Berachain: The Liquidity Revolution of Innovative Public Chains

Berachain is an EVM-compatible L1 public chain focused on DeFi, built on top of the Cosmos SDK, and adopts the Liquidity Proof ( PoL ) consensus mechanism. The project originated from the Bong Bears NFT series launched in August 2021, and after several iterations, the team decided to design a new L1 public chain to address the liquidity issues in the DeFi space.

Berachain will start internal testing in November 2023, with the public testnet "Artio" officially launching on January 11, 2024. It is reported that the Berachain mainnet is expected to go live in the second quarter of 2024. The project team consists of several veterans from the crypto industry, and although they operate under anonymity, they have secured $42 million in funding, with a valuation of $420 million.

Innovative Mechanism Design

The core mechanism design of Berachain includes:

1. Polaris EVM: An EVM framework built on Cosmos SDK that achieves Ethereum developer friendliness and strong cross-chain interoperability.

2. PoL Consensus Mechanism: Users obtain BGT governance tokens by providing Liquidity to the native DEX, and then delegate them to validators to participate in the consensus. This mechanism incentivizes on-chain Liquidity, enhances security, and makes inflation more decentralized.

3. Triple Token Model:
   • BGT: Governance token, obtained only by providing Liquidity.
   • BERA: Gas token, obtained from BGT burn or verification rewards
   • HONEY: Native Over-Collateralized Stablecoin

The model allows staking to support a more diverse range of assets, further stimulating Liquidity.

Overview of Ecological Projects

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

2. Beradrome: DEX and Restaking Liquidity Market.

3. Beradoge: A highly anticipated Meme project.

4. Sudoswap: A full-chain NFT AMM Liquidity market.

5. Beramonium: Chain game project.

6. Redacted Cartel: DeFi Yield Protocol.

Outlook

Berachain, through its innovative token economic model and consensus mechanism, is expected to lead a new wave of innovation in DeFi, creating an ecosystem with high Liquidity and high capital efficiency. As the user base grows and transaction fee revenue increases, a positive growth flywheel may form.

However, the long-term development of the project still needs to pay attention to multiple factors, including technology implementation, ecological construction, and safety. Investors should remain rational and closely monitor the progress of the project.