Thread by @0xDegenz

Berachain looks to take the cryptosphere by storm bringing a new layer 1 design that has never been tried before.

A unique Proof-of-Liquidity consensus chain that operates around a tri-token structure.

Don't miss out, it's still very early 👀
Introduction to @berachain 🐻⛓️🧵

1/ #Berachain is a Cosmos-SDK built / EVM-compatible blockchain leveraging its unique “Proof-of-Liquidity” consensus to allow users to stake layer 1, bluechip DeFi, and stablecoin assets with Berachain validators.

2/ Integrates a native DEX and Perpetual Exchange that generate revenue from fees that are later distributed to the chain governance-token holders.

3/ The chain operates around a tri-token structure consisting of $BERA, $BGT, and $HONEY.

There is still no official documentation or public testnet yet, but the number of new users and protocols flocking to Berachain is rapidly growing.

4/ According to one of its devs, the mainnet could be launched in 3 month, so I expect the testnet to be around the corner.

If there is an incentives program for testers, I'll be covering it as usual, so remember to follow me and turn on the notifications to stay up to date 🔔

5/ Proof of Liquidity. How it works?

Unlike standard POS consensus, there's the option to stake multiple assets (BERA, ETH, BTC, Stablecoins etc. to a validator in order to earn block rewards in the form of $BERA.

6/ All the while, those staked assets are being used to provide liquidity on the chain's native virtualized AMM pairing them with the token $Honey.

The weighting of block rewards are determined by users governance decision.

7/ Since consensus weighting determines $BERA staking rewards per asset, this opens up the possibility of using gauges to determine the weighting of block rewards for specific assets.

8/ This would mean that protocols building on the chain could have their token being used to secure the blockchain with the great benefits this implies:

9/
- Liquidity as a service: Tokens securing the network get their liquidity bootstrapped by being paired with $honey in berachain's native AMM.

- An additional source of utility & yield for users: Earn $BERA block rewards from tokens that otherwise wouldn't generate much yield.

10/ Tokenomics:

As mentioned, Berachain has a tri-token structure.

🔸 $BERA - The Gas Token
🔸 $HONEY - The Stablecoin
🔸 $BGT - The Governance Token

11/ Stakers earn $BERA rewards at a 10% APR and it is used to pay gas fees on the network to then be burned. It can also be staked. Staking $BERA is the only way to get $BGT.

12/ $BGT is a soulbound NFT and is used to vote. $BGT holders earn fees from DEX swaps, $HONEY interest rates, funding rates on perps, liquidation fees, and more all paid in $HONEY.

13/ $HONEY is the native dollar-pegged stablecoin that is mintable with Berachain-staked assets. Acts as an intermediary for all DEX trades and used to pay funding rates on perps.

The $HONEY peg is algorithmically maintained by a variety of methods and is over-collateralized.

14/ Here's a list of projects that are already rumored to be building on @berachain :

@redactedcartel
@templedao
@OlympusDAO
@SynapseProtocol
@GumBallProtocol
@Bond_Protocol
@fiatdao
@abacus_wtf
@guzzolene_wtf
@dammfinance
@ParagonsDAO
@CrocSwap

15/ Some native @berachain projects:

@berasinocom
@honeypotfinance
@BeraCreek
@BeraBetsGG
@artio_finance
@PunksBera
@berafudge

I encourage you to start interacting with them now in early stages if you are bullish on Bera. It will give you advantage.

16/ Links of interest:

- Berachain Discord: discord.gg/Q3p3TwpMqR
- Berachain Website: berachain.com
- Berachain Article: mirror.xyz/0x524f1E4B8E21…

17/
That's a wrap I hope it's been useful. Be ready for testnet.

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I would also like to hear what are your thoughts on Berachain.