1. Project Introduction
#Berachain is an EVM-compatible L1 public chain built on Cosmos SDK, powered by liquidity proof. Berachain's technology is built on Polaris, a high-performance blockchain framework for building EVM-compatible chains on top of the CometBFT consensus engine.
Official website: https://www.berachain.com/
2. Products and Innovation:
product
Berachain Protocol: An EVM-compatible L1 public chain built on Cosmos SDK
BEX: Berachain’s native BEX, the place to acquire new tokens and provide liquidity
Berachain Oracle: A fully integrated universal price oracle with an associated Cosmos module and precompiles through which applications and users can interact.
2. Innovation
EVM compatibility: Built on Cosmos-SDK, it integrates EVM technically, making the development process easier and conducive to the construction of the early ecosystem. According to statistics, there are about 71 projects built on Berachain, some of which have been launched, and most of them are Berachain native projects.
Ecological project link: https://docs.google.com/spreadsheets/d/1tLOrxMnws6NX-0JMAIKH1ULFmjDYv2LVvYG8Lbv2kpU/edit#gid=659852632
Polaris Framework: Berachain’s EVM compatibility comes from the Berachain Polaris EVM library. Polaris provides an improved EVM experience and is a highly scalable, interoperable EVM framework that is friendly to Ethereum developers.
Modularity: Provides a modular EVM framework to provide an execution environment for smart contracts on Berachain. Any project can use Berachain to integrate and build a new modular EVM.
Innovative consensus mechanism: Compared with the current ETH's proof-of-stake mechanism, BeraChain adopts the liquidity proof mechanism PoL. Through mechanisms such as liquidity providers, liquidity mining, liquidity proof and liquidity governance, it realizes network liquidity, equity centralization and coordination between protocols and validators.
Token model: Separating gas tokens and governance tokens can, to a certain extent, solve the problem of liquidity loss caused by token staking.
Meme attributes and community-driven: The community atmosphere is good and has a meme culture. The NFT series Bong Bears was launched in August 2021 with a mint price of 0.0694E. Later, more related Bears NFTs were rebased, as shown in the figure below.
According to statistics, the current total price is 400E+:
1bond (63E)
2 boo (20.6E*2)
4 baby (10E*4)
8 band (5.68E*8)
16 bit (3.45E*16)
Bong （169E）
3. Community and User Data:
social media:
Twitter：https://twitter.com/berachain ，200K followers
Telegram：https://t.me/BerachainPortal ，2332 members
Discord: https://discord.com/invite/berachain, 150.9k members, 21.7k online
2. Testnet Data
The testnet was launched on the 11th and attracted more than 300,000 users and generated about 1 million transactions in the first 48 hours.
At one point, the memory pool was full, and due to the huge number of requests, the tap had to be suspended to help alleviate network congestion. This situation had almost never occurred in the Cosmos ecosystem before.
Currently, you can participate in the Artio testnet Odyssey event to get airdrop rewards
4. Economic Model
Adopting a distinctive three-token model:
Unlike Ethereum which has only one native token (ETH) and Terra which has two types of tokens (LUNA, UST/SDT), Berachain has three native tokens:
1. $BERA: gas Token, used as the network’s fuel fee, with 10% inflation.
It can be earned by validating transactions or providing liquidity on the Berachain platform.
2. $BGT: Mainnet token, governance token, used for network governance, can be obtained by staking $BERA.
BGT is non-transferable, i.e. not tradable.
BGT can be obtained by performing certain actions in authorized dApps, such as:
Providing liquidity in native BEX
Borrow money from Bend HONEY
Provide HONEY to Berps in bHONEY Vault
When BGT is delegated to a validator, it can be used to create governance proposals and vote on them. The distribution weights of staking income for various types of assets are completed by BGT governance, such as proposals that determine which LP pools receive BGT grants. After authorization, you will start to receive various rewards from the network.
BGT can also be converted into BERA in a 1:1 combustion. This is a one-way process and BERA cannot be converted into BGT.
3. $HONEY: Native consensus collateral stablecoin, a stablecoin designed to be close to 1 USDC, and also a medium for protocol revenue distribution. Used for pairing LPs with liquidity pairs on Berachain, it helps guide liquidity for local projects built on the platform.
When the mainnet goes live, Honey will be able to be minted through the HONEY dApp or purchased on BEX.
2. How does it work?
Use $BERA + $HONEY and other tokens to provide liquidity on Berachain and earn block rewards, gas fees, and BGT.
Stake $BGT.
Stake $BGT and earn $BERA + $HONEY +$BGT.
5. Financing and Team:
Financing:
2023–4–20: Completed $42 million Series A financing, with a valuation of $420 million. Participating parties are:#Polychain (Investors) , OKVentures, Shimano Capital, RobotVentures
In addition, there are some individual investors who deserve our attention:
Santiago Roel Santos: Former general partner of ParaFi Capital
Zaki Manian: He is the head of Tendermint Labs and an advisor to the Cosmos project
Joey Santoro: Founder of Fei Protocol. Although this project failed, it can provide valuable experience for BearChain.
Georgios Vlachos: Co-founder of Axelar, member of the Algorand founding team
Mustafa Al-Bassam: Co-founder and CEO of Celestia
2. Team:
The team is anonymous, but they were able to raise $42 million in one go, which shows that the team is not simple and must have extensive connections and resources in the encryption field.
VI. Summary:
The unique three-token economic model separates gas and gov, maximizes the release of liquidity, avoids damaging the rights and interests of active users who actively participate in the network (such as users who contribute a large number of transactions and gas), and solves the contradiction between the activity of staking and participating in governance and liquidity. Therefore, we are very optimistic that Berachain will lead DeFi innovation and create a DeFi protocol with high liquidity and high capital efficiency.
At the same time, with the growth of user volume and the increase of transaction fee income, Berachain will further attract more users and ecological projects to settle in, and coupled with the Berachain governance reward mechanism, a positive spiral cycle will be formed.
But we must also remain rational. Whether Berachain will be as we expected still requires us to pay attention to the future development of the project (the development of the project itself, the growth of the ecosystem, the security of the protocol, etc.).
SANYUAN Labs is a DAO-driven venture capital firm focusing on investing in Web3.0, DeFi and AI.
Twitter：https://twitter.com/SanyuanCapital
Telegram：https://t.me/TernaryCapital
