💱Baults
Kodiak's BGT auto-compounding vaults
Introduction to BGT Auto-Compounding Vaults
For liquidity pools eligible for Berachain's Proof-of-Liquidity incentives, users can earn additional BGT rewards by staking their LP tokens (Kodiak Islands) in BGT reward vaults, or external vaults by liquid wrappers (Infrared vaults). Users typically manually choose between "raw" BGT which is then staked to a validator, or choose a liquid wrapper (e.g. iBGT, LBGT, yBGT) based on which is the highest yield, then occasionally claim the rewards and sell them to acquire more LP tokens.
Auto-compounding vaults simplify this process by automatically claiming BGT rewards and compounding them for more LP tokens!
What are Baults?
Baults are ERC-4626 compatible smart yield-maximizing, yield-bearing vaults that help you automatically grow your Kodiak Island Tokens.
How Do Baults Work?
1. Deposit Your Island Tokens
You deposit your Kodiak Island Tokens (Island tokens) into a Bault
In return, you receive ERC-4626 Bault receipt tokens.
Your Island tokens are automatically staked in Berachain's Proof-of-Liquidity (POL) reward vaults (https://hub.berachain.com/vaults/)
2. Earn Compounded Rewards in the same Island Tokens
The staked Island tokens continuously earn BGT rewards.
These rewards in liquid BGT wrappers get continuously auctioned for underlying island tokens.
The Island tokens are then staked back into the Reward Vault
3. Continuous Auction of BGT rewards maximizes yield
Anyone can trigger the claiming process by paying a small bounty.
For example, assume the bounty is $100 worth of island tokens. This means that when the Bault accrues $100 "worth of" BGT rewards, it will be compounded.
The determination of when $100 "worth of" BGT rewards is accrued is market-determined.
The BGT rewards can be claimed as:
Regular BGT: Direct BGT tokens
Liquid BGT Wrappers: Infrared iBGT, BeraPaw LBGT, Bearn yBGT are currently supported.
Typically, "keepers" will permission-lessly claim and compound with the highest value Liquid BGT wrapper. In general, Baults will always claim at least the highest value BGT wrapper (trading at a ~40% premium, as of May 2025).
In certain cases, through special partnerships Baults can "beat" the highest value BGT wrapper:
Certain Baults may be eligible for "reduced mint fees" for liquid BGT wrappers (vs the 10% typical fee)
Baults are the *only* mechanism in Berachain where raw BGT can be purchased in < $100 lot auctions, continuously. It is likely that protocols looking to raw BGT will pay a premium to the comparable value of the highest value BGT wrapper
Eligible to stack incentives with Kodiak Farms
Until now, you had to choose between BGT or Kodiak Farms with locking, multipliers, and xKDK (or other token incentives). With Baults, you can do both!
Baults can be (re)staked into Kodiak Farms to earn additional xKDK and other token incentives, on top of BGT rewards.
Farms will be launched after an initial period of data collection. Before the token is launched, incentives will generally be added for the top performing pools. After token is launched, this will plug into the xKDK flywheel
Transparent Metrics and Very Low Fees
Every single compound is transparently displayed with Berascan links. See Bault Analytics
Deposit Fee: 0
Exit Fee: effectively 0
Technically, value of one compound, that goes to remaining depositors to prevent "reward hijacking." Typically, it's less than 0.01%, users will make it up in < 30 minutes.
Compound Fee: up to 4.2% (varies by Bault, some may be lower). This is set lower than most other auto-compounders that charge 5-10% performance fee.
Before the token is live, fees will be used to accumulate protocol owned liquidity and add incentives to the major pools.
After token is live, these fees will plug into the xKDK flywheel.
Audits?
See audits.
How to Deposit or Migrate?
Check out the user guide
As a quick overview, you can see the eligible pools by enabling the Baults filter
Want to be a Keeper?
Currently Kodiak + some partners run a basic keeper bot, using the Enso API to compound. This bot is fully open sourced here:
https://github.com/kodiak-Finance/bault-compoundor/However, compounding is completely permission-less - keepers / MEV bots can use their own routes. Any excess amounts are sent to the specified address, and are profits for the keepers. All the necessary Bounty amounts are pre-funded and accessible through the BountyHelper contract (no flash loan necessary). Check out the technical guide for compounding baults.
Integrator?
Get a list of all the Baults, APY, and TVL here:
https://backend.kodiak.finance/baultsLast updated