Berachain 🐻⛓️
Berachain is an EVM-compatible Layer-1 blockchain designed specifically for DeFi. It uses the Proof of Liquidity (PoL) mechanism to create a virtuous cycle of liquidity and network security, thus improving the DeFi experience.
How does Berachain optimize the DeFi experience?
1️⃣ PoL consensus mechanism: Liquidity is security
Traditional blockchains (PoW/PoS) rely on miners or stakers to maintain security, locking up large amounts of funds and reducing the efficiency of DeFi funds.
✅ The PoL mechanism allows users to provide liquidity to ensure network security, while receiving rewards and improving the capital utilization rate of the DeFi ecosystem.
2️⃣ Three token systems to improve the DeFi economic model
Berachain adopts a unique three-token architecture to optimize liquidity and governance mechanisms:
• BERA (native token): used to pay gas fees, similar to ETH.
• BGT (governance token): cannot be traded, can only be obtained by providing liquidity, and is used for community governance.
• HONEY (stablecoin): pegged to the US dollar, can be used for payment and lending.
3️⃣ Compatible with Ethereum to reduce development difficulty
✅ EVM-identical (fully compatible with EVM), developers can seamlessly migrate Ethereum DApp and accelerate ecological expansion.
4️⃣ Built-in DeFi application to form a closed-loop ecosystem
Berachain directly provides DeFi core functions, enhancing liquidity and user experience:
• BEX (decentralized exchange): supports token trading and liquidity mining.
• BEND (Lending Market): Allows users to deposit assets to earn interest, or to pledge and borrow HONEY.
• BGT Station (Governance Platform): BGT holders can vote to decide the future development of Berachain.
Berachain’s DeFi Advantages
✅ PoL mechanism: Enhance network security and improve capital liquidity
✅ Three-token system: optimize the DeFi economic model and promote ecological development
✅ EVM compatibility: lowering the threshold for developers and accelerating DeFi migration
✅ Built-in DeFi ecosystem: providing core applications such as trading, lending, and governance
Summary
Berachain allows users to provide liquidity to maintain network security through the PoL mechanism, and uses three tokens to provide a clearer DeFi economic model. It is also compatible with Ethereum, making DeFi applications easier to run. This makes Berachain an efficient, secure, and liquid DeFi-friendly blockchain.