# arBERO
## Liquid Staking Token for hiBERO
**arBERO** is Arbera's liquid staking token designed to reinforce long-term alignment across the Beradrome ecosystem by locking BERO into hiBERO, reducing market sell pressure, and increasing protocol influence. This is a new liquid staking, voting power aggregator, and smart emission router. arBEROβs flywheel benefits Arbera, Beradrome, and Berachain.
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## π Why arBERO?
By converting oBERO into hiBERO-backed arBERO:
* **Market dumping of BERO is reduced**, helping sustain high prices.
* **APR on Beradrome stays elevated**, since oBERO rewards retain value.
* **Voting power grows with arBERO**, creates stronger influence on emissions and bribes.
* **Emission feedback loop:** More emissions β more Den incentives β more bribes β more arBERO minted β more emissions directed.
* **Staking** allows for consistent reward sharing and helps maintain price action on oBERO plus HONEY loans through arBERO.
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## βοΈ How arBERO Works
### 1. Farming arBERO
* Users deposit into ARBERA DEN LPs. The LPβs farm arBERO LST as rewards. arBERO is also available by purchase from the market.
* arBERO is minted by sending oBERO to **arBERO Multisig.**
* arBERO is minted proportionally to **arBERO Multisig** voting power (e.g. if there is 100 arBERO, but multisig voting power is 200 hiBERO/BERO/oBERO, then each arBERO has 2 voting power, thus for 1 oBERO (1 voting power), user receives 0.5 arBERO).
* The **arBERO Multisig** converts all oBERO to BERO on a weekly schedule by paying 1 HONEY to Beradrome per oBERO. The BERO is then staked into hiBERO (voting power), and 0.975 HONEY is borrowed back per hiBERO staked. This allows the protocol to later repay 1 HONEY to unlock 1 BERO, enabling eventual redemption while maintaining active governance power.
{% hint style="info" %}
Users can also convert their oBERO with 90 days vesting, learn more about [bonding-deprecated](https://docs.arbera.io/arbero/bonding-deprecated "mention").
{% endhint %}
### 2. Staking arBERO
* Users are encouraged to **stake arBERO to receive starBERO**, which shares **hiBERO yields**.
* Yields come from Beradrome fees, protocol bribes, BGT bribes, and any protocol-owned BERO emissions.
* 90 % of the rewards are provided to starBERO stakers. A **10% fee** is taken by Arbera on all harvested rewards before distribution (except for farmed oBERO, BERO and HONEY, which are used to autocompound arBERO voting power and pay for oBERO exercising).
### 3. Reward Claim Mechanics
When claiming arBERO as rewards (e.g., from Den LPs):
* User options:
* Stake arBERO to receive starBERO.
* Provide Liquidity for arBERO LP - Deposit into arBERO DEN to receive brarBERO and stake it into the LP (brarBERO - brLBGT).
* Sell arBERO on the open market (brarBERO - brLBGT ) through the DEN LP.
Users will likely be able to sell arBERO at a premium minus fees because of the autocompounding rewards and voting power to further fuel the flywheel.
The new and optimized Arbera v1.1.
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## π§ arBERO Multisig
The arBERO multisig acts as the centralized coordinator of voting power and yield strategy:
* **Votes weekly** on Beradrome pool emissions before each epoch flip.
* The **Arbera Multisig** claims voting rewards (bribes) multiple times per week and distributes them to **starBERO holders**. The rewards are split, 90% goes to starBERO. 10% to the Arbera protocol.
* **oBERO/BERO yield** is used to **autocompound voting power** by converting to BERO and then staking into hiBERO.
* **HONEY yield** is allocated to **offset the cost of converting oBERO into BERO**, reducing the net expense of exercising voting power.
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## 𧱠No Native Liquidity
arBERO is **not tradable directly** on open markets. Instead:
* The only source of liquidity is the **brarBERO Den**.
* Users **wrap or unwrap** arBERO via the Den to enter or exit positions.
* This **intentional friction** adds stickiness to staking and limits speculative dumping.
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## π Flywheel Summary
1. **Users earn arBERO** from providing liquidity.
2. **Claiming rewards mints arBERO**, locking hiBERO.
3. **arBERO stakers** earn bribes.
4. **Voting power increases**, directing more emissions to Arbera.
5. **More arBERO is minted**, repeating the cycle.
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## π Glossary
* **oBERO** β Liquid reward token from Beradrome.
* **hiBERO** β Locked governance/voting power.
* **arBERO** β Liquid staking token representing hiBERO voting power.
* **starBERO** β Staked arBERO that earns protocol rewards.
* **brarBERO** β Arberaβs Den LP holding arBERO liquidity.
* **Multisig** β Arbera-run address controlling hiBERO voting and yield claims.
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