Written by: Web3 Farmer Frank
With the mainnet launch imminent, how to simply and effortlessly capture the maximum BGT/BERA on Berachain?
With the launch of tokens like Movement and Fuel, Berachain has become one of the few emerging public chains still receiving significant attention, relying on the on-chain liquidity 'flywheel' designed based on the PoL (Proof of Liquidity) mechanism. However, this also creates a 'high wall' for ordinary users to participate.
From how to participate in the Boyco pre-deposit to selecting DApps, calculating yield strategies, and dynamically participating in governance voting, each step requires a high level of on-chain experience and operational capability, hindering the vast majority of users from maximizing their opportunities to capture BERA. Currently, there are almost no available simplification tools.
It is worth noting that StakeStone has just launched the market's first one-stop Berachain liquidity provision product 'Berachain Vault', specifically designed to simplify the transition from Berachain pre-deposit activities to liquidity mining (Yield Farming) under the POL mechanism. Its aim is to help ordinary users easily participate in the Berachain ecosystem and seize early dividends through a one-stop service.
Could this Vault product become a 'fast track' for retail investors to participate in Berachain? This article will explore the potential and value of this product in lowering thresholds and optimizing yield management, starting from the needs of emerging ecosystems represented by Berachain and combining it with the core design of StakeStone Berachain Vault.
Berachain: The 'flywheel' and 'high wall' of the POL mechanism
When it comes to Berachain, one cannot help but mention its core innovation point, the Proof-of-Liquidity (POL) mechanism, which requires users to provide liquidity to specific liquidity pools to receive corresponding BGT (a governance token that can be converted into BERA) rewards. The liquidity pools that can receive more BGT emissions are determined by votes from validator nodes entrusted 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 operational logic of the two is remarkably similar—on Curve, CRV holders obtain veCRV with voting weight through different locking periods. The veCRV with voting weight can then be used to vote on which trading pairs can receive subsequent emissions of CRV tokens. 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 validator nodes directly affects the emission and distribution of BGT, which will undoubtedly greatly stimulate ecological projects to actively create various liquidity incentive plans to strive for more BGT emissions, forming a 'bribery' ecology similar to that on Curve.
However, Berachain has deeply integrated this logic into the blockchain's underlying architecture, forming a highly collaborative 'interest community' among users, validator nodes, and DApps.
Ideally, the success of validator nodes and DApps aligns with each other's interests. The former is motivated to allocate more BGT emissions to DApps with high trading volumes and strong activity, while DApps can attract more users to participate in liquidity pools by increasing incentives for LP users, thereby generating more considerable yields from these high-volume pools.
As more users flood into liquidity pools due to high returns, the governance support and liquidity scale of the DApp are further enhanced, striving for more BGT emission rights. This ongoing increase in 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 goes live, how should ordinary users judge and choose where to provide liquidity to maximize their returns?
Whether it's the selection of validator nodes, the selection 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 constructs a 'high wall' for participants.
Compared to Curve, the Berachain ecosystem undoubtedly also needs a whole ecosystem of projects to support user services, among which the voting delegation platform Convex and the one-stop yield platform Yearn.finance will also be indispensable components in solving the core pain points of ordinary users on Berachain.
Typical user dilemmas include:
Information asymmetry: The yield situation and governance weight distribution of different DApp/liquidity pools are in dynamic flux, and retail investors need to invest effort and time to track and research each project's dynamics to make optimal choices;
Scale effect disadvantage: The liquidity contribution of a single retail investor is small, making it difficult to compete with larger projects or professional players for emission rights, and it is challenging to achieve scale effects through individual participation.
Operational complexity: Managing liquidity, participating in governance voting, and optimizing yields simultaneously presents a high barrier for ordinary users. A small mistake can lead to missed opportunities, such as failing to timely adjust voting directions or reallocate liquidity, which can directly affect overall returns.
In response to this demand, the full-chain liquidity asset protocol StakeStone has launched the innovative product Berachain Vault, specifically designed for the Berachain ecosystem, becoming the earliest one-stop Berachain mining service platform officially recommended by Berachain.
StakeStone Berachain Vault: One deposit, two networks, multiple yields
In the context of DeFi, a 'Vault' is an automated investment strategy aimed at simplifying the user experience. 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 obvious limitations in yield appreciation and liquidity release.
On the one hand, the assets deposited by users are generally non-yielding underlying native assets like ETH, which, despite having high market recognition, do not directly generate yields. On the other hand, liquidity is often locked after being deposited into the Vault, making further utilization difficult and limiting users' investment flexibility.
As stETH, pufETH, rzETH, and other interest-bearing assets gradually become mainstream, Vault products have also evolved to support these assets with embedded yield logic, enabling them to capture basic yields such as PoS staking and further enhance returns through liquidity mining, lending, and other combination strategies.
