BeraChain is a high-performance Layer 1 blockchain focused on the DeFi ecosystem. It is built on the Cosmos SDK and integrates the CometBFT consensus engine to achieve faster transaction speeds and lower transaction costs. The network adopts the Proof of Liquidity (PoL) consensus mechanism and enhances EVM compatibility through its proprietary Polaris Ethereum module, allowing developers to seamlessly integrate existing EVM tools and applications.

As a developer-friendly blockchain with strong cross-chain interoperability, BeraChain aims to bridge liquidity between the EVM and Cosmos ecosystems, creating an efficient and highly liquid multi-chain network.

2. Innovations

2.1 PoL Consensus Mechanism

BeraChain does not adopt the widely used Proof of Stake (PoS) consensus mechanism but instead introduces the unique Proof of Liquidity (PoL) model. This novel consensus mechanism is designed to enhance security by increasing on-chain liquidity. While PoL draws inspiration from PoS by using the native gas token ($BERA) as an initial stake to secure the network, it further expands on this model by introducing the governance token ($BGT).

Users can delegate governance tokens to earn rewards, reinforcing ecosystem incentives. Simply put, PoL separates the token used for gas payments and network security ($BERA) from the token responsible for governance and on-chain reward distribution ($BGT, Berachain Governance Token), thereby optimizing network efficiency.

2.1.1 Limitations of PoS

The Proof of Stake (PoS) consensus mechanism has improved blockchain security, decentralization, and transaction speed. However, it falls short in effectively incentivizing developers and regular users. Ethereum (ETH) serves as a prime example. On the Ethereum network, ETH is primarily used for gas fees, transaction circulation, and validator staking. Validators stake ETH to participate in transaction validation and block creation, securing the network while earning rewards for successfully validating blocks. However, at the protocol level, there are no direct incentives for regular users and developers, which may reduce their engagement.

Additionally, PoS faces an inherent conflict between staking and liquidity. Using Ethereum as an example, users must choose between staking ETH to secure the network or using it for on-chain transactions, but they cannot do both simultaneously. Higher staking levels improve security but reduce liquidity in the ecosystem, while lower staking levels increase liquidity but weaken network security. This inherent trade-off, where the same asset must be used for both security and transaction utility, makes it challenging for PoS networks to strike an optimal balance between security and liquidity.

2.1.2 How PoL Addresses These Issues

The key limitations of PoS can be summarized as follows:

1. It fails to effectively incentivize all three key participants at the protocol level: validators, users, and developers.

2. It struggles to balance on-chain staking security with liquidity.

PoL enhances blockchain incentives by aligning the interests of all network participants while expanding both security and liquidity simultaneously, ultimately delivering real value to on-chain applications.

In the PoS mechanism, block rewards are mainly distributed to validators and stakers, making it difficult for ecosystem applications to benefit. However, Berachain has established reward vaults (Rewardvaults) and related mechanisms to facilitate collaboration among validators, applications, and users to generate revenue. A Rewardvault is essentially a smart contract that receives $BGT from validators and staked tokens from users. The participation process among the three parties is as follows:

· Validators receive $BGT rewards for block production and can choose to allocate $BGT to different applications’ reward vaults. To attract more $BGT allocations from validators, applications can “bribe” validators using their native tokens (or other valuable liquidity tokens), encouraging validators to direct a portion of their earned $BGT rewards into their own reward vaults.

· Applications receiving $BGT allocations from validators can distribute these $BGT as rewards to users who add liquidity to their LP pools, thereby attracting more liquidity.

· Users choosing to add liquidity to different applications’ LP pools aim to earn a share of the $BGT rewards distributed by the applications. The more $BGT rewards an application distributes, the more likely users are to provide liquidity to its pools. Users receive $BGT rewards based on their LP share. For example, if a validator allocates 10 $BGT to Application A’s reward vault and a user holds 10% of the LP weight in that vault, the user will receive 1 $BGT as a reward.

· At this point, users can choose to burn the earned $BGT at a 1:1 ratio to convert it into $BERA or redelegate the earned $BGT to validators. When validators receive token “bribes” from applications, users who have delegated $BGT to these validators can receive a share of the application’s native tokens.

· For example, if Validator X allocates 10 $BGT to Application A’s reward vault and, as a result, receives 100 AToken from Application A, a significant portion of these 100 AToken will be distributed back to users who delegated $BGT to Validator X.

· Why Do Validators Need Users’ $BGT Delegation? In Berachain, the $BGT rewards a validator earns for producing a block are directly proportional to the amount of $BGT delegated to them. According to Berachain’s official documentation, each newly produced block currently has a base reward of 0.5 $BGT, which is calculated and distributed through the “distributor” smart contract.

As a result, validators need more $BGT delegations to increase their block rewards. These additional rewards are then further redistributed to users through applications, helping applications gain more liquidity from users in the process. This creates an incentive loop, enhancing the vitality and liquidity of the Berachain ecosystem, thus forming Berachain’s flywheel effect.

At the same time, to address the contradiction in PoS between on-chain staking and liquidity, Berachain separates the on-chain payment token ($BERA) from the governance token ($BGT). $BERA serves as the network’s gas token, used to pay transaction fees and support basic network operations. On the other hand, $BGT is used for governance and is non-transferable, ensuring that decision-making power is held by long-term stakeholders who are genuinely concerned with the network’s development.

Together with the PoL mechanism mentioned earlier, this creates an ecosystem where liquidity and security coexist synergistically, allowing liquidity to not only enhance the security of the chain but also create real value for on-chain applications.

2.1.3 Flywheel Effect

In section 2.1.2, we described the formation process of Berachain’s flywheel effect. Essentially, it is an interconnected, self-reinforcing process of mutual incentives formed through close coordination between validators, applications, and users.

Source：Berachaib core docs

The diagram above is the flywheel effect framework published by Berachain. Here, we will revisit and understand the process of how the flywheel effect is implemented:

1. Validators need to stake a certain amount of $BERA as a node bond to launch a node.

2. When a validator produces a new block, they receive $BGT as a block reward. The amount of $BGT a validator can receive depends on the $BGT delegation weight they have received from users.

