Berachain Comprehensive Ecosystem Guide: Which Potential Projects and Reward Strategies Are Worth Paying Attention To?

Original Title: Berachain Ecosystem Guide: it is finally REAL
Original Author: getmoni_io, Moni Team Member
Original Translation: Ashley, BlockBeats

Editor's Note: The article introduces the Berachain ecosystem and its innovative Proof-of-Liquidity (PoL) consensus mechanism, highlighting the reward system for liquidity providers and validators through user-network interactions. Berachain aims to attract user participation through a dynamic inflation and decentralized economic model. The author also outlines multiple projects within the Berachain ecosystem, including DeFi applications and NFT collections, demonstrating the potential and opportunities of this emerging ecosystem.

Below is the original content (slightly restructured for better readability):

Berachain Introduction

Berachain is an EVM-compatible Layer 1 blockchain built on the Cosmos SDK and provides security through a novel consensus mechanism called Proof-of-Liquidity (PoL).

PoL is similar to Proof-of-Stake (PoS) but goes a step further. Users can interact with applications and participate in DeFi protocols while earning $BGT rewards, where $BGT is the governance token. $BGT can be burned in exchange for $BERA, which can be used for staking.

· Higher liquidity in a given protocol → Higher rewards for validators.

· More generous rewards → More validators choose to stake their $BGT in that protocol.

· More $BGT → Greater rewards for users.

Protocols are interested in creating their own Gauges to attract liquidity. The more rewards they allocate to validators, the more their liquidity providers (LPs) can earn in $BGT. As a result, more users aspire to become LPs of the protocol, purchasing the project's native token, which also has a positive impact on its price. It's like a pyramid, each layer covered in rich honey, ensuring all participants stay engaged throughout the process.

Berachain's Three Core Tokens

$BERA—Primary token that will be traded on exchanges and used for staking.

$BGT—A non-transferable governance token that can only be exchanged for $BERA through burning $BGT. Rewards are earned through contributing to the network.

$HONEY—The network's native stablecoin.

Difference Between PoL and PoS

· Proof of Stake (PoS) only rewards users for staking tokens, even if they are not actively participating in the network.

· Proof of Liquidity (PoL) rewards users for interacting with the network, ensuring fair security rewards and making participation more attractive.

Fast transactions and extremely low fees are no longer appealing—many networks offer similar features, each trying to outdo the other. The real magic is when users have a reason to stay in the platform. This challenge is incredibly difficult, and so far, it seems that no one has fully cracked this puzzle.

Blockchains like Solana and Ethereum can only retain users through third-party developers in their ecosystems. Without DeFi visionaries, who would use Ethereum? Without this wave of meme coins, who would use Solana?

Berachain attracts users through an economic model where value flows between applications and the network—ultimately, this value will come back to you in the form of rewards.

Most PoS networks suffer from fixed monetary inflation—a bit like paying security fees for an empty store. Berachain addresses this issue by introducing dynamic inflation, adjusting rewards based on actual demand.

Comparison of PoS and PoL

In a PoS system, users must choose between staking tokens for security and using them in DeFi to generate additional value. PoL separates these functions into two different tokens:

$BERA: Ensures network security and serves as a fuel fee.

$BGT: Used for rewards, delegation to validators, and governance voting. It can only be earned by staking $BERA as a validator or by depositing assets into the reward pool. Validators stake BERA to earn BGT rewards. The more capital locked, the higher the rewards.

Is Berachain Only for Liquidity Providers?

Users do not need to lock up their BERA with the validator. Instead, they can participate in ecosystem activities, earn "checks" through activities, and deposit them into the reward pool to receive BGT.

· Can be any token.

· No creative restrictions on the project.

· "Checks" can be earned through any activity—you don't even need to provide liquidity.

Projects can simply distribute "checks" by using their application. Validators receive rewards in BGT form, but most of the rewards go to the reward pool (similar to staking) and are then redistributed to users. The protocol can stake BGT on behalf of its users to incentivize more participation.

