An introduction to BeraChain
The Tendermint consensus mechanism combined with its own innovative Proof-of-Liquidity mechanics, EVM compatibility and chain native stablecoin, BeraChain might be the rising star in this bear market.
Built on the Cosmos-SDK, BeraChain utilizes Tendermint, a trusted, secure and highly performant implementation of Byzantine Fault Tolerant (BFT) consensus. BeraChain combines this with its own Proof-of-Liquidity mechanism to keep the peg of its native stablecoin, while achieving deep liquidity for the ecosystem. This mechanism allows to stake multiple assets (e.g.: ETH,AVAX,USDC), creating a new interoperability layer between the consensus engine and the virtual machine meanwhile collateralizing the stablecoin. Staked assets will be paired with Berachains stablecoin, impermanent loss will be hedged with perpetual positions taken against the staked assets.
Three Tokens to Rule them All
Yet another innovation when it comes to Berachain is its Tri-Token System.
Stakers earn $BERA which is used for gas, all gas is burned, it gets minted at a 10% inflation rate. Staking $BERA yields a percentage of the fees generated from on-chain activity and is the only way to get $BGT.
The governance token is a non-transferable NFT and acts as a receipt for staked $BERA. The more $BGT a user accumulates, the higher the %yield the users $BERA stake earns.
Berachains native stablecoin, mintable with staked assets hence overcollateralized. Paired against all assets on BeraChain, pays for funding rates of the perpetual hedges. Pays the yield generated by on-chain activity.
A Flywheel not seen before
There exists the potential for protocol tokens of the ecosystem to become validating tokens. The tokenomics allow for gauges on a chain level which is why it is highly likely we will see $BGT holders receiving bribes from the already high number of teams building on BeraChain, all while already accruing $HONEY from the activitys taking place on the chain.
The real yield narrative is strong on BeraChain and there are proper incentives for capital to stay in its ecosystem. May the days of mercenary capital rotating from chain to chain, leaching the rewards and dumping on newcomers, be over.
BeraChain fixes this.