In the ever-evolving landscape of blockchain technology, innovation is not just welcomed; it’s a necessity. Enter Berachain, a groundbreaking player that’s redefining what we thought was possible in the world of decentralized finance (DeFi). This high-performance, EVM-compatible blockchain, harnessing the power of the Proof-of-Liquidity (PoL) consensus, is not just another addition to the blockchain universe. It’s a game-changer.
Berachain is a high-performance, EVM-compatible blockchain that’s built on a Proof-of-Liquidity (PoL) consensus. This innovative approach enhances blockchain functionality and governance compared to traditional Proof of Stake systems. The PoL mechanism focuses on improving liquidity within the blockchain, which is crucial for trading, price stability, and the smooth functioning of decentralized applications (dApps). It also addresses stake centralization issues by decentralizing the distribution of new tokens not only to stakers but also to those providing liquidity.
Berachain started as an NFT project and grew into a significant platform in the DeFi ecosystem. It has raised venture capital from several notable firms and launched its own chain (currently in test net). Berachain leverages the Polaris framework and the CometBFT consensus engine, supporting Ethereum’s smart contract tooling and operations while introducing additional functionalities for decentralized applications.
The tokenomics of Berachain revolves around two primary tokens: BERA and BGT (Bera Governance Token). BERA is the native token used for transaction fees, while BGT is acquired by providing liquidity and used for governance, earning rewards, and voting on liquidity pool incentives. Additionally, Berachain includes a stablecoin named HONEY, pegged to the US dollar, aimed at providing stability within the network.
Berachain’s unique features and its PoL consensus mechanism position it as an innovative player in the blockchain space, particularly appealing to those interested in decentralized finance and liquidity-focused blockchain solutions.
At the time of writing, Berachain is in the public test net phase, meaning anyone can access and use its dApps. The good thing about Berachain is that it has usable dApps, as opposed to other chain test nets which might only be a bridge or some type of Galxe campaign.
There are currently 7 dApps (including the faucet) which you can currently interact with. Let’s take a closer look:
Faucet: Go here to request test net tokens (BERA) using your Meta Mask wallet. Instructions on how to add Berachain test net to MM can be found here. Once you have test net BERA, you can proceed to the other dApps.
BEX (Berachain Exchange) – Go here to swap tokens and also to provide liquidity into one of the many pools available. When you provide liquidity, you will earn trading fees and BGT (Berachain Governance Token).
Honey – This is where you go to turn stablecoins like USDC into the Berachain native stablecoin called Honey. You can also switch Honey back into USDC.
BEND (Berachain Lend) – Lend assets to borrow Honey and earn BGT while you’re at it (see how PoL is beneficial?) Side note, you can supply Honey and earn APY, but you cannot borrow against it.
BERPS (Berachain Perpetuals) – Leverage trading up to 100x. As always, exercise caution when trading with leverage and make sure to set that stop loss.
BGT Station – This is your one-stop shop for everything governance-related. Here you can view active validators and check bribe status, stake your BGT, vote on proposals, and convert your unused BGT back into BERA (which can’t be undone). At the time of writing, it appears like users aren’t currently able to earn BGT, but I’m sure this will be added soon.
Beratrail – Berachain’s block explorer.
- Github: https://www.github.com/berachain
- Twitter: https://www.twitter.com/berachain
- Discord: https://discord.gg/berachain
- Medium: https://medium.com/berachain-foundation
- Website: https://www.berachain.com/
Galxe Campaign: https://galxe.com/Berachain/campaign/GCjGGttCAG
dApps and Docs
Berachain’s tri-token design is pretty cool and offers a lot to do on-chain while solving liquidity problems and staking centralization. The test net just launched, so that means there are growing pains. Transactions will fail and sometimes the swap function and faucet get overloaded with requests. But the team is working on increasing server capacity so I’m guessing these issues will be ironed out in the coming weeks. The ecosystem is well thought out and the branding is on point. The team has been around for a long time and the Discord is well moderated. Overall I think Berachain has a bright future. OOGA BOOGA!
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