What is Honey?

Honey ($HONEY) is Berachain's native stablecoin, designed to provide a stable and reliable medium of exchange within the Berachain ecosystem. It is fully collateralized and soft-pegged to the US Dollar, offering stability in contrast to more volatile crypto assets​.

$HONEY can be minted by depositing a range of whitelisted crypto assets into specialized smart contracts known as $HONEY vaults. Each vault is dedicated to a specific type of collateral, ensuring flexibility and security in the minting process. The Vault Router contract oversees this process, connecting various vaults and minting $HONEY based on the deposited collateral. In the Berachain ecosystem, $HONEY is used for various purposes, including payments, remittances, and as a hedge against market volatility. It also plays a crucial role in lending and trading protocols like Bend and Berps, where it serves as the base token for collateral, payouts, and deposits.

The governance of $HONEY involves managing minting rates and collateral types through community votes, ensuring the stablecoin remains responsive to the needs of its users.