the best opportunities, for instance, failing to timely adjust voting direction or reallocating liquidity may directly affect overall returns.

Under this demand, the recently launched Berachain Vault has become the first one-stop Berachain liquidity provision product in the market.

Berachain Vault: One Deposit, Two Networks, Multiple Earnings

In the context of DeFi, a "Vault" is an automated investment strategy designed to simplify the user experience, where users only need to deposit assets, and the protocol can automatically execute a series of financial transactions to maximize returns through various strategy combinations. However, traditional Vault products, while providing convenient asset management, have noticeable limitations in terms of return appreciation and liquidity release.

On one hand, the assets that users usually deposit are non-yielding underlying native assets like ETH, which, despite having high market recognition, cannot generate returns directly; on the other hand, after depositing into the Vault, liquidity is often locked, making it difficult to utilize further, thus limiting the investment flexibility for users.

As stETH, pufETH, rzETH and other yield-bearing assets gradually become mainstream, Vault products have also evolved to support these assets with embedded yield logic, allowing them to not only capture basic yields from PoS staking but also to further maximize user returns through yield stacking strategies such as liquidity mining and lending.

This leads to further thinking: if, based on this, 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 possible to maximize the layering of returns?

Taking the newly launched Berachain Vault as an example, it is an innovative product that not only continues the asset management functions of the Vault but also, through the innovation of Vault + Vault LP Token, completely opens up all dimensions of multiple income for users.

• Wrap LP assets of Berachain Vault into interest-bearing assets: Allow users who want to participate in the Berachain ecosystem to deposit LP assets such as ETH, STONE, etc. ( for earning interest or non-interest ). After the Vault receives the assets, through liquidity mining and governance revenue strategies under the POL mechanism, the LP assets will be maximized in returns based on specific liquidity scenarios, and based on this, wrapped into interest-bearing Vault LP Tokens ( such as beraSTONE ).

• Based on the encapsulated yield-generating assets, a DeFi yield combination can be created: Subsequently, the Vault LP Token can be used across various mature DeFi infrastructures on Ethereum to achieve a completely new and unique parallel universe structure, where the source of yield comes from other chains such as Berachain while the leveraged activities for yield generation occur on the Ethereum mainnet. This structure takes advantage of the high yields of the new chain and the abundant funds and mature DeFi infrastructure of the Ethereum mainnet, thereby having the potential to become a new paradigm in the DeFi market.

In the design mechanism of the Vault, the wrapped Vault LP Token, like ETH, possesses top-level composability—it can participate in liquidity mining, collateralized lending, and even be split into PT and YT, further amplifying returns.

So if we go into detail, the real innovation of Berachain Vault lies in linking an asset through secondary utilization and deep release, connecting the emerging ecosystem of Berachain with the mature networks of Ethereum ( or other EVM chains ), creating a "multilevel yield" flywheel effect:

• Layer 1 earnings, PoS earnings from underlying interest-bearing assets: Users can deposit ETH to obtain STONE and other fully liquid assets across the chain, covering the underlying PoS earnings of ETH;

• Layer 2 earnings, POL earnings of the Berachain ecosystem: STONE deposited into the Berachain Vault, earning liquidity mining rewards under the POL mechanism of the Berachain ecosystem, and further encapsulating this layer of earnings as Vault LP Token ( such as beraSTONE );

• Third layer returns, diversified DeFi strategy returns on Ethereum: Vault LP Token in the form of beraSTONE can be further increased on Ethereum through strategies such as leverage and liquidity mining.

By combining the ecological characteristics of Berachain with the diversified on-chain yield scenarios of Ethereum, the Berachain Vault achieves multiple reuse of an asset from emerging markets to mature ecosystems, maximizing returns while fully unlocking liquidity potential, significantly enhancing the utilization efficiency of single assets, and bringing higher capital liquidity and market recognition to the Berachain ecosystem.

Through these two assets, users can not only obtain high BERA yields under the Berachain liquidity proof ( PoL ) mechanism, but also achieve yield stacking in mature ecosystems such as the Ethereum mainnet. More importantly, users can also lock in future governance tokens in advance by participating in the Vault.

It is worth noting that the current Berachain has not yet launched its mainnet, so the initial operation of the Berachain Vault will mainly target the Berachain pre-deposit protocol Boyco. The pre-deposit funds deployed to Boyco will not only earn direct BERA token rewards during the pre-deposit period but will also be mapped 1:1 to the mainnet, laying the foundation for comprehensive access to the future Berachain mainnet.

Once the Berachain mainnet is launched, the core functionality of Vault will switch to Berachain's POL system, providing users with a one-stop Berachain liquidity mining service.

This gradual deployment path not only reduces technological and operational risks but also provides early users with the opportunity to participate in the liquidity building of the Berachain ecosystem, allowing users to seize the liquidity advantage before the Berachain mainnet goes live and capture early liquidity mining rewards in the Boyco protocol.

Will Vault be a new solution for the emerging on-chain ecosystem?

From the perspective of Berachain, the Berachain Vault offers the earliest Berachain pre-deposit channel in the entire market, making it the preferred tool for seizing bonuses and maximizing returns.

Especially during the critical window period when the Berachain mainnet is about to launch and the mining mechanism is about to start, it can help ordinary users to lock in the early benefits of the new ecosystem without dealing with complicated technical operations, allowing retail investors to fairly participate in the ecological benefits of Berachain.

However, from a broader perspective of the emerging blockchain market, the significance of this product goes far beyond that. It not only provides Berachain with an innovative liquidity management solution, but also offers a completely new development approach for the entire emerging ecosystem—packaging the earnings of the emerging ecosystem into interest-generating 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 during cold starts or early stages of ecosystem development. The Vault products launched in collaboration with other projects have preliminarily validated the feasibility of this model, and this Berachain Vault can be seen as a further deepening of this model.

Its core value lies in allowing a user's asset to be reused across multiple ecosystems, maximizing returns while releasing liquidity potential.

• Lower the participation threshold for emerging ecosystems: Users can capture ecological dividends through Vault without complex operations, enabling more people to efficiently participate in local yield capture in ecosystems like Berachain, thereby achieving broader user coverage.

• Enhance the attractiveness of emerging ecological assets: Through the wrapping mechanism of the Vault LP Token, traditionally locked assets are transformed into liquid and yield-bearing assets on the Ethereum mainnet, which not only improves asset utilization efficiency but also enhances the attractiveness of emerging ecological assets.

• Connect to a mature network to enable value flow: After Vault encapsulation