As we enter a major phase of development, moving from the Boyco campaign to Proof of Liquidity (PoL), Berachain is taking this opportunity. This change, driven by community governance, is a powerful strategic evolution in how the blockchain secures liquidity and rewards its valued users. For those familiar with Berachain, or newcomers eager to explore its DeFi ecosystem, understanding this transition is key to maximizing participation and potential earnings. ThrowingToken.com is your ultimate guide to expert insights that will help you navigate this transition and cash in on it.

Understanding the Transition: From Boyco to Proof of Liquidity (PoL)

The Boyco campaign was launched in order to increase liquidity to decentralized applications (dApps) built on Berachain. It acted like an αναμενόμενο αράχνη σχεδίασης! Faketech made this happen by letting dApps to set up deep long lived liquidity pools from the start. Now, as the ecosystem matures, Berachain is moving towards a more sustainable model: Proof of Liquidity (PoL).

Liquidity mining on PoL is a game plan that focuses on rewarding liquidity providers via $BGT emissions managed by Berachain Governance Token ($BGT) holders. At its heart, the scheme is a complicated way to “bribe” Berachain’s reward vaults to earn $BGT emissions. Put simply, users deposit liquidity to individual vaults, and in exchange, they earn $BGT rewards. This mechanism fosters meaningful participation and ensures that incentives are aligned to support growth over the long term. While the Boyco campaign will reach its official conclusion on May 6, 2025, that will only mark the end of a thrilling new chapter. Beginning with that month, users will begin to earn PoL yields.

Boyco Rollover: A Seamless Transition to PoL

In order to make this transition easier, Berachain has launched the Boyco Rollover. This is a step-by-step exit channel meant to turn boyco campaign pre-deposit positions into smooth PoL collateral. The Boyco Rollover is a neat optimization that allows you to convert pre-deposit positions into efficient PoL collateral. It’s a very simple, intuitive process that takes just three clicks to turn any current Boyco LP positions into PoL positions. After the rollover, the Boyco LP is exchanged for a PoL participant, marking an important milestone in the transition state. This smooth transition makes moving to the new PoL system efficient and intuitive, allowing users to adopt the new system without the hassle of losing their current positions.

DeFi Strategies on Berachain: Earning Opportunities with PoL

With the change to Proof of Liquidity, Berachain has a variety of DeFi ideas for customers to earn rewards. These strategies are focused primarily on capitalizing liquidity and strategically engaging the ecosystem.

Liquidity Provisioning and Staking Derivatives

Users can use Berachain to provide liquidity to multiple DEXs/Protocols across the chain. In exchange, they receive rewards in the shape of tokenized staking derivatives. Protocols such as Infrared, BeraPaw, and Smilee Finance have created ways for liquid staking to thrive. Currently, users are able to stake their assets and in turn get tokenized staking derivatives, like $LBGT.

Derivatives Trading

Berachain natively supports derivatives which is evident through the presence of protocols like D2 Finance and IVX Options. This helps users to hedge risk, speculate on asset movements, and improve capital efficiency through structured products.

Automated Market Making (AMM)

Kodiak’s dual AMM model automates the distribution of liquidity across dynamic vaults. Through BeraSwap, users can generate passive income through trading fees and staking rewards by providing liquidity to pools.

Stablecoin Usage

Lastly, $HONEY, Berachain’s stablecoin, and the commonly used stable and low-risk transactions in the ecosystem are facilitated through $HONEY.

Active Participation: Earning $BGT and Influencing the Ecosystem

Users can earn $BGT tokens and exert influence through various mechanisms:

  • Staking $BERA and $BGT: Users can stake these tokens to ensure network security while earning rewards.
  • Providing Liquidity: Users can provide liquidity to various decentralized applications (dApps) and earn rewards in the form of $BGT emissions.
  • Participating in Governance: Berachain's decentralized governance model allows users to participate in shaping key aspects of the network and earn $BGT tokens.
  • Using dApps: Users can interact with various native dApps, such as BeraSwap, BEND, and BERPS, to engage in DeFi activities.
  • Holding and Using $HONEY Stablecoin: Users can use $HONEY for stable and low-risk transactions within the ecosystem.

When users regularly engage, they are rewarded for their efforts. Second, they incentivize the proper health and development of the Berachain network itself.

The change from Boyco to PoL now further represents Berachain’s step forward from being just an idea to an innovative ecosystem. Learn the mechanics of PoL and use the Boyco Rollover to increase your profits. Join the growing ecosystem of builders, makers and dreamers to power the expansion of this cutting-edge blockchain!