3. The validator can choose to distribute the earned $BGT block rewards to different application vaults, with the distribution ratio decided by the validator.

4. To encourage the validator to allocate $BGT rewards to its vault, the application can bribe the validator.

5. The application then distributes the $BGT rewards to the users who provided liquidity to their pools, with the rewards distributed according to the users’ weight in the pool.

a. For example, if Application A holds A-Token and wishes to increase liquidity in the A-Token/Bera pool, the application might decide to bribe the validator with 100 A-Token, and the validator will allocate 10 $BGT to the A-Token/Bera LP pool.

b. Users who want to earn $BGT will add liquidity to this LP pool. If a user’s weight in the A-Token/Bera LP pool is 10%, the application will allocate 10% of the 10 $BGT rewards (which equals 1 $BGT) to the user.

6. After receiving $BGT, the user can choose to delegate the $BGT back to the validator. When the validator receives “bribes” from the application, the user will also earn tokens based on their delegation weigh

Thus, a three-party interest community is formed between the validator, application, and user, which constitutes the flywheel effect:

· Validators receive $BGT rewards for producing blocks, as well as bribe incentives from applications.

· Applications attract liquidity from users.

· Users earn $BGT shares from the application by providing liquidity, and by delegating $BGT, they also earn a share of the validator’s block rewards.

Additionally, an application can choose to run its own node and become a validator. As a validator, it can distribute the $BGT block rewards to its own application vault, attracting users to provide liquidity to its pool. In this way, the application can earn dual rewards as both a validator and an application.

2.2 Tri-Token Economic Model

Unlike the traditional single-native-token economic model commonly used by public blockchains, BeraChain adopts a tri-token economic model to better balance the needs of validators, users, and applications. The three tokens are: Gas Token: $BERA, Governance Token: $BGT, and Native Excess-Collateralized Stablecoin: $HONEY

2.2.1 Economic Model

$BGT — Governance Token

Used for on-chain governance, voting on key matters such as whitelist assets, etc. $BGT is non-transferable and can only be generated by staking $BERA or providing liquidity on the native decentralized exchange BEX within Berachain. This ensures long-term participation and alignment of on-chain incentives for holders.

$BERA — Gas Token

Primarily used for paying Berachain network gas fees. $BERA can be obtained through a 1:1 one-way burn from $BGT and is issued with an inflation rate of 10%, meaning its supply increases over time. Users can earn $BERA as rewards by staking assets and participate in protocol revenue sharing. With the governance token $BGT in place, users can freely stake $BERA without weakening the blockchain’s validation capability, eliminating the need to choose between staking and transacting.

$HONEY — Stablecoin

$HONEY is Berachain’s native over-collateralized stablecoin, with a minimum collateralization ratio of 150% to ensure it is pegged to the US dollar. $HONEY serves as a medium of exchange within the Berachain ecosystem, used for protocol revenue distribution and supporting purchases and usage within BEX and applications.

Ecological Empowerment

· $BERA empowers on-chain transactions. Users can stake $BERA to earn $BGT governance tokens and earn protocol revenue (partially paid in $HONEY).

· $BGT, as the core governance token, allows users to vote on and influence the rules of the Berachain ecosystem, while also driving liquidity growth.

· $HONEY, as a stable value medium, circulates within the ecosystem, providing users and protocols with a stable payment method, while rewarding $BERA stakers.

2.2.2 Project Revenue

The main revenue sources for Berachain include liquidity mining rewards, blockchain infrastructure service fees, developer tools and support charges, as well as collaboration income from partners. Through the Proof-of-Liquidity (PoL) consensus mechanism, the project can generate revenue from liquidity mining. Additionally, providing high-performance blockchain infrastructure, developer tools, and support services may also bring in income. Furthermore, collaborations with other blockchain projects and enterprises constitute an important revenue stream.

Berachain Revenue（Transaction Fees Earned）

Source：Dune Analytics

3. Ecosystem

Since its testnet phase, Berachain has garnered significant attention, and its ecosystem is now highly developed, covering areas such as DeFi, NFTs, Memes, GameFi, and AI. According to Defillama data, the top projects on Berachain in terms of TVL are as follows:

The current highest TVL is held by Infrared Finance, a liquidity staking project, with a TVL of $1.935 billion.

Following that are Berachain’s native DEX Kodiak and BEX, with TVLs of $980 million and $894 million, respectively.

top projects on Berachain in terms of TVL

Source：defillama

3.1 Ecosystem Projects

DeFi

Currently, Berachain’s DeFi ecosystem covers a wide range of scenarios, including trading, lending, and derivatives, forming a complete landscape.

DeFi — DEX

BEX

BEX is the native decentralized exchange (DEX) launched by Berachain. Users can directly buy and sell various tokens here, such as exchanging the native token $BERA for the stablecoin $HONEY or trading other ecosystem project tokens. Additionally, users can deposit funds into specific trading pools (such as USDC/$HONEY, W$BERA/$HONEY, etc.) to receive liquidity provider (LP) tokens. These LP tokens can then be staked to earn $BGT.

Given the presence of BEX, other DEXs within the Berachain ecosystem are also actively preparing more convenient and efficient services and strategies to attract users and liquidity. Currently, BEX’s swap supports a variety of tokens, and the liquidity pool with the highest TVL is close to $400 million.

Source：BEX Official Website

BEX adopts the AMM (Automated Market Maker) model, replacing traditional order book markets with liquidity pools. The architecture of BEX is designed for flexibility, efficiency, and optimized trading experience:

· Full-range liquidity pools: Supports traditional “Uniswap V2 style” liquidity pools, offering a simple and smooth trading experience.

· Customizable pool weights: Allows for custom weight allocation (e.g., 80/20), catering to personalized investment needs.

· Stablecoin exchange curve: Optimized for pegged asset trading, reducing slippage.

· Unified treasury architecture: Improves fund efficiency while reducing gas fees.

Kodiak

Kodiak is the only DEX incubated by Berachain’s “Build-a-Bera” accelerator program, designed to introduce centralized liquidity and automated liquidity management into the Berachain ecosystem. It not only provides traders with the deepest liquidity and best trade execution but also offers protocols and liquidity providers greater flexibility and control.

