WOO X Research: Bear Market is Coming! How to Mine with an Annual Return of Over 100% on Berachain?

The Berachain ecosystem under the PoL mechanism is essentially a “bribery competition between protocols.”

Written by: WOO

There are still many uncertain factors in the macroeconomic environment, and the tariff policies implemented by Trump have further impacted many technology stocks in the US stock market. Since the launch of the spot ETF, Bitcoin has transformed from a niche asset into a focus of traditional finance, which also indicates that the price trend of Bitcoin is increasingly influenced by macroeconomic factors.

The current market has been oscillating between 82000 and 88000 for two months, and there are no new narratives in the secondary altcoins, nor is there continuity in the primary market. As investors, apart from taking a passive stance, using our blue-chip coins and stablecoins for mining to earn passive income is also a good choice.

The public chain Berachain, which has a built-in DeFi mechanism, has also launched the PoL liquidity proof mechanism, with returns often exceeding 100% APY. Let’s join WOO X Research to mine on Berachain!

How PoL Forms a Flywheel Effect

1. Users provide liquidity: Users deposit assets into the liquidity pool of the dApp, receive receipt tokens, and stake them in the reward pool to earn BGT, providing initial liquidity for the ecosystem;
2. Validator allocation: Validators direct BGT emissions to the reward pool with the highest returns based on the incentives provided by the dApp. As more BGT flows into popular pools, users’ yields increase, further incentivizing more users to join.
3. dApp competition: To attract validators’ BGT emissions, dApps increase incentives (e.g., increase native token rewards), deepening liquidity;
4. User Delegation: Users can delegate the BGT they earn to high-performing validators, enhancing these validators’ block proposal weight, thereby obtaining more sharing rewards, incentivizing validators to continuously optimize the BGT distribution strategy, forming positive feedback;
5. Ecological Expansion: As liquidity and user participation increase, trading volume and dApp usage rise, network value enhances, attracting more users and developers to join, and the flywheel accelerates.

This flywheel effect creates a collaborative relationship among dApps, users, and validators, breaking the dilemma of insufficient liquidity and uneven asset distribution in traditional PoS.

Current PoL Reward Pool Organization

• Data changes frequently, the data in the table is for reference only. For real-time data, please refer to the following website:

Mining Strategy

1. Core blue chip / LSD-based “Stable Layout”:

Core idea: Choose a relatively core, deep, and moderately volatile asset portfolio on Berachain, for example:

• WBERA / LSD ( such as iBERA, stBGT, beraETH etc. )
• WETH / LSD (weETH, ezETH, beraETH, etc.)
• WBTC / psychedelic drugs

The intention is to:

• Reduce the risk of severe price fluctuations (compared to small coins / Meme coins);
• Enjoy better liquidity depth (official or major protocol resources often lean towards the LSD ecosystem);
• Can simultaneously “stack yields”: Holding LSD itself already has staking rewards, plus the BGT rewards from PoL.

Possible sources of income:

• Liquidity Mining (LP Rewards + PoL Rewards )
• LSD built-in yield (some LSD will continuously accumulate staking rewards, increasing the value of your LSD holdings over time)
• Protocol Bribe Revenue Sharing (if the LSD’s protocol actively bribes Validators, the incentives will be higher)

Risks and Precautions: The premium and discount issues between LSD tokens. For example, iBERA, beraETH, etc. may decouple.

• The commission and profit-sharing system of validators requires selecting the right validator in order to receive mining rewards.
• When the amount of funds is too large or insufficient, it is necessary to consider the balance between the final annualized APR and the costs of Gas and fees.

2. Stablecoin / Stablecoin Pairing “Low Volatility Strategy”

Core idea: Choose stablecoin pairs in stablecoin pools (such as USDa/sUSDa, rUSD/HONEY, or other trading pairs between stable assets) to reduce impermanent loss caused by price fluctuations.

Due to the existence of multiple decentralized stablecoins in the Berachain ecosystem such as (USDa, sUSDa, rUSD, USDbr, etc. ), many protocols will bribe (Bribe) to attract more stablecoin TVL. The APR may not be as high as that of high-volatility pools, but it benefits from the relative stability of the assets themselves.

Potential sources of income

• PoL Incentives (BGT Emissions + Protocol Bribe)
• Trading fee income (there can be large trading volumes between stablecoins, and the fees are distributed to liquidity providers)
• Additional rewards or airdrops for protocol parties (some protocols may airdrop governance tokens to stablecoin providers, etc.)

Risks and Precautions:

• The credit risk of the stablecoin itself: It is necessary to determine whether the collateral mechanism, over-collateralization rate, or algorithmic mechanism of the stablecoin is reliable.
• The APR is usually relatively low, and if you are seeking high returns, you may need to allocate a portion to other high APR pools.
• Bribe is unstable: The parties to the protocol may spend a lot of money on bribes at the beginning, but if management is poor afterward, the incentives will also decline rapidly.

3. High-risk Meme Coins / Emerging Token Pool’s “High APR Short-term Strategy”

Core idea: Select newly launched or highly talked-about meme coins/emerging tokens (such as HarryPotterObamaSonic10inu, BM, RAMEN, HOLD, etc.) and their trading pairs with WBERA, HONEY, BGT, or LSD. These small coin pools often exhibit exaggerated APRs in the thousands of %.

• Short-term mining and selling: Earn rewards under high APR conditions, and timely cash out into blue-chip assets (such as BERA, ETH, BTC) or stablecoins to avoid a sudden drop in the price of subsequent tokens.

Possible sources of income:

• PoL Rewards: Since “new projects” often offer a large amount of Bribe to guide BGT emissions into their own Vault.
• Extremely high APR or airdrop: Attracting users in a short period, usually the protocol party will provide additional token subsidies.

Risks and Precautions:

• Price Volatility / Rug Risks: Meme coins can experience explosive increases and decreases in a short period; the security of new protocols has not yet been tested by time.
• Impermanent Loss (: If there is a significant fluctuation in the price of emerging tokens, one side of the LP pool may experience excessive price volatility, which could ultimately erode most of the mining rewards.
• Pay attention to the data: especially TVL, trading volume, and protocol Bribe remaining amount, as these will affect the actual yield of the pool.

Conclusion: Strategies are not absolute; dynamic observation is key.

The Berachain ecosystem under the PoL mechanism is essentially a “bribery competition between protocols.” Protocol parties will offer various scales of bribes to attract more TVL and compete for BGT emissions; meanwhile, as the market environment and their own budgets adjust, the APR may also change rapidly.

The best strategy often lies not in “just locking one pool and leaving it alone,” but in “diversification + dynamic adjustment”:

• A portion of the funds is allocated to relatively stable LSD/ blue chip / stablecoin pools.
• A portion of small funds is allocated to high-risk, high-volatility altcoins or Meme pools, in pursuit of intense returns.
• Regularly track the trends of each pool’s APR, Validator Commission, and protocol Bribe to optimize mining profits in a timely manner.

Be sure to pay attention to security: risks of new protocol contracts, whether the token model is reasonable, team background, etc., all need to be checked thoroughly. The high APY brought by PoL may be enticing, but Rug or contract vulnerabilities also exist in early-stage projects.