Dolomite full integration with the Berachain Proof of liquidity system is now live! For dolomite first strategy to harness PoL they have built a system that aspires to produce the highest-yielding stablecoin opportunity in DeFi.
Let’s dive in to how it all works.
Dolomite’s modular design allows us to craft custom integrations tailored for ecosystems with complex or unique incentive systems. That means we can plug directly into the native mechanics of any chain or protocol. Berachain is a perfect fit for this approach.
The development, design, and release of ou r Proof of Liquidity integration isn’t just a feature update — it’s the full-scale deployment of Dolomite on Berachain. Dolomite believes that they had built a game changer. And they hope you’ll agree.
ℹ️ More info on our Proof of Liquidity integration design and function here.
What can it do?
That’s a big question and want to walk you through the answer. Dolomite first PoL enabled asset doesn’t power just one strategy — it’s at the center of a coordinated system built to capture value, amplify rewards, and push stablecoin capital efficiency to the limit.
They have been working closely with the Reservoir team to integrate their stablecoin framework, leveraging srUSD to harness real DeFi yield. At the same time, we’re tapping into the power of Berachain’s Proof of Liquidity system to direct emissions through dynamic bribes — using real protocol fees.
Dolomite gola ? To drive massive inflows to Berachain by introducing what they believe could become the highest-yielding stablecoin strategy in all of DeFi.
Let’s break it down.
Overview: The Motorcycle as a Metaphor
Visualize the entire strategy as a motorcycle:
The engine is the Proof of Liquidity incentive marketplace.
The rear wheel is the pol-rUSD (Proof of Liquidity rUSD) leveraged loop.
The front wheel is the srUSD (Staked rUSD) real yield leveraged loop.
These 3 mechanisms work together, creating a self-reinforcing system that optimizes both yield generation and stability.
The Engine: How Proof of Liquidity Works on Berachain
Proof of Liquidity (PoL) is Berachain’s native incentive system designed to efficiently allocate BGT emissions to liquidity that matters most. Instead of fixed rewards, PoL introduces a dynamic bribe-based model where protocols compete for BGT emissions by incentivizing specific vaults.
High points
Users (liquidity providers) stake assets into reward vaults, such as drUSD.
Each reward vault can pay bribes - incentives offered to attract BGT emissions from validators.
The more bribes a vault pays out, the larger its share of BGT emissions.
Liquidity providers earn rewards in BGT based on their share of the vault.
This creates a marketplace for emissions so:
Protocols can influence where emissions go.
Vaults compete for attention via bribes.
Users are incentivized to participate where rewards are highest.
It’s a flexible, market-driven approach to liquidity incentives — and it’s the engine powering this strategy.
How Does Infrared Fit In?
Reward vaults distribute rewards in BGT, a soulbound illiquid token. To solve for this, Dolomite integrates directly with Infrared, a protocol that allows liquidity providers to receive a liquid version of their emissions — iBGT — instead.
Infrared receives the BGT rewards on your behalf and issues iBGT, a liquid receipt token. iBGT can be freely traded, used as collateral, or claimed directly from Dolomite’s front end.
iBGT currently trades at a premium to BERA — as of writing, approximately 47% higher. iBGT deposited to Dolomite is automatically staked with Infrared where it is currently earning over 130% APR.
Staked iBGT is supported as collateral on Dolomite unlocking the freedom to construct creative, high-yield positions that push your capital efficiency to the edge of what’s possible.
ZAP to Swap it into pol-rUSD, in the background your rUSD is staked into the Proof of Liquidity system and begins earning iBGT. The only way to enter or exit pol-rUSD is by zapping in the Dolomite UI. POL tokens cannot be entered or exited via ordinary deposits/withdrawals
Open a Borrow Position with pol-rUSD as the collateral.
ZAP to Loop Up: Borrow additional rUSD which is swapped for more pol-rUSD and deposited as collateral — achieving up to 14x leverage in one click!
Earn: Maximize exposure to iBGT rewards without directional market risk — only stablecoin exposure.
Note: There is a 0.05% exit fee charged on your notional size when exiting pol-.