Where Can Proof of Liquidity Be Applied?

· Decentralized Exchanges (DEXs):
Unlike traditional token incentives, DEXs can allow users to earn BGT through validators, reducing participants' risk.

· Real-World Assets (RWA):
PoL can be used to incentivize asset tokenization, such as real estate. Users earn BGT by finding favorable trades or interacting with the platform.

· Layer 2 on the Berachain Stack:
High-throughput applications can launch their own L2 on Berachain while still having access to PoL.

Investors: Polychain Capital, Framework Ventures, Brevan Howard Digital, invested $142M, along with smaller funds like Shima Capital, Tribe Capital, and others.

Website—https://www.berachain.com/
Twitter—https://twitter.com/berachain
Discord—https://discord.com/invite/berachain
Docs—https://docs.berachain.com/

Funds Bridging: Berachain has partnered with LayerZero to create a native bridge from any L2 network. Official bridging link: click here.

Projects to Watch

Next, we will take a closer look at the most interesting projects and try to answer a key question — What should we do?

Some projects are eager to launch a token, while others are gradually advancing through a scoring system. Project rewards in the form of Discord roles can be expected. If you have been actively involved in role activities over the past few years — congratulations, this may lead to a generous airdrop. Participants in Boyco's project will have a special label for easy recognition. However, Boyco participants, apart from receiving a 2% $BERA reward, have not gained any other significant advantage.

Shogun

Shogun — an intent-based DeFi protocol that connects different blockchains and allows users to perform cross-chain transactions through a unified interface. Users can exchange assets without manually bridging tokens or switching wallets. The protocol uses a hybrid approach: liquidity comes from both CEX and market makers, as well as from DEX and passive liquidity pools. The project offers various trading options and interfaces, including a Telegram bot, mobile/desktop applications, and widgets for other platforms.

Investment Status: $6.9M, funded by Polychain Capital, dao5, Arrington Capital, among others. Participated in the Build A Bera program.

Operating Advice: Join Discord and actively participate in project activities. Create art, write Twitter threads, and post on the community forum channel. Your content may be noticed by the team, leading to the corresponding role. You can also participate in project activities, such as today's 3 PM UTC poker game. Through these activities, you can earn the Goat or Shogun Oakmont roles.

Await the launch of reward activities, which may include a scoring system and NFT collections.

Kodiak (Boyco)

Kodiak is a decentralized exchange (DEX) on Berachain, providing smart liquidity management. It allows traders to swiftly exchange tokens, while liquidity providers can automate pool management and earn incentives without complex operations. The team's main products include: Kodiak DEX for trading, Kodiak Islands for automated liquidity management, Sweetened Islands for incentivizing participants, and Panda Factory as a token launchpad. All these features make trading and asset management within the same ecosystem more seamless. The protocol has accumulated $1 billion in deposits and is involved as part of Boyco.

Investment Status: Shima Capital, Kenetic Capital, Amber Group, and others invested $2 million. Participated in the Build A Bera project.

Operation Advice: Wait for the launch of the rewards system and provide liquidity. The project has no social activities, and roles cannot be obtained through farming. You can deposit funds into a liquidity pool through providers like EtherFi to earn rewards for multiple projects (including Kodiak).

Infrared (Boyco)

Infrared is a liquid staking protocol that allows users to stake BERA and BGT tokens on Berachain and receive iBERA and iBGT as rewards. This way, users can earn staking rewards while leveraging their assets in DeFi protocols. The project collaborates with validator nodes on the Berachain network and integrates with applications such as BeraBorrow (loan supported by iBGT), Timeswap (loans and liquidity), and Kodiak (liquidity pool management).

Investment Status: $2 million, led by Binance in the Berachain ecosystem. Participated in the Build A Bera project.

Operation Advice: Wait for the launch of the rewards system and PoL incentives, stake your tokens. Join the Discord channel and earn the Illuminance role through active participation or winning in Rumble events.

