introduction:
On February 6, 2025, Berachain, a high-performance public chain based on the Cosmos ecosystem, once again became the focus of the crypto market.
This bear-themed project, which integrates Meme culture and Proof of Liquidity (PoL) mechanism, has undergone a transformation from NFT experiment to public chain ecology since its birth in 2021.
As of the launch of the mainnet, its testnet has attracted more than 2.38 million wallet addresses to participate, the number of ecological protocols has exceeded 200, and the total locked value (TVL) in deposits has exceeded US$2.3 billion.
The rise of Berachain is not only due to its ambition for technological innovation, but also because it accurately captures the crypto community’s deep demand for “liquidity as value”.
Technical architecture: Double breakthroughs in EVM compatibility and PoL consensus
Berachain's technical core revolves around two pillars: EVM compatibility and liquidity proof consensus mechanism.
1. Polaris EVM Framework
Berachain, built on Cosmos SDK, achieves high compatibility with the Ethereum Virtual Machine through its self-developed Polaris EVM framework.
Developers can call on the cross-chain interoperability (IBC) of the Cosmos ecosystem while retaining the Ethereum development experience, and support advanced functions such as state precompiled contracts and custom opcodes, greatly reducing the cost of multi-chain deployment.
2. PoL consensus mechanism
Unlike traditional PoS chains, Berachain’s PoL mechanism decouples network security (guaranteed by validators staking BERA) from liquidity incentives (through BGT token distribution).
Validators attract users to provide liquidity for the protocol by allocating block rewards (BGT) to the ecological protocol, forming a positive cycle of "liquidity contribution → enhanced governance rights → more rewards".
This design aims to resolve the contradiction between pledged assets and liquidity competition in the PoS public chain, while avoiding the disorderly expansion of liquidity derivative tokens (LST/LRT).
Token Economy: The Flywheel Effect of the Three-Token Model
Berachain’s token system consists of BERA (Gas token), BGT (governance token) and HONEY (stablecoin), which have clear division of labor and are interconnected:
1. BERA: As the basic asset for network fuel and validator pledge, its value capture comes from on-chain transactions and pledge demands.
2. BGT: A non-transferable governance token obtained through liquidity mining. Holders can participate in protocol reward distribution and governance voting, and can be destroyed into BERA in a 1:1 ratio, forming a value reflux channel.
3. HONEY: An over-collateralized stablecoin, supported by assets such as USDC and PYUSD, used for the underlying pairing of DeFi protocol liquidity pools to improve capital efficiency.
Flywheel logic: users provide liquidity → obtain BGT rewards → entrust BGT to enhance protocol governance → protocol attracts more liquidity → promotes BERA demand and HONEY mortgage scale growth. This model attempts to transform liquidity contributors into ecological governance entities, rather than simply relying on capital scale to determine discourse power.
Ecosystem construction: from DeFi hub to AI experimental field
The explosive power of the Berachain ecosystem is reflected in its “application first” strategy. Before the mainnet was launched, more than 200 projects had completed testnet deployment, covering four major areas: DeFi, NFT, GameFi and AI:
1. DeFi Infrastructure
Kodiak: Native DEX, supports centralized liquidity AMM (CLAMM) and automated position management, with TVL exceeding US$1 billion.
Infrared Finance: A liquidity staking protocol that converts BGT into tradable iBGT tokens and has received investment from Binance Labs.
Honeypot Finance: A comprehensive protocol integrating Launchpad, DEX and MEV protection functions, with a TVL of US$675 million.
2. AI and innovative applications
Beras Capital: Manage NFT investment portfolios through AI agents and give NFTs dynamic interactive capabilities.
BAOS.FUN: An AI-driven liquidity mining platform where users can deploy custom agents to participate in BGT revenue competition.
Zeru: A credit scoring protocol based on on-chain behavior, providing zero-collateral loan services.
In addition, Berachain’s NFT culture (such as the Bong Bears series) and community activities (such as the “Ooga Booga” Meme slogan) further strengthen user stickiness.
Disclaimer: The content of this article is for reference only and does not constitute any investment advice. Investors should view cryptocurrency investment rationally based on their own risk tolerance and investment goals, and should not blindly follow the trend.
