Berachain's PoL mechanism is now live.
There are still many uncertainties in the macroeconomic environment, and the tariff policies implemented by Trump have further impacted many tech stocks in the U.S. Since the launch of the spot ETF, Bitcoin has transitioned from a niche asset to a focal point of traditional finance, indicating that the price movements of Bitcoin are increasingly influenced by macroeconomic factors.
The current market has been oscillating between 82,000 and 88,000 for two months, with no new narratives in the secondary altcoin market and a lack of continuity in the primary market. As investors, aside from taking a passive approach, we can also mine with our blue-chip coins and stablecoins to earn passive income, which is a good option.
The public chain Berachain, which has a built-in DeFi mechanism, has also launched the PoL liquidity proof mechanism, with yields exceeding 100% APY. Let's join WOO X Research to mine on Berachain!
How does PoL create a flywheel effect?
User provides liquidity: Users deposit assets into the dApp's liquidity pool, receive receipt tokens, and stake them in the reward pool to earn BGT, providing initial liquidity for the ecosystem;
Validator allocation: Validators direct BGT emissions to the reward pools with the highest returns based on the incentives provided by the dApp. As more BGT flows into popular pools, user yields increase, further incentivizing more users to join;
dApp competition: To attract BGT emissions from validators, dApps increase incentives (e.g., by increasing native token rewards), deepening liquidity;
User delegation: The BGT earned by users can be delegated to high-performing validators, enhancing these validators' block proposal weight, thus earning more sharing rewards and incentivizing validators to continuously optimize BGT allocation strategies, creating positive feedback;
Ecosystem expansion: As liquidity and user participation increase, trading volume and dApp usage rise, enhancing network value and attracting more users and developers, accelerating the flywheel effect.
This flywheel effect fosters a collaborative relationship among dApps, users, and validators, breaking the traditional issues of insufficient liquidity and uneven asset distribution in PoS.
Current PoL Reward Pool Overview
*Data may vary significantly; the data in the table is for reference only. For real-time data, please refer to the following website: https://furthermore.app/
Mining Strategies
Core blue-chip / LSD-focused "Stable Layout":
Core idea: Choose relatively core, deep, and moderately volatile asset combinations on Berachain, such as:
WBERA / LSD (e.g., iBERA, stBGT, beraETH, etc.)
WETH / LSD (weETH, ezETH, beraETH, etc.)
WBTC / Psychedelics
The intention is to:
Reduce the risk of severe price fluctuations (compared to small coins/Meme coins);
Enjoy better liquidity depth (official or large protocol resources often lean towards the LSD ecosystem);
Simultaneously "stack yields": Holding LSD itself already generates staking rewards, plus the BGT rewards from PoL.
Possible sources of income:
Liquidity mining (LP Rewards + PoL rewards)
Built-in yields from LSD (some LSD continuously accumulate staking rewards, increasing the value of your LSD holdings over time)
Protocol bribe sharing (if the protocol where the LSD is located actively bribes validators, the incentives will be higher)
Risks and considerations: The premium/discount issues between LSD tokens. For example, iBERA, beraETH, etc., may decouple.
Validator's commission and sharing system; you need to choose the right validators to receive mining rewards.
When the capital amount is too large or insufficient, consider the balance between the final annualized APR and gas and transaction costs.
Stablecoin / Stablecoin pairing "Low Volatility Strategy"
Core idea: Choose stablecoin pairs in stablecoin pools (e.g., USDa / sUSDa, rUSD / HONEY, or other trading pairs between stable assets) to reduce impermanent loss caused by price fluctuations.
Since there are multiple decentralized stablecoins (USDa, sUSDa, rUSD, USDbr, etc.) in the Berachain ecosystem, many protocols will bribe to attract more stablecoin TVL. The APR may not match high-volatility pools, but the assets themselves are relatively stable.
Possible sources of income:
PoL incentives (BGT emissions + protocol bribes)
Trading fee income (there can be significant trading volume between stablecoins, and fees are shared with liquidity providers)
Additional rewards or airdrops from the protocol (some protocols will airdrop governance tokens to stablecoin providers)
Risks and considerations:
Credit risk of the stablecoin itself: Ensure that the collateral mechanism, over-collateralization rate, or algorithmic mechanism of the stablecoin is reliable.
APR is usually relatively low; if you seek high returns, you may need to allocate some to other high APR pools.
Bribes are unstable: Protocols may initially spend heavily on bribes, but if mismanaged later, incentives can quickly decline.
High-risk Meme coins / Emerging token pools "High APR Short-term Strategy"
Core idea: Select newly launched or highly talked-about Meme coins/emerging tokens (e.g., HarryPotterObamaSonic10inu, BM, RAMEN, HOLD, etc.) and their trading pairs with WBERA, HONEY, BGT, or LSD. These small coin pools often exhibit exaggerated APRs in the thousands of percent.
Short-term mining and selling: Earn rewards in a high APR state and timely cash out into blue-chip assets (BERA, ETH, BTC, etc.) or stablecoins to avoid sudden price drops of the tokens later.
Possible sources of income:
PoL rewards: Since "new projects" often offer substantial bribes, guiding BGT emissions to their vaults.
Extremely high APR or airdrops: Attract users in the short term, and protocols usually provide additional token subsidies.
Risks and considerations:
Price volatility / Rug risk: Meme coins can experience explosive price increases and decreases in a short time; the security of new protocols has yet to be tested over time.
Impermanent loss: If an emerging token experiences significant price fluctuations, one side of the LP pool may fluctuate too much, potentially erasing most mining rewards.
Stay vigilant on data: Especially TVL, trading volume, and remaining protocol bribes, as these will affect the actual returns of the pool.
Conclusion: There are no absolutes in strategy; dynamic observation is key
The PoL mechanism in the Berachain ecosystem is essentially a "bribery competition among protocols." Protocols will offer various scales of bribes to attract more TVL and compete for BGT emissions; as market conditions and their own budgets adjust, APR can change rapidly.
The best strategy often lies not in "locking one pool and leaving it alone," but in "diversification + dynamic adjustment":
Allocate part of the funds to relatively stable LSD/blue-chip/stablecoin pools.
Allocate a small amount of funds to high-risk, high-volatility small coins or Meme pools, pursuing aggressive returns.
Regularly track the APRs of each pool, validator commissions, and protocol bribe trends to optimize mining returns in a timely manner.
Be sure to pay attention to security: risks of new protocol contracts, whether the token model is reasonable, team background, etc., all need thorough verification. The high APY brought by PoL may be enticing, but rug pulls or contract vulnerabilities also exist in early-stage projects.
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