With anticipation growing around the launch of Berachain and its airdrop potential, it’s now possible to earn a range of rewards by pre-depositing assets for allocation to apps that will launch on or integrate with Berachain in future. Pre-deposits can be made through Lombard Finance, StakeStone, and Ethena, but if depositing in this way then be aware of the various token lockup periods that are in effect.
Incoming new EVM-compatible Layer-1 Berachain is still in its testnet phase, with a full launch expected some time in 2025, and it has the potential to be one of the major airdrop events of the year. That makes it worth looking into strategies for positioning in advance, so let’s take a look at some ways that you can earn rewards and prepare for DeFi on Berachain through some pre-deposit methods.
Unique Features of Berachain
First off, let’s just summarize what sets Berachain apart and makes it unique, and there are three key points to keep in mind:
- Proof-of-liquidity. Rather than operating as a proof-of-stake chain like most new Layer-1s (or as a proof-of-work network like Bitcoin), Berachain’s novel proof-of-liquidity system means that instead of tokens being staked and essentially locked away, they are instead contributed and then provide liquidity within the network.
- EVM-identical. This means that Berachain is fully compatible with Ethereum’s EVM environment, with EVM apps able to be deployed on Berachain without any changes needed.
- Three native tokens. Berachain will use BERA, which is a utility token for gas fees, BGT, which is a governance token, and HONEY, which is a US dollar-pegged stablecoin.
How and Why to Pre-deposit to Berachain
This method is a yield-farming opportunity focused on Berachain’s high potential as a new network, and can provide access to various rewards. Also, the strategies available are passive after the initial deposit, as we’ll see below in more detail.
The protocols that can be used are Lombard Finance, StakeStone, and Ethena, with deposits made to vaults managed by a “liquidity metalayer” called Concrete, which works together with a protocol called Royco.
Later, when apps launch on or integrate with Berachain, then Concrete, through Royco, will be immediately positioned to provide them with liquidity. However, having pre-deposited, users won’t need to actively manage strategies, and can simply let Concrete go ahead and delegate capital for the best returns.
Before we continue though, always remember the risks involved when utilizing DeFi, as there is the possibility of smart contract vulnerabilities, frontend attacks, and systemic risks across DeFi and crypto, and this guide is not an endorsement of the protocols included.
Pre-deposit to Berachain with Lombard Finance
First, let’s take a look at how to use Lombard Finance for pre-deposits, and it’s a simple process based around using BTC.
To start, go to the Lombard Finance Bitcoin Bera Vault, and you’ll see it accepts both LBTC (the Lombard Finance LST for staked BTC), and WBTC (wrapped BTC). Either of these can be obtained with the Lombard Swap function, or you can go ahead and stake BTC for LBTC in the platform’s Stake function.
For a more detailed guide to getting started with and staking on Lombard, please check this earlier guide: How to Get Started With Bitcoin…