This leads to further thoughts: if, based on this, the liquidity locked in the Vault is also released in the form of Vault LP Token and allowed to participate in various DeFi yield scenarios, wouldn't that maximize multi-layer yields to the extreme?
Taking the recently launched Berachain StakeStone Vault as an example, it is such an innovative product that not only continues the asset management function of the Vault but also opens up all dimensions of multi-layer yields for users through the innovation of Vault + Vault LP Token.
Encapsulating the LP assets of Berachain Vault as interest-bearing assets: Users wishing to participate in the Berachain ecosystem gold rush can deposit LP assets (interest-bearing or non-interest-bearing) such as ETH and STONE. After the Vault receives the assets, it will maximize returns by implementing liquidity mining and governance reward strategies under the POL mechanism for specific liquidity scenarios, and based on this, encapsulate them into interest-bearing Vault LP Tokens (such as beraSTONE).
Then conduct DeFi yield combinations based on the encapsulated interest-bearing assets: Subsequently, Vault LP Tokens can be used in various mature DeFi infrastructures on Ethereum, creating a unique parallel universe structure: the yield source exists on Berachain and other chains, while the financing activity for the yield takes place on the Ethereum mainnet. This structure simultaneously takes advantage of the high yields of the new chain and the abundant funds and mature DeFi infrastructure of the Ethereum mainnet, thus having the potential to become a new paradigm in the DeFi market.
In the design mechanism of Stakestone, the encapsulated Vault LP Token has top-tier composability just like ETH—it can participate in Uniswap liquidity mining, Aave/Morpho collateral lending, or even be split into PT and YT in Pendle, further amplifying returns.
So if you delve deeper, the real innovation of StakeStone Berachain Vault lies in linking an asset through secondary utilization and deep release, connecting the emerging ecosystem of Berachain with Ethereum (or other EVM chains) mature networks, forming a 'multi-layer yield' flywheel effect:
First layer yield, PoS yield from underlying interest-bearing assets: Users can deposit ETH to obtain STONE and other full-chain liquidity assets, covering the underlying PoS yield of ETH;
Second layer yield, POL yield in the Berachain ecosystem: STONE deposited into StakeStone Berachain Vault to obtain liquidity mining rewards under the POL mechanism in the Berachain ecosystem and further encapsulate this layer's yield into Vault LP Token (such as beraSTONE);
Third layer yield, diversified DeFi strategy yield on Ethereum: Vault LP Token in the form of beraSTONE can further increase revenue on Ethereum through strategies such as leverage and liquidity mining;
Thus, by combining the ecological characteristics of Berachain with the diverse on-chain yield scenarios of Ethereum, StakeStone Berachain Vault achieves multiple reuses of an asset from emerging markets to mature ecosystems, maximizing yields while thoroughly releasing liquidity potential, significantly enhancing the utilization efficiency of a single asset, and bringing higher capital liquidity and market recognition to the Berachain ecosystem.
Through these two assets, users can not only obtain high BERA returns under the Berachain liquidity proof (PoL) mechanism but also achieve yield stacking in mature ecosystems such as the Ethereum mainnet. More importantly, users can lock in future governance token STO by participating in StakeStone Vault:
During the event, users who hold or use beraSTONE and beraSBTC can participate in a total reward pool of 15 million STO, including 8.25 million Bera-Wave points rewards (distributed in points form, settled at TGE) and an additional 4 million STO rewards during the Boyco event. Additionally, the first 10,000 early bird users (depositing ≥0.042 ETH or ≥0.0015 BTC) will receive an additional incentive of 150 STO each.
So how to earn Bera-Wave points? Mainly divided into basic points rules + DeFi acceleration rewards (the recommendation reward mechanism can be seen in the specific process below):
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—investing beraSTONE or beraSBTC into the following DeFi protocols can significantly increase points accumulation speed:
Uniswap provides liquidity: 5 times the base points reward.
Precise liquidity range (±0.1%): When the liquidity range is maintained within the current price ±0.1%, a 6 times reward of base points can be obtained (active participation required).
More protocol support: Pendle, Morpho, and other protocols will go live in the future, providing more reward opportunities and further enhancing point earnings.
Overall, these rewards cover Berachain PoL, Boyco protocol, and future ecological yields, as well as future token airdrops from StakeStone, providing users with comprehensive participation opportunities in Berachain & StakeStone. The specific operation process is also very simple:
1. Enter the StakeStone Vault interface and click 'Deposit' to access the StakeStone Berachain Vault interface.
2. Connect the wallet in the upper right corner.
3. Enter the invitation code to receive a 10% points boost reward (you can fill in 91852), share your personal invitation code on Twitter to receive more commission rewards (20%)
4. Deposit ETH/STONE/WETH to receive beraSTONE; deposit SBTC/WBTC/cbBTC/BTCB to receive beraSBTC (not yet opened). Holding beraSTONE or beraSBTC can earn points.
