The Berachain mainnet has been online for nearly 2 months. Momo is very optimistic about its PoL (Proof-of-Liquidity) and three-currency model, so he has been staking his usual income in Berachain's Vaults to obtain higher annualized returns and become a Bera ecosystem HOLDer.

Recently, Berachain opened the PoL plan, and more ecological project reward Vaults were officially launched, with very considerable yields, and some staking returns reached 1k%.

I have suggested to many friends that they can consider staking on Berachain to earn returns, but many friends do not understand its PoL model and how the rewards come from. So Momo will talk about these contents in a simple way and how to participate.

#Berachain

# A brief introduction to PoL

Berachain has two core native assets:

  • BERA: Gas tokens and staking tokens used for validator screening.

  • BGT: Governance token, non-transferable, but redeemable for BERA at a 1:1 ratio. Another core function of BGT is to regulate the allocation and scale of Reward Vaults incentives.

Proof of Liquidity (PoL) is an extension of Proof of Stake (PoS) that realigns the economic incentives between validators, Dapps, and users. Under this mechanism, the interactive relationship between all parties is better than a love triangle!

Users can form LPs in the native DEX liquidity pool to earn fees. After that, deposit LP tokens into the corresponding reward vault to receive additional BGT rewards. After obtaining BGT, users can choose to entrust it to a validator for staking. It should be noted that the amount of BGT obtained by the validator's proposed block will increase with the increase in the amount of user entrustment. After staking BGT, users can obtain ecological tokens incentivized by the reward vault.

# Revenue Overview

After the opening of PoL, there are many rewards supporting BGT in the POOLS of the official HUB. In addition to the basic pool LP fee income, there are also super high BGT APR income, and some pools have reached nearly 500%.

In Vaults, you can also see a lot of Bera ecosystem project token pairs and the incentive tokens provided by the vaults.

In the Validators section, you can see the number of BOOSTS of each validator and the approximate annualized return of staking BGT. Click to enter to view the reward treasury that the node chooses to emit and the incentive tokens obtained.

# How to participate

1 Operations in the official HUB: Group LP - Pledge LP to the vault - Obtain BGT to pledge to the validator - Claim incentive tokens

2. Stake LP or packaged BGT in ecological projects, such as Infrared, BeraPaw's iBGT and LBGT. Packaged BGT is different from native BGT. They can flow and transfer, and in their agreements you can stake them for automatic compounding. Of course, you can also directly SWAP to packaged BGT and stake them directly to get high returns.

Infrared ↓

BeraPaw ↓ (This is the ecological treasury that Momo has been involved in, spiral PUMP, please pay attention to the risks~)

When conducting token SWAP, you can choose the official SWAP or go to oogabooga to exchange more tokens.

# at last

In traditional PoS staking, the qualifications and benefits of validators depend on the amount of native tokens staked.

Berachain's Proof of Liquidity (PoL) mechanism forms a self-reinforcing positive flywheel effect through clever economic incentive design, driving the continued growth and prosperity of the entire ecosystem.

According to DefiLlama’s data, Berachain’s total locked value (TVL) has reached an impressive scale less than two months after its launch, quickly surpassing well-known blockchain networks such as Arbitrum and Base to become the sixth largest blockchain network in the decentralized finance (DeFi) field. This achievement not only highlights Berachain’s strong appeal in attracting users and capital, but also reflects the remarkable effectiveness of its unique Proof of Liquidity (PoL) mechanism in incentivizing user participation and enhancing network value.

It should be noted that the above content only expresses personal opinions. There are certain risks in participating in transactions and staking. DYOR~