As a native DEX of the Berachain ecosystem, Kodiak and BEX serve as complementary liquidity solutions for Berachain: BEX, as a multi-asset AMM, offers a wide range of liquidity trading options but does not provide aggregated liquidity features. On the other hand, Kodiak focuses on centralized liquidity solutions, where funds deposited into “Kodiak Islands” are automatically pooled into a price range to efficiently provide liquidity for the ecosystem, eliminating manual operations and enhancing capital efficiency and flexibility.

Kodiak provides the following key features to offer traders and liquidity providers (LPs) the best trading experience and simplify liquidity provision:

· Kodiak DEX: A non-custodial decentralized exchange that uses centralized liquidity Automated Market Maker (AMM) to improve capital efficiency. It intelligently optimizes trading paths to enhance yields.

· Kodiak Islands: An automated liquidity management vault offering automated LP tools. Liquidity providers do not need to manually adjust their fund ranges; the system automatically adjusts positions to fit market conditions and maximize profitability.

· Sweetened Islands: An innovative incentive layer providing additional token rewards to liquidity providers. Through Berachain’s PoL mechanism, liquidity providers are incentivized to ensure ample and stable liquidity within the ecosystem.

· Panda Factory: A solution that allows anyone to deploy new tokens with initial liquidity without code, simplifying the token creation process. This permissionless solution lowers the entry barrier for new projects, fostering innovation and expanding the Berachain ecosystem.

Kodiak has currently raised $2 million in funding from well-known VC firms like Amber Group and Shima Capital. With these core features, Kodiak is poised to become one of the most important liquidity platforms on Berachain, helping drive the sustainable development of the DeFi ecosystem. More Information: https://documentation.kodiak.finance/kodiak-boyco

In addition to the two native DEXs mentioned above, Berachain also includes many other DEX projects, all of which are contributing to building a strong infrastructure for efficient trading and liquidity management on the Berachain mainnet.

Honeypot Finance A liquidity management protocol designed around Berachain’s PoL mechanism, Honeypot helps protocols efficiently manage and grow liquidity, optimize yields through smart strategies, and improve capital efficiency for liquidity providers. As a PoL accelerator in the Berachain ecosystem, Honeypot aims to empower the community with a full suite of DeFi tools to enhance liquidity efficiency. Its core products, including DreamPad, HelonDEX, and HiveNode, work together to create a complete loop for liquidity acquisition, retention, and incentives. The Honeypot ecosystem uses DreamPad as the liquidity entry point, where tokens launched by users can directly be injected into HelonDEX for trading and liquidity provision, and finally, HiveNode provides PoL incentives, continuously enhancing capital efficiency and user yields in the Berachain ecosystem.

Ooga Booga A liquidity aggregator on Berachain, Ooga Booga consolidates order flow from multiple DEXs, improving trade efficiency and optimizing trading costs. It aggregates liquidity from several DEXs to provide users with the optimal trading path and the lowest-cost execution. According to its official website, the platform’s cumulative trading volume has reached $600 million.

Shogun A cross-chain abstract trading protocol that allows users to seamlessly execute trades across multiple chains, simplifying cross-chain transactions both within and outside the Berachain ecosystem, enhancing interoperability and user experience.

Beradrome：A ve(3,3) mechanism DEX on Berachain, like Velodrome, which adopts a vote-locking economic model to incentivize liquidity providers and traders, while also optimizing trading efficiency and capital utilization.

Yeet：A decentralized leverage trading protocol on Berachain that supports efficient leveraged trading, enabling users to perform trustless margin trading on-chain while improving the trading experience through the deep liquidity of the Berachain ecosystem.

DeFi — Liquidity Staking

Infrared Finance

Infrared Finance simplifies the process for users to participate in Berachain’s Proof of Liquidity (PoL) mechanism and enhances liquidity within the Berachain ecosystem. According to Defillama data, Infrared Finance currently has a Total Value Locked (TVL) of approximately $1.87 billion, making it the highest TVL DeFi protocol on the Berachain blockchain.

Source：Infraed Official Website

In Berachain’s original model, users would first deposit assets into BEX （the native DEX of Berachain）, receive LP tokens, and then deposit those LP tokens into the $BGT treasury to earn governance token $BGT. However, due to $BGT being soul-bound and non-transferable, it lacked liquidity, which limited DeFi users’ flexibility.

Infrared Finance addresses this issue by custodizing LP tokens and issuing a 1:1 redeemable liquidity-wrapped $i$BGT (a liquidity encapsulation of $BGT), making $BGT liquid. Users can now directly use $i$BGT within the DeFi ecosystem while still earning $BGT rewards. Users deposit LP tokens into the Infrared liquidity pool, and Infrared’s vault can accept LP tokens from liquidity pools, generate $BGT, and distribute $i$BGT to users on a 1:1 basis for the number of tokens they deposited. Users can stake $i$BGT in Infrared to earn node rewards, use $i$BGT in other DeFi protocols, or sell their $i$BGT.

Additionally, Infrared Finance has launched a liquid staking token (LST) $iBera to lower the staking threshold in Berachain. Berachain validators require 250,000 $BERA (around $1.5 million), which is higher than Ethereum’s 32 ETH (around $60,000). However, Infrared’s $iBera product allows users to stake $BERA and receive $iBera, enabling ordinary users to participate in staking.

Source：Infraed Official Website

With the liquidity provided by $i$BGT and the lower staking threshold offered by $iBera, Infrared Finance offers more accessible ways to engage with Berachain’s DeFi ecosystem and is poised for further development.

As of March 4, 2025, Infrared Finance has completed a total of $18.75 million in funding, including a $2.25 million strategic round led by Binance Labs, a $2.5 million seed round, and a recent $14 million Series A funding round led by Framework Ventures.

BeraPaw

BeraPaw is a liquidity staking protocol within the Berachain ecosystem, designed specifically for the Proof of Liquidity (PoL) consensus mechanism. It simplifies and automates the PoL interaction, enabling users to unlock the full potential of Berachain’s governance token, $BGT. The protocol introduces transferable liquid staking tokens $L$BGT, allowing users to balance governance rights with liquidity. Additionally, it introduces the governance token $PAW, granting holders protocol governance rights and access to treasury rewards. BeraPaw allows $L$BGT stakers to earn rewards and governance rights while enabling $PAW stakers to determine the delegation structure of $BGT, creating a more flexible and efficient staking ecosystem within Berachain.

