💫Arbera Flywheel

Street cred and beras.

The Arbera Flywheel is designed to generate numerous arbitrage opportunities, collecting fees along the way. These fees are converted into ARBERA via buybacks on the open market and distributed back to LP stakers, Den holders, and Berachain validators, creating continuous buy pressure on the ARBERA token.

1. Dens

Everything begins with the creation of Dens. Each Den has a corresponding liquidity pool on a DEX (e.g., Kodiak). Users wrap (deposit) their tokens into the Den and can provide liquidity into the Den LP, establishing an arbitrage market for the Den.

2. Protocol Fees

Every time TOKENs are wrapped, unwrapped, bought, or sold, fees are generated in brTOKEN. These fees are allocated as follows:

Fee	Description
Wrap	Fee on wrapping TOKEN into the Den (brTOKEN).
Unwrap	Fee on unwrapping Den (brTOKEN) into the TOKEN.
Buy AMM	Fee on buying Den (brTOKEN) tokens from LP.
Sell AMM	Fee on selling Den (brTOKEN) tokens to LP.
Burn	Fee on all above actions, which burns brTOKENS.
Partner	The fee, on top of other fees, was collected after the burn fee and paid out to the Den LP Creator.
Protocol Fee	The fee, on top of other fees, was collected after the burn fee and paid out to the Arbera Treasury.

3. Burns and ARBERA Buybacks

After fees are distributed, a portion of brTOKEN is burned to IMPROVE the collateral backing ratio, increasing it beyond 1:1 (brTOKEN > 1 TOKEN), thereby enhancing the value of the underlying TOKEN in the Den.

ARBERA buybacks occur after accounting for the Burn, Protocol, and Partner fees:

• 90% of the brTOKEN fees are swapped for ARBERA and distributed to Den LP stakers.

• 10% of the brTOKEN fees are reserved for future validator vote gauging to increase LP yields with BGT and other token rewards.

Summary

• The more volatile the asset, the more arbitrage opportunities arise, which leads to more fees.

• The more Den LP liquidity, the more arbitrage can be executed, generating even more fees.

• The more fees generated, the stronger the buying pressure on ARBERA.

• More Dens = More buyback pressure for ARBERA Token.

• The more fees generated, the more the underlying TOKEN grows, benefiting brTOKEN holders.

• More Dens and more Den liquidity lead to more arbitrage, which means more fees, more satisfied holders, and happy LP stakers, creating even more arbitrage opportunities.