What is the origin of Berachain, a new public chain that raised $42 million at the beginning?
Original Author: Hemi
Recently, the new public chain Berachain completed a financing of 42 million US dollars, led by Polychain Capital, Hack VC, dao 5, Tribe Capital, Shima Capital, Robot Ventures, Goldentree Asset Management, OKX Ventures participated in the investment.
Before then, no financing information could be found on it, and it has not yet launched on the public testnet (expected to launch in the next few weeks). What allowed Berachain to be valued at $420 million right from the start?
The answer may be "Next Generation of Liquidity".
Smokey, the founder of Berachain, once said:
"Proof of Liquidity Consensus is the first original alignment incentive between protocol-level liquidity and security. Berachain has a unique opportunity to be the protocol with the largest total accessible liquidity of any chain in existence - on the EVM Attract funds in the Cosmos ecosystem and facilitate a range of transactional activities while promoting network security.If executed properly, we will build a capital with the depth and speed of off-chain solutions and the transparency and customizability of on-chain ecosystems agreement."
Liquidity is the gold on the chain and the source of DeFi’s living water. Because of it, Curve wars rise and vampire attacks are rampant. People will inevitably shift liquidity to the most exciting/profitable avenues.
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What will the new public chain Berachain do?
One of the prevalent problems with current L1s is liquidity, the liquidity that flows into them is usually short-lived because there are no compelling incentives to keep them. The development team figured this out and Berachain was born.
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What is Berachain's Liquidity Consensus Proof?
It can be simply understood as encouraging verifiers to pledge whitelist assets such as BTC, ETH, and stable coins on the verifier vault. Similar to dPoS, users can entrust deposits to specific verifiers to provide liquidity for the on-chain protocol. And receive a part of the DeFi protocol income and $BERA in return. The more deposits, the more rewards. This can bring abundant liquidity to DeFi on Berachain.
List of whitelisted assets:
L1 tokens: wETH, wstETH, wBTC, wAVAX, wFTM, ATOM, wBNB, $BERA
Stablecoins: USDC, USDT, DAI, FRAX, BUSD
DeFi Governance Tokens: To be launched
Currently, staker reward allocation weights are determined by the team, but will be left to governance when Berachain goes live:
L1 Tokens - 80% (of which $BERA gets 33%)
Stablecoins - 15%
DeFi Governance Tokens - 5%
At the same time, the liquidity consensus proof is also a Sybil resistance mechanism:
Users may experience intermittent loss. In short, it is possible to deposit 10 tokens A and only have 9 tokens A at the time of withdrawal.
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Using a three-token economic model
Berachain abandons the single native token economic model commonly used in traditional public chains, and its team believes that every decentralized economy should have three main parts that are critical to its operation:
One is the medium of pricing and execution (Gas), which is used to price the unit of work and execute the work with smart contracts; the other is the medium of consensus and decision-making (governance), which is used to organize democratic functions and reach consensus and decision-making; the third is To be the medium of transactions through a common stable denomination (stable).
Therefore, Berachain uses a corresponding three-token economic model:
1. $BERA: Gas token of Berachain. Issued with 10% inflation, which means the supply of $BERA will increase over time. By staking assets, you can earn $BERA block rewards and part of the income of the agreement.
2. $BGT: Berachain’s governance token that can vote on new whitelisted assets. $BGT is non-transferable and can only be obtained by staking $BERA, which ensures long-term consistency for users.
3. $HONEY: Berachain's native over-collateralized USD stablecoin. $HONEY is the money of the Berachain ecosystem, and it is the payment method by which the protocol income is paid to the pledgers. It will be over-collateralized by at least 150% to ensure the dollar peg.
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Where did your pledged assets go and where did the proceeds come from?
Staked assets are held in validator vaults. As coordinated by the governance system, assets will be paired with $HONEY to provide liquidity for the official vAMM, DEX and lending protocols on Berachain.
At this time, according to the amount of your pledged assets, you will get the corresponding block reward $BERA.
In addition to using $BERA as a Gas token, you can also stake them to obtain the governance token $BGT.
Holding $BGT, you can not only participate in governance voting, but also get part of the income from the above-mentioned official agreement.
Although your assets are pledged and locked, they can be used as collateral to lend $HONEY. Users can use $HONEY to conduct spot or leveraged transactions, and even borrow $HONEY to buy more assets through "leveraged pledge" to pledge again.
From this point of view, Berachain stakers have such a high level of asset efficiency while receiving staking rewards that they have a greater incentive to stake on Berachain than other networks.
To sum up, Berachain aims to be a DeFi protochain, and the development team designed a sustainable consensus mechanism from the ground up that focuses on coordinating investors, builders, and users.
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Grasp the trends of Berachain ecological projects in advance
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1. AMA
CrocSwap：
Native AMM DEX integrated with Berachain.
Goldilocks：
An AMM and NFT lending platform that provides multiple income strategies.
Beradrome：
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2. Borrowing
Stacking Salmon：
A loan agreement that provides borrowers with leveraged returns.
BeraCreek Finance：
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3. Yield Aggregator
Hiberanation：
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4. NFT market
GumBall：
An NFT marketplace focused on NFT liquidity.
BeraMarket：
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5. GameFi
Honey Pool：
The savings + bonus agreement allows users to deposit in USDC to participate in daily lottery draws. The bonus is the interest generated by all deposited USDC. Even if they do not win the prize, users can withdraw USDC at any time.
ChainBet：
On-chain gaming platform.
Beramonium：
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6. Option agreement
B 2 Option：
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7. meme project
Baby Bear：
Meme project with NFT and DeFi yield farm.
Bera INU：
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8. NFT series
Without Bone Bear, there would be no Berachain (the chain was built by the Bone Bear team). Launching in August 2021, Bond Bears is a successful NFT series. The collection has undergone 5 rebases to form new collections such as: Bond Bears, Boo Bears, Baby Bears, Band Bears, Bit Bears.
Bong Bear NFT provides holders with the following advantages.
- These NFTs may be associated with $BGT (NFTs may also become whitelisted assets that can be staked by users in the network)
- Get the airdrop of the Berachain ecological project
- get new rebase
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9. Resident projects
Redacted Finance：
A DeFi ecosystem that provides on-chain liquidity and governance for DeFi protocols.
Protectorate：
A protocol designed to provide deep and sustainable liquidity for NFT and NFTFi protocols.
OlympusDAO：
OlympusDAO invested $500,000 in Berachain, and in addition to receiving $BERA, also participated in the network as a strategic partner. Additionally, OlympusDAO will deploy Olympus Pro on Berachain.
dAMM Finance：
An unsecured lending platform.
Synapse Finance：
According to the "Notice on Further Preventing and Dealing with the Risk of Hype in Virtual Currency Transactions" issued by the central bank and other departments, the content of this article is only for information sharing, and does not promote or endorse any operation and investment behavior. Participate in any illegal financial practice.
risk warning:
According to the "Notice on Further Preventing and Dealing with the Risk of Hype in Virtual Currency Transactions" issued by the central bank and other departments, the content of this article is only for information sharing, and does not promote or endorse any operation and investment behavior. Participate in any illegal financial practice.