DeFi — Lending

Dolomite

Dolomite is the next-generation lending protocol on Berachain, supporting a broader range of assets than traditional lending protocols and offering higher capital efficiency. It allows users to lend assets while still using them for staking, unlocking, voting, earning rewards, and even participating in the Berachain PoL mechanism, significantly enhancing asset utilization. In addition, Dolomite offers features such as asset recycling, swapping, strategy deployment, and fund management, enabling users to manage their funds more efficiently and optimize returns.

Dolomite has launched its native token DOLO on Berachain, with a total supply of 1 billion tokens. 20% of the total supply is allocated to the community airdrop, including 9% for active lending users (based on loan and deposit data), 10% for airdrops in the form of options to Minerals holders (with the ability to purchase DOLO at a price of $0.045), and 1% for core community contributors. On March 5, 2025, Dolomite announced the opening of airdrop queries and plans to conduct its TGE in the coming weeks.

Previously, Dolomite raised a total of $3.4 million in funding, with investors including NGC Ventures, Draper Goren Holm, Coinbase Ventures, Optic Capital, and several prominent investors. Dolomite is now live on the Berachain mainnet, supporting over 25 assets, and plans to optimize capital utilization using Berachain’s Proof of Liquidity (PoL) system.

According to data from the official website, as of March 2025, Dolomite’s total platform transaction volume has reached $870 million, with borrowing exceeding $80.62 million. Users who deposit $BERA into the platform can enjoy an APR of over 40%, with a deposit supply cap of 5.5 million tokens.

Beraborrow

Beraborrow is a decentralized lending protocol within the Berachain ecosystem, launching the first liquidity proof (PoL)-driven stablecoin, Nectar ($NECT), to provide instant liquidity for Berachain assets. Users can deposit i$BGT (staking derivatives), LP tokens, and native assets into Dens as collateral to mint $NECT in an over-collateralized manner and use it within the Berachain ecosystem while maintaining exposure to the underlying assets. The protocol enhances leverage and yields through the PoL mechanism, allowing users to unlock more DeFi opportunities without sacrificing returns. As a core infrastructure of Berachain, Beraborrow starts as a CDP platform (Collateralized Debt Position) and gradually expands into a more comprehensive DeFi product to drive ecosystem growth.

Stacking Salmon

Stacking Salmon is a decentralized lending protocol in the Berachain ecosystem that uses a set of smart contracts to enable non-custodial, permissionless lending and leveraged yield farming markets. The protocol allows users to leverage positions using Kodiak V3 while optimizing fund accessibility, offering more efficient capital utilization for market makers, and improving lender returns. Stacking Salmon ensures fund security and market stability through dynamic LTV (Loan-to-Value), isolated markets, and Kodiak V3 TWAP oracles, creating an efficient, secure, and flexible lending environment for the Berachain ecosystem. The app is not yet officially launched.

Other

Origami

Origami is an automated leverage protocol designed to enhance DeFi capital efficiency. Through integration with third-party lending services, Origami automates folding strategies to maximize capital efficiency and reduce liquidation and bad debt risks. Users can perform leveraged operations with a single click, without monitoring health factors or managing positions. Origami was initially launched on Ethereum and has since expanded to Berachain.

Origami Finance has completed a $1.5 million seed funding round. Participants include Ouroboros Capital, Fjord Foundry, Good Partners, Upside, BeraLand, TempleDAO, Boba Tea Capital, Three Three Ventures, Smokey The Bera, and janitooor.eth. The valuation has not been disclosed. The new funds will be used to build its automated leverage protocol launched on both Ethereum and Berachain.

Veda

Veda is a native yield infrastructure for protocols and applications built for the decentralized finance (DeFi) ecosystem. Users deposit assets into Veda’s contracts, which then securely deploy these funds through DeFi protocols. By offering automated and tokenized yield opportunities, Veda simplifies the process, enabling users to earn rewards without dealing with the complexity of DeFi. Veda’s mission is to drive mass adoption of cryptocurrency through transparent and accessible yields, aiming to revolutionize how users and protocols interact with yield generation. This innovative approach benefits both individual users and various protocols, making yield generation more convenient and efficient.

ApiologyDAO

ApiologyDAO is a decentralized autonomous organization (DAO) playing a central role within the Berachain ecosystem, operating like a beehive structure that collaborates with the overall Berachain ecosystem. By deploying production hives and supercharged hives within the Berafi Fat Bera Flywheel, ApiologyDAO aims to provide efficient support and growth to the ecosystem, promoting sustainability and win-win cooperation. The project is incubated by @0xhoneyjar, driving innovation and collaboration within the Berachain ecosystem.

Ramen Finance

Ramen Finance is a token issuance protocol based on the Berachain ecosystem (3,3), designed to provide liquidity guidance for new assets on Berachain. The protocol is community-owned and governed.

Concrete

Concrete is a native base protocol for generating credit products and derivatives, opening the door to building a new set of financial primitives on-chain using Concrete as a computation base layer. It provides secure, automated yield strategies and derivatives for user assets, helping users earn the highest returns while reducing trading risks. After launch, Concrete will serve users of money markets such as Aave, Compound, Silo, and Radiant, and will periodically add mature and emerging lending institutions.

GameFi

BeraTone

BeraTone is a multiplayer online life simulation game based on the Berachain ecosystem, available for PC and mobile devices. The core experience of the game revolves around farming and life simulation, where players can own their land in a virtual world, customize and expand it, grow crops, gather resources, raise animals and livestock, and trade with other farmers. BeraTone’s rich in-game economy is enhanced by Berachain’s innovative Proof of Liquidity (PoL) consensus mechanism, allowing players to access Berachain’s native decentralized applications (dApps) and cooperative protocols within the game. All systems are optional and do not interfere with the gameplay, aiming to provide a seamless experience for Web2 players.

