# Vesting
### Overview
The vesting mechanism allows users to:
* Convert `oBERO` into `arBERO` on a 90-day linear vesting schedule.
* Instantly unlock unvested `arBERO` by paying for the `arBERO Premium` with `BERO`, which is used to:
* Generate Protocol-Owned Liquidity that earns yield, boosts Arbera's voting power, and strengthens arBERO emissions.
### Unlock with BERO
`arBERO` generally trades at the `Premium` to `oBERO`. When users convert their `oBERO` at current oBERO-to-arBERO `Ratio` they are already in profit, which if sold right away the `Premium` would disappear quickly. That's why converted `arBERO` is vested linearly over 90 days.
$$
arBERO = Ratio \* oBERO+Premium
$$
Users can access their unvested `arBERO` instantly if they pay for the `Premium` with `BERO`. That `BERO` is then used to create Protocol-Owned Liquidity (POL) which stabilizes `arBERO` premium over a longer time period. What's more, `arBERO` Premium actually gets discounted with time, making unlocking with `BERO` even more profitable for the users.
#### Premium Discount
Discounting lasts for 49 days (7 weeks) and starts with 0% discount.
* 0-7 days: Discount grows from 0% to 15%
* 8-49 days: Discount grows from 15% to 30%
#### Example
As pictured above from the Arbera app, a user has a vesting with `44.555 arBERO` remaining, being able to use up to \~$2 in `BERO` to unlock these tokens instantly.
* The user already has `8.39%` discount on the Premium he pays for to unlock the `arBERO`.
* Estimated Return on Investment (ROI) of paying \~$2 in `BERO` yields:
* `~17.73%` for selling arBERO right away, calculating paid `oBERO` at intrinsic `oBERO` value of BERO - $1.
* OR `~35.72%` by staking unlocked `arBERO` for just 1 month (incl. points APR).
Due to the use of the oracles, and time-averaged pricing, prices used to calculate premiums can differ slightly form the current market prices, which
### Why This Matters
* Accelerates Incentives: Users can front-load their arBERO access in return for deepening Arbera’s POL.
* Strengthens Liquidity: Bonded `BERO` is converted into `brBERO-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 the ultimate rewards vaults.
***
### Security
#### Audit
Original BondingConverter and ArberoOracle were audited by CDSecurity, BondingV2 or vesting is a slightly modified version of this code.
#### Oracles
Vesting and Premium calculations are based on the custom oracles, combining Pyth prices and TWAP Uniswap oracles, to prevent JIT manipulation of prices.
* LBGT price is derived as BERA EMA price from the Pyth oracle, with dynamic multiplier.
* 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.
* BERO price is derived from the BERO contract.
* arBERO price is derived as a 1h TWAP from brarBERO-brLBGT LP.
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