Bex Positions as Collateral

(Coming Thoon)

In Beraborrow, you can use your Bex LP positions as collateral to mint $NECT, unlocking liquidity while still earning yield on your staked assets. This dual-benefit feature allows users to leverage their LP holdings without losing out on the rewards typically earned from providing liquidity in Bex pools.

How Bex Positions Work as Collateral

When you deposit a Bex LP position into a Den, it’s automatically integrated into Beraborrow’s collateral management system. This means you can mint $NECT against the value of your LP tokens while still maintaining your position in the liquidity pool.

Here’s how it works:

1. Deposit Bex LP tokens: Users can deposit eligible Bex LP positions (such as WBERA:HONEY or other token pairs) into Beraborrow Dens.

2. Mint $NECT: Based on the collateralisation ratio, users can mint $NECT, unlocking liquidity while keeping their LP positions active within the protocol.

3. Retain LP Yield: Even while using your Bex LP tokens as collateral, the protocol ensures you continue to earn yield from your LP position. The assets in your Bex LP tokens are staked within Infrared vaults to accrue additional rewards.

Earning iBGT through Infrared

When Bex LP positions are staked as collateral in Beraborrow, the protocol deposits these assets into Infrared, where they continue to generate yield Proof of Liquidity (PoL) emissions thanks to $iBGT.

• As the Bex LP tokens are staked in Infrared, the BGT rewards earned from these LP positions are automatically converted into iBGT, a liquid version of the Berachain Governance Token (BGT).

• iBGT is then deposited back into your Den, where it compounds automatically. This means that as long as your Bex LP tokens are being used as collateral, you’ll not only retain your LP yield, but you’ll also benefit from additional iBGT rewards, which further grow your collateral over time.

Maximising Yield with Auto-Compounding

To make this process even more efficient, Beraborrow’s Dens feature auto-compounding. Any iBGT earned from your Bex LP position will automatically be restaked within Infrared, ensuring that your rewards continue to grow without the need for manual intervention. This allows your collateral to increase over time, providing a healthier collateralisation ratio and potentially enabling you to mint more $NECT.