Discussion on the Characteristics of Berachain Ecosystem and Overview of Core Projects Before Issuing Coins

Introduction

Berachain is