# Berapaw Vaults

### Introduction

Berapaw is the most decentralised liquid staking protocol on Berachain, which uses `$Paw` token for governance of delegation of BGT to validators. Raga Finance leverages BeraPaw's infrastructure to offer users optimized yield strategies through auto-compounding mechanisms.

### Strategy Overview

1. User Deposits: Your tokens are swapped and used to provide liquidity to selected pools (e.g., wBERA/LBGT).
2. Earning `$LBGT`: As a result of staking, Raga earns `c` tokens, representing the liquid derivative of `$BGT` emissions.
3. Auto-Compounding: Raga then converts the earned `$LBGT` back into the underlying LP tokens and re-stakes them into BeraPaw's vaults, effectively auto-compounding the user's yields.
4. `$PAW` Rewards: Any `$PAW` tokens delegated to Raga from BeraPaw are also distributed back to users, enhancing their overall returns.
