⏳Vesting

BERO to the rescue!

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.

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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.