Vase’s PoL Alignment: Incentives Beyond PoL Bribes
Berachain’s Proof of Liquidity (PoL) uniquely aligns liquidity and security at the protocol level, empowering all participants to influence the chain’s growth.
PoL Bribes drive incentives: protocols bribe for BGT, validators direct BGT where it’s most profitable, and users delegate to validators that align with their goals. However, with similar bribes from different protocols, differentiation becomes key.
Vase stands out by offering validators more than just bribes. It allows them to leverage their external liquidity and users, creating stronger alignment with Vase, making them stronger in the chain.
State of Validators in Berachain
Currently, Berachain community validators lead the set, having earned their delegations through years of contribution and value-building.
Here’s the breakdown:
- Total BGT delegated: ~26.5M
- Bera community validators: 8.85M BGT (33%)
- External validators: 17.6M BGT (67%)
- 127 validators received a base delegation of 100K BGT each, totaling 12.7M BGT.
- Excluding base delegations, Bera validators receive 8.35M BGT (60%), while external ones get 5.45M BGT (40%).
60% of BGT delegations, excluding the base, are controlled by the community, a clear dominance. But BGT station doesn’t tell the whole story. Lower-ranked Berachain validators include giants controlling billions in liquidity across other ecosystems, ready to compete.
Their path to success? Vase.
We’ve developed a unique mechanism to channel external liquidity into Berachain, onboarding it and allowing these external validators to grow their BGT delegations.
Here’s how it works:
- Validator A has $100K delegated on Berachain but $3B delegated on external chains.
- Validator A encourages their users in external chains to liquid stake through Vase, keeping all their delegations while users receive Vase LSTs on Berachain.
- Users then LP their LSTs to earn BGT and delegate that BGT back to Validator A.
- To reward their users, Validator A uses their Berachain validator to boost BGT rewards on Vase LSTs.
- Users get higher BGT rewards, leading to more delegations to Validator A, and Vase LSTs get incentivized beyond PoL Bribes. A perfect flywheel.
Validators are businesses, driven to grow. Instead of relying solely on bribes, Vase goes straight to the source, offering validators a stronger incentive to direct BGT to our pools.
Vase is uniquely positioned for growth, with validators promoting our platform because it benefits them directly. Users will use our LSTs for the highest yield and versatility. As a result, Berachain will attract billions in liquidity from other ecosystems, through the infrastructure we’ve built.
Vase creates true synergy with validators, becoming the gateway for external liquidity into Berachain.