Ramen

Ramen is a decentralized protocol designed for liquidity management and token launches. The project offers a capital-efficient solution through centralized liquidity mechanisms on the Ramen DEX and a token launch platform on the Ramen Launchpad. The project utilizes community governance, using the veRAMEN token to determine liquidity incentives and protocol revenue distribution.

Operation Advice: Registration for the $RAMEN sale will be required during the Gacha phase; the actual private sale round/Gacha round contribution phase will start 1-2 days later. In mid-January, an NFT holder snapshot was taken, and rewards will be distributed among these holders. All we need to do is stay tuned and participate in the BGT farm through this protocol.

Beratone (Tasty NFTs)

Beratone is an online Play-to-Earn (P2E) farming and fishing simulation game available on PC and mobile devices. The game is inspired by Stardew Valley and Animal Crossing, offering players the opportunity to explore the world, manage a farm, collect resources, customize their home, and interact with other players. The team aims to attract casual gamers who may not be familiar with cryptocurrency. The game integrates blockchain mechanics, allowing players to earn rare in-game items and trade them.

Investment Status: Animoca Brands, SNZ Holding, and others have invested $2 million. Participated in the Build A Bera project.

Operating Advice: The team has promised to release a demo soon. Initially, access will be limited to NFT holders. The prices of these NFTs have not surged on the web before the network launch like NFTs from other ecosystems. Owning these NFTs can unlock the Diamond Paws character and provide various in-game privileges. You can join Discord and try to acquire different roles:

Collector: Acquire roles through purchasing articles.

TonePoster: Earn rewards by posting memes on Twitter.

BeraVinci: Earn rewards by posting artwork on Twitter.

BasedBera: An extremely important role manually awarded by the team.

Berabot

Berabot is a trading bot on Berachain, currently available only on the testnet.

Operating Advice: The project has a collection of 4200 items in the form of NFTs, where holders will receive a 10% token airdrop from the project. Additionally, NFT holders will also receive a FCFS whitelist position for the Steady Teddies collection.

Beraborrow (Boyco; Tasty NFTs)

Beraborrow offers instant liquidity by issuing the stablecoin Nectar ($NECT) fully backed by the network's native assets. Users can deposit Infrared's iBGT (staking derivative) and LP tokens into specific Dens, mint $NECT, and use it within Berachain's DeFi ecosystem.

Investment Status: Undisclosed amount investment from Dewhales Capital, Optic Capital, and Hercules Ventures.

Operational Advice: The project has an NFT collection, but according to Discord information, a snapshot has not been taken yet. It is highly likely that NFT holders will receive an airdrop, although this has not been directly confirmed. However, they mentioned holding these NFTs. An event based on points is expected to be announced soon, so stay tuned for updates.

Gummi

Gummi is launching a trading terminal designed for the Berachain ecosystem transactions. It will include a customizable trend page to help users quickly discover new trends.

Investment Status: Investments totaling $2 million from Arrington XRP Capital, Animoca Brands, Cypher Capital, etc. Participated in the Build A Bera project.

Operational Advice: Wait for the project's launch and reward system. Currently, you can test the application on the testnet, but do not expect rewards for now.

Goldilocks DAO (Boyco)

Goldilocks DAO is a Ponzi ecosystem similar to the YES project on Blast, offering DeFi and NFT lending solutions. It consists of three products and three tokens:

Goldiswap: An AMM that manages the price of the LOCKS token, ensuring a gradual minimum price increase, meaning the LOCKS token price will not drop below a certain threshold.

Goldilend: A loan platform that uses blue-chip NFTs as collateral.

Goldivaults: Tokenizing future DeFi yield positions for trading and speculation.

Investment Status: Investments totaling $1.5 million from HackVC, Shima Capital, etc.

Operation Recommendation: This project will launch its token at the start of Berachain. In Boyco, it has not generated much enthusiasm and has received a rather moderate TVL. This is understandable as it has not offered much besides the $BERA token. Stay tuned for the platform's launch and the subsequent developments of the Ponzi scheme.

