Liquidity Stimulation: How PoL Drives the DeFi Boom

The Proof-of-Liquidity (PoL) mechanism in Berachain was specifically designed to aggressively stimulate liquidity in the network. By mid-2025, as validators are required to provide liquidity in dApps to be able to confirm blocks, this creates a constant, organic demand for liquidity. Users providing liquidity not only earn regular trading fees but also receive BGT tokens, which grant them voting rights in governance and the opportunity to earn a share of the fees from validators. This powerful incentive ensures that Berachain will always have deep liquidity pools, which is critically important for a thriving DeFi ecosystem. #BERA $BERA