Exploring the cutting-edge public blockchain: Berachain's technology, community, and future.

2024-01-19 14:00

Read this article in 13 Minutes

Original Title: "Exploration of the New Generation Public Chain: Berachain Technology, Community and Future | CryptoSnap"

Original Author: dt, DODO Research

Berachain Xiong Chain has sparked discussions among the cryptocurrency community again due to the recent launch of its public testnet "Artio". The extremely cult-like community has attracted the attention of Degen insiders since its launch at the end of 2021. After announcing a massive financing of 42M led by Polychain and participated by OKX on April 20, 2023, more people in the industry have paid attention to this unique public chain project. With the public testing of the testnet, the mainnet is expected to be launched in the near future.

This week, Dr.DODO will take us to explore the team background, public chain mechanism, and the ecological projects worth paying attention to. These three aspects will help us get to know this new public chain that is about to launch.

Team Background

On April 20, 2023, Berachain announced their Series A funding of 42.069M, led by Polychain Capital with participation from Hack VC and OKX Ventures. From the amount and date of the funding, it is evident that the Bera team has a cult following. The four anonymous founders, Smokey the Bera, Papa Bear, Homme Bera, and Dev Bear, claim to be crypto-native degens, and the name Bera is intentionally misspelled as a tribute to one of the most famous single words in the crypto community, "HODL".

Speaking of team background, we have to mention their relationship with Olympus DAO. According to Smokey, co-founder of Berachain, they are a group of early OHM investors who met in the Olympus DAO community. Initially, this was just an NFT project among community members - Bong Bears, which paid tribute to OHM's Ponzi mechanism. They created the first rebase NFT collection and derived several new collections - Boo Bears, Baby Bears, Band Bears, and Bit Bears.

Later, with the collapse of the cryptocurrency market, a group of Defi enthusiasts were inspired by the POL (Protocol Owned Liquidity) concept of Olympus DAO and the native stablecoin concept of Terra. They decided to design their own L1 public chain, drawing on the advantages of these successful Defi projects and avoiding their shortcomings. Thus, Berachain was born.

Source: https://opensea.io/collection/bongbears

Public Chain Mechanism

Berachain is an EVM public chain that adopts Proof of Liquidity and is built on Polaris EVM. It runs on Cosmos SDK.

The Berachain team highly appreciates the Olympus DAO Protocol Owned Liquidity mechanism mentioned earlier. Therefore, they have innovated the Proof of Liquidity mechanism. According to Smokey's description, after experiencing many Defi projects, they understand that liquidity is the most important factor for a project's success. Therefore, the team's first consideration is how to bring as much liquidity as possible to Berachain, especially for many blue-chip tokens.

In the liquidity proof mechanism, users must form liquidity LP by depositing their blue-chip tokens such as BTC, ETH, etc. into BEX (Berachain native DEX) to obtain the protocol governance token $BGT. The $BGT token will be responsible for the validation mechanism of on-chain nodes and have voting governance functions (such as deciding the distribution of LP pool token rewards).

Source: twitter

Next, let's introduce the three-token model of Berachain. Due to the non-transferable design of the $BGT token, Gas Tokens of on-chain users will be obtained by burning $BGT tokens at a 1:1 ratio to obtain $BERA tokens. In addition, inspired by the design of Terra's native stablecoin, users can use the Honey Dapp to over-collateralize $BGT tokens and mint the native stablecoin $Honey.

· $BGT: A liquidity collateral proof token used for on-chain verification and governance.

· $Bera: Gas Token obtained by $BGT 1:1 unidirectional combustion.

· $Honey: Native over-collateralized stablecoin.

Not only did Berachain reference Olympus DAO and Terra, but it also drew inspiration from Canto's public DeFi infrastructure concept. Berachain will launch a native DEX, native lending, and native on-chain perpetual contract platform based on these public chain native protocols. The revenue generated by these protocols will be distributed to $BGT holders. Even the native DEX borrowed the mechanism of placing tokens next to the pool through Solidly ve33's vote bribery decision pool, and node validators will be able to decide the token incentives for the native DEX LP pool through voting and receive bribery rewards.

