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SunStorm
@sunstormzz
🐻Hey everyone, guess what? 🐻 @beraborrow just got its own role in Discord. 🐻📈🎉 Let’s learn more about Beraborrow ⬇️ What is @beraborrow? Beraborrow provides instant liquidity for Berachain assets through Nectar ($NECT), the first stablecoin powered by Proof of Liquidity (PoL). With a focus on simplicity and flexibility, Beraborrow enables you to maximize their opportunities without compromising on yield. The Den Dens are central to Beraborrow's collateral management system, allowing you to deposit assets, earn yield, and mint $NECT, all while retaining exposure to their original collateral. This flexibility lets you unlock liquidity without needing to sell or forfeit their position in valuable assets.
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SunStorm
@sunstormzz
How does it works? When you deposit their assets into a Den, they lock their collateral within the protocol, allowing them to mint $NECT—Beraborrow’s over-collateralized stablecoin. This $NECT can be utilized throughout the Berachain DeFi ecosystem. The amount of $NECT minted is based on the asset's Minimum Collateral Ratio, ensuring all positions are over-collateralized to preserve the protocol's stability and security.
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SunStorm
@sunstormzz
For example, when you deposit $iBGT into Beraborrow, the asset is automatically staked with Infrared in the same transaction. As a result, $siBGT is retained in the Den. This staking process allows you to earn additional yield on their holdings, essentially receiving rewards for borrowing. At the same time, the deposited $iBGT releases liquidity through the minting of $NECT, which can then be used across various Berachain DeFi applications.
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