Gauge Vaults & How They Are Useful

Beradrome uses vaults to extend gauge support to any yield-bearing asset. Here we compare the Solidly model and Beradrome’s.

Beradrome uses “vaults” to make its “gauges” (reward systems) work with any token that earns profit. Let’s compare this to the Solidly model and see why Beradrome’s approach is helpful. Solidly: The Basics Solidly is a DeFi system with three key players:

1. LP Tokens: These are your shares in trading pools on Solidly’s platform (an AMM). They earn fees from people swapping tokens in those pools. The more trading, the more fees your LP tokens collect.

2. SOLID Tokens: These are rewards given to liquidity providers (farmers) who deposit LP tokens into Solidly. How many SOLID tokens get handed out depends on votes from veSOLID holders.

3. veSOLID Tokens: You get these by locking up SOLID tokens for a set time (like 4 years). They give you voting power to pick which pools (gauges) get more SOLID rewards. How Gauges Work in Solidly: • Gauges are smart contracts that decide how many SOLID tokens farmers get, based on veSOLID votes. • Farmers deposit LP tokens and give up the swap fees they’d earn. Instead, they get SOLID tokens as their reward. • The swap fees go to veSOLID holders who vote, not directly to farmers.This setup encourages people to join in and keeps rewards fair, but it’s limited to Solidly’s own trading pools. Beradrome: A Bigger Picture Solidly works great but only with its own specific tokens and pools. Beradrome takes this idea and makes it way more flexible. Here’s how: • Vaults for Any Profit-Making Token: Beradrome isn’t stuck with just one trading system’s pairs. It creates vaults for any token that generates yield—like LP tokens from DEXs, lending platforms, or anything else on Berachain. • Gauges for Everyone: Each vault gets its own gauge. Farmers deposit their vault tokens into these gauges and earn oBERO (a reward token). Meanwhile, hiBERO holders vote on which gauges get attention, and they collect the vault’s profits (like swap fees or other yields). Why Beradrome’s Gauges Are Useful • More Options: Unlike Solidly, which only supports its own pools, Beradrome welcomes all kinds of profit-making assets. This means more projects, users, and tokens can join the fun. • Farmers & Voters Win: Farmers get oBERO for adding tokens to vaults, while hiBERO voters get the vault’s earnings by picking the best gauges. • Bigger & Better: By opening up to any yield-bearing asset, Beradrome builds a more diverse and adaptable DeFi world.