# Goldivaults

**Published by:** [Goldilocks DAO](https://paragraph.com/@goldilocks-dao-2/)
**Published on:** 2024-12-05
**URL:** https://paragraph.com/@goldilocks-dao-2/goldivaults

## Content

Goldivaults Henlo beras, and welcome to Goldilocks DAO – a DAO dedicated to building novel defi infrastructure for Berachain. In this article, we’ll introduce the third of our creations, Godlivaults – a yield tokenisation platform built specifically for Berachain’s unique proof of liquidity architecture. What’s the Problem? Berachain is designed to offer sustainably attractive long term yields for liquidity providers, who play a crucial role in securing the chain. But what about when liquidity providers want to leverage the expected value of their future yield now, rather than having to wait for the yield to accrue in real time? Or what if someone thinks that the market is incorrectly pricing the value of that future yield, and wants to bet on that conviction? Goldivaults Fixes This Goldivaults provides solutions to these problems by allowing liquidity providers to tokenise the future yield of their positions. For example, suppose that someone, call them `Napzilla’, is providing liquidity for the BTC/HONEY pair on BEX, Berachain’s native decentralised exchange. By using Goldivaults, Napzilla can split his position into two components – ownership tokens or `OT’ (representing ownership of their LP tokens), and yield tokens or `YT’ (representing ownership of the yield that the LP tokens will generate over the lifetime of the vault). If Napzilla wants instant access to the future yield of his LP tokens but doesn’t want to sell the LP tokens themselves, he can, for instance, sell the YT tokens on the open market now. The buyer of the YT tokens then has the right to claim Napzilla’s yield at the conclusion of the vault, and Napzilla gains instant access to the expected value of this yield. He can then reclaim his LP tokens by redeeming the OT tokens at the vault’s conclusion. Alternatively, suppose that Napzilla thinks that the current price of YT underestimates the value of the future yield of the LP tokens. Then he can buy YT and redeem them for the underlying yield at the conclusion of the vault. If he’s correct that the market was underpricing the yield, then he’ll make a profit. Generally then, Goldivaults tokenises the yield of defi positions on Berachain, thereby allowing both for traders to speculate on the future value of that yield, and for liquidity providers to gain instant access to the future yield of their positions at any time. What’s New? Goldivaults has a few unique features that distinguish it from existing yield tokenisation platforms and make it especially well suited to become a pillar of the Berachain defi ecosystem. (i) Goldivaults integrates Infrared at the contract level to make BGT emissions transferable and amenable to yield trading. (ii) Goldivaults will leverage Goldilocks DAO’s partnerships with other Berachain defi protocols in order to ensure that there is deep liquidity available for trading the tokens associated with our yield splitting vaults. (iii) Goldivaults are designed to make it possible for both OT’s and YT’s to be deeply integrated into the Berachain defi ecosystem in an entirely modular and composable fashion. (iv) In Goldivaults, the yield earned by underlying assets is stored in the contract until maturity, at which time it can be claimed by YT holders. This ensures that YT’s are backed by the value of the underlying yield until maturity, and are therefore both more liquid and more easily used as collateral in money markets and perps platforms. (v) Where possible, Goldivaults will autocompound the yield accrued to the contract. TLDR: Goldivaults allows for the efficient and modular tokenisation and trading of future yield on Berachain. Beras in control.

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