What is BeraPaw?

BeraPaw is a novel liquid wrapper protocol built atop Berachain’s Proof of Liquidity (PoL) consensus mechanism. It simplifies and automates PoL interactions for participants, enabling them to unlock the full potential of Berachain’s governance token, BGT, in a decentralized and user-friendly manner.

At its core, BeraPaw transforms Berachain’s native yield-bearing token, BGT, into a more versatile and liquid asset called Liquid BGT ($LBGT). This process unlocks a host of benefits for users:

• Flexibility: Users can buy, sell, collateralize, enter leveraged positions, or use $LBGT anyway across the DeFi ecosystem.
• Convenience: All PoL interactions, including staking and rewards reinvestment, are automated.
• Higher Yields: $LBGT provides enhanced returns compared to traditional BGT delegations.

To ensure complete decentralization, BeraPaw also introduces a governance token called $PAW. $PAW holders are the protocol’s owners, with the power to decide how BGT is delegated across validators while earning protocol rewards.

Decentralization: A Core Principle

BeraPaw is designed with decentralization at its heart. As a Decentralized Autonomous Organization (DAO), no single entity has unilateral control over the protocol or the consensus power it manages. Instead, governance is distributed among the community through the $PAW token.

Key decentralization features include:

• Validator Agnostic: BeraPaw works with all validators permissionlessly to avoid conflict of interest and maximize rewards for users.
• Community-Driven Optimization: $PAW holders actively participate in optimizing BGT delegations to validators.
• Decentralized Decision-Making: The protocol evolves based on the collective decisions of $PAW holders, ensuring fairness and transparency.

Tokens

Liquid BGT ($LBGT)

$LBGT is the liquid BGT wrapper issued by BeraPaw. It represents tokenized BGT and enables users to interact with Berachain’s PoL mechanism more efficiently.

Key Features of $LBGT:

• Higher Yields: $LBGT provides enhanced returns compared to traditional BGT delegation.
• Flexibility: Users can trade, sell, collateralize, enter leveraged positions, or deploy $LBGT across the DeFi ecosystem.
• Convenience: All PoL interactions, including delegation and rewards reinvestment, are automated.

Governance Token ($PAW)

$PAW is the governance token of the BeraPaw protocol. It grants holders ownership and decision-making power over the DAO, ensuring decentralized control and alignment with community interests.

Key Features of $PAW:

• Governance Power: Determines BGT delegation strategies and protocol upgrades.
• Reward Sharing: Earn a share of protocol-generated rewards.
• Decentralized Decision-Making: Shapes the future of BeraPaw and its validator delegations.
• Limited Supply: With a fixed total supply, $PAW ensures scarcity and long-term value.

By combining $LBGT’s flexibility with $PAW’s governance power, BeraPaw delivers a fully decentralized, high-yield liquid staking solution that aligns with the principles of Berachain’s PoL ecosystem.