Barrif on Berachain
  • 🐻Bariff— Onchain Wars
  • INTRODUCTION
    • ⛓️Abstract
    • ⛓️Core Mechanics
    • 💧Liquidity Pool & Incentives
    • 📊Fee Dynamics
  • LBE & TOKENOMICS
    • 💧Liquidity Bootstrapping Event
    • 🪙Tokenomics
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  • 1. Liquidity Pools & Competitive Trading
  • 2. Fee Distribution & Incentives
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  1. INTRODUCTION

Liquidity Pool & Incentives

PreviousCore MechanicsNextFee Dynamics

Last updated 5 days ago

The entire Bariff ecosystem is built on a carefully designed liquidity strategy, reinforced by various mechanisms and incentives that keep the protocol in constant motion and balance.

1. Liquidity Pools & Competitive Trading

The system operates through three primary LPs that will be live on Kodiak:

  • CHINA/BERA (V3)

  • USA/BERA (V3)

  • CHINA/BERA (Stabilizer Pool)

1.1 Volume-Based Competition:

  • The LP with the highest trading volume benefits from a buyback mechanism, reinforcing its dominance.

  • The LP with lower trading volume is penalized via market selling of accrued fees for BERA.

  • The CHINA/BERA LP acts as a stabilizer, absorbing volatility and offering arbitrage opportunities. Moreover, the Stabilizer Pool will receive the fees accrured on the BERA token, giving liquidity providers the opportunity to earn a high yield in Berachain's native token.

2. Fee Distribution & Incentives

2.1 Winning LP Rewards

  • BERA fees → Used for buybacks of the winning token.

  • Winning token’s own fees → Burnt, increasing scarcity and value.

2.2 Losing LP Penalty

  • Losing token’s own fees → Market sold for BERA, adding sell pressure.

  • No buybacks, no rewards for LPs in the losing pool.

2.3 CHINA/USA LP as the Balancing Force

  • BERA fees from all pools are redirected as LP rewards to CHINA/USA liquidity providers.

  • This mechanism stabilizes the system and ensures perpetual arbitrage opportunities.

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