Beraborrow
A borrowing protocol built for Berachain — letting you draw instant liquidity from native assets without selling them.
Our Mission
The team behind Beraborrow started from a simple observation: Berachain users were sitting on productive assets with nowhere to go. Selling meant missing upside. Holding meant leaving potential capital idle. The Beraborrow platform changes that equation.
By letting depositors borrow NECT — a USD-pegged stablecoin — against collateral like WBTC, weETH, sUSDe, and a growing set of Kodiak LP tokens, Beraborrow makes it possible to stay long on assets you believe in while still having spending power. No middlemen. No custodians.
The mission is narrow on purpose: be the most capital-efficient, trustless borrowing layer on Berachain. Not everything, just that — done well.
How the Technology Works
At its core, Beraborrow's protocol is a fork and evolution of the Liquity v1 architecture, adapted for Berachain's unique Proof-of-Liquidity consensus. Each collateral type gets its own isolated "den" — think of a den as an independent CDP vault scoped to one asset. Isolation means a problem with one collateral cannot cascade into others.
Liquidations are handled by a Stability Pool funded with NECT. When a den falls below its Minimum Collateral Ratio (MCR), the pool absorbs the debt and receives the collateral at a discount. This is the same model that made protocols like MakerDAO resilient during volatile markets, but with tighter on-chain execution.
Interest rates are set per-den and range from 0 % to 15 % annually, depending on collateral risk. The protocol's NECT stablecoin is overcollateralized at all times; a global TCR check triggers Recovery Mode if system health drops, pushing borrowers to improve their ratios voluntarily.
Yield-bearing collaterals — sUSDe, drUSD, ERC-4626 vault tokens — accrue value inside the den. That means your collateral is working even while it secures your debt.
Our Approach to Risk
Every collateral listing goes through an internal risk framework before it touches mainnet. The team evaluates oracle quality, liquidity depth, historical volatility, and smart-contract audit coverage. Thin markets don't make the cut.
Each den carries its own MCR and CCR. sUSDe sits at 110 % MCR because the asset is stable and deep. WBTC-WBERA LP requires 130 % because LP prices can gap during Berachain volatility. Those aren't arbitrary numbers — they come from back-testing liquidation scenarios across 2022–2024 market data.
The protocol has been audited by external security firms. Audit reports are published in the Beraborrow documentation. The team also runs a bug bounty program for ongoing coverage.
One thing worth saying plainly: no DeFi protocol is risk-free. Smart-contract bugs, oracle failures, and extreme market dislocations are real possibilities. Beraborrow is transparent about that. Read the docs, size positions accordingly.
The NECT Stablecoin
NECT is Beraborrow's native stablecoin, soft-pegged to $1 USD through collateral backing and a redemption mechanism. When NECT trades below peg, arbitrageurs can redeem it for the underlying collateral at face value, compressing supply and restoring price. Above peg, new borrowing becomes attractive, expanding supply. The mechanism is self-correcting by design.
NECT can be staked in the Stability Pool to earn liquidation rewards — a passive yield stream that compounds in volatile markets. It can also be swapped or deployed into Kodiak liquidity pools, making it genuinely useful beyond just being a borrowed liability.
Minted NECT on the platform currently sits above $550,000. That figure reflects real user demand, not inflationary incentives. For more detail on the mechanics, see our Q&A page.
Community and Governance
The Pollen token ($POL) is Beraborrow's governance and fee-sharing layer. Stakers receive a cut of protocol revenue — interest payments and liquidation fees — proportional to their stake. This aligns the incentives of long-term holders with the health of the protocol.
Governance proposals cover parameter changes: adding new collateral types, adjusting MCR thresholds, modifying fee rates. The community votes on-chain. No multisig veto. Decisions execute automatically once a proposal passes quorum and timelock.
The Discord and Twitter communities are active. If you have questions about a specific den or want to propose a new collateral, those are the right places to start. The team is present and responsive.
Ready to explore the platform? Head back to the main app and open your first den, or check the Q&A if something is still unclear.
The Team
The people building Beraborrow come from protocol engineering, quantitative finance, and DeFi security backgrounds. The core team has shipped production code on Ethereum-compatible chains since 2021 and tracked Berachain development from its earliest testnet.
There is no VC pressure to rush feature flags or compromise on safety margins. The team is small by choice — focused, not scattered. Audits happen before launches, not after.
The protocol is live on Berachain mainnet. TVL stands above $395,000 across 14 active collateral dens. That's a real start, not a demo. The roadmap includes new collateral types, cross-chain NECT liquidity, and deeper Berachain ecosystem integrations as the chain matures.