Berachain is a blockchain that's compatible with Ethereum (EVM) and uses the Cosmos SDK. It's unique for its Proof-of-Liquidity (POL) approach, a more advanced form of Delegated Proof-of-Stake (dPOS).
Berachain
DeFi
Description
Here's how it works:
- Proof-of-Liquidity (POL): Users stake their assets to secure the blockchain and earn rewards. These assets also provide liquidity, making trading more efficient.
- Token Structure:
- Bera: The primary token used for transaction fees (gas) on Berachain.
- Honey: A USD-based stablecoin, partly created through a lending process.
- Bera Governance Token (BGT): Allocated to dedicated users and protocols responsible for governing and operating the blockchain.
- Advantages of Berachain:
- Offers fast transactions, low costs, and clear transaction finality.
- Creates interoperability between the consensus engine and virtual machine.
- Provides a fully integrated DeFi ecosystem, enhancing transaction control for DApps.
- Enhances capital productivity by using staked assets for liquidity.
- EVM Compatibility: Ethereum applications can be easily ported to Berachain with minimal development effort.
In summary, Berachain stands out in the crypto world by combining efficient blockchain security with enhanced liquidity and easy app development, making it an attractive platform for both users and developers.