POL Liquid Restaking: Berachain as an AVS
Deconstructing the traditional AVS Restaking mechanism, you get the following:
- A framework/platform to receive staked assets for pooled security (Single ecosystem)
- A mechanism for protocols to “rent” this security
- A reward system, where LPs receive additional yields on their assets
AVS Restaking allows users to receive additional yields on their LSTs by lending their security properties to protocols willing to pay for it.
Vase Finance takes this a step further
POL Restaking allows users to receive additional yields on their LSTs, lending both liquidity and security to protocols. All done natively through Berachain’s POL framework.
In action, it looks like this:
- Vase receives a staking token from any ecosystem (ETH, SOL, TIA) and issues an LST on Berachain (Pooled liquidity + Staking Yield)
- Berachain’s POL enables users to LP their LST’s transforming liquidity into security through BGT emissions (Pooled Security)
- Vase provides the incentive framework to attract emissions to LST pools (Restaking Yield)
- Protocols/L2s built on top of Berachain can tap into incentivized liquidity + security
Leveraging POL, Vase provides a restaking solution for any taste through our LSTs “shards”. Built to retain all core functionality of a staked token such as voting and choice of validator.
Users from any ecosystem will come to Vase and find their preferred asset to engage in Berachain Defi, removing potential downsides and retaining all their native staking exposure. All this powered by restaking yields, and full liquidity through rehypothecation.
Stay tuned to learn more about Vase’s Shards, and their additional mechanisms like “bribes” that provide rewards beyond staking APR.
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
