Berachain: An innovative public chain project focused on Decentralized Finance

Berachain is an EVM-compatible L1 public chain project launched at the end of 2021, built on top of the Cosmos SDK, using the liquidity proof ( PoL ) consensus mechanism. The project originated from an NFT series, and later the team decided to design a public chain focused on solving the DeFi liquidity problem.

In November 2023, Berachain began its internal testing. In January 2024, its public testnet "Artio" officially launched, with over 30 native protocols in development and several well-known projects planning to deploy. It is rumored that the Berachain mainnet may go live in the second quarter of 2024.

In April 2023, Berachain raised $42 million in funding, with a valuation of $420 million. Although the core team members remain anonymous, they possess extensive experience and resources in the cryptocurrency field.

Technical Features

Berachain is built on the Polaris EVM and has the following advantages:

1. Developer-friendly for Ethereum
2. Achieve powerful cross-chain interoperability through IBC

The core PoL mechanism has the following advantages compared to PoS:

1. Incentivize liquidity while enhancing security
2. Achieve a more decentralized inflation distribution
3. Coordinate the relationship between asset issuance agreements and validators.

Three Token Model

Berachain adopts a three-token model consisting of the BGT( governance token ), the BERA( gas token ), and the HONEY( stablecoin ).

• BGT: can only be obtained by providing liquidity on DEX
• BERA: Obtained from BGT burns or as validation rewards
• HONEY: Native over-collateralized stablecoin, serving as a medium for protocol revenue distribution.

This model effectively stimulates on-chain liquidity by separating governance rights from Gas tokens and linking liquidity with governance rights.

Main Ecological Projects

1. the honey jar: Berachain ecosystem entry point, responsible for project incubation and collaboration matchmaking
2. Beradrome: DEX and Restaking liquidity market
3. Beradoge: A Highly Anticipated Meme Project
4. Sudoswap: Full-chain NFT AMM liquidity market
5. Beramonium: Blockchain Game Project
6. Redacted Cartel: Decentralized Finance收益协议

Summary

Berachain is expected to lead DeFi innovation through its innovative three-token model and PoL mechanism, creating an ecosystem with high liquidity and high capital efficiency. As the user base grows and fee revenues increase, Berachain may attract more users and projects, forming a positive development flywheel.

However, the future development of Berachain still requires continuous attention, including the project's own progress, ecological expansion, and protocol security.