Bera’s on Bikes, on Balls, In Vaults… But You Wouldn’t Believe It.
Want To Swap Tokens Like You Swap Shirts? Then Beradrome is the DeFi Trading Hub for You.
Although the concept of Automated Market Making was originally ideated by Ethereum’s founder in 2017, it wasn’t until Q4 of 2018, before we saw the folks at UniSwap eventually bring that idea to life.
And before long, the emerging DeFi space began to imprint the voguish great vault forward, following the evolution of spot trading markets.
Nonetheless, in addition to the outset of an untapped market for these DeFi hubs; by opening up spot markets to just about anyone, at any time, and from anywhere in the world; the idea of AMMs represents a new paradigm throughout the history of the derivatives market.
But then, the issue of maintaining a liquidity pool with a high Annual Percentage Rate — APR — requires a large amount of the platform’s reserve for payouts per year.
Such as, a $1 million liquidity pool at a 50% APR requires $500,000 in incentives per year.
Even so, suppose I told you there was a DeFi protocol that could help these other marketplaces build deeper liquidity for less, just as seen on Optimism through Velodrome.
What if I told you trading NFTs could become more rewarding than just swapping them to use as PFPs and the like?
Where we have Beradrome teaming up with NFTfi hubs like the Gumball Protocol, with some crazy voodoo 3.3 business; that entails a system where users can take the Gumball native token — $GBT — and then stake it on Beradrome to earn bribes, and fees generated by voters from varying collections on Gumball.
Enter Beradrome: The All-Inclusive Liquidity Trading Hub for Early Stage DeFi Protocols on Berachain.
Just as traditional AMMs incentivize users to take part in the business of liquidity provision, in exchange for a share of the revenue gotten off the transaction fee from each trade specific to the asset staked — on the platform.
In a similar vein, Beradrome brings to the emerging DeFi ecosystem what Velodrome brought to Optimism, only this time it's happening right on Berachain.
At the core of Beradrome, we have a platform that fuses together a hybrid AMM; such that the platform’s protocol employs a variable AMM — vAMM — for uncorrelated liquidity pairs and a stable AMM — sAMM — for highly correlated liquidity pairs.
And that is not even the fun part, as Beradrome does not only offer these services to traditional DeFi protocols but also takes this innovative AMM mechanism to the next-gen of decentralized protocols — otherwise known as NFTfi.
Considering liquidity incentives represent huge costs for DeFi protocols aiming to offer seamless, low-slippage digital asset trades to their users, Beradrome positions itself as an all-inclusive DeFi trading hub for early protocols on Berachain.
Simply put, users on Beradrome can buy$BERO and lock it for$hiBEROto vote on protocol emissions and share in trading fees and bribes.
Let’s take an example; your favorite NFT trading hub — say OpenSea — is looking to garner some extra liquidity for its native token, through Beradrome’s hybrid AMM model, the platform could set up a gauge system — which you could think of as an LP pool — such that the more votes the gauge receives, the more the$BEROemissions allocated to the gauge.
Hence, the higher the possibility for yield farmers to support that pool with their liquidity.
More interesting is the fact that the said platform can choose to incentivize voters with their own native token to receive votes on their guage, subsequently, increasing liquidity on these platforms.
Easy peasy japanesey!
In the manner of true decentralization, the Beradrome farms operate on a “gauge model”. This offers
$hiBEROholders the opportunity to decide where weekly farming emissions are delegated from the beginning to the end of each epoch.— Beradome
The Beradrome Bribe Mechanism
Now to the question of how this platform benefits retail traders like you and me.
Since Breadrome reduces the cost of liquidity incentives for these protocols by incentivizing fees rather than liquidity provision through its state-of-the-art and adaptive ve(3,3) system.
The platform creates an optimized ecosystem where crypto traders can enter and exit a position freely without the fear of incurring extremely high slippages.
Through Beradrome’s unique master router, traders are offered the lowest slippage possible, just as the platform protects liquidity providers from asset volatility.
It gets even more interesting…
To attract $BERO to their token pairs, Beradrome requires that these third-party protocols accumulate $hiBEROfor voting with, and offering bribe rewards to voters.
Instead of requesting these protocols to stream their tokens to liquidity providers — LPs — which could lead to farm-and-dump behavior, the Beradrome protocol emits it's$BEROto these LPs. Where holders of the platform's governance coin — the$hiBEROtoken — are granted the ability to vote on which LP receives what$BERO emissions.
You could think of Beradrome as the platform that lets you enter a position on crypto assets; say a Bluechip NFT; without incurring a decent amount of slippage.
While on the protocol end, these marketplaces can accumulate$hiBERO to vote with, while also offering ‘bribe’ rewards to voters.
Through a voting and bribing mechanism that multiplies these protocols’ investments by way of supplying enormous$BEROincentives to pools, Beradrome significantly reduces the cost of sustaining liquidity pools on these platforms.
Thereby, increasing liquidity, and reducing the amount of slippage, along with improved bribe mechanics!
It’s the best of both worlds I tell you… it never gets better than this!
You’ve heard of beras and you’ve heard of bikes… but have you heard of beras ON bikes?… [Yikes!]
— Beraland.
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About Author: Carliyke
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