$BERA – The Master Thread 🧵
Find the original X thread, here
@berachain 🐻 is about to flood @cosmos with liquidity 🌊
Here’s everything you need to know, brought you to by Stake and Relax Validator 👇
What is BeraChain? 🐻⛓️
It’s a EVM-compatible L1 build on the Cosmos SDK ⚛️ using the Tendermint consensus mechanism with a Proof of Liquidity concept. The goal is to be a high-performance, scalable, EVM-equivalent smart-contract & cross chain interoperability platform 👾
What is proof of Liquidty? 🌊👮
PoL is similar to delegated PoS (dPos), users stake assets to secure the chain & receive rewards in return.
The DIFFERENCE: users will be able not only to stake $BERA but also other whitelisted assets into consensus vaults to secure the chain.
Why should user do this? 🤷♂️
Staking other assets, next to $BERA will earn you more $BERA (staking reward) but it will earn you also $BGT (Governance Token), depended on how long you have staked your asset.
Another useless Governance token? 🏦🗳️
Not quite the case here.
While $BGT is a non-transferable ERC-721, owner of this Token will receive a majority of the protocol fees. The fees will be paid out in from of the $HONEY Token 🪙🍯
Now, what is $HONEY? 🍯
It’s a native dollar-pegged stablecoin mintable with berachain-staked assets.
Unpeg risk? This is handled by the minimum of 150% collateral ratio with the “staked” collateral on the Bera chain, which are other stable coins, L1 token & blue chips.
Bera Tri-Token:
$BERA – Gas Token
$BGT – Governance Token
$HONEY – Native stablecoin
Why Berachain decided to have a Tri-Token model?
- Misalignment; between fee token & governance token.
- Users who are transacting the most are reducing their voting power over time.
- Lastly there was a need of a stable token to boost the flywheel. But later more about that.
But what does Bera Solve?
While users in PoS lock their Coins to secure the chain without any other utilization Bera use the “stake” (whitelisted Assets) for liquidity in a capital efficient manner via Bera consensus Vaults
Staked assets will be sticky -> deeper Liquidity!
Whitelisted Assets:
This is still TBA – since the network hasn’t launched yet. Most likely it will be some Blue Chips like $wETH, $wBTC – but the possibilities are endless.
It will be quite interesting when LSDs will be used. Also maybe an opportunity for Nomic BTC, $NOM.
Which impact does it have? ☄️
Incentivizing users to keep assets on the chain with higher yields & uses its “tri-token model” to create a deposit flywheel effect.
This results in a WIN – WIN – WIN for everyone.
-> Deeper Liquidity -> More Fees -> More Demand -> Price pump –> FInally this drives demand for the $BGT token which only can get optained through staking $BERA – this will lead to even deeper Liqudity.
How does the FLYWHEEL🌀work?
The more assets are staked, the deeper the liquidity which attracts trader & aggregators. This will result into more trading fees – REAL YIELD for $BGT user, which only can be earned by staking $BERA – results in more liquidity.
Who supports Berachain 💸
Series A closed April 2023 at a $420.69M Valuation. Bera Chain raised $42M from notable VC’s & angle investors, the round was led by Polychain Capital.
Among all investors, there are several notable Co-Founders:
and many more…
Team – Who is behind BERA?
Co-Founders: @itsdevbear & @SmokeyTheBera
Developer: @CalBera_ | @missionbera | @DevLobster | @0xbeezy | @codingwithmanny | @balensci | @0xSami_ & many more..
Business Development: @BeraMVP
Intern: @BeraIntern
List is NOT complete!
Who is building on Bera 🧑🔧👨💻
NFT’s: @BongBearsNFT
Gaming/Casino:@Beramonium | @berasinocom | @BeraBetsGG
Trading & Liquidity: @ramen_finance | @beradrome | @honeypotfinance | @KodiakFi | @artio_finance | @BeraSwap
Partner: @CrocSwap | @redactedcartel | @SynapseProtocol
Why Wookie is bullish ? 🦥🔥
> Combining meme and real tech. – hype potential 📈
> Solid Team 👥🐻
> Backing from big players 👾💸
> Raised enough money -> good runway 🛣️
> Build on the Cosmos SDK ⚛️
🐻🤝🦥
Credits to:
@FWCrypto_ | @eli5_defi | @Ren_gmi | @JiraiyaReal
While information on Bera is rare, these accounts have provided great threads and knowledge about Bera 🐻
Make sure to follow Stake and Relax Validator for more BERA content 🏗️
