# BERA VAULT (TESTNET)

### Simulation Methodology

Our simulation engine provides a realistic projection of potential earnings by modeling the complex interactions between different yield sources and compounding mechanics.

#### Data Sources

The simulation is powered by comprehensive real-time and historical data:

* **On-chain Data**: Pool metrics, token prices, and reward rates are pulled directly from the blockchain via smart contract interactions and GraphQL queries.
* **Protocol Parameters**: Fee rates, emission schedules, and incentive distributions are captured with precision.

#### Simulation Components

**1. Revenue Stream Modelling**

Our simulation accounts for three primary sources of return:

**Pool Trading Fees**

* Calculated per dollar of liquidity provided
* Based on actual pool trading volume and the applicable fee tier
* Dynamically updated as market conditions change

**BGT Emissions**

* Calculated based on your proportional stake in the liquidity pool
* Distributed in consistent intervals (every 10 minutes)
* Forms a significant component of the base yield

**BGT Incentives**

* Additional rewards on top of standard emissions
* Includes derivatives from BGT staking (wBERA and HONEY tokens)
* Adjusted based on current on-chain reward allocation rates

**2. Projection Calculation**

For a specified deposit amount X and time period T, the simulation:

1. Initializes the principal investment amount
2. Applies the compounding logic at 10-minute intervals
3. Accounts for all three revenue streams at each step
4. Factors in transaction costs and slippage
5. Calculates the final projected value after T days

### How to Use the Simulator

The Infrared Strategy simulator allows you to:

1. **Input Parameters**:
   * Specify the amount of USD you wish to deposit
   * Select your preferred time horizon (e.g., 7 days, 30 days, 90 days)
   * Choose the specific pool (when multiple options are available)
2. **View Projections**:
   * Total projected value after the selected period
   * Estimated APY based on current conditions
   * Breakdown of returns by source (fees, emissions, incentives)
3. **Compare Scenarios**:
   * Test different deposit amounts
   * Explore various time horizons
   * Evaluate performance across different pools

### Simulation Accuracy & Limitations

Our simulation aims to provide realistic projections based on current data, but users should note:

* **Market Variability**: Actual returns may vary based on changes in trading volume, token prices, and protocol parameters.
* **Reward Fluctuations**: BGT emissions and incentives are subject to governance decisions and may change over time.
* **Protocol Updates**: Changes to the underlying protocols may impact actual performance.

### Try the Simulator

Experience the potential of the Infrared Strategy firsthand: [Launch Infrared Strategy Simulator](https://app.raga.finance/)


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