BeraPaw
About
BeraPaw is an innovative liquid staking protocol built on Berachain that tokenizes BGT (Berachain Governance Token) into LBGT (Liquid BGT), providing users with liquid, transferable assets while maintaining exposure to Proof of Liquidity rewards. The protocol operates as a decentralized autonomous organization (DAO) where PAW token holders govern validator delegation strategies and protocol parameters, enabling automated PoL interactions and enhanced yield opportunities.
Where Does Yield Come From?
Yield comes from Berachain’s Proof of Liquidity (PoL) system—a way the network rewards participants who provide liquidity.
Users deposit their BGT tokens to create LBGT, a liquid version that is always backed 1:1 by BGT. The protocol then automatically delegates this LBGT to validators, following strategies that PAW token holders decide through governance.
The block rewards and other incentives earned from these validator delegations are automatically reinvested (auto‑compounded) into stLBGT for the people who are staking.
The generated yield is split roughly 50/50 (this ratio can be adjusted by governance) between two uses:
- Rewards for LBGT stakers
- Incentives for liquidity pools that provide trading for LBGT
This structure creates boosted returns for stakers. Why? Because not all LBGT in circulation is actually staked, so the rewards are shared among a smaller group, giving each participant a proportionally larger share.
Rewards are collected periodically and put back to work, which gradually increases the value of the underlying vault.
When users stake their LBGT, they receive stLBGT as a receipt token. This stLBGT automatically grows in value as it accumulates the compounded validator rewards, while still letting users move it into other decentralized finance (DeFi) applications for lending, borrowing, or providing liquidity.
Audits
| Audit / Date | Findings | Verdict |
|---|---|---|
bobface security audits19-02-2025 |
| The audit found no critical vulnerabilities but identified one medium-severity issue related to emergency redeem queue handling and several low-risk concerns around fee limits and protection mechanisms that should be addressed before production deployment. |
bobface security audits03-03-2025 |
| The audit revealed no critical or high severity vulnerabilities, with only one medium-severity issue and several low-risk findings, indicating relatively robust security posture for the BeraPaw core contracts at this stage. |
bobface security audits29-04-2025 |
| The audit identified a medium-severity sandwiching vulnerability in buyback operations along with several governance and design notices, suggesting protocol improvements are needed before production deployment. |
bobface security audits29-04-2025 |
| The audit identified at least one medium-severity sandwich attack vulnerability in buyback mechanics, though the full scope of findings remains unclear due to limited document access. |
bobface11-07-2025 |
| The audit found no high-severity security issues, identifying only moderate risks related to loop counter timing and frontrunning protection that should be addressed before production deployment. |
bobface security audits17-07-2025 |
| The audit found no critical or high-severity security issues, identifying only medium and low-severity findings alongside non-security notices, suggesting the protocol's core security is reasonably sound but requires attention to timing and frontrunning protections. |
bobface security audits10-09-2025 |
| The audit document could not be analyzed due to accessibility issues with the PDF conversion, preventing assessment of security findings or protocol safety implications. |
Legal
Status and notes
Protocol described as a Decentralized Autonomous Organization (DAO) with community governance via $PAW token. No legal entity or registration details disclosed on official sources.