Wizzwoods

Wizzwoods is a cross-chain synthesis simulation game that combines Web2 social traffic with Web3 gaming experience. Players can collect and combine NFTs from different EVM chains to improve farm management efficiency and enrich their adventure journey. The core gameplay involves building and optimizing farm management to improve efficiency, offering the fun of cross-chain synthesis. In about six months, Wizzwoods has accumulated over 3 million players on TG, with monthly active users exceeding 2 million and daily active users exceeding 500,000. The game has generated over $4 million in in-game purchases.

Beramonium

Beramonium is a large-scale game project developed on Berachain, with its first game, “Gemhunters,” being an idle role-playing game. Players can dispatch their Beramonium Genesis Beras to complete tasks and acquire equipment and gems. These gems can be exchanged for NFTs from other Berachain-related projects, such as Honey Combs, Beradoges, and more.

Beramonium Chronicles: Genesis is a collection of 6,000 unique NFTs, initially minted at a price of 0.045 ETH. These NFTs serve as a gateway into the Berachain NFT and gaming ecosystem, designed to attract real players into the crypto world, exploring the charm of NFTs while enjoying the game. Players can visit the Beramonium website to participate in the “Gemhunters” game, dispatch their Beras to complete tasks, collect gems, and exchange them for NFTs from other Berachain projects.

Meme

Memeswap

Memeswap is a gamified social DEX built on Berachain, allowing users to issue tokens, earn yields, and build their own communities. The platform focuses on launching Meme coins and provides innovative features such as low-cost token issuance, AI integration, anti-bot and whale mechanisms, time-locked liquidity pools, and more. Users can deploy LP pools by renting liquidity from staking vaults without needing to raise funds, and utilize AI to automatically generate or adjust token images. The platform has anti-whale mechanisms by limiting each address to one transaction every 30 seconds and imposing transaction limits to prevent repeated trades and hoarding. Liquidity pools are locked for at least one day to ensure the security of early trades. Additionally, developers must meet liquidity standards within a specified time or the liquidity pool will be automatically dissolved, and liquidity will be returned to the vault. Through the PoL mechanism, liquidity pools that meet the standards will be permanently locked and staked in DeFi protocols to earn PoL rewards.

Henlo

Henlo is a Meme coin project built by Berachain’s largest community, The Honey Jar (THJ). $HENLO, a Meme coin on the mainnet, is inspired by the English word “hello” but with a unique expression, and has become a mainstream term in the Berachain community. THJ has formed partnerships with multiple ecosystem projects, giving it significant influence within the community. Henlo is not just a greeting; it represents a lifestyle and community culture, becoming one of the symbols of Berachain.

Beraplug

$PLUG is the first ERC20 token in the Berachain community, powered by Beraplug. Beraplug is a (3,3) enhancement protocol aimed at rewarding long-term community alignment and probabilistically shifting asset supply from weak hands to strong hands. The $PLUG token is the first implementation of the Beraplug protocol, primarily targeted at The Honey Jar’s Honey Comb NFTs. This token design aims to strengthen the long-term stability of the community and promote quality asset distribution among holders.

SocialFi

HoneyChat

HoneyChat is a decentralized social network and financial (SocialFi) application that combines social interactions with crypto innovation, reshaping the landscape of digital interactions. The platform hands over control, ownership, and monetization directly to content creators and audiences, enabling fans, creators, and influencers to connect seamlessly. In HoneyChat, your social interactions are not just likes and shares; they carry digital currency value. It is a space where consumer cryptocurrencies and the creator economy are seamlessly integrated, creating a massive SocialFi wave. Click here to join HoneyChat.

RWA

BurrBear

BurrBear is the stablecoin liquidity hub within the Berachain ecosystem, focusing on providing innovative DeFi liquidity pools for stablecoin issuers, RWA (Real-World Asset) tokens, stablecoins, and hardware asset tokens. These liquidity pools not only enhance liquidity but also improve yield, providing more efficient capital utilization for both on-chain and off-chain assets.

HiveBits

HiveBits is an RWA (Real-World Asset) project that utilizes DePIN (Decentralized Physical Infrastructure Network) to bring beehives onto the blockchain, promoting sustainable beekeeping and hive health. This project combines blockchain technology with traditional agriculture by tokenizing hives, allowing global users to participate in the eco-friendly beekeeping industry and support sustainable development.

Fortunafi

Fortunafi is a cross-chain RWA (Real-World Asset) tokenization issuance platform focused on providing integrated liquidity solutions for stablecoin issuers, protocol treasuries, and traditional financial institutions. Its investment products include private and public debt offerings and support native minting and redemption on top-tier blockchains, facilitating the on-chain liquidity of traditional financial assets.

NFT

Kingdomly

Kingdomly is Berachain’s native NFT launch platform and marketplace, designed to offer no-code NFT creation, minting, and trading services for creators and collectors. Through Kingdomly Creator, anyone can create high-quality NFT collections without technical knowledge. The platform also features an NFT Bridge for cross-chain NFT transfers, enhancing the liquidity and accessibility of digital assets. Additionally, Kingdomly Mint is a centralized platform for minting Berachain mainnet collections, providing a seamless and cost-effective minting experience. Kingdomly is currently developing staking features, expected to further enhance the platform’s user experience and ecosystem engagement.

Click Here to Learn more about Berachain ecosystem projects. Additionally, FenTech, based on @Berasearch’s data, has compiled a list of Berachain’s native projects, covering brief introductions to over 80 projects. Click Here for more Details。

3.2 Boyco Pre-deposit Activity

Boyco is a pre-deposit activity that provides users with an early way to participate in the Berachain ecosystem. It is launched through a collaboration between the Brachain official team and @roycoprotocol. Participants can earn $BERA tokens and project tokens as rewards through deposits. The goal of Boyco is to raise sufficient liquidity before the mainnet launch of Berachain, ensuring that various applications and transactions can be supported after the mainnet goes live. Participants can engage in this liquidity market by depositing funds in advance (including pre-pre-deposits). There are four partners: StakeStone, Lombard, Ethena Labs, and etherfi.

