What is Berachain? Berachain is a blockchain platform built and developed based on the Cosmos SDK toolkit. Recently Berachain has been valued up to $450M so where does Berachain come from? So how does Berachain attract so many reputable investment funds? Let’s find out together in this article.
Besides, to better understand this article, people should refer to some of the articles below:
- What is Osmosis (OSMO)? Osmosis Cryptocurrency Overview
- What is Persistence (XPRT)? Persistence Cryptocurrency Overview
- What is Stride (STRD)? Stride Cryptocurrency Overview
Berachain Overview
What is Berachain?
Berachain is Blockchain Layer 1 is built in Cosmos SDK platform with consensus mechanism Proof of Liquidityalong with that, Berachain integrates Polaris VM allowing this Layer 1 to be easily compatible with EVM Smart Contract while still maintaining the speed and multi-chain connectivity that Cosmos is known for.
Proof of Liquidity is a consensus mechanism that allows users to use a basket of Blue Chip assets such as BTC, ETH & Stablecoin to Delegate into the Proof of Stake system at the consensus layer.
Berachain started out as a collection of NFTs inspired by the unusual, rebellious personalities of OlympusDAO, first appearing with the Bong Bears project and collections such as Bond Bears, Boo Bears, Baby Bears , Band Bears and Bit Bears.
These NFTs collections all have very high floor prices ranging from the lowest 1.35 ETH (Bit Bears) to the highest 19.95 ETH (Bond Bears). The reason for this price lies in the benefits that NFTs owners can receive in the future when Berachain is successful, specifically:
- Join Testnet
- Get more NFTs later
- Airdrop $BGT and/or $BERA
- Get a whitelist of NFTs collections on Berachain
- Airdrop and the right to participate in testnet of dApps built on Berachain
Mechanism of Action
Berachain’s operating mechanism includes 2 main parts: Proof of Liquidity and 3 token system (BERA, BGT, HONEY).
3 token system – BERA, BGT, HONEY
Berachain introduces a 3-token model including:
- BERA: Use to pay Gas transactions. Users can stake BERA to create BGT governance tokens.
- HONEY: Over-collaterlised stable coin (150%) is minted from assets such as BTC, ETH, alt-L1 decided by government. HONEY is used to create liquidity for consensus layer assets, as collateral for mint Derrivatives at Perp Dex,…
- BGT: Governance Tokens are non-transferable and are only generated from BERA staking
Proof of Liquidity
Unlike current Proof of Stake blockchains that use one type of token or asset to participate in the network authentication process such as Ethereum with ETH or Solana with SOL, Berachain allows users to stake many different types of Blue Chip assets to receive network fees and BERA emission.
Each asset type will have its own consensus vault and each vault will be paired with the $HONEY stablecoin at Croc Swap (Native AMM on Berachain) to create LP. After that, this LP continues to be wrapped into a token to ensure stakers can trade and exit their stake position at any time. In addition, they can also use this token to participate in DeFi activities, NFTs,… in Berachain’s ecosystem.
Simply put, staking at Berachain is relatively similar to current liquid-staking on Ethereum with more assets and more risk when LP has Impermanent Loss. To minimize this risk, Berachain also created a Native Perp Dex (built on Croc Swap) to perform the hedging function to prevent IL.
This mechanism creates a closed loop that creates and maintains a large amount of highly liquid assets circulating in Berachain from the very beginning.
Investor
- April 20, 2023: Berachain successfully raised $42M in Series A round with a valuation of up to $420M led by Polychain Capital with participation from Hack VC, dao5, Tribe Capital, Shima Capital, CitizenX and Robot Ventures. There are many Angel Investors also participating such as DCF GOD, Brian Tubergen, Joey Santoro,…
Core Team
Update…
Tokenomics
Update…
Exchanges
Update…
Project Information Channel
- Website: https://berachain.com/
- Twitter: https://twitter.com/berachain
- Discord:
Summary
Berachain is a notable blockchain platform on the Cosmos ecosystem in the near future. However, there is currently not much information about the project, so we may still have to wait in the future.