TL;DR
We are thrilled to share that Brevis and Beraborrow, a Collateralized Debt Position (CDP) protocol on the recently launched Berachain mainnet, are working together to bring Continuous Protocol Incentivization (CPI), an advanced incentive paradigm, to their platform for its native stablecoin, NECT. Utilizing Brevis’ technology, Beraborrow will integrate the CPI mechanism so that they dynamically reward liquidity providers of NECT pairs on Berachain-native DEXes, with more ways to earn rewards coming in the future! Initially starting with BEX and Kodiak—these incentives will be distributed in POLLEN (or POLLEN points before token issuance), ensuring sustained liquidity and long-term engagement.
The Power of Continuous Protocol Incentivization
This partnership comes at a pivotal time with Berachain’s recent launch. Beraborrow and Brevis are reinforcing Beraborrow’s commitment to building a robust and liquid ecosystem for NECT, ensuring its availability across key DeFi markets from day one.
Traditional liquidity incentives often rely on short-term rewards, airdrops, or TVL-based rewards that don’t holistically account for liquidity providers’ contributions across multiple ecosystems. Continuous Protocol Incentivization (CPI), on the other hand, is a new framework designed to address the shortcomings of traditional liquidity incentive models. Instead of relying on static airdrops or temporary reward programs, CPI enables a dynamic, continuous, and verifiable distribution of incentives based on user participation. This model ensures that contributors are consistently rewarded for their sustained engagement, fostering a healthier and more resilient liquidity environment. With CPI, liquidity providers are not only incentivized to contribute initially within a single venue, but also to maintain their activity over time across different supporting markets, helping to build long-term stability within the token’s ecosystem.
For example, if a liquidity provider deposits NECT into a BEX liquidity pool, the CPI system will track their contribution over time and continuously earn POLLEN/POLLEN points based on their proportional share of the total NECT liquidity across different markets. If they maintain or increase their liquidity position, their rewards will scale accordingly. This ensures that long-term participants receive greater benefits compared to those who farm rewards only temporarily, effectively aligning incentives with sustained ecosystem growth.
Continuous Protocol Incentivization, powered by Brevis’s technology, represents an important paradigm shift:
- Continuous Rewards – Rather than distributing rewards in one-off events, the CPI model ensures that Beraborrow LPs are rewarded over time, based on their ongoing liquidity contributions.
- Precision-Based Distribution – Rewards are calculated proportionally to each LP’s share of total NECT liquidity across DEXes, ensuring fair and transparent incentives.
- Extensive Incentivization Scope – Instead of limiting rewards to activity within Beraborrow itself, this system encourages external liquidity provisioning, strengthening the entire NECT DeFi ecosystem.
Initially, Beraborrow’s CPI system will continuously track and reward liquidity providers of NECT across two major Berachain-native DEXes:
- BEX – The flagship DEX of Berachain, providing deep liquidity for NECT pairs.
- Kodiak – A Uniswap V3 fork on Berachain, offering concentrated liquidity strategies for optimized yield.
Liquidity providers contributing to NECT pairs on these platforms will earn POLLEN in proportion to their share of the total NECT liquidity.
The Future of LP Incentives
The launch of this CPI-powered incentive system is just the beginning. As Beraborrow continues to expand its ecosystem, additional integrations and optimizations will be introduced to refine reward mechanisms and help enhance the user experience. Soon things like the usage of NECT in a memecoin launchpad or supplying NECT as collateral on a lending market such as Dolomite, could yield rewards from the CPI mechanism!
We hope to change the paradigm of token incentive design by leveraging ZK technology to create a more equitable, transparent, and sustainable model for community engagement. With the launch of the Continuous Protocol Incentivization system, we’re moving beyond traditional airdrops to a system that rewards users for their ongoing contributions. This approach not only aligns incentives for long-term growth but also empowers users with the tools to verify their engagement in a decentralized and trustless manner. For projects, this means fostering a loyal community that actively participates in the ecosystem, ultimately driving sustained growth and success.
Stay tuned for further updates as Beraborrow and Brevis drive the evolution of sustainable and data-driven DeFi incentives on Berachain!
About Beraborrow
Beraborrow is the leading CDP protocol on Berachain, unlocking instant liquidity with $NECT, the first proof of liquidity powered stablecoin. Currently over $400M+ TVL, with $NECT being the second-largest native stablecoin on Berachain.
Beraborrow is heavily inspired by the Liquity model with its own innovative features such as auto compounding dens and the tokenisation of the stability pool. Beraborrow accepts a number of different assets as collateral including BTC and ETH derivatives such as pumpBTC, uniBTC, beraETH and many more – along with Kodiak islands (LP pairs) as collateral. In addition to this, Beraborrow has an exclusive licence to release the Liquity V2 codebase on Berachain at a later date.
About Brevis
Brevis is an efficient, verifiable off-chain computation engine that brings limitless computation capacity to existing smart contract blockchains. Utilizing zero-knowledge proofs, Brevis offloads intensive, costly computations from on-chain environments to a drastically lower-cost off-chain engine, and empowers Web3 applications to scale seamlessly while preserving the security of L1 trust assumptions.
With Brevis, smart contracts can access blockchain states, transactions, and receipts across multiple blockchains and timeframes. DApps can transform complex business logic that is expensive to execute with smart contracts into succinct, low-cost circuit outputs that are mathematically verifiable on-chain. Use cases like data-driven DeFi, personalized GameFi experiences, and on-chain reputation systems can help unlock the full potential of decentralized data, and accelerate blockchain adoption on a broader scale.
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