Everything you need to know about trading, adding liquidity, staking, and getting started with Kodiak Finance on Berachain — all in one place.
Kodiak Finance is a decentralized exchange (DEX) and liquidity protocol built natively on Berachain. It lets users swap tokens, supply liquidity, and collect rewards — all without relying on a centralized intermediary.
The platform provides several core products:
Kodiak Finance is built to serve as the principal liquidity layer for Berachain, integrating deeply with Berachain's native Proof-of-Liquidity consensus mechanism.
Kodiak Finance is deployed on Berachain Mainnet. Berachain is an EVM-compatible Layer 1 blockchain built on the Cosmos SDK, featuring a novel Proof-of-Liquidity (PoL) consensus model that directs block rewards toward liquidity providers.
Because Kodiak Finance is native to Berachain, it integrates seamlessly with Berachain's validator ecosystem, BGT (Bera Governance Token) emissions, and on-chain governance structures.
The native currency of Berachain used for gas fees is BERA, and Kodiak Finance supports a broad range of Berachain-native tokens including HONEY (the native stablecoin), WBERA, and numerous ecosystem tokens.
No traditional account or registration is needed. Kodiak Finance is a fully non-custodial protocol — you interact with it directly through your Web3 wallet.
To get started, you will need:
You maintain full custody of your assets at all times. Kodiak Finance smart contracts only carry out trades or liquidity actions when you explicitly sign and approve a transaction from your wallet.
Kodiak Finance stands out through its deep Berachain-native integration and comprehensive product suite. Key advantages include:
This makes Kodiak Finance a comprehensive destination for DeFi activity on Berachain, rather than a simple swap tool.
Swapping tokens on Kodiak Finance only takes a few steps:
Kodiak Finance uses advanced routing to split your order across multiple liquidity pools when needed, ensuring you receive the best possible rate. You can adjust the slippage tolerance in the settings menu before confirming.
Slippage tolerance is the maximum price deviation you are prepared to accept between the quoted price and the actual execution price of your swap. Since blockchain transactions are not instantaneous, market prices can shift between the time you submit a transaction and when it is confirmed.
General guidelines for slippage settings on Kodiak Finance:
Setting slippage too low may cause your transaction to revert if the price moves. Setting it too high may expose you to sandwich attacks. Kodiak Finance defaults to a sensible slippage setting for most pairs.
Kodiak Finance provides three trading modes accessible from the swap interface:
Most users will find the Standard mode sufficient. Multi-swap is especially useful when rebalancing a portfolio. Advanced mode is tailored for power users who want granular control over trade execution.
Yes. Kodiak Finance has launched a dedicated perpetuals trading platform available at perps.kodiak.finance. Perpetual contracts (perps) allow you to trade with leverage on selected assets without an expiration date.
Key features of Kodiak Finance Perps:
Perpetual trading involves significant risk due to leverage. Always know your liquidation price and manage your position size responsibly.
When you supply liquidity on Kodiak Finance, you deposit a pair of tokens into a liquidity pool. These deposits are used by traders making swaps — the pool automatically prices assets and facilitates transactions.
In exchange for providing liquidity, you earn:
To add liquidity, head to the "Liquidity" section, choose a pool, approve token spending, and deposit your desired amount of each token. You will receive LP tokens representing your share, which can be redeemed at any time.
Impermanent loss (IL) arises when the price ratio of the two tokens in your liquidity position shifts compared to when you originally deposited. The automated market maker (AMM) rebalances the pool to maintain its pricing formula, which can leave you holding a different ratio of assets than you deposited — sometimes worth less than if you had simply held the tokens.
IL becomes "permanent" only when you withdraw your liquidity. If prices return to the original ratio, the IL disappears. The term "impermanent" reflects the fact that it is only realized upon withdrawal.
For Kodiak Finance liquidity providers, IL risk is reduced by:
Always weigh the expected annual percentage yield (APY) against potential IL before adding liquidity to any pool.
You can withdraw your liquidity from Kodiak Finance at any time — there is no lock-up period for standard pools. To withdraw:
Your LP tokens will be burned and you will receive the underlying token pair at the current pool ratio. Note that if prices have moved considerably since you deposited, you may receive a different ratio of tokens than you initially put in, due to how AMM pricing functions.
Any unclaimed trading fees and rewards will be automatically distributed when you remove liquidity.
Kodiak Finance provides staking opportunities for both LP tokens and ecosystem tokens. By visiting the "Staking" section, you can stake eligible assets to earn protocol rewards.
Staking rewards on Kodiak Finance may include:
Staking on Kodiak Finance connects to Berachain's Proof-of-Liquidity system. When you stake through Kodiak Finance, a share of BGT emissions flows back to liquidity providers, creating a self-reinforcing incentive cycle that rewards long-term participants.
Kodiak Finance operates its own Berachain validators. By delegating BGT to Kodiak Finance validators, you can amplify ("boost") the amount of BGT emissions directed to Kodiak Finance liquidity pools.
How it works:
Delegating BGT to Kodiak Finance validators is an effective way to support the protocol and maximize yields for Kodiak Finance liquidity providers, without surrendering custody of your tokens.
Kodiak Finance prioritizes security. The protocol's smart contracts have undergone third-party security audits conducted by reputable blockchain security firms. Audit reports are made publicly available for community review.
Security measures in place for Kodiak Finance include:
Despite these precautions, interacting with any DeFi protocol carries inherent risk. Smart contract vulnerabilities, oracle manipulation, and unforeseen attack vectors are risks that cannot be entirely eliminated. Never invest more than you can afford to lose.
For the latest audit reports and security details, refer to the Kodiak Finance documentation.
Best practices for securely using Kodiak Finance and any DeFi protocol:
The Kodiak Finance team and community moderators will never reach out to you first. Be wary of unsolicited messages offering assistance, airdrops, or investment opportunities.
Kodiak Finance applies a small fee to every swap, which is paid out to liquidity providers. The fee rate differs by pool type:
In addition to swap fees, all on-chain transactions require BERA for gas. Gas costs on Berachain are generally low but will vary with network activity.
Kodiak Finance does not levy any platform fee on top of pool trading fees — 100% of swap fees go directly to liquidity providers. The protocol generates revenue through other means such as its validator operations.
To use Kodiak Finance, you need assets on the Berachain network. If your assets are on another chain (Ethereum, Arbitrum, etc.), you will need to bridge them to Berachain first.
The recommended bridging solution for Berachain is the official Berachain Bridge, accessible directly from the Kodiak Finance interface under the "Bridge" menu item, which links to bridge.berachain.com.
Steps to bridge:
You will also need a small amount of BERA for gas. Some bridges provide a small BERA airdrop on your first bridging transaction to assist with initial gas costs.
The Kodiak Finance community is active across several platforms. You can find official channels and access support here: