The flywheel effect

The main purpose of the treasury would be to farm $BGT to have boosts that will then be sent to the $BFD-$HONEY pool, besides this, farming $BGT will grow the Treasury because $BGT is 1:1 redeemable for $BERA By farming $BGT through treasury and using the rewards to boost the $BFD-$HONEY pool, we drive the APR in this pool upwards. As the APR increases, the value proposition of the pool becomes more attractive to liquidity providers. Consequently, this leads to higher demand for $BFD as people seek to earn greater returns.

The rising APR creates a feedback loop of growth for BeraFlowDao. Here's how the flywheel effect works:

1. Increased APR: The more $BGT our treasury farms, the more rewards we can allocate to the $BFD-$HONEY pool, increasing its APR.

2. Attracting more liquidity: The higher APR attracts more liquidity providers (LPs) to the pool, as they want to earn a greater return.

3. Higher demand for $BFD: To participate in the $BFD-$HONEY pool, people need to acquire $BFD and $HONEY. The increasing APR draws more people into the pool, raising demand for $BFD.

4. Low Volatility and Safe Farming: Since BeraFlowDao provides a safe treasury farming strategy by farming $BGT in low-risk pools, liquidity providers feel confident in holding $BFD, knowing it is backed by the treasury and its low-risk strategy.

5. Growing Treasury: As the price for $BFD rises, the Treasury conducts new Gatherings to grow the treasury ensuring the backing remain stable

This flywheel effect drives both the value of $BFD and the growth of the treasury over time, benefiting both liquidity providers, holders of $BFD token and also the BeraFlowDao protocol as a whole.