This combination of moves is expected to generate a flywheel effect for Berachain, attracting more users to provide liquidity to obtain the protocol token $BGT.

Source: twitter

Ecological Project

the honey jar

When it comes to the ecosystem, we cannot ignore The Honey Jar (THJ). THJ introduces itself as the entrance to the Berachain ecosystem and holds a considerable amount of discourse power within the community. It is responsible for educating users about Berachain, incubating ecosystem projects, and mediating between various protocols. THJ can be seen as the BD department of Berachain, and it has recently launched Honey Comb NFT, although its specific function has not been disclosed. In addition, it is recommended to pay attention to the projects mentioned on THJ's Chinese Twitter and the Twitter account of its founder, Jani.

Beradrome

Another one to introduce is Beradrome, which is a ve33 DEX on Berachain and will focus on the Restaking liquidity market. The team launched its Tour de Berance NFT series a year ago and has conducted multiple testnet tests. The NFTs clearly indicate that they will receive a governance token $Bero airdrop based on rarity when the mainnet goes live.

Sudoswap

Sudoswap is an NFT liquidity market currently deployed on the mainnet. Its focus on liquidity innovation aligns with the central idea of Berachain, and it has announced early on that it will deploy the protocol after the Berachain mainnet goes live. With the official launch of Berachain, it is expected to open the bridge for blue-chip NFTs and bridge many NFTs on the mainnet to the Xiong chain and provide incentives. Sudo is among the first to announce its involvement in Berachain's NFT market.

Redacted Cartel

The Redacted Cartel, incubated by the New Order team, is a Defi yield protocol with multiple sub-products covering the bribery market trading and LSD liquidity staking fields. It was previously announced that they will deploy a new project on Berachain, but there is currently no further information available. Berachain is expected to be a suitable platform for Defi bribery market yield ecological projects like Redacted due to its built-in voting bribery mechanism.

Algebra

Algebra is a backend product for outsourcing transaction functions, mainly selling DEX backend contracts to any project interested in doing DEX. Its service does not require the project to rewrite the contract itself. Currently, its product Algebra Integral V4 has been launched on the Berachain test network for testing. The V4 function will have hooks/plugins function and welcomes all projects interested in deploying DEX on Berachain to cooperate with it. It has also received a warm welcome from Bera co-founder Smokey.

The above five projects mainly introduce the investment targets that have actual products before the Xiong Chain mainnet is launched. After the mainnet is launched, more protocols will be deployed and everyone can pay more attention.

My Opinion

Compared to the traditional PoS mechanism, the author believes that the PoL mechanism is superior in terms of liquidity and security. The PoL mechanism introduced by Xiong Chain not only creates a flywheel effect to increase TVL, but also releases a lot of liquidity that originally existed in PoS native tokens. By restricting LP methods, only blue-chip tokens can obtain $BGT, which also ensures security.

Of course, technology is just one of the reasons why Xionglian is so popular in the encryption industry. More importantly, it has a strong community with cult and meme attributes. In the world of blockchain, community is a very important factor. Projects that value their community will be able to gain a large number of loyal fans who voluntarily advertise for them. This can invisibly give the project more support and motivation to go further in the cryptocurrency market, which is known for its focus on new projects rather than old ones.

Overall, the author is very optimistic about the development of Xiong Chain in 2024. Its team is very good at hyping expectations and designing the Pareto model. The overall architecture of the public chain is also different from other common L2 public chains. Currently, both the NFT of the Bera team and the NFT/Token of its ecological projects have brought users a lot of wealth effects. After the mainnet goes live, you can participate in various new projects. In addition, Berachain's testnet has also launched test tasks. If you have free time, you may want to participate in it.