Proof of Liquidity on Berachain is a gamechanger. Protocol Owned Liquidity is extremely important. When combined with each other? Wow, big amazing.

As Yeetards, we firmly believe in the importance of these benefits. That is why we are launching YeetBonds, the best way for Berachain protocols to build Protocol Owned Liquidity (POL), on the Proof of Liquidity chain (POL), to harness what we call POL².

What are YeetBonds?

• The YeetBonds marketplace is where protocols and users can exchange tokens in a discounted, slippage-free, and permissionless way

  • Protocols issue a YeetBond of their token, which buyers can purchase

  • YeetBond sales are slippage-free because they are peer-2-peer, and do not use an AMM

  • A YeetBond is a sale of tokens at a discount to market price, with a short lock-up period (typically 2-7 days)

• Protocols can use YeetBonds to acquire any ERC-20 token: it could be stablecoins, LP tokens, or other strategic asset

• Community members and buyers can use YeetBonds to acquire protocol tokens at a discounted price, and benefit ecosystem protocols. Win-win, and furthermore Yeet.

Who cares?

• Our main partner for YeetBonds: Bond Protocol

• Our main bonding partners, who work with us to bring these benefits to the Bera ecosystem: Infrared, Kodiak, and Ramen Finance

• The protocols that plan to issue bonds: Beraborrow, Ramen, Vase Finance, IVX, Goldilocks, Burrbear, among others

Why is this important?

• Bonding in LP tokens means protocols can own their own liquidity. Owning your own liquidity means:

  • You can pay less bribes and liquidity mining incentives to yield farmers to maintain your pool liquidity, as you own it yourself

  • This means you can reduce token inflation in the medium/long term

  • Improve liquidity health

  • Farm $BGT (or liquid versions) as a treasury (instead of this going to external LPs)

• The benefits protocols gain by having Protocol Owned Liquidity, are further turbocharged on Berachain as protocols can farm $BGT: the non-transferrable native governance token

  • Liquid versions such as Infrared’s $iBGT may also be farmed instead

  • These benefits are what we refer to as POL²

• You can raise more cash or acquire strategic assets after your token launch by issuing YeetBonds

  • This is like selling tokens OTC, which does not affect the price on DEX/CEX as it would if the protocol was selling there

• It allows buyers to acquire Berachain ecosystem tokens at a discount

Practical Guidelines

• Healthy liquidity for a token is usually when pool TVL is 10-20% of token FDV

• A good target for Protocol Owned Liquidity, is 60-80% of pool TVL

  • This is not attainable in one bond, but rather with a prolonged bonding program

• Runway: protocols should aim to have 6-12 months of runway in stablecoins in the treasury

Who can use this?

• Any protocol on Berachain

  • This can be used to build more Protocol Owned Liquidity by bonding in LP tokens

  • Bonds can be used to raise more money by bonding in stablecoins

  • Bonds can also be used to diversify treasuries and accumulate strategic assets, such as $iRED and $oBERO

• Any large holder of a token that wishes to exit without large slippage, and access a larger number of buyers than a normal OTC trade

• Any Yeetard in the ecosystem that wants to buy tokens for cheaper than market price

Yeetardio

We just Yeet.