- Berachain’s emergence as a potential unicorn in the decentralized finance (DeFi) space underscores the growing significance of innovative blockchain projects in the crypto market.
- With a focus on DeFi trading, lending, and borrowing services, Berachain’s tri-token structure and unique consensus method, Proof-of-Liquidity, offer novel solutions to address liquidity challenges and enhance network security.
Berachain, a bear-themed DeFi project controlled by anonymous co-founders, is anticipated to become a unicorn after receiving over $69 million in a fund round headed by Brevan Howard Digital and Framework Ventures. Berachain’s estimated worth after the most recent investment round through token sales is $1.5 billion.
With its tri-token structure, the Cosmos-based, EVM-compatible Berachain concentrates on DeFi trading, lending, and borrowing services. The project stated that the platform consists of the “non-transferable” governance token BGT, honey stablecoin, and native gas token bera.
Through the method, users can participate in governance and stake bera to earn BGT and incentives in honey.
In a private token round headed by Polychain Capital last year, Goldentree Asset Management, Robot Ventures, Hack VC, and Shima Capital were among the investors that helped Berachain fund $42 million.
Future mainnet-
In the second quarter of this year, Berachain plans to deploy its mainnet. In January, it opened up the Artio public testnet.
The “proof of liquidity” consensus method, which is exclusive to the Berachain network, is touted by the team to boost security by boosting liquidity. Berachain’s proof of liquidity only permits users to contribute to network security by first providing liquidity to a set of DeFi primitives, in contrast to proof of stake networks where users can choose to contribute to security by staking with a validator or providing on-chain liquidity on a DeFi platform.
What is the Berachain?
A new Layer 1 blockchain with a DeFi focus called Berachain aims to better match app developers and validators with applications that are built on the network. This chain has built-in DeFi capabilities and is interoperable with Ethereum Virtual Machines (EVMs) thanks to the Cosmos SDK. Berachain’s staking token, which is fueled by a unique consensus technique known as Proof-of-Liquidity, can only be acquired by lending liquidity to various network apps.
The chain is launching with several exclusive features and proprietary tools, such as three native tokens, a specially designed EVM named Polaris, and liquidity pools driven by validators. Now that the public can access Berachain’s Artio testnet, let’s examine what makes the chain special and the cause of the recent excitement around it.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
