stBGTPrice

(STBGT)

stBGT is a liquid wrapper for the Berachain Governance Token, which is commonly referred to as BGT. Within the Berachain ecosystem, BGT is a non-transferable and illiquid asset that users earn by providing liquidity to decentralized applications. Because BGT is soulbound and cannot be traded or used as collateral on its own, stBGT was developed to unlock its economic value. The stBGT project was originally launched by Stride, a provider of liquid staking solutions. Its primary purpose is to provide BGT holders with liquidity while allowing them to retain exposure to the governance and economic benefits of the Berachain network. By wrapping BGT into stBGT, users can trade the asset on decentralized exchanges, use it as collateral in various lending protocols, and transfer it between wallets. The operations of stBGT were later acquired by BakerDAO. Under the current management, the mechanics of the token have evolved. It is integrated into the Proof-of-Liquidity consensus model of the network. Users can obtain stBGT by depositing liquidity provider tokens into specialized vaults or by maintaining active debt positions in certain decentralized finance protocols. Instead of receiving native BGT as a reward, these users receive stBGT, which grants them immediate transferability. Functionally, stBGT serves as a bridge between the restricted governance layer of the blockchain and the broader decentralized finance ecosystem. It allows users to leverage their governance influence for other activities without having to permanently convert their holdings into the network's gas token. While stBGT can be redeemed for the underlying assets, the process often involves specific protocol fees and redemption mechanisms managed by the acquiring entity. The project is a significant component of the liquid staking landscape on Berachain because it addresses the scarcity and illiquidity of the native governance token. By making governance power portable and liquid, stBGT enables more complex financial strategies, such as looping and leveraged yield farming, within the ecosystem. It essentially acts as a liquid staking derivative that maintains a relationship with the underlying governance emissions of the blockchain. Learn more

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