BGT is the governance token of Berachain, which is non-tradable, non-transferable, and soul-bound.

The only way to obtain BGT is to provide liquidity in the vault of BGT Station (simply understood as staking the corresponding tokens)

BGT Station: https://bartio.station.berachain.com/

However, it is very difficult to become a "reward vault that can receive BGT tokens". It is necessary to submit a proposal and pass governance before being included in the whitelist pool.

Therefore, in the early stage of the mainnet, BEX, Berps and BEND may be the main ways to obtain BGT.

Based on the current testnet, the reward vaults that meet the BGT emission include:

Berps: BHONEY

BEX: HONEY-USDC, HONEY-WBERA, HONEY-WETH

BEND: VDHONEY

How to choose? What are the pros and cons of each?

1️⃣️BHONEY (berps)

Berps is a perpetual contract, and HONEY is required to open a position. Users can provide HONEY liquidity in the Berps vault and receive BHONEY as a voucher token.

The biggest problem with BHONEY is the waiting time. Users need to wait 1-3 epochs (36 hours) to unlock and withdraw HONEY.

For example, it is now the 225th epoch, and I need to wait until the 228th epoch to withdraw money, but if I forget to "confirm" the withdrawal in the 228th epoch, then I must apply for withdrawal again and wait for 1-3 epochs.

Currently, the waiting time can be circumvented through Ooga Booga's aggregator, and BHONEY can be directly exchanged for HONEY, but according to current tests, there will be a lot of wear and tear.

(The following is an example of me depositing 1000 HONEY and getting 1013 BHONEY)

2️⃣️HONEY/XXX LP token (BEX)

Bex is a DEX used to exchange tokens; LP tokens are voucher tokens obtained by providing dual-token liquidity in the pool.

The advantage of LP tokens is that liquidity is timely and deposited LP can be withdrawn from the Pool immediately, but the disadvantage is impermanent loss. For example, HONEY/WBERA may suffer losses due to price changes of BERA.

*If the price of BERA rises very quickly, your BERA will be swapped to HONEY, resulting in a decrease in the amount of BERA when you withdraw LP.

The prices of HONEY/USDC and HONEY/WETH will be relatively stable, with less impermanent loss, but they are also likely to become the first choice for most users with low risk appetite. The TVL of the corresponding reward vault will therefore become higher, and BGT income may be diluted.

3️⃣️BEND

BEND is a lending agreement that pledges WBTC/WETH and borrows HONEY. Note that users earn BGT rewards based on the value of the borrowed HONEY (not the value of the collateral).

The advantage of using BEND is that you can retain the native ETH/BTC assets, while obtaining a portion of the liquidity of the HONEY stablecoin, and automatically accumulate BGT rewards when borrowing HONEY.

There are three disadvantages:

There is a liquidation risk. If the collateral asset fluctuates too much, it is easy to cause it to be liquidated.

There is a variable interest rate for borrowing HONEY, and interest needs to be paid when it is returned.

With a low LTV, the value of HONEY that can be borrowed will be less than the value of the collateral, so it is impossible to maximize asset efficiency.

4️⃣️In order to obtain more BGT, which two factors should be paid attention to?

"The weight of the vault occupied by LP tokens" and "the number of BGTs emitted by the vault".

Click on a vault in the BGT Station and you can confirm the weight of your LP tokens in the entire vault.

The higher the weight of the vault you occupy, the more BGT you can get in this vault.

*Therefore, instead of choosing a vault with high BGT capture/low LP weight, it is better to find a vault with medium BGT capture/high LP weight.

Regarding the data on "the number of BGTs emitted by the vault", the "BGT Capture" on the vault page can be used as a reference: this data shows the proportion of BGTs captured by each vault in recent period of time.

You can also consider using the "Total Incentive Value" data as a reference indicator.

The validator emits BGT to a certain reward vault for profit: Therefore, either the vault has very high actual benefits (monetary incentives), or the vault is closely related to him (his own vault/partner's vault)

Therefore, although it cannot be said that the more incentives a vault has, the more BGT it emits, but there is a connection between them. It can be used as a reference standard