BeraChain & Stakestone

Entry：

· https://app.stakestone.io/u/vault/detail/bera

Users will be able to participate in the Berachain ecosystem and earn rewards by using liquidity assets such as STONE, ssBTC, and STONEBTC from StakeStone. StakeStone is a cross-chain liquidity asset protocol focused on distributing liquidity for ETH, BTC, and stablecoins. It launched a cross-chain interest-bearing ETH asset, STONE, which continuously optimizes the yield structure for users.

StakeStone and Berachain have reached a strategic partnership to launch the Berachain Pre-deposit Vault. This product achieves three core functions through a smart strategy engine:

1. Automated Yield Aggregation System: Builds dynamic yield models based on real-time on-chain data, supporting cross-chain fund optimization.

2. Liquidity Optimization Architecture: Implements layered risk control mechanisms to ensure asset security while enabling seamless fund flow between ecosystems.

3. One-click Yield Enhancement: Uses algorithm-driven asset rebalancing strategies to help users automatically capture the optimal $BERA investment window.

Unlike traditional yield aggregators, this solution innovatively introduces a modular yield strategy combination, ensuring cross-chain DeFi ecosystem yield compounding while maintaining the verifiable transparency of underlying assets. The system continuously monitors 20+ yield parameters and dynamically adjusts fund allocation to ensure that user assets are always on the optimal yield curve.

The StakeStone Berachain Vault maximizes LP (Liquidity Provider) utilization and enhances yields. Users participating in the StakeStone Berachain Vault can earn multiple layers of rewards.

1. Users deposit assets (such as ETH) into StakeStone to obtain STONE and other cross-chain liquidity assets, capturing PoS-based interest-bearing returns.

2. Users deposit LP assets (such as STONE) into the Berachain ecosystem, and the Vault will automatically maximize liquidity mining and governance rewards for the users. They will also receive interest-bearing Vault LP Tokens (such as beraSTONE).

3. Users can use these interest-bearing assets in other DeFi projects, such as Uniswap liquidity mining or Aave/Morpho collateral lending, generating multiple revenue streams.

According to Official Website， Berachain and StakeStone have gained widespread attention since their launch, with the Pre-deposit Vault currently generating a total value locked (TVL) of $327 million.

BeraChain & Ethena

Entry：

· https://ethena.concrete.xyz/

Ethena is a stablecoin protocol designed to convert Ethereum-based assets into yield-generating stablecoins like USDe through derivative infrastructure. USDe is backed by crypto assets and Delta-neutral hedging strategies. Ethena captures interest rate differences between CeFi, DeFi, and TradFi to provide returns for users, fostering convergence of capital and rates across different financial systems.

The collaboration between Ethena and Berachain is centered around incentivized pre-deposit vaults, creating an innovative model for cross-ecosystem yield aggregation. According to official announcements, the first products of this partnership, launched by the Concrete platform, include two pre-deposit vaults supporting the deposit of USDe, sUSDe, USDC, USDT, and other assets. The core value of this design is that users can participate in Berachain’s ecosystem incentives without directly interacting with native Berachain assets, while still maintaining exposure to stablecoins, ensuring risk-controlled cross-chain yield capture.

Technical Architecture of the Collaboration:

· Asset Layer: Ethena provides underlying asset support through its USDe stablecoin, utilizing Delta-neutral mechanisms (based on ETH staking rewards and futures hedging). Users’ deposits in USDe/sUSDe automatically trigger Ethena’s yield strategies (staking rewards + arbitrage returns), forming the foundation of the yield generation.

· Protocol Layer: Berachain’s Proof of Liquidity mechanism is integrated into the vaults, converting user deposits into liquidity certificates required by validator nodes. Through its dual-token system ($BERA as a Gas token and $BGT as a governance token), liquidity contributions are tied to network security.

· Incentive Layer: Users receive four types of rewards:

o Native rewards from the Ethena protocol.

o Concrete points (used for future governance token distribution).

o $BERA airdrops from Berachain mainnet.

o Additional incentives from whitelisted protocols in the ecosystem (e.g., DEX, lending platforms).

User Participation Path:

· Pre-Deposit Period: Before Berachain’s mainnet launch, users deposit assets via the Concrete platform. The funds are temporarily held on Ethereum chain’s custodial contracts, and Concrete points and Ethena rewards are distributed according to deposit proportions.

· Deployment Period: After the mainnet goes live, funds are automatically cross-chained to Berachain. They are distributed to whitelisted protocols per preset strategies, beginning to accumulate $BERA tokens and ecosystem rewards.

· Yield Compounding Period: Users can choose to re-stake the earned $BERA tokens into validator nodes through the Proof of Liquidity mechanism, enhancing $BGT governance token acquisition efficiency, participating in ecosystem governance, or exchanging $BERA for yield cycling.

This partnership innovatively couples Ethena’s on-chain stablecoin yield engine with Berachain’s Proof of Liquidity consensus, forming a “stablecoin yield + public chain ecosystem growth” dual-spiral model. The Ethena pre-deposit vault’s total value locked (TVL) has reached $135 million.

Berachain & Etherfi

Entry：https://app.ether.fi/liquid/bera-eth

Etherfi is a non-custodial staking protocol based on the Ethereum network that allows users to control their own keys while staking Ethereum (ETH), thereby reducing counterparty risks with node operators and protocols. Its core mechanism involves re-staking through EigenLayer to provide economic security for external systems such as Ethereum scaling solutions and oracles, thereby increasing staking rewards.

The incentive pre-deposit vault launched by ether.fi in collaboration with Berachain supports multiple assets, including: weETH (Wrapped eETH), WETH (Wrapped ETH), stETH (Lido Staked ETH), eBTC (Etherfi’s Bitcoin-pegged asset), wBTC, cbBTC (Coinbase Custodial BTC), and LBTC (liquidity BTC derivative). Users can deposit these supported assets into the ether.fi Berachain incentive pre-deposit Vault to participate in this collaboration. After the launch of the Berachain mainnet, deposits will be locked for 90 days and cannot be withdrawn, with users receiving rewards from the Berachain protocol as well as additional incentives provided by ether.fi.

Through this collaboration, users can not only participate in the Berachain ecosystem but also earn multiple rewards during the lock-up period, further promoting Ethereum staking and decentralized finance development.

