Bitcoin Surge and Berachain’s Rise
Bitcoin has recently surged past the $100,000 mark, igniting renewed interest in the altcoin sector. Among the coins gaining traction is Berachain’s native token, which has experienced a remarkable recovery from a low of $2.70, climbing steadily to approximately $4.70 over the last three days. For those looking to hold onto their BERA tokens long term while maximizing their earnings without actively trading, this article offers several strategies to consider.
Understanding Berachain’s Tokens
To understand the opportunities available on Berachain, let’s revisit its three main tokens:
- BERA: Functions as the gas token for the network, facilitating transaction fee payments and serving as the primary asset for both liquidity mining and staking activities.
- BGT: A governance token, obtainable through staking BERA or providing liquidity, which gives holders a voice in ecological governance and a share in protocol income but cannot be bought or sold in the open market.
- HONEY: A stablecoin tied to the US dollar, designed to mitigate the effects of market volatility, often utilized in lending and yield-optimization scenarios.
Opportunities through Infrared
One particular opportunity is through Infrared, a liquidity staking protocol on Berachain that has seen its total value locked (TVL) skyrocket to over $900 million. In March of this year, Infrared secured $16 million in Series A funding led by Framework Ventures, bringing its total investment to $18.75 million, indicating strong investor confidence in its potential.
Currently, the platform is incentivizing user participation ahead of its token release expected in Q3 by encouraging liquidity contributions and staking. Users can explore staking directly through Infrared’s platform, receiving wrapped tokens called iBERA for their BERA holdings, which generate rewards as they are staked within the validator network.
Importantly, once you stake, you cannot rescind that action until the official cancellation feature is implemented.
Presently, Infrared reports a staked TVL of approximately $340 million, offering an annualized return of 4.8%—a competitive rate compared to Binance’s growth accounts, which hover around 3%.
Exploring iBGT and Liquidity Pools
Though BGT itself is non-transferable, its liquid counterpart iBGT allows for trading and provides a more dynamic alternative within the Berachain ecosystem. By staking iBGT, users earn rewards emitted in HONEY. Additionally, opportunities exist for iBGT to be utilized in decentralized exchanges or lending platforms like BeraBorrow and Gummi, further extending its utility.
Establishing a liquidity pool within Infrared can yield both transaction fees and substantial interest income. For example, on platforms like Kodiak and BEX, the current WBERA-iBERA pool boasts an impressive annualized return exceeding 50%. Users are also advised to monitor liquidity pools for volatility, especially when high annualized returns are accompanied by lower locked amounts, which can lead to rapid declines in profitability.
The Role of DEX Protocols
The DEX protocol Kodiak remains integral to the Berachain ecosystem, reporting a TVL of $538 million. Users engaging in the iBGT-iBERA income pool can expect transaction fee earnings of approximately 1.04%, with HONEY returns up to 127.91% annually. Those looking to deposit BERA through the Dolomite lending protocol can achieve even greater returns, with the protocol’s native token offering an annualized return of 18.97%.
Moreover, strategic borrowing of HONEY at a lower interest rate followed by reinvestment can further amplify gains.
Conclusion
Overall, Berachain is paving the way for diverse earning strategies within its ecosystem, and savvy investors can leverage these insights to capitalize on the market’s growth.
