# Berachain

**Published by:** [civag](https://paragraph.com/@civag/)
**Published on:** 2024-10-31
**URL:** https://paragraph.com/@civag/berachain

## Content

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: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.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.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.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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