Berachain: An innovative public chain focused on Decentralized Finance

Introduction

Berachain is an EVM-compatible L1 public chain built on the Cosmos SDK, utilizing a unique liquidity proof ( PoL ) consensus mechanism. The project originated from the Bong Bears NFT series launched in August 2021, which later led to the derivation of multiple bear-themed NFT collections.

The Berachain team believes that liquidity is the foundation of the DeFi ecosystem, so they designed the PoL mechanism and a three-token model to address on-chain liquidity issues. Internal testing will begin in November 2023, the public testnet "Artio" will launch in January 2024, and the mainnet is expected to officially launch in Q2 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, it is reported that many members are early participants in the cryptocurrency industry, with in-depth research on Decentralized Finance and public chain development.

Core Mechanism

Polaris EVM

Berachain is built on Polaris EVM, achieving compatibility with Ethereum while gaining powerful cross-chain interoperability through Cosmos SDK.

PoL proof mechanism

Users provide liquidity to the native DEX to obtain BGT governance tokens, which are delegated to validators to participate in block production and earn rewards. Compared to PoS, the PoL mechanism incentivizes liquidity, enhances security, and achieves a more decentralized inflation distribution.

Three Token Model

Berachain has designed three types of tokens: the governance token BGT(, the gas token BERA), and the stablecoin HONEY(.

• BGT: can only be obtained by providing liquidity and is not transferable.
• BERA: Obtained from BGT burn or as validation rewards
• HONEY: Native stablecoin, medium for protocol revenue distribution

The model promotes the liquidity of diversified assets, drawing on the experiences of projects such as Curve and Terra.

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![This round's bull market Luna? An analysis of Berachain's mechanism design])https://img-cdn.gateio.im/webp-social/moments-617d2ba39dd0d56fc27a17b5c77819f6.webp(

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Main Ecological Projects

1. the honey jar: Berachain ecosystem entry point, responsible for community building and project incubation

2. Beradrome: DEX and Restaking liquidity market

3. Beradoge: A highly关注的 Meme token project

4. Sudoswap: Full-Chain NFT AMM Liquidity Market

5. Beramonium: Blockchain Game Project

6. Redacted Cartel: Decentralized Finance Yield Protocol

![Is this round of bull market's Luna? An interpretation of Berachain's mechanism design])https://img-cdn.gateio.im/webp-social/moments-0bc2e2e5240e7374fe7b18b5168bb45c.webp(

Summary

Berachain is committed to solving liquidity issues in the DeFi ecosystem through an innovative three-token model and PoL mechanism. Its design aims to promote the development of DeFi protocols with high liquidity and high capital efficiency. With user growth and ecosystem expansion, Berachain has the potential to form a positive growth flywheel. However, the long-term development of the project still needs to focus on factors such as security and ecosystem construction.