# Berachain

By [civag](https://paragraph.com/@civag) · 2024-10-31

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Berachain is a Layer 1 blockchain built on the Cosmos SDK with IBC compatibility for cross-chain functionality within Cosmos and supports EVM compatibility through Polaris EVM. Originating from the NFT project Bong Bears, Berachain has evolved with innovative approaches in DeFi, including a "Proof-of-Liquidity" consensus model and a unique three-token structure designed to tackle liquidity fragmentation.

### Key Features:

1.  **Meme Culture**: Berachain maintains a lighthearted, meme-driven branding, reminiscent of its NFT origins with Bong Bears, a collection that garnered attention and investment from OlympusDAO.
    
2.  **Proof-of-Liquidity (PoL)**: In contrast to traditional Proof of Stake, PoL allows users to stake a range of tokens, including stablecoins and other Layer 1 assets, to support network security while also contributing liquidity to on-chain applications. This dual role boosts liquidity and security, benefiting validators, users, and projects.
    
3.  **Tri-Token Model**:
    
    *   **BGT**: A governance token earned through liquidity provision on BEX, Berachain’s DEX, which also governs liquidity rewards.
        
    *   **BERA**: Used for network transaction fees and validator rewards, with a deflationary mechanism through fee burning.
        
    *   **HONEY**: A USD-pegged stablecoin, mintable via overcollateralized loans, also used as a liquidity pair on BEX.
        
4.  **Polaris EVM**: This EVM compatibility layer allows Berachain to integrate Ethereum and Cosmos applications, enhancing developer accessibility and transaction throughput.
    

### Ecosystem and In-House Projects:

*   **BEX**: The core DEX on Berachain that rewards users with BGT for liquidity provisioning.
    
*   **Bend**: A lending protocol allowing users to mint HONEY against collateral.
    
*   **Berps**: A decentralized derivatives exchange offering up to 100x leverage on assets using oracle price feeds.
    
*   **BGT Station**: Enables staking and governance for BGT holders.
    

Berachain’s ecosystem also includes external projects and partnerships, like Crocswap (AMM exchange) and ShogunFi (cross-chain trading). Currently in testnet, Berachain’s ecosystem will continue to expand as it approaches mainnet deployment.

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*Originally published on [civag](https://paragraph.com/@civag/berachain)*