⛓️Abstract

Bariff is a metastable memeFi protocol built on top of Berachain, leveraging a tuple-token model (CHINA, USA) collateralized by a base asset, Bera. The system operates under a K-equilibrium mechanism, ensuring that fluctuations in demand for one token dynamically adjust the other’s valuation, preserving systemic balance.

Tuple-Token Dynamics and Perpetual Leverage

Users can mint CHINA or USA by depositing BERA, effectively taking directional exposure on either asset. The protocol allows burning one token to mint the other, creating an arbitrage-driven stabilization layer. Fees for minting dynamically adjust based on imbalances, incentivizing efficient market participation.

Adaptive Loan-to-Value (LTV) Mechanism

Bariff mitigates systemic risk through an adaptive LTV framework. When CHINA and USA prices are close, LTV remains at a 1:1 ratio, but as divergence grows, the LTV reduces, requiring higher collateralization. This prevents excessive leverage and enforces system-wide metastability.

The Role of the Stabilizer CHINA/USA LP

A crucial component of the protocol is the Stabilizer CHINA/USA LP, which accumulates fees from other silod LPs and offers wBERA-denominated APY to liquidity providers. This mechanism redistributes value, creating an incentive layer that reinforces the peg between CHINA and USA while passively rewarding liquidity participants.

Exogenous Actors and System Impact

Random market participants who ape into CHINA or USA introduce external volatility. However, the protocol’s dynamic LTV adjustments and minting fees counteract reckless inflows, ensuring that even uninformed trading activity reinforces systemic equilibrium rather than disrupting it.