What makes BakerDAO Unique

Berachain-native approach

• Liquidity will be seeded for $BREAD with $OHM, which will be incentivized by Olympus, Yeet, and Kodiak. LPs for $BREAD/$OHM in the Kodiak island will earn $BERA,$OHM, $YEET, $xKDK, and swap fees.

• $BGT whitelisting will be prioritized for integration into the PoL flywheel as soon as possible

• Protocol fees are used for bribing Berachain validators to earn $BGT instead of being used for direct LP rewards, and will benefit from co-bribes and boosts from Yeet, Olympus, and Kodiak

• Fees structure is optimized in order to make backing grow more quickly

• In other protocols that use a similar bonding curve mechanism, fees are used as LP rewards. Since LPing is already heavily incentivized, this is temporarily reduced to 5% in Baker DAO, and it is set aside for exclusively making PoL bribes once the pool and single sided $BREAD staking are whitelisted for $BGT emissions. After whitelisting, this split used for bribes is increased to 15%

• In other protocols that use a similar bonding curve mechanism, after the baking (minting) cap is reached, no new baking is possible. In Baker DAO, the max cap is dynamic and adjustable by the Master Baker

  • The initial cap is 6.9 million

  • The target cap increase is 50% per week, subject to the monetary policy

  • The Master Baker can also enable baking via unique, beneficial methods, such as imposing different whitelists on baking, or enabling baking with $BGT

• Future versions may include the ability to bake $BREAD directly via participation in PoL and depositing LP tokens in the Bakery

Security and User Experience

• Use of whitelists and pre-deposit vaults means users cannot get frontrun by bots and receive more equitable pricing in early participation