Only Ethereum mainnet assets are acceptable; if not, please click 'Switch Network' to switch to the Ethereum mainnet;
Select the asset to deposit on the left, enter the amount, and then click the 'Deposit' button to confirm in the wallet;
5. Participate in DeFi protocols to obtain more rewards.
It is worth noting that the current Berachain has not yet launched its mainnet, so the initial operation of the StakeStone Berachain Vault will mainly focus on the Berachain pre-deposit protocol Boyco. The pre-deposit funds deployed into Boyco can not only obtain 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 goes live, the core functionality of the Vault will switch to the POL system of the Berachain mainnet, providing users with a one-stop Berachain liquidity mining service.
This gradual deployment path not only reduces technical and operational risks but also provides early users with the opportunity to participate in the liquidity construction of the Berachain ecosystem, allowing users to seize liquidity opportunities before the Berachain mainnet goes live and capture early liquidity mining returns in the Boyco protocol.
Will StakeStone Vault be a new solution for emerging ecosystems on-chain?
From Berachain's perspective alone, the Berachain StakeStone Vault provides the earliest Berachain pre-deposit channel in the market, making it the preferred tool for seizing dividends 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 lock in the early dividends of the new ecosystem without facing complex technical operations, allowing retail investors to fairly participate in the ecological yields 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 an entirely new development idea for the entire emerging ecosystem—encapsulating the yield of emerging ecosystems as interest-bearing assets and connecting them with more mature mainnet infrastructure, thus becoming an important pipeline for cross-ecosystem liquidity and yield management.
This mechanism is particularly applicable to emerging markets like Berachain and Movement, as they often face challenges such as liquidity shortages and insufficient infrastructure during cold starts or early ecological development. The Vault product previously launched in collaboration with Plume has preliminarily validated the feasibility of this model. The StakeStone 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 yields while releasing liquidity potential:
Lowering the participation threshold for emerging ecosystems: Users can capture ecological dividends through the Vault without complex operations, allowing more people to efficiently participate in the local yield capture of ecosystems like Berachain, achieving broader user coverage.
Enhancing the attractiveness of emerging ecosystem assets: Through the encapsulation mechanism of Vault LP Tokens, traditionally locked assets can be transformed into liquid and yield-generating Ethereum mainnet interest-bearing assets, not only improving asset utilization efficiency but also enhancing the appeal of emerging ecosystem assets.
Connecting mature networks to enable value flow: The interest-bearing assets (beraSTONE) encapsulated by the Vault can seamlessly connect to mature financial infrastructures such as the Ethereum mainnet, further amplifying asset yields while the Berachain ecosystem can establish deeper collaborative relationships with the global DeFi market.
This means that the Stakestone Vault product can not only capture local yields of emerging ecosystems but also, by encapsulating assets such as LP into interest-bearing assets, enables them to possess higher-dimensional financial attributes, accessing more abundant and mature liquidity markets like Ethereum in a structured product form, enhancing capital efficiency.
The complexity of Berachain's POL mechanism and initial asset management needs makes it the best testing ground for the StakeStone Vault model. The Vault mechanism effectively addresses the liquidity bottleneck in the cold start phase of Berachain while injecting more application scenarios and yield paths into its ecological assets.
On 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 ecosystems' multi-layer yield scenarios, such as liquidity mining on Uniswap, collateralized lending on Aave, or even yield splitting on Pendle.
This mechanism not only enhances the compounding ability of asset yields but also promotes the acceptance and recognition of emerging ecosystems like Berachain. As more emerging ecosystems develop, users' demand for asset yields and capital efficiency in these ecosystems will undoubtedly become increasingly complex. This means that the innovative mechanism of StakeStone Vault actually provides a dynamically adaptable asset management approach, allowing it to develop different asset types' yield stacking and secondary utilization based on any emerging ecosystem, further enhancing investment returns.
Within this framework, StakeStone Vault is not only an efficient asset management tool but also an important bridge connecting emerging ecosystems with mainstream blockchain ecosystems.
Conclusion
Whether in traditional finance or the DeFi world, enhancing capital efficiency has always been the ultimate pursuit of all players.
For on-chain yield products, how to simply and safely achieve maximum yields and make every dollar work to its fullest can also be seen as the eternal 'muse' of the market. From this perspective, the StakeStone Berachain Vault and its underlying StakeStone Vault product structure actually provide a very interesting new paradigm for emerging public chains:
By using the Vault with multiple embedded yield paths as a bridge, it simplifies user participation thresholds, enhances the attractiveness of external funds, and packages the yields within the ecosystem into a liquid interest-bearing asset, thereby achieving seamless integration of local yield opportunities with mainstream on-chain DeFi markets, exploring a more ideal launch 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 multi-billion dollar scale on-chain financial narrative, still needs time to test. However, the vision and practice of StakeStone Berachain Vault may be one of the best paths to get closer to the answer.
