<Bread New Platform: Only Rise, Not Fall Model>Closing //Suggested reading time: 15 minutes 🌞 What is Baker DAO? BakerDao is a new platform jointly launched by Koida/Yeet/OHM. Currently, on Berachain, the idea is obtained from Egg Finance. However, through Berachain's 3-coin model and pOL mechanism, there are more choices and nesting opportunities. Focus on the key points and only rise without falling Tl; dr Sichuan pepper conclusion: 🌞 How to participate? 1. Deposit BERA into pre deposited vaults (Senior/Junior/Public Vaults stage) to compete for low-priced BREAD 2. Lock the BREAD/OHM LP pool and earn BERA/OHM/YEET (currently not available, I guess I need to collaborate with nesting partners to provide higher incentives) 🌞 Optimal strategy (3:3): -Grab Senior Vault (hold 69xKDK/stake 6900YEET) or Junior Vault (0.69gOHM/169000BM) and lock in the first batch of BREAD -Grab the primary vault/public vault. If you can't get the guaranteed profit, it's gone. Don't play anymore, see if there are any fools who sell at a ratio below 1:1.07 🌞 Why is the Up Only model different from the Sonic ecosystem? 1. Unilateral growth of reserve pool (all casting/destruction/lending fees added to BERA support) The maximum loss is only 5.38% (BERA handling fee), not in US dollars but in BERA 2. Berachain PoL flywheel support, deep liquidity+governance synergy 🌞 The gameplay design of Baker DAO (translated by Deepseek) Casting and Destruction: 1. Baking BREAD: Users can cast BREAD by depositing BERA. 2. Destruction of BREAD: Users can destroy BREAD to redeem BERA. Cost mechanism: Both casting and destruction are charged (with the main portion being injected into BREAD's BERA reserve pool) Lending and leverage: Mortgage lending: Users can use BREAD as collateral to borrow BERA at a LTV rate of 99%. One click leverage: offering leverage operations with a low casting fee of 1.25% and an annualized interest rate of 6.9% Anti robot technology: Pre deposited vault: By implementing a white name single machine system, users can mint BREAD at the same price in the same vault, avoiding panic attacks or sandwich attacks. Dynamic supply: The initial BREAD supply is determined by the BERA deposit in the pre deposited vault, and the subsequent supply is dynamically adjusted Unidirectional growth of reserve pool: The costs incurred from each casting, destruction, or borrowing are injected into the BERA reserve pool When the loan defaults, the pledged BREAD will be destroyed, and the outstanding BERA will be injected into the reserve pool. Pre deposit vault rules Senior Baker Vault Admission criteria (meet any of them): -Holding ≥ 69 xKDK -Pledge ≥ 6900 YEET -Deposit ≥ 69 TRI-YEET in the liquidity Trifecta vault -Limit: 1690 BERA per address, total limit of 269000 BERA Junior Baker Vault Admission criteria (meet any of them): -Holding ≥ 0.69 gOHM (any chain) -Holding ≥ 169000 BM -From the whitelist collaborative community -Limit: 1169 BERA per address, total limit of 269000 BERA Public Baker Vault Admission conditions: Unrestricted -Limit: No single address limit, total limit of 169000 BERA -Process: The vault is opened in sequence (advanced → junior → public), with each round lasting 24 hours. After completion, the agreement is officially launched So currently, the optimal strategy should revolve around how to obtain bread chips at a low price! According to the document, the vault is opened in order (advanced → junior → public), so the requirements for the advanced vault are 1. Hold ≥ 69 xKDK 2. Pledge ≥ 6900 YEET 3. Deposit ≥ 69 TRI-YEET in the liquidity Trifecta vault But the deposit behavior is all MInt, so there is not a significant fluctuation in the price of bread. The only explanation is that when the allowed mint of the advanced vault is opened, its fluctuation may be smaller than that of the low-level vault I used Deepseek to help me calculate it Assuming the current BERA is 6.6 USD and the initial reserve pool is 0 (the vault has just opened) Advanced Treasury: Total deposit of 269000 BERA, payment of 2.69% fee, actual cast BREAD ≈ 261941.1 BERA Primary Treasury: Total deposit of 269000 BERA, payment of 2.69% fee, actual cast BREAD ≈ 261941.1 BERA So actually, the premium vault=the junior vault, and its variable is that the total amount can only be deposited into 269000 BERA per round 🌞 For public round Public Vault Open ->Retail Deposit 169000 BERA ->Casting BREAD Supply Increase ->Reserve Pool Growth (169000 BERA)>Supply Growth (164511.1 BREAD) Berachain PoL flywheel ->Protocol fee incentives for validators to earn BGT ->Deep improvement in liquidity ->BREAD price stable but rising Ecological activity ->More participation ->Surge in trading volume ->Continuous optimization of reserve pool - up only model continues Actually, the key point is whether there will be a sustained "demand" to drive the product after the public valit is opened up and officially launched. Another thing I haven't considered is that if bread has already participated in circulation, there will definitely be a premium Because according to the formula, the ratio of bread/bera is equal to 1.07, so if the value of bera increases ->ratio 📈 ， There should be some arbitrage space here, and 1:1.07 should be the final bottom dragging ratio 🌞 Assuming that OHM will also increase the bread pool as an incentive, the 3:3 model here has changed BREAD/OHM LP Pool Funds Surge ->More People Deposit BERA Casting BREAD ->Transaction Volume Soars ->BREAD Price Increases 🌞 If we consider whether there is profit potential for revolving loans? Assuming an initial BREAD reserve pool of 538000 BERA (as calculated earlier), circulating BREAD of 523723.8 BREAD, and an exchange rate of approximately 1.027 BERA/BREAD Process of each round of revolving loan: Mortgage BREAD to borrow BERA: Hold 100 BREAD, borrow 99% LTV to borrow 99 BERA. Repayment of loan: Repay 99 BERA+2.69% fee (≈ 2.66 BERA), with a total consumption of 101.66 BERA. Reserve changes: When borrowing, the reserve increases by 99 BERA (outstanding principal) When repaying, pay a fee of 2.66 BERA to add to the reserve, resulting in a net increase of 96.34 BERA. Supply change: BREAD remains unchanged (no new casting/destruction) Consumption estimate: 101.66 BERA (≈ 670.96 USD, BERA=6.6 USD) is required for every 100 BREAD revolving loans If there are n cycles, the total consumption is approximately 101.66n BERA, the reserve growth is approximately 96.34n BERA, and the reserve growth is greater than the circulation growth, then the flywheel can still continue I haven't come up with a good form of participation yet. If advanced/junior/public participants are eligible to participate, it should be a relatively stable return, because as long as the price of bera is greater than 1.07x, selling bread is a pure return. However, in reality, I haven't tested revolving loans because they also have liquidation risks. If you have tried it before, you can tell me about @ BakerDAO420 @ SmokeTheBera @ leslienomad