Bonding

Ohmmies stack arBERO

Arbera Bonding: OHM & brOHM-brarBERO LPs

Arbera introduces a novel liquidity bonding mechanism that allows users to accelerate their arBERO vesting by contributing valuable counterparty liquidity, specifically in the form of OHM, which will get converted into brOHM-brarBERO LP. This structure not only deepens Protocol-Owned Liquidity (POL) but aligns incentives across stakeholders by offering fast-tracked access to premium rewards.

Overview

The bonding mechanism allows users to:

  • Convert oBERO into arBERO on a 90-day linear vesting schedule.

  • Accelerate arBERO access by bonding OHM that would be routed into brOHM-brarBERO liquidity.

  • Generate Protocol-Owned Liquidity that earns yield, boosts Arbera's voting power, and strengthens arBERO emissions.

How It Works

1. Start arBERO Vesting

Users deposit oBERO and receive arBERO vested linearly over 90 days.

  • Example:

    Deposit 1,000 oBERO → Receive 1,000 arBERO over 3 months.

    (At $0.50 per oBERO and $2 per arBERO, this is a 4x premium locked behind vesting.)

2. Bond OHM to Early Unlock arBERO

To fast-track access to arBERO, users can bond OHM and contribute it to Arbera’s POL via the brOHM-brarBERO LP.

  • On deposit:

    • Dollar value of OHM is calculated using the OHM oracle by Pyth.

    • The OHM is sent to Arbera to zap it into brOHM-brarBERO LP.

  • A 7-day cooldown begins from the moment OHM is bonded.

  • After 7 days user has to unlock the dollar value plus a 10% bonus:

    • Eg. by depositing $100 in OHM, user receives $110 worth of bonus after 7 days.

3. Fast Claim arBERO After Cooldown

After the 7-day lock expires, the user can unlock the bonus and execute a Fast arBERO Claim, withdrawing from their existing vesting position using the bonded liquidity as justification.

  • Fast Claim Value:

    The user can claim arBERO worth up to the combined value of deposited OHM and oBERO, plus the 10% bonus on deposited OHM value.

Example Flow

Assumptions:

  • oBERO price: $0.50

  • arBERO price: $2.00

  • OHM price: $20

  • arBERO is minted by oBERO 1:1

  1. User Deposits:

    • 1,000 oBERO → Worth $500

    • Begins 90-day vesting of 1,000 arBERO

  2. User Bonds:

    • 5 OHM → Worth $100

    • Triggers 7-day timer

  3. User unlocks Bonus (after 7 Days):

    • User unlocks $110 Bonus ($100 of deposited OHM value + 10% bonus)

  4. User fast claims arBERO

  • User can use $110 Bonus to fast claim 73.33 arBERO:

    • arBERO Premium Value is $2 - $0.5 = $1.5

    • User can claim Bonus / Premium Value

    • $110 / $1.5 = 73.33 arBERO = $146.66

  • User fast claimed arBERO worth $146.66, which includes:

    • $36.66 of underlying oBERO (73.33 * $0.5)

    • $100 in bonded OHM

    • $10 of Bonus Profit

  • User exercised 10% profit over his bonded OHM value.

Assuming the arBERO premium to oBERO price didn’t change in 7 days.

Why This Matters

  • Accelerates Incentives: Users can front-load their arBERO access in return for deepening Arbera’s POL.

  • Strengthens Liquidity: Bonded OHM is converted into brOHM-brarBERO LPs, expanding depth and stability.

  • Premium Yield: With arBERO trading at a premium and earning boosted rewards, the mechanism remains economically attractive while aligned with long-term protocol health.

  • No BGT Required: This mechanism operates independently of Berachain’s PoL (Proof of Liquidity) or BGT emissions. When combined in the future, it sets the stage for ultimate rewards vaults.

Security

Audit

BondingConverter and ArberoOracle were audited by CDSecurity, nonetheless no audit can guarantee bug-free business logic.

Oracles

Bonding and bonus calculations are based on the custom oracles, combining Pyth prices and TWAP Uniswap oracles, to prevent JIT manipulation of prices.

  • OHM price is derived as EMA from the Pyth oracle.

  • LBGT price is derived as EMA from the Pyth oracle.

  • oBERO price is derived as a two price points average of around -1h, and -5m from the tx execution, based on the BERO price from the main BERO-HONEY LP.

  • arBERO price is derived as a 1h TWAP from brarBERO-brLBGT LP

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