Introducing Vase Finance: Liquid Restaking for any Staking Asset
We’re excited to unveil Vase Finance, introducing liquid restaking for any staking asset. Vase leverages Proof of Liquidity (PoL) to make all liquidity productive, offering turbocharged liquidity and security within a scalable incentive framework.
Berachain, as the first Liquid EVM, ensures liquidity performance is maximized through its PoL consensus. For PoL to truly shine, liquidity must flow into the chain, and Vase Finance is the best gateway for external liquidity.
Unlike traditional AVS restaking, which is often confined to a single ecosystem, Vase Finance embraces all liquidity, no matter which ecosystem it comes from. Vase helps liquidity thrive, enabling restaking through rehypothecation, and adapting to the unique needs of each user.
POL Liquid Restaking
AVS Restaking uses LSTs to provide pooled security and maximize yields by renting this security to multiple services/protocols. Liquid restaking goes a step further, unlocking additional liquidity for the user. However, both their outputs remain limited to simply offering security for other protocols.
In contrast, Vase’s PoL Liquid Restaking leverages LSTs from any ecosystem to deliver both security and liquidity through rehypothecation. This approach significantly expands utility for users and protocols by providing the building blocks necessary for any protocol on top of Berachain to scale and fully optimize asset performance.
While security is essential, the amount required is proportional to the economic incentives for an attack. A new protocol with $0 TVL doesn’t require billions in security, as users prioritize liquidity and performance above all. Vase addresses this by using PoL to strategically incentivize and attract liquidity for protocols, while ensuring that security scales in tandem to protect their growing TVL.
The Gateway for Liquidity
Bridging any staking asset into Berachain without converting it into an LST means missing out on native staking rewards. This makes Vase Finance the most versatile and efficient entry point of liquidity.
By issuing all LSTs natively on Berachain, Vase achieves the following:
- Retains native chain exposure (External)
- Prevents liquidity fragmentation
- Inherits security from the chain
- Taps into POL for scalable incentives
- Native ecosystem integration
A Scalable Incentive Framework
PoL is the first instance where validators have direct economic influence on a chain’s performance, as they control the receiver of chain emissions.
Vase allows users to choose their validator when liquid staking, enabling every PoS validator to tap into PoL. This dynamic works best when an operator has a validator in both Berachain and an external chain.
Validators from external ecosystems can enable their delegators to liquid stake with them, converting liquidity into LSTs on Berachain. These LSTs are then incentivized with BGT emissions from their Berachain validators.
Beyond PoL Bribes, validators have added motivation to direct BGT emissions to Vase LST pools, as they can reward loyal delegators and expand their reach in multiple ecosystems. By synergizing with multi-chain validators, Vase secures hundreds of distribution points and incentive sources, ensuring all Vase LST pools are turbocharged with BGT emissions.
Product Suite
All Vase products operate under our scalable incentive structure, targeting two major illiquid markets: staked and vested tokens.
Liquid Staked Tokens (LSTs): We maintain the traditional staked token experience, enabling users to choose their validators, participate in governance, and more. By preserving all functionalities, we eliminate the typical downsides of liquid staking.
Liquid Vested Tokens (LVTs): This vesting approach offers early liquidity for locked investors and “seed” price access for retail for both new and existing tokens. LVTs function like Vase LSTs but the underlying asset cannot be withdrawn until vesting is complete, likely resulting in a market-determined discount. Upon vesting, LVTs convert into regular Vase LSTs.
This system mitigates the feared supply shock on unlock day, distributing it over a longer period and stabilizing the token’s price action through derivative trading. The market self-regulates, pricing LVTs based on risk appetite and vesting timelines, ensuring no surprises on unlock day.
The Vision
Vase is set to become the gateway and performance baseline for all staking assets on Berachain. As a gateway, Vase allows users to bring liquidity into the chain without sacrificing their native exposure and benefits from external chains. It sets a performance baseline by creating a sustainable incentive structure for liquidity provision while simultaneously unlocking liquidity, enabling users to fully utilize it in Defi without incurring opportunity costs.
Leveraging Berachain’s PoL, protocols built on the chain can access Vase’s restaked LSTs as fundamental building blocks for Defi by tapping into both security and liquidity, allowing users to maximize their yield while interacting with various protocols.
Stay tuned these next few weeks leading to Berachain mainnet, as we release more exciting updates and dive into how the platform works. If you’re building on Berachain and want more information or want to integrate with our platform, please reach out on Twitter at VaseFinance or NomadBera
