Today, some people are writing inscriptions, some are paying attention to #GameFi +OtherFi, and some are preparing to join the new pool of Restaking leader Eigenlayer. In addition, there are also a group of wooly parties who failed to get water in DC, failed to swap, and licked wildly Mod asks for a role to be delegated so that they can complete the galactic mission.
It is the DC of @berachain . The scene is really hot. Now, Fatty will show you how to learn about this bear chain.
1. [Project Concept]
Berachain is an L1 based on Proof of Liquidity (POL), using the Polaris framework and CometBFT consensus algorithm, built on the Cosmos SDK, and is an efficient blockchain compatible with EVM.
What's the point? Of course, PolyChain led the investment with 42 million US dollars, and our old friend #okx also invested.
A few science concepts are popularized to facilitate everyone’s preaching.
EVM compatibility: Compatible with the Ethereum virtual machine, giving developers and users a seamless experience of switching to the new network, focusing on a sense of familiarity. After all, who hasn’t played with Ethereum’s Dapp?
POL: Proof of Liquidity, broken down below.
Polaris framework: The modular EVM framework developed by the Berachain team itself provides an execution environment for smart contracts on Berachain.
CometBFT consensus algorithm: A consensus engine that can achieve security and node status consistency as long as less than one-third of the nodes act maliciously.
After understanding the basic concepts, let’s start to delve into the core content. Let’s talk about the uniqueness of BeraChain - [Proof of Liquidity]
2. [Proof of Liquidity]
Also known as POL, prove of liquidity
Proof of Liquidity sounds like another big game, similar to the POS consensus mechanism?
Let’s first take a look at how the official excuses themselves:
Disadvantages of POS:
1. Staking behavior leads to reduced liquidity
2. New currency flows to the rich, and rights and interests are concentrated.
3. Chain security cannot be improved
4. There are few incentives for verification nodes.
POL, on the other hand, is built on POS.
Its logical flow is as follows:
1. Users provide liquidity to BEX and receive $BGT (governance token)
2. The user pledges $BGT and entrusts it to the verification node
3. The verification node generates blocks based on the $BGT weight, and both nodes and users receive rewards.
4. The verification node votes on the $BGT output of the flow pool.
5. The verification node issues bribe rewards to the staking users
This forms a closed loop of interest alliance:
Users provide LP to obtain votes ($BGT) =>
Users vote for nodes (pledge $BGT) =>
Nodes vote for the LP pool where the user is located to increase $BGT output =>
Users provide LP to get votes...
The logic makes sense, but what are the advantages compared to POS?
Let’s listen to the official sophistry again:
Advantage 1. Liquidity incentives and increased protocol security
-Gas token $Bera is separated from governance token $BGT
-The only way to get $BGT is to provide liquidity
Therefore, users' staking governance behavior will not consume liquidity, but participating in governance will instead encourage them to provide liquidity.
So how is security reflected?
The official intention of Fat Boy's guess is that improving liquidity can improve security, but there is no detail in the DOC.
Advantage 2, decentralized inflation
The above picture is the official words. I think the liquidity proof does not solve the problem of concentration of equity, because essentially large users will receive more $BGT, and verification nodes will tend to serve large users.
Advantage 3, coordination protocol and verification node
The verification node absorbs more $BGT votes by increasing the LP income of the user, thereby obtaining more block rewards. As mentioned above, this is a positive interest alliance closed loop. The protocol uses this mechanism to incentivize the verification node and increase its income.
This is the advantage of liquidity proof. As for the details of $BGT production, we will talk about it later.
Next, let’s take a look at BeraChain’s [token mechanism].
2. Token Mechanism
The BeraChain system has three tokens
Bera: Gas token, basically all transactions and contract interactions consume $Bera
BGT: Governance token, cannot be traded or transferred, used for governance voting, staking nodes or one-way casting $Bera
Honey: The stable currency in the system can be minted with stable currency and can also be redeemed.
Around these three tokens, various functions of BeraChain’s native applications are realized.
Bex: Decentralized exchange for token exchange (swap token) and liquidity provision (LP) to earn $BGT
BGT Station: Use BGT for voting, staking, and one-way minting of $Bera. Staking income is shown below.
Honey: Use stablecoins to mint $Honey or use $Honey to redeem stablecoins
Bend: Provide assets, lend assets, currently only lend $Honey, deposit and borrow to earn $BGT
Berps: A contract trading platform that can also stake $Honey and earn $BGT and $Honey
By the way, with so many native applications, do partners still have a chance to do something? {dog head}
After briefly introducing the token, I feel it is necessary to repeat the production and staking mechanism of $BGT.
1. $BGT is obtained by users providing liquidity in various applications of the protocol. There is no other way, and the main means of obtaining it is to provide LP on BEX.
2. After obtaining $BGT, if the user wants to further increase the income, he must pledge $BGT (a bit like Restaking)
3. After obtaining the $BGT pledged by the user, the verification node can obtain the right to choose part of the new $BGT output according to the $BGT ratio. Specifically, it can choose which LP pool to produce how much $BGT
4. Verification nodes can buy users’ $BGT by increasing the $BGT output in the user’s LP pool, thereby obtaining more rewards and $BGT output options, forming a virtuous cycle.
5. If the verification node fails and does not choose the output pool of $BGT according to the user's wishes, the user can switch the pledge node or withdraw $BGT (cooling time is 21 days). The weight of the node will be reduced and the income will plummet.
6. Similarly, if a user does something bad and collects $BGT but does not pledge it to the node, the node can also punish the traitor or reward new supporters by changing the output of $BGT.
This is also the game relationship between users and verification nodes.
As can be seen from the above, the main output of $BGT is to provide liquidity rewards. If you want to do well in BeraChain, you have to provide LP, obtain more $BGT, and pledge. Next, let’s talk about how BeraChain rewards pledges. By.
4. [Pledge Income]
There are three main parts to protocol rewards:
The first part: BGT inflation mainly distributes freshly baked $BGT to LP providers. This is the source of $BGT and has nothing to do with staking. The production mainly depends on the amount provided by LP.
The second part: Block Capture Value (BCV), which is actually part of the native Dapp handling fee.
1. When users perform Swap on Bex, segment handling fees will be incurred as BCV.
2. When users mint and redeem stablecoins in Honey, they will incur partial handling fees as BCV.
3. Part of the Berps transaction fee is used as BCV. These BCVs will be distributed to verification nodes and $BGT stakers.
Part 3: Gas Fee
According to the official DOC, any transaction submitted by a user, such as a transfer, will be given a basic fee and a priority fee ($Bera). The basic fee will be destroyed (deflation?), and the priority fee will be distributed to the verification nodes and users who pledge $BGT. .
in conclusion:
LP providers obtain $BGT, and they can choose to cast $BGT into $Bera at a 1:1 one-way basis, then they can only obtain $Bera.
If the LP provider pledges this $BGT to the verification node, they will enjoy the handling fees of the protocol application, including $Bera, $BGT, $Honey, and even potential airdrops from the BeraChain ecological project.
So everyone has got the correct posture for playing bear chain.
The above is all about #BeraChain. I think with such a small number of fans, not many can see this, haha.
Anyway, I hope this article is helpful to everyone.
If it is true, just give Fatty three consecutive hits with one click.
Finally, put the official link.
5. [Official link]
Official website: https://www.berachain.com/
X：https://twitter.com/berachain
DC：https://discord.gg/berachain
Github: https://github.com/berachain
By the way, there are official missions in the Galaxy, I wonder if there are airdrops:
https://galxe.com/Berachain/campaign/GCjGGttCAG