Berachain: The Innovative Path of a Liquidity Public Chain

Berachain is an EVM-compatible L1 public chain focused on DeFi, built on top of the Cosmos SDK, and adopts an innovative Liquidity Proof ( PoL ) consensus mechanism. The project originated from the Bong Bears NFT series launched in August 2021, which later spawned multiple related NFT collections.

The Berachain team, after experiencing the ups and downs of the crypto market, has gained a profound understanding of the importance of Liquidity to the DeFi ecosystem. They decided to design a new L1 public chain, drawing on the experiences of past successful DeFi projects while avoiding their shortcomings. This prompted the team to develop a Liquidity proof mechanism, laying the foundation for Berachain's three-token model.

In November 2023, Berachain launched internal testing. On January 11, 2024, its public testnet "Artio" officially went live, with more than 30 native protocols in development. It is rumored that the Berachain mainnet may go live in the second quarter of 2024.

In April 2023, Berachain secured $42 million in funding, led by Polychain, with a valuation of $420 million. Although the core team remains anonymous, they possess extensive experience and connections in the crypto field.

The Core Mechanism of Berachain

Polaris EVM

Berachain is built on Polaris EVM, which is a foundational operating system for building EVM on the Cosmos SDK. Polaris connects EVM and Cosmos SDK through messaging, separating the construction, processing, and storage of blocks from execution. This architecture provides a friendly environment for Ethereum developers while also supporting powerful cross-chain interoperability.

PoL Proof Mechanism

Liquidity Proof ( PoL ) mechanism is the core strategy of Berachain to solve the on-chain liquidity problem. Users earn governance token BGT by providing liquidity to the native DEX BEX, and then delegate BGT to validators to participate in network consensus. This mechanism not only incentivizes liquidity provision but also enhances network security, making token issuance more decentralized.

Three Token Model

Berachain adopts a three-token model:

1. BGT: Governance token, can only be obtained by providing Liquidity, not transferable.
2. BERA: Gas token, which can be obtained by burning BGT or through verification rewards.
3. HONEY: Native over-collateralized stablecoin, serving as a medium for protocol revenue distribution.

This model separates governance rights from Gas tokens and further stimulates on-chain Liquidity by diversifying the selection of staking assets.

Overview of Ecological Projects

the honey jar

As the entry point of the Berachain ecosystem, the honey jar is responsible for user education, project incubation, and partnership matchmaking. Its Honey Comb NFT provides holders with benefits from multiple ecological projects.

Beradrome

Beradrome is the DEX and Restaking Liquidity market on Berachain, featuring the ve(3,3) tokenomics model. Its "Tour de Berance" NFT series provides potential airdrop opportunities for holders.

Beradoge

Beradoge is a highly regarded Meme project on Berachain, featuring two NFT series that may provide holders with BDOGE token rewards.

Sudoswap

As a full-chain NFT AMM liquidity market, Sudoswap plans to deploy the protocol after launching on the Berachain mainnet, potentially supporting cross-chain trading of blue-chip NFTs.

Beramonium

Beramonium has launched the blockchain game "Gemhunters", where players can obtain NFTs from other Berachain projects through the game.

Redacted Cartel

This DeFi yield protocol plans to deploy new projects on Berachain, aiming to leverage the on-chain built-in voting bribery mechanism to develop innovative products.

Summary

Berachain is committed to solving the liquidity issues in the DeFi space through its unique three-token economic model and PoL mechanism. This design aims to create a DeFi ecosystem with high liquidity and high capital efficiency. As the user base grows and transaction fee income increases, Berachain may attract more users and projects, forming a virtuous cycle.

However, the actual performance of Berachain needs time to be tested. Investors should pay attention to the future development of the project, including technological implementation, ecological construction, and protocol security.