WeBera Vault

The vault is a core component of WeBera's yield aggregation system

Deposit Mechanism

• Users can deposit HONEY (Berachain's native stablecoin) directly into the vault.

• Other stablecoins (USDC, USDT, DAI) can also be deposited and are automatically converted to HONEY using Berachain's Mint Site.

• In return for deposits, users receive weHONEY tokens, which are pegged 1:1 with HONEY.

Auto-compounding

In WeBera, deposited liquidity is automatically compounded, meaning that when borrowers make interest payments, the funds are immediately reinvested into the liquidity pool. This enables the interest rate for lenders to compound over time.

Auto-Rebalancing

• The vault features automatic rebalancing mechanisms to ensure that liquidity is efficiently allocated and adjusted in response to changing market conditions.

• This rebalancing is done without user intervention, providing a hassle-free experience while optimizing returns.

Withdrawal Process

• Users can withdraw HONEY by returning their vHONEY tokens to the pool.

• A withdrawal threshold is in place (details to be updated) to manage liquidity and ensure fair distribution based on market conditions.

Vault Tokens

• $weHONEY is like a deposit receipt.

• They represent a user's share of the yVault that they are participating in.

• This tokenization allows for easier tracking of positions and potential integration with other DeFi protocols.

• The vault token is ERC-4626 compatible, which standardizes it for interaction with multiple DeFi protocols.

For example, if you deposit HONEY into the Vault, you will receive $weHONEY as a vault token that represents a user's deposit. If your vault token generates profit, the share price of your Vault tokens will increase. This happens because more underlying tokens are in the Vault to redeem upon withdrawal. Once a user's liquidity is withdrawn from the Vault, their vault token will be burned.