Where the yield comes from
Berafarm vaults earn from multiple sources simultaneously, depending on the current strategy allocation:- Proof of Liquidity (PoL) emissions : staked LP positions earn BGT, Berachain’s governance emission, which the vault routes through Infrared and receives as liquid iBGT
- Trading fees : concentrated liquidity positions on Kodiak earn swap fees from both sides of the pair
- Lending interest : capital supplied to money markets (e.g. Dolomite) earns borrow interest
- External vault yield : positions in whitelisted third-party vaults (e.g. Re7) accrue their underlying returns
The compounding loop
Every harvest cycle, the vault:- Claims accrued rewards across all positions. PoL emissions via Infrared, LP fees, lending interest
- Converts reward tokens (iBGT, incentive tokens) into strategy assets via on-chain swaps
- Redeploys the proceeds back into the current strategy allocation
- Updates NAV : total vault assets rise, the waterfall allocates the gain between tranches, and each tranche’s share price moves accordingly
What this means for you
- No claim transactions. There is nothing to harvest, no reward dashboard to check, no claim gas to pay.
- No reward-token management. You are never left holding emission tokens that need selling, the vault converts them at harvest.
- Compounding from block one. Rewards are redeployed into earning positions rather than sitting idle, so your yield itself earns yield.
- Your yield = share price appreciation. To see your return, compare your tranche’s share price now versus when you deposited. That’s it.