Berachain: More Than Memes And Baddies

You’ve likely seen mentions of Berachain on CT, from the hot girls at conferences to memes and the consumption of (occasionally) legal substances…

But behind that lighthearted facade is found a novel L1, using the Proof-of-Liquidity (PoL) mechanism to ensure security and liquidity while still being EVM-compatible.

Read more to understand what makes Berachain special and how you can harness its power for extra DeFi opportunities:

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Proof-of-Liquidity (PoL): The Secret Behind Bera

The PoL technology at the core of Berachain is what distinguishes it from other chains. Though it’s a spin on Proof-of-Stake, it differentiates itself by letting people provide multiple tokens as valid liquidity for the chain’s LPs, while PoS makes users stake only the native token for the chance to get validator rewards.

With PoL, staking secures the network while also LPing, all at the same time! This is much more efficient than PoS and ensures a steady supply of capital. 

Two tokens make up the PoL model:

• $BERA, which is the native gas token used for security,
• $BGT, a governance token given to those who provide liquidity.

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PoL’s Lifecycle

There are four steps to the cycle of PoL:

1. Stake BERA, and propose blocks as a Validator;
2. Get direct BGT rewards, and send variable rewards to a Reward Vault of your choice. Reward Vaults are various protocols’ smart contracts giving away BGT as their own reward for using their protocol;
3. LP into protocols, and receive tokens that serve as receipts to claim even more BGT;
4. Finally, delegate your extra BGT to other validators, so they can get a reward boost when validating a block. This makes the ecosystem stronger for all, with even bigger rewards down the line.

The Incentive Marketplace, Where Bera Rewards Live

BGT is the key to getting rewarded by providing to the Berachain ecosystem, thanks to its novel Incentive Marketplace.

With the Incentive Marketplace, Berachain protocols can create an Incentive, and reward users with native tokens for interacting with their protocol.

For example, a protocol can offer 15 of their native tokens every time a user puts 1 BGT into their protocol vault.

The more a user provides liquidity, the more they’ll receive $BGT. And as your $BGT emissions rise, you can keep a part of it and then send the rest to your delegates to keep strengthening the ecosystem!

Berachain’s Integrated Apps and Opportunities

Berachain streamlines the user experience by providing the BeraHub, where many financial operations can be done, such as swapping, bridging and LPing. 

But of course, more can be done with third-party apps having recently integrated the ecosystem!

By being such a recent L1, Berachain features many incentives to onboard users into the ecosystem. Euler features such incentives, with $150k BERA rewards available for interacting with certain markets:

• 50k BERA for supplying WBERA into Euler’s MEV Capital markets,
• 50k BERA for supplying WBERA or HONEY in Re7 Labs markets,
• 50k BERA for supplying HONEY, wBTC or WBERA in Tulipa Capital markets.

So really, no matter the amount of Bera memes you see or the impression you get from its very lighthearted branding, you quickly find out that there’s more than meets the eye to Berachain.

If you’ve been made curious by its capital-efficient, liquidity-centric nature, you’ll be able to check all of your Berachain holdings on Octav as we offer portfolio support. From cost basis to PnL, you’ll be able to break down your Berachain activities at a glance.

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Why Octav?

With accurate labeling and analysis of your DeFi portfolio, Octav is a helpful tool for CFOs, asset managers, and accountants working in various organizations such as hedge funds, family offices or financial institutions. Thanks to our thorough and accurate database, Octav makes DeFi more accessible, serving as an essential guide for understanding cost basis, profits, losses, and more.

Sign up for Octav Pro today and gain significant advantages for the day-to-day management of your crypto activities: unify all wallets you work with under one bundle to save time and let automated reports send you updates on your organization’s finances without having to analyze it yourself. Monitor your holdings on our Treasury page, and be transparent by sharing it publicly with your DAO members or the rest of your team. Whether you’re the CFO of a business, an accounting professional or a DAO treasury leader, use Octav to make DeFi management a breeze!

Are you a DAO in need of advanced treasury analytics? Octav offers demos upon request.

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