What Is Berachain?
Berachain is a Layer 1 (L1) blockchain built for decentralized finance (DeFi). It combines Ethereum Virtual Machine (EVM) compatibility with the flexibility of the Cosmos SDK, ensuring high scalability and seamless interaction with other networks. Its key innovation is Proof-of-Liquidity (PoL), a unique consensus model that rewards users for providing liquidity, making the network more reliable and capital-efficient. This approach creates a sustainable ecosystem for staking, trading, and lending while maintaining smooth integration with other blockchains.
Brief History and Development
Berachain was created by the pseudo-anonymous founders Papa and Smokey, who first launched the popular NFT collection Bong Bears. It quickly gained attention due to its unique mechanism that allowed holders to receive additional NFTs. Seeing the success of the project and the growing interest in the ecosystem, its founders decided to create their own blockchain. They kept the spirit of meme culture while also attracting serious investors and leaders in the DeFi space. Over time, Berachain secured significant funding and strengthened its position in the industry, becoming an important part of the blockchain ecosystem.
Bong Bears: NFT Berachain. Source: opensea.io
What You Need to Know About the Berachain Ecosystem
The Berachain includes financial services, digital assets, and governance tools, making the blockchain user-friendly and efficient. Let’s take a look at its key components.
1. Proof-of-Liquidity (PoL)
Instead of the traditional Proof-of-Work (PoW) or Proof-of-Stake (PoS) mechanisms, Berachain uses Proof-of-Liquidity (PoL). In this model, network security is not just backed by staked tokens but by real liquidity. Users add funds to liquidity pools, helping the network function while earning rewards in return. This approach makes the blockchain more resilient, liquid, and well-suited for DeFi applications.
2. DeFi Applications in the Berachain Ecosystem
The Berachain ecosystem includes several decentralized finance (DeFi) applications:
-
BEX – a decentralized exchange (DEX) that allows users to swap tokens without intermediaries. Transaction fees can be paid not only with Bera, the network’s main token, but also with the asset being traded.
-
BEND – a lending platform where users can borrow and lend crypto assets using HONEY as the main currency. This enables passive income opportunities or access to additional liquidity.
-
BERP – a trading platform for leveraged trading, allowing users to use borrowed crypto to increase their position size.
3. NFTs in Berachain
In addition to tokens, Berachain also features NFTs and other digital assets that provide extra benefits. They are not just collectibles - they can also be used to unlock bonuses or gain access to exclusive services within the ecosystem.
4. Decentralized Governance (DAO)
Berachain is governed by its community. Holders of BGT (Berachain Governance Token) can participate in voting, propose ideas, and make changes to the ecosystem. This ensures that the project evolves based on user interests rather than centralized control.
To keep the ecosystem running smoothly, Berachain uses a structured token system for transactions, governance, and liquidity.
Berachain Tokenomics
Berachain uses three tokens, each playing a unique role in the ecosystem:
-
BERA – the main network token used to pay for transactions. It can also be staked to earn rewards and participate in platform governance.
-
BGT – the governance token that allows users to vote on network updates and make key decisions. It cannot be sold or transferred; instead, it is earned by staking BERA and other assets.
-
HONEY – Berachain’s stable token, pegged to the US dollar. It is used for payments, lending, trading, and other on-chain activities.
Getting Started With Berachain (BERA)
To explore the Berachain ecosystem and its features, follow these simple steps to set up everything quickly and securely.
How to Set Up a Bera Wallet
First, set up Bera Wallet, a self-custody wallet that supports BERA. It gives you complete control over your assets while ensuring security and ease of use. Whether you’re a beginner or an experienced user, having a reliable wallet is essential for managing Berachain tokens.
How to Acquire BERA
Once your wallet is set up, you’ll need BERA to make transactions and participate in the Berachain ecosystem. You can obtain it in several ways: transfer tokens from an exchange, receive them from other users, or purchase BERA directly with a card through the wallet. This process is fast and secure, making it easy to start using Berachain.
How to Stake BERA Tokens
Berachain allows you to stake BERA and earn rewards while supporting the network. By staking, you help maintain the security and efficiency of the blockchain.