BeraChain & Lombard

Entry：https://www.lombard.finance/berachain/

Lombard is an emerging project in the Bitcoin re-staking ecosystem based on the Babylon protocol, providing cross-chain liquidity staking for Bitcoin holders to participate in PoS ecosystems and earn rewards without trust. Its core product, LBTC, is a yield-bearing, cross-chain, highly liquid Bitcoin asset backed 1:1 by BTC. Users can stake BTC through the Babylon staking protocol to mint LBTC and use it in DeFi protocols on Ethereum and Layer 2 ecosystems (such as lending, trading, and staking). LBTC addresses the lack of native yield and cross-chain composability of Bitcoin in DeFi, unlocking Bitcoin liquidity and advancing the development of the entire DeFi ecosystem.

As a BTC liquidity protocol, Lombard has partnered with Berachain to launch the Boyco market pre-deposit vault, supporting deposits of LBTC (liquidity BTC derivative) and wBTC (Wrapped BTC).

Users can deposit LBTC or wBTC into Berachain’s designated vault and will receive receipt tokens representing their deposit rights, which are used for future reward distribution and redemption. The user’s points accumulate from the deposit date until April 14, 2025 (a limited 14-week period), after which both the principal and rewards can be withdrawn. After the mainnet launch, funds will be automatically deployed to Berachain’s DeFi protocol for continuous real yield generation.

Participants can simultaneously receive the following rewards：

· $BERA Token Airdrop: As the native token of Berachain, $BERA rewards will be distributed from 2% of the total allocation (10 million tokens), expected to be distributed in early May 2025.

· Multi-Project Points Stacking: Including 4x Lombard points (possibly related to Lombard Lux points), 1x Babylon points, 4x Concrete points, 1x Kodiak points, and 1x Dolomite points. These points can be redeemed for tokens or rights within the partner ecosystems in the future

· Potential DeFi Earnings: After the mainnet launch, funds will be automatically allocated to liquidity mining strategies to generate further rewards.

By simply making a deposit, users can stack multi-project points and $BERA token rewards while injecting liquidity into the mainnet DeFi ecosystem.

The Boyco pre-deposit event provides DeFi users with a low-entry opportunity to earn multiple rewards and has also helped the Berachain protocol quickly attract capital and attention before the mainnet launch, boosting community engagement. According to Dune Analytics @Zero_Labs, during the Boyco event, 154,000 addresses participated, with staking funds reaching $1.57 billion. The highest staking amount was on Etherfi, accounting for 41.7%, while the lowest was on Ethena, accounting for 8.7%. The top three most popular staking assets were WETH, LBTC, and eBTC.

Source：Dune Analytics

4. Current Status

4.1 Mainnet

The Berachain mainnet launched on February 6, 2025, and as of March 18, its TVL stands at $2.902 billion. According to Defillama data, Berachain’s TVL has surpassed Base and Sui chains, ranking 6th among all public blockchains, behind Ethereum, Solana, Bitcoin, BSC, and Tron. From the line chart below, it is evident that since the mainnet launch, Berachain’s TVL has been steadily growing, with a slight decline after March, peaking at $3.23 billion.

data source ：Defillama

Based on the data in the chart below, as of March 18, the cumulative transaction volume on the Berachain mainnet has reached 65.52 million. The current block height is 2,486,640, with a TPS of 12.3. The highest TPS since launch has been 28, and the current average block time is 2 seconds. There are currently 57,256 smart contracts deployed on Berachain.

Data source ：Berascan

SOURCE：Dune Analytics

4.2 Nodes

According to the official Berachain documentation, there are two types of nodes in Berachain: Validator Nodes and RPC Nodes. Each node can be configured as either a full node or an archive node. Each type of node is a combination of an execution client and a consensus client. Berachain is a Layer 1 chain equivalent to EVM, meaning Berachain supports any EVM execution client at the execution layer. These clients collaborate with the consensus client and framework built by Berachain to form BeaconKit.

To become a node on Berachain, one must first stake 250,000 $BERA tokens. The hardware requirements for running a node are as follows:

· Operating System: Linux AMD64, Linux ARM64, MacOS ARM64

· CPU: 8 cores

· Memory: 48GB

· Storage: 4TB (High IOPS SSD)

The block reward is paid in $BGT, with a base reward of 0.5 $BGT per block. Rewards are not distributed automatically but need to be allocated through the Distributor contract. The maximum number of nodes that can be run on Berachain is 69, with 60 currently deployed, generating a total of 3.88 million $BGT and staking 184 million $BERA. According to Dune Analytics, the highest daily $BGT yield since the mainnet launch has been 245,175 tokens.

Data source ：Dune Analytics

The Berachain official website lists information on the current 60 validators. The validator generating the most $BGT is Infrared by Luganodes, which has minted a total of 558,500 $BGT. This validator is operated by Infrared Finance.

Source ：Berachain Official Website

4.3 Token $BERA

The native gas token, $BERA, is currently listed on multiple exchanges, including Binance, OKX, Coinbase, and Bybit.

$BERA Token Distribution

· Total Supply: 500,000,000 $BERA

· Core Contributors — 84,000,000 tokens (16.8%):
For advisors and core contributors supporting the development of the Berachain ecosystem.

· Investors — 171,500,000 tokens (34.3%):
For seed round, Series A, and Series B investors.

· Community Distribution — 244,500,000 tokens (48.9%):
The development of Berachain depends on a strong community and developer ecosystem. The community distribution includes the following three major parts:

o Airdrop — 79,000,000 tokens (15.8%):
For testnet users, Berachain NFT holders, ecosystem NFT holders, social supporters, ecosystem project dApp developers, and community builders.

o Future Community Incentives — 65,500,000 tokens (13.1%):
To support applications, developers, and users through incentive programs, grants, etc. The specific plans will be decided by community voting (Snapshot, RFP).

o Ecosystem & R&D — 100,000,000 tokens (20%):
For supporting ecosystem development, R&D, growth plans, and the Berachain Foundation’s operations, with a focus on:

§ Developer and builder incentives (Boyco program)

§ Node operators (validators) incentives

§ Proof-of-Liquidity (PoL) and BeaconKit iterations

Additional Information:

· 9.5% of the $BERA tokens will be unlocked at launch to support ecosystem growth, development tools/infrastructure, liquidity provision, etc.

