The Bear Market is coming, how to mine with an annualized return of over 100% on Berachain?

Uncertainty factors in the macro economy remain numerous, and the tariff policies implemented by Trump have further impacted many tech stocks in the US. Since the launch of the Spot ETF, Bitcoin has transformed from a niche asset into a focal point of attention in TradFi, which also indicates that the degree to which Bitcoin’s price movement is affected by the macro economy has consequently increased.

The market has been oscillating between 82000 and 88000 for two months, and there are no new narratives in the secondary altcoin market, nor is there sustainability in the primary market. As investors, besides lying flat, it is also a good choice to use the blue-chip coins and stablecoins in hand for mining to earn passive income.

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

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 the popular pools, users’ yields increase, further incentivizing more users to join.
3. dApp Competition: To attract validators’ BGT emissions, dApps increase incentives (such as raising native token rewards), deepening liquidity;
4. User Delegation: The BGT earned by users can be delegated to high-performing validators, enhancing the block proposal weight of these validators, thereby earning more sharing rewards, incentivizing validators to continuously optimize the BGT distribution strategy, forming a positive feedback loop;
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 fluctuations are significant, and the data in the table is for reference only. For real-time data, please refer to the following websites:

mining strategy

1. Core blue chips / LSD-based “steady allocation”:

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

The intention is to:

• Reduce the risk of severe price movement (compared to small coins / Meme coins);
• Enjoy better liquidity depth (official or large protocol resources often lean towards the LSD ecosystem);
• Can “stack profits” at the same time: Holding LSD itself already has staking rewards, plus PoL’s BGT rewards.

Possible sources of income:

• Liquidity Mining (LP Rewards + PoL Rewards )
• LSD built-in income (some LSDs will continue to accumulate staking rewards, so that your LSD share will increase over time)
• Protocol Bribe Profit 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 to earn the 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 for stablecoin pools (such as USDa / sUSDa, rUSD / HONEY, or other trading pairs between stable assets) to reduce impermanent loss caused by price movement.

Due to the presence of multiple decentralized stablecoins in the Berachain ecosystem such as (USDa, sUSDa, rUSD, USDbr, 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 has the advantage of the assets being relatively stable.

Possible sources of income

• PoL incentives (BGT emissions + protocol bribes)
• Trading fee income (there can be significant trading volume between stablecoins, and the fees are distributed to liquidity providers)
• Additional rewards or airdrops for protocol participants (some protocols 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 ratio, or algorithmic mechanism of the stablecoin is reliable.
• APR is usually relatively low, if you are pursuing high returns, you may need to allocate a portion to other high APR pools.
• Bribe instability: The parties to the agreement may spend a lot of money to buy bribes at the beginning, but if they do not manage well afterwards, the incentives will quickly decline.

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

Core idea: Select newly launched or highly trending 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 show exaggerated APRs of thousands of %.

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

Possible sources of profit:

• 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 the short term, usually the protocol party will provide additional token subsidies.

Risks and Precautions:

• Price volatility / Rug risk: Meme coins may experience rapid surges and drops in a short period; the security of new protocols has not yet been tested over time.
• Impermanent Loss ): If newly emerging tokens experience significant price fluctuations, one side of the LP pool may fluctuate too much, potentially erasing most of the mining rewards.
• Be diligent in following the data: especially TVL, trading volume, and the remaining amount of protocol Bribe, as these will affect the actual yield of the pool.

( Conclusion: There are no absolutes in strategy; dynamic observation is key.

The Berachain ecosystem under the PoL mechanism is essentially a “bribery competition between protocols.” Protocols offer different scales of bribes to attract more TVL and compete for BGT emissions; and as market conditions 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 coins or Meme pools, seeking aggressive returns.
• Regularly track the APR of various pools, Validator Commission, and the trends of protocol Bribes, optimizing mining yields in a timely manner.

It is important to pay attention to security: the risk of the new protocol contract, whether the token model is reasonable, the background of the team, etc., all need to be checked. The high APY that comes with PoL may be fascinating, but Rug or contract vulnerabilities also exist in projects in the early ecosystem.