Blast

Blast is a project that does not offer points, lacks venture capital backing, has no social influencers, no low-quality mobile apps, and also has no rewards. Only $BLAST.

Operation Recommendation: This is a meme coin from CBB that will be distributed to those who are quickest to sell out the $BLAST airdrop. Pac-man will also receive 0.5% of the total supply, which is quite interesting.

Smilee (Tasty NFTs)

Smilee is a platform on Berachain where users can earn returns through price fluctuations and manage asset liquidity. The platform allows for swing trading, opening both long and short positions, and has no liquidation risk. The protocol is currently live on Arbitrum and undergoing active testing. The project plans to launch on Berachain next week along with the introduction of a reward program. This program will involve the wrapping of gBERA (a liquid staking token that automatically accrues earnings for holders). When you stake BERA through Smilee, you will receive gBERA, allowing you to earn additional income from MEV and Smilee incentives while maintaining liquidity.

Operation Recommendation: Check out the platform's tutorial and wait for the launch next week. Additionally, the project has 3 NFT collectibles, each of which will grant a token airdrop. All links can be found here.

Yeet

Yeet is a combination of a revenue-generating treasury casino and DeFi app, with all features integrated on one platform.

Operation Recommendation: It might be a little late to get into NFTs now, but Yeet's token will have a public sale on February 7th. Conditions include 100% issuance at TGE, a FDV of $12.5 million, and 8% of the tokens will be sold publicly. Please DYOR.

Beramonium Chronicles

Beramonium Chronicles is a placement RPG game currently available on the testnet. The preview testing for Season 2 is about to launch, and $BERA tokens will be distributed as rewards upon completion.

Operation Advisory: The NFT holders' snapshot has been completed, and they will receive WL (whitelist) for the upcoming $BERAMO token sale on Ramen Finance in mid-February. You may consider participating in the public sale phase.

Junky Ursas

Junky Ursas is a full-fledged casino offering a variety of gambling games where players can win or lose some $BERA or $HONEY. You know, everything on Berachain is about bears and honey! You can also provide liquidity and earn rewards through the liquidity pool.

Operation Advisory: Try out these games on the testnet so that when the project goes live on the mainnet, you are already familiar with the rules and can earn rewards. Keep an eye on the liquidity pools and provide liquidity for decent returns. Additionally, there is an upcoming NFT minting event on February 7th happening on Magic Eden. Holders will receive various privileges and airdrops of project tokens.

NFT Collection

Here are some of the collectible series set to launch in the early days of the mainnet.

Bullas

Bullas is one of the few highly anticipated NFT collections on Berachain that has yet to be released. A showdown between bull and bear markets.

Operation Advisory: The minting event is now open (GTD phase): Link

Steady Teddys

Steady Teddys is the most powerful NFT collection on Berachain apart from the official series. The avatars in this series are used by many members of the Berachain ecosystem.

Operation Recommendation: The minting date is unknown, awaiting more information.

Ooga Booga Beras

Ooga Booga Beras is the final wave of the seventh reincarnation, to be distributed to holders of the first six reincarnations. Additionally, there will be a public minting event. Previously, users who completed the THJ task could receive a discount voucher.

Operation Recommendation: Keep an eye on the project and await updates.

Other Highlights

Wakalah: Built an RWA protocol related to Dubai real estate. Recently, it seems that this project has disappeared from the radar.

Beradoge: Nostalgic style NFT collection containing a butt plug and potential drops. The project has multiple NFT collection series: Beradoge Gen 1, ANGRY BIDIOTS, and Beradoge Buttplugs. If you don't mind losing money, you can buy these NFTs.

Block Chain: A Layer 2 blockchain built on Berachain by HarryPotterObamaSonic10Inu. You can wait for its launch and try making memes there.

Memeswap: Memeswap, not much to add. There is an NFT collection here, but please check the floor price.

Bera Horses (Tasty NFTs): A GameFi RPG cross-platform game with horse-riding bears. The game has an NFT collection containing 4200 items. Do Your Own Research is required.

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