> For the complete documentation index, see [llms.txt](https://smilee-finance.gitbook.io/gbera-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://smilee-finance.gitbook.io/gbera-docs/smilee-on-berachain.md).

# Smilee on Berachain

### 👻 Long Story Short

Liquid Staking Tokens (LSTs) have proven to be a hit — just look at Lido on Ethereum. They let users secure the network *and* participate in DeFi (borrowing, trading, LPing).

But **Smilee’s LST** is built different.

It’s designed natively for **Berachain’s Proof of Liquidity (PoL)** model, redirecting validator power into bribes and liquidity incentives — *not* passive staking or rebasing.

Through smart contracts, LP token collateral, and protocol-owned liquidity (via **gFund**), Smilee turns its LST into a **BGT-generating machine**.

This is **wgBERA**: the first PoL-native LST that aims to end the Proof of Stake narrative entirely.

{% hint style="info" %}
Find the Github Repository here:\
<https://github.com/smilee-finance/gbera-contracts>
{% endhint %}

### 🔄 Token Flow Overview

#### `gBERA [Legacy Rebasing Token]`

* Minted 1:1 by depositing BERA in the previous Smilee version.
* Legacy token, deprecated.
* **Not rebasing** anymore.
* If held more than a single unit, users are prompted to wrap into `wgBERA`.

#### `wgBERA`

* Wrapped version of gBERA, fully PoL-native.
* Used in LP pools and Reward Vaults to earn **bribes** and **BGT**.
* Central to the new Smilee LST model — *don’t hold it idle, deploy it*.

#### `gFund`

* Smilee’s protocol-owned liquidity engine.
* Borrows BERA during `wgBERA` minting.
* Deploys BERA in single-sided LP strategies to generate yield.
* Uses earned yield to pay bribes and service wgBERA's backing.

### ✨ How It Works

1. Users deposit BERA to mint direcly **wgBERA** at a fixed 1:1 ratio.
2. wgBERA can then be:
   * Paired in liquidity pools (e.g. `wgBERA-BERA`, `wgBERA-HONEY`,`wgBERA-NECT` and many more)
   * Staked in Berahub's Reward Vaults, Infrared, Berapaw to get BGT, iBGT or LBGT;

There is **no rebasing or auto-compounding:** Smilee redirects 100% of validator staking rewards into **weekly bribes** for pools containing wgBERA. This aligns with Berachain’s design of rewarding active liquidity providers rather than passive stakers.

* All wgBERA-based pools receive **BGT-based bribes**
* Bribe amounts are predictable and distributed via Reward Vaults
* APRs are enhanced by:
  * Bribes - aka better BGT APR;
  * Swap fees from active pools.

Users benefit by **providing liquidity**, not by holding idle tokens anymore.

{% hint style="info" %}
Berachain features a novel Proof-of-Liquidity (PoL) consensus mechanism, using a triple token model:

* **BERA**: The native gas token used to pay for transactions.
* **BGT (Berachain Governance Token)**: A non-transferable token earned through providing liquidity or staking specific protocols’ LP tokens. BGT can be delegated to validators to boost their reward rate or it can also be converted at a 1:1 ratio to **$BERA**. Validators on Berachain receive rewards in both BERA and BGT.
* **HONEY**: The native stablecoin used within the ecosystem.
  {% endhint %}

### ⚠️ About Withdrawals

> Withdrawals aren't enabled currently on Berachain, until then unstaking from gBera won't be possible! You can cash out using the `gBera-Bera` dex pool, although there is no guarantee on the gBera price.