Berachain: a guide on staking BGT with Kiln
Berachain and Proof-of-Liquidity
Berachain has introduced itself as a pioneering Layer 1 blockchain featuring an innovative Proof-of-Liquidity consensus mechanism that reshapes the interaction between validators, stakers, and decentralized applications (dApps).
The "Proof-of-Liquidity" (PoL) consensus mechanism reimagines blockchain staking by focusing on liquidity rather than merely holding assets. Unlike the conventional Proof-of-Stake (PoS) model, where assets are locked to secure the network, Berachain’s PoL approach requires stakers to actively supply liquidity. This system incentivizes contributions to liquidity pools, with rewards distributed to those who support network liquidity.
A three-asset model: BGT/BERA/HONEY
To support PoL, Berachain has introduced a three-asset model that enhances its ecosystem and reinforces its unique consensus structure. The assets—Bera Governance Token (BGT), the native gas token (BERA), and Honey (HONEY)—fulfill specific roles in governance, staking, and liquidity provision, adding both versatility and economic complexity to the network.
BGT is the essential asset in the staking process on Berachain. BGT holders have governance rights, allowing them to vote on proposals that influence protocol upgrades. $BGT can be accumulated through specific activities within authorized dApps on the Berachain network. Reward vaults are set up based on certain liquidity pools, which must first be whitelisted by $BGT governance. Once a pool is whitelisted, users can deposit liquidity into these reward vaults to earn $BGT rewards. Examples of actions that can accumulate BGT include:
- Depositing liquidity in Bex for a liquidity pair that generates $BGT emissions.
- Borrowing $HONEY on Bend, which helps stimulate lending and borrowing activity in the ecosystem.
- Providing $HONEY to the bHONEY vault for Berps, supporting liquidity needs and driving reward accrual.
Follow this step-by-step guide to learn how to stake BGT.
Currently, Berachain is in testnet (Bartiov2), so the process below is completed within that environment and should reflect how BGT can be staked on Berachain mainnet when it’s released.
How to stake BGT to a Kiln validator
Berachain supports multiple EVM wallets (i.e. Metamask/Coinbase/Rabby/Ledger, etc.) to manage BGT assets. Once connected, head to BGT Station and look for the Kiln Berachain validator.
Berachain users holding BGT in their wallets can use the BGT Station application to find Validators in the network: https://bartio.station.berachain.com/validators
Selecting the ‘Delegate +’ tab will allow you to delegate BGT towards the Kiln validator
After selecting the Kiln validator, you can adjust the amount of BGT that you wish to delegate to the node.
Once you have selected the amount of BGT you wish to stake, confirm and click on "Queue Boost":
After you have signed the transaction Queue Boost will submit your staking request in the Delegation queue, which will process over the next 1-2 hours:
After the Delegation Queue process is complete, you can confirm the transaction by signing the second transaction in your wallet.
You can view all staked BGT and associated validators under the “Rewards” section in BGT station.
Why should you stake your BGT with Kiln?
Kiln is the leading enterprise-grade staking platform, enabling institutional customers to stake BGT. We are serving thousands of businesses worldwide so that everyone can securely and seamlessly stake their digital assets.
Kiln partners with some of the top decentralized applications in the Berachain ecosystem, supporting the most actively engaged projects and enabling us to optimize reward generation for our validators.
Our clients can stake their assets from Kiln Dashboard, a hardware wallet, a browser wallet, a B2B custodian, a crypto exchange, or just their favorite investment app. Kiln makes earning BGT staking rewards easy, secure, and accessible to everyone. Our dashboard allows our clients to deposit liquidity receipts and delegate BGT effortlessly.
- Excellent track record in staking on 40+ protocols, managing more than $8.6b in stakes.
- Trusted by industry leaders such as Ledger, Lido, Coinbase Cloud, Bitpanda, Crypto.com and many more
- Non-custodial, work with your existing custodians solutions e.g.Ledger, Fireblocks
- SOC 2 Type II certified and Industry leading SLAs (0 penalties recorded and 99.95% effective uptime)
Your whitelabel partner to offer BGT staking
Our platform is API-first and enables fully automated validators on 40+ protocols, including Berachain, and rewards, data, and commission management making it the ideal solution to whitelabel a BGT staking offering.
Our transaction crafting API enables easy integration of deposit and withdrawal transactions into vaults, as well as BGT delegation to and unbonding from validators, and reward claiming. Additionally, our reporting API provides real-time data on BGT and HONEY rewards and performance.
If you are a wallet or an exchange, supercharge your Earn platform with BGT staking leveraging Kiln validators and staking infrastructure. Our whitelabel offering is compatible with any custody solution and custodian.
