Berachain is an EVM-Identical Layer-1 (L1) blockchain, so it can host the same applications as Ethereum. Still, Berachain has a unique consensus mechanism called Proof-of-Liquidity (PoL), which ensures the network’s stability and speed. You can learn more about Berachain from our overview.
This guide will showcase how to provide liquidity in the Kodiak Islands (a liquidity hub on Berachain), specifically on the BERA-YEET island. BERA-YEET island is whitelisted for BGT emissions, which means providing liquidity on this island allows you to earn BGT and delegate it to a validator.
What is Kodiak
Kodiak itself consists of four layers.
The first one is the Kodiak DEX, which enables non-custodial trading in the ecosystem. The second is called Kodiak Islands and is, in fact, an automated liquidity manager that aggregates user deposits through automated concentrated liquidity strategy vaults.
The third one is called Sweetened Islands and is an integrated incentive layer that uses the PoL mechanism to incentivize liquidity for Kodiak Islands. Finally, there is the so-called Panda Factory, which enables the permissionless deployment of new tokens and their initial liquidity.
How to Delegate BGT
BGT is one of the tokens of the Berachain ecosystem. It will enable its holders to be a part of the blockchain’s governance through voting on proposals that will impact Berachain’s further evolution. It is also used for rewarding validators and delegators. The token is soul-bound and a one-swap to BERA.
Now, let’s see how you can obtain BGT and delegate it to a validator.
Step 1
Go to the Berachain Faucet and enter your MetaMask wallet address, ensuring there’s at least 0.001 ETH. You can find detailed information on adding the Berachain network here.
Once you do that, hit Drip Tokens and wait a little until they arrive. Note that the faucet releases the tokens once every 8 hours.
Step 2
Go to the Kodiak dashboard and connect your wallet.
Now, go to Swap and exchange half of your BERA for YEET, but be sure to have a little extra to pay network fees.
Step 3
Now go to the Liquidity tab and find the BERA-YEET island there.
Specify how much of YEET and BERA you intend to deposit and hit Supply. In the pop-up menu, hit Approve YEET, and then go to your wallet to approve the transaction.
Now, hit Confirm Supply and make the final confirmation in your wallet.
Go to My Deposits to check your KODIAK token balance. It represents your liquidity on the BERA-YEET island. Now, it’s time to start earning BGT.
Step 4
Go to the BGT station and connect your wallet by hitting Connect.
Now, go to All Vaults and select WBERA-YEET.
You will need to deposit your KODIAK tokens in order to start earning BGT. Specify how much you want to deposit (or hit MAX if you want to deposit the full amount), then hit Approve and confirm the transaction in your wallet.
In the next menu, hit Deposit, and confirm the transaction in your wallet once again. That’s it. You’ll start earning BGT rewards now.
Step 5
You can claim your accumulated BGT rewards at any moment. After that, you can delegate them to a validator. Here’s how you claim them.
Go to the Rewards tab on the right-hand side and hit View Breakdown.
Hit Claim BGT in the vault where you’ve accumulated your BGT and confirm the transaction in your wallet.
Step 6
Now you can delegate your BGT. First, go to the Delegate tab and hit Select Validator.
Choose Everstake as your validator.
Specify how much you want to delegate and hit Quick Boost.
Now, this is important. You will have to activate your delegation manually after 8191 blocks (this will happen in about 5 hours, but the exact time is unpredictable since block time is a variable on the testnet). It would be wise to set a reminder so that you don’t forget it.
Once the time comes, hit Confirm in the Delegation Queue section. You’re all set now!
Conclusion
Berachain is an important evolutionary step for blockchain technology, introducing previously unseen features and a new concept of Proof-of-Liquidity. Everstake is happy to provide our resilient and battle-tested equipment as well as the full scope of our expertise to help this project fulfill its immense potential.
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