Bridging Fees

Since BeraBridge facilitates the movement of assets across different blockchains, a bridging fee is applied to each transaction. These fees are collected in the Reward Vaults and used to incentivize Validators and LPs for their role in ensuring the secure transfer of assets between chains.

How It Works:

• Fee Collection: Each cross-chain transaction generates fees, which are sent to the vault.

• Distribution to LPs: The vault distributes these fees proportionally to LPs based on their contribution to the bridge's liquidity pool.

• Continuous Payouts: As long as LPs keep their liquidity locked in the pool, they continue to earn a share of the transaction fees in real time.

Flow:

1. A user transfers tokens from Ethereum to BeraChain.

2. A transaction fee is collected and sent to the Reward Vault.

3. Liquidity Providers (LPs) automatically receive their share of the fee based on the size of their liquidity stake.

This creates a steady stream of passive income for LPs, incentivizing them to continue providing liquidity to the BeraBridge ecosystem.