0xprodigyA Step-by-Step Guide to Airdrop Farming on zkSync
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0xprodigyAn In-depth Guide to Airdrop Farming on LayerZero
In recent times, LayerZero has become a buzzword within the airdrop hunting community. Its significant investment backing from large funds and the recently revealed information about the project's token has sparked widespread interest. But what exactly is LayerZero? How can one participate in its airdrop? This article will unravel these questions and provide you with an in-depth understanding of LayerZero and its airdrop process. Overview of LayerZero LayerZero is a cross-chain infrastru...
0xprodigyMEV Bots on Friend.tech: Over $2 Million in Profits From Sniping Keys
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Moderator at @0xhoneyjar and @thebullas_ Helper at @berachain l prev. @chubbiverse @ramen_finance
0xprodigyA Step-by-Step Guide to Airdrop Farming on zkSync
zkSync Era launched mainnet a month earlier with various airdrop opportunities. So what are the chances for airdrop hunters? Let's find out in the following article. Overview of zkSynczkSync is a layer 2 blockchain developed by Matter Labs that uses ZK Rollups technology to provide scalability, security, and reduced transaction costs on the Ethereum network.zkSync Homepage: zksync.ioOn March 24th 2023, the official zkSync Twitter page announced that the zkSync 2.0 mainnet. At the same ti...
0xprodigyAn In-depth Guide to Airdrop Farming on LayerZero
In recent times, LayerZero has become a buzzword within the airdrop hunting community. Its significant investment backing from large funds and the recently revealed information about the project's token has sparked widespread interest. But what exactly is LayerZero? How can one participate in its airdrop? This article will unravel these questions and provide you with an in-depth understanding of LayerZero and its airdrop process. Overview of LayerZero LayerZero is a cross-chain infrastru...
0xprodigyMEV Bots on Friend.tech: Over $2 Million in Profits From Sniping Keys
At least 143 MEV Bots have sniped more than 20,000 friend.tech keys and earned more than 2 million USD in profits recently.MEV Bot Activities on friend.tech. Source: The BlockThe SocialFi friend.tech application on Base has yet to cool down in the Twitter community after announcing the start of distributing reward points to accounts testing the application in the beta phase and revealing that it had organized a seed capital round Three months ago, with the participation of the famous Paradigm...
Moderator at @0xhoneyjar and @thebullas_ Helper at @berachain l prev. @chubbiverse @ramen_finance
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@berachain is a L1 project that has raised up to $142M from major investment funds such as Polychain Capital, Framework Ventures, Brevan Howard Digital, and more.
The special feature of this Layer 1 blockchain, built on the Cosmos SDK and compatible with EVM, is its Proof of Liquidity consensus mechanism — the heart of Berachain.
So, what’s so good about the Proof of Liquidity mechanism that has helped Berachain successfully raise such a large amount of funding?
In this article, I will explain through the following sections:
Current issues on blockchain
Proof of Liquidity
How Berachain operates
Advantages of Berachain
There are two main unresolved issues with today's blockchains:
🟠 Liquidity limitations
Currently, most blockchains use the Proof of Stake mechanism, meaning validators must stake a certain amount of tokens to participate in securing the network.
➡️ This means that these tokens are locked and can no longer be used within the ecosystem.
🟠 Imbalance Between Validators and Protocols
In a blockchain ecosystem, DeFi protocols play a crucial role in driving activity and growth but are unable to participate in securing the network.
On the other hand, validators provide the infrastructure and security for the network but only receive a small portion of transaction fees and gain very little benefit from DeFi protocols.
➡️ This creates an imbalance.
This is where Berachain comes in to address these issues.
Smokey the Bera, the founder of Berachain, has stated: "Proof of Liquidity will unlock infinite economic games."
As the name suggests, Proof of Liquidity (POL) is a consensus mechanism designed to incentivize users to provide liquidity on Berachain and address the shortcomings of Proof of Stake, while still maintaining the system's stability and flexibility.
With Proof of Liquidity, Berachain introduces a dual-token system:
$Bera is used for gas fees and network security.
$BGT (Bera Governance Token) is used for governance and as a reward to incentivize on-chain activities. It cannot be transferred or traded.
The only way to earn $BGT is by interacting on-chain and participating in Proof of Liquidity.
$BGT can be burned to convert into $Bera at a 1:1 ratio.
When validators join the network, they need to stake $Bera, which then emits $BGT as a reward.
This $BGT is used to create reward pools for users who provide liquidity to DeFi protocols within the ecosystem, like AMMs and lending pools.
Users can then take the $BGT they’ve earned and delegate it to validators.
The more $BGT a validator receives from delegations, the more $BGT they can emit.
With the above mechanisms, we can see some key benefits of Berachain, such as:
✅ Balancing the relationship between validators and protocols
This mechanism encourages validators to secure the network while benefiting from DeFi protocols (since user delegations help validators increase $BGT emissions).