Lock-up Rules:
All distribution parties (team, investors, community) must adhere to a 1-year lock-up period, followed by phased unlocking:

· After the first year, 1/6 will be unlocked.

· The remaining 5/6 will be released linearly over the next 24 months.

Source：Berachain Tokennomics

According to CMC data, since $BERA was listed on multiple exchanges in February, its price has fluctuated between $6 and $8. Currently, the price of $BERA is $6.4, with a market capitalization of approximately $698.59 million.

$BERA coin price chart

Data source ：CoinMarketCap

5. Team and Funding Background

The core team of Berachain consists of industry veterans from diverse fields, including technology, developer relations, DeFi, research, and business development. Co-founders include Smokey and Dev Bear (former CTO). Team members include Camila Ramos (Head of Developer Relations, formerly an engineer at Fuel Labs and PayPal), Jack Melnick (DeFi lead, former DeFi lead at Polygon), knower (crypto researcher), and Leslie Song (APAC BD, former business growth lead at AAVE for the Asia region).

Recently, the Berachain Foundation appointed Paul O’Leary as the new Chief Technology Officer (CTO). O’Leary, who previously served as CTO at Polygon Labs, brings 20 years of entrepreneurial and executive experience in blockchain and big data. Since joining Berachain earlier this year, he has led the team in the mainnet launch and will continue to drive Berachain’s development.

Since its inception, Berachain has attracted significant attention. As a Layer 1 blockchain built on the Cosmos SDK and EVM-compatible, Berachain utilizes an innovative PoL consensus mechanism and a three-token system ($BERA, $HONEY, $BGT) to provide powerful functionality and flexibility to the network.

Key Funding Events:

· April 2023: Berachain completed a $42 million Series A funding round, led by Polychain Capital, with participation from OKX Ventures, Hack VC, Dao5, Tribe Capital, Shima Capital, Robot Ventures, Goldentree Asset Management, as well as DeFi project founders like Mustafa Al-Bassam (Celestia) and Zaki Manian (Tendermint).

· March 2024: Berachain raised $69 million in a funding round, bringing its post-money valuation to $1.5 billion.

· April 2024: Berachain announced a $100 million Series B funding round, approximately 45% higher than previous reports. The round was led by Brevan Howard Digital (Abu Dhabi branch) and Framework Ventures, with participation from Polychain Capital, Hack VC, Tribe Capital, and others. The funds will be used for international expansion and further development.

6. Challenges

As an emerging Layer 1 blockchain, Berachain faces multiple challenges despite attracting market attention with its Proof-of-Liquidity (PoL) mechanism and innovative economic model. These challenges need to be evaluated from regulatory, technical security, and ecosystem development perspectives.

Regulatory Risks:

· Policy Uncertainty and Compliance Pressure: Berachain’s stablecoin $HONEY is pegged to USDC and claims to be “over-collateralized at least 150%”. However, if the collateral mechanism or actual reserve transparency is insufficient, it may face regulatory scrutiny similar to Tether. Furthermore, if $HONEY decouples from its peg due to market volatility, it could trigger systemic risks and invite regulatory intervention.

· Cross-chain Assets in Boyco Program: Cross-chain assets integrated through the Boyco program (e.g., wBTC, LBTC) may face risks of asset freezing or bridge shutdowns if the issuing parties or custodians are non-compliant.

Technical Security Risks:

· Long-Term Effectiveness and Governance Flaws of PoL Mechanism: As a novel consensus mechanism, PoL and its three-token model need to undergo market and time tests for security and stability. The core design, including the non-transferability of $BGT tokens and reliance on a bribery mechanism for reward distribution, has not been tested under significant network pressure. If incentive mechanisms become imbalanced or liquidity becomes too decentralized, it may lead to validator centralization or a decline in network security. Additionally, potential vulnerabilities in technical deployment, the long-term viability of liquidity incentives, and cross-chain interoperability remain areas for improvement.

Ecosystem Development Risks:

· Sustainability of Growth and Competitive Pressure: Currently, Berachain’s TVL (over $3 billion) largely depends on Boyco program deposits and short-term speculative funds, still falling behind established ecosystems like Ethereum, Solana, and BNB Chain. If the mainnet fails to attract real users and transaction demand post-launch, Berachain could face the “high TVL but low activity” dilemma, leading to capital outflows and token sell-offs. Competing with large, mature blockchain ecosystems and attracting more DeFi protocols and users remains a key challenge for Berachain.

Tokenomics Risks:

· Spiraling Downward Risk: The design where $BGT can be exchanged 1:1 for $BERA delays sell pressure, but if ecosystem returns underperform, users may concentrate on exchanging and selling $BERA, creating a negative feedback loop of “decreased $BGT demand → $BERA price drop → weakened ecosystem attractiveness.”

7. Summary

Berachain has built a differentiated competitive edge through its PoL consensus mechanism, Boyco pre-deposit program, and multi-layered ecosystem development, attracting over $3 billion in deposits and laying a solid foundation for its mainnet launch.

Its PoL mechanism allows users to participate in validation with various assets, turning liquidity into security and ecosystem value; the Boyco program offers multiple rewards through the early locking of ETH and BTC assets, enhancing ecosystem stability; in addition, Berachain integrates DeFi, GameFi, and SocialFi, while using governance token $BGT to improve capital efficiency.

With technological innovation, ecosystem incentives, and community-driven efforts, Berachain is occupying a unique ecological position in Layer 1 competition. If it continues to optimize its performance and enhance capital retention, it could become a key pillar of the DeFi ecosystem.

While Berachain’s innovation gives it a unique narrative in Layer 1 competition, risks should not be overlooked: regulatory scrutiny of stablecoins, verification of the long-term effectiveness of the PoL mechanism, and the transformation of the ecosystem from “fund-driven” to “demand-driven” are critical challenges. Investors should be cautious of the risk of value reversion after the short-term speculative hype fades and closely monitor future performance data.