How Beracana Works
Beracana is designed to enhance liquidity and yield farming potential within the Berachain ecosystem. The protocol lets users lend, borrow, and leverage their assets to maximize rewards, particularly BGT (Bera Governance Token). Through partnerships with dApps like Beradrome, Infrared Finance, and Beraswap, Beracana facilitates a multi-layered approach to liquidity provision, allowing users to optimize their returns on both sides of the market.
By providing liquidity or borrowing assets to amplify farming, users can get significantly more BGT without having to deploy large amounts of capital upfront. Beracana creates a dynamic system where users can lend or borrow to fit their individual strategies while participating in the overall growth of the Berachain ecosystem.
A. Lending / Supplying
Users can deposit BERA, wBERA, or NECT into the protocol. These deposits are pooled and lent to borrowers. In return, lenders receive:
canaBERA (for BERA or wBERA deposits)
canaNECT (for NECT deposits)
These interest-bearing tokens accrue yield over time. Interest rates increase with utilization, allowing lenders to benefit from borrower demand.
B. Borrowing / Leveraging
Borrowers can deposit assets and borrow up to:
5x on BERA / wBERA
7x on NECT
Borrowed funds are routed into leveraged vault strategies across Infrared, Berapaw, RootsFi, Beradrome, Kodiak, and Burrbear.
Users select leverage at deposit. Beracana automates LP creation, farming, compounding, and rebalancing.
C. Strategy Flow (Simplified)
Deposit collateral (e.g., wBERA or NECT)
Borrow assets up to allowed leverage
Assets are auto-routed to highest-yielding vaults
Rewards are harvested (e.g., BGT, iBGT, LBGT)
Rewards are converted and auto-compounded back into LPs
Loop continues every 4 hours
No manual management needed — just set and forget.
D. Health Factor
The Health Factor (HF) determines loan safety. A higher HF = safer position.
HF < 1 triggers liquidation
Health factor is affected by collateral value, borrow amount, and accrued interest
Users can add/remove collateral or repay debt to adjust HF
Health factors vary by asset type and leverage level.
E. Liquidation
If a user’s health factor drops below 1.0, their position becomes eligible for liquidation.
A liquidation bot (or keeper) repays a portion of the debt
Collateral is partially sold to repay the loan
The liquidator earns a small fee
The rest of the user’s position is preserved
Beracana minimizes liquidation risk through robust vault design and real-time health tracking.
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