Additionally, users who interact with the protocols earn $BGT and delegate it, allowing the protocols to indirectly contribute to network security.
✅ Flexible governance token system
Typically, governance tokens are mainly used for voting on protocols, but most users don't know or care about this (they just see them as fee tokens).
The fact that regular users can also farm $BGT demonstrates flexibility, attracting more projects and users to the ecosystem.
Additionally, users receiving $BGT for adding liquidity solves a common issue for other projects. Often, users add liquidity to receive airdrops and then withdraw their liquidity once the airdrop is over.
I've just outlined some of the key potentials of Berachain, and I hope you find it useful.
As you can see, the $BGT token will play a very important role, so if you're participating in the testnet, don't forget to earn as much $BGT as you can.
Who knows, this might be one of the criteria for an airdrop.
For ways to earn $BGT, you can refer to this guide.
Lastly, to fully benefit from crypto guides, it's essential to stay updated on the latest info and participate in as many as possible. You can do this by following https://twitter.com/prodigyxbt, join The Daily Gem telegram and subscribe to Prodigy’s newsletter.
Many sources influenced this article. In particular, I should note:
@berachain is a L1 project that has raised up to $142M from major investment funds such as Polychain Capital, Framework Ventures, Brevan Howard Digital, and more.
The special feature of this Layer 1 blockchain, built on the Cosmos SDK and compatible with EVM, is its Proof of Liquidity consensus mechanism — the heart of Berachain.
So, what’s so good about the Proof of Liquidity mechanism that has helped Berachain successfully raise such a large amount of funding?
In this article, I will explain through the following sections:
Current issues on blockchain
Proof of Liquidity
How Berachain operates
Advantages of Berachain
There are two main unresolved issues with today's blockchains:
🟠 Liquidity limitations
Currently, most blockchains use the Proof of Stake mechanism, meaning validators must stake a certain amount of tokens to participate in securing the network.
➡️ This means that these tokens are locked and can no longer be used within the ecosystem.
🟠 Imbalance Between Validators and Protocols
In a blockchain ecosystem, DeFi protocols play a crucial role in driving activity and growth but are unable to participate in securing the network.
On the other hand, validators provide the infrastructure and security for the network but only receive a small portion of transaction fees and gain very little benefit from DeFi protocols.
➡️ This creates an imbalance.
This is where Berachain comes in to address these issues.
Smokey the Bera, the founder of Berachain, has stated: "Proof of Liquidity will unlock infinite economic games."
As the name suggests, Proof of Liquidity (POL) is a consensus mechanism designed to incentivize users to provide liquidity on Berachain and address the shortcomings of Proof of Stake, while still maintaining the system's stability and flexibility.
With Proof of Liquidity, Berachain introduces a dual-token system:
$Bera is used for gas fees and network security.
$BGT (Bera Governance Token) is used for governance and as a reward to incentivize on-chain activities. It cannot be transferred or traded.
The only way to earn $BGT is by interacting on-chain and participating in Proof of Liquidity.
$BGT can be burned to convert into $Bera at a 1:1 ratio.
When validators join the network, they need to stake $Bera, which then emits $BGT as a reward.
This $BGT is used to create reward pools for users who provide liquidity to DeFi protocols within the ecosystem, like AMMs and lending pools.
Users can then take the $BGT they’ve earned and delegate it to validators.
The more $BGT a validator receives from delegations, the more $BGT they can emit.
With the above mechanisms, we can see some key benefits of Berachain, such as:
✅ Balancing the relationship between validators and protocols
This mechanism encourages validators to secure the network while benefiting from DeFi protocols (since user delegations help validators increase $BGT emissions).
Additionally, users who interact with the protocols earn $BGT and delegate it, allowing the protocols to indirectly contribute to network security.
✅ Flexible governance token system
Typically, governance tokens are mainly used for voting on protocols, but most users don't know or care about this (they just see them as fee tokens).
The fact that regular users can also farm $BGT demonstrates flexibility, attracting more projects and users to the ecosystem.
Additionally, users receiving $BGT for adding liquidity solves a common issue for other projects. Often, users add liquidity to receive airdrops and then withdraw their liquidity once the airdrop is over.
I've just outlined some of the key potentials of Berachain, and I hope you find it useful.
As you can see, the $BGT token will play a very important role, so if you're participating in the testnet, don't forget to earn as much $BGT as you can.
Who knows, this might be one of the criteria for an airdrop.
For ways to earn $BGT, you can refer to this guide.
Lastly, to fully benefit from crypto guides, it's essential to stay updated on the latest info and participate in as many as possible. You can do this by following https://twitter.com/prodigyxbt, join The Daily Gem telegram and subscribe to Prodigy’s newsletter.
Many sources influenced this article. In particular, I should note:
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