Smilee on Berachain

The new, revolutionary PoL-native LST, designed by Smilee

👻 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.

Find the Github Repository here: https://github.com/smilee-finance/gbera-contracts

🔄 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.

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.

⚠️ 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.