$LBGT

LBGT $LBGT

Liquid BGT

The Liquid Bera Governance Token ($LBGT) is a core component of BeraPaw. It tokenizes Berachain’s native Governance, BGT, into a liquid, transferable asset. This innovation simplifies participation in Berachain’s Proof of Liquidity (PoL) by automating rewards and delegations while providing users with the flexibility to trade and utilize $LBGT across decentralized finance (DeFi) ecosystems.

How to mint?

To mint $LBGT, users stake their Liquidity Pool (LP) tokens in a chain-native, whitelisted rewards vault. This process mirrors standard BGT acquisition, but with an additional option: users can choose to convert their earned BGT into $LBGT. As a result, every $LBGT is backed 1:1 by BGT held in BeraPaw vault.

Interactions and uses

  • Transferable: $LBGT is fully transferable and can be traded on various decentralized exchanges, providing liquidity and utility for users and liquidity providers.

  • Delegation: $LBGT is automatically delegated to validators on the Berachain network, following a delegation strategy determined by $PAW holders. This ensures that $LBGT continues to earn all block and incentives rewards generated by the underlying BGT.

  • Rewards: Users have to stake $LBGT to receive incentives rewards. Rewards are reinvested and auto-compounded and since not all $LBGT will be staked, users can expect to receive a multiplier on their earnings.

Tokenization: DeFi vaults can utilize $LBGT to pass along rewards to their users in a streamlined and efficient way. By tokenizing their yields into $LBGT, vaults make it possible to provide users with increased returns while enabling even more yield farming strategies.

  • Redeemable: Users can burn their $LBGT for BERA, same as BGT.

Supply and Value Proposal

  • Supply: Dynamic, based on the amount of BGT held by BeraPaw on a 1:1 ratio.

  • Utility: Earn incentives rewards, use across DeFi ecosystem and redeem for BERA.

  • Intrinsic Value: Tied to the on-chain incentives it circulates, alongside its flexibility and broad DeFi applications. Due to the redeem mechanics, its value can never drop below one BERA, ensuring a secure and reliable financial baseline.

Overview$LBGT Staking