Do you want some alfa my noob crypto friends? Here’s a new upcoming L1 blockchain coming in hot, onto the Crypto scene with some three weed-smoking bears as associates.
Berachain is the name of the project and from now on friends, you should be on the look-out at their discord https://discord.com/invite/berachain and their Twitter https://twitter.com/berachain so that we can all WAGMI with the Bears.
Here is some information that I gathered that can come in handy in your research about Berachain. The project Berachain is made by the same team that made the renowned Bong Bears NFT, the first rebasing NFT project and now a distinguished project in Defi community for the Bong Bears NFT floor price is now at a staggering price of 66.67 ETH that’s a $114,669, and that’s a proof that the team already made it.
As one of the core creators of Giga Bear “Smokey The Bera” explained that Berachain is an EVM-compatible layer one blockchain, built using the Cosmos SDK and secured by the novel Proof-of-Liquidity Consensus Protocol. The chain’s economics are tied together through a tri-token structure, composed of a gas token Bera, the native stablecoin Honey and the Bera Governance Token (BGT).
We built Berachain to enable staked assets securing a chain to serve as a source of productive capital and provide liquidity to users of that chain ecosystem. Our goal is to effectively align incentives at the chain level to create the deepest and most capital efficient pools of liquidity in DeFi, while providing users with the highest degree of flexibility and control over their staked assets while securing the chain.
Users can stake various L1, stable, and blue-chip DeFi tokens, delegate them to a validator and begin earning block rewards in the form of Bera. Block rewards are paid out proportional to the reward weight of a given asset, and the amount of total USD-denominated liquidity that those assets are providing to the ecosystem as opposed to the quantity of the gas token alone, as seen in traditional PoS systems.
These staked assets may be utilized in a virtualized AMM (paired with Honey), a perpetual exchange, or as collateral for loans denominated in Honey. The revenues generated from these activities in swap fees, interest rates, and funding rate payments are given back to stakers and BGT holders.
As a crypto noob, I still need to look up some nasty crypto words to better understand what our Giga Bear Smokey is trying to expound about Berachain and maybe it can also be a help to your research on the project:
This means the ability to write and deploy smart contract code that is compatible with the Ethereum virtual machine and can therefore be recognized by the Ethereum nodes like my fav Polygon Chain
Is an open-source framework for building multi-asset public Proof-of-Stake (PoS) blockchains. , like the Cosmos Hub, as well as permissioned Proof-of-Authority (PoA) blockchains. Blockchains built with the Cosmos SDK are generally referred to as application-specific blockchains, Binance Chain is an example of a Cosmos SDK chain.
Proof-of-Liquidity Consensus Protocol is an algorithm employed by cryptocurrency protocols to reach consensus. It is a new type of consensus where you can stake multiple L1 and stable coins to the blockchain validator thus allowing the validator to provide liquidity on the chain’s native virtualized AMM (CrocSwap).
Why are there three native tokens that would exist in the chain, in GOT there is the Faith of Seven where its followers have seven gods for seven aspects of their god, while Berachain believes that there are three aspects in the overall operation of a chain.
$BERA: the gas token of Berachain, a medium to both price a unit of work and perform said work in the form of smart contract execution
$BGT: the governance token of Berachain, a medium to organize and come to a consensus and make decisions about the future of the network in a democratic function
$HONEY: the native consensus collateralized stablecoin, a medium in which to transact through a common stable denomination
Finally, why would I try to dig more on Berachain, first as Smokey has said that a user can stake various L1, stable, and blue-chip DeFi tokens, delegate them to a validator and begin earning block rewards in the form of $BERA. As a simple crypto noob guy, I would definitely stake all my stable coins in their liquidity pool to earn me some $BERA if Berachain would make it I also gonna make it while my stable still has the same value from the start of my staking.
While “Dev Bear” one of the core bears said that BeraChain is a truly DeFi native L1, designed from the ground up to align incentives between investors, buildooors, and users interacting with the network. And the Berachain foundation has a good arrangement in place on every buildoors that would choose to build within the chain. The buildoors protocols instantly have liquidity as a service bootstrapped against $HONEY, a source of yield for their governance token for their treasury or users, and a close alignment with the chain ecosystem.
That’s why the writing’s on the wall, that Berachain is gonna make it big in the Crypto World for they have a proven team behind the project that has a goal of unifying all the Defi native community. All Defi communities under one blockchain would be mind-blowing for Crypto, in general, that’s why I am bullish even in the bearish times that Berachain is the next big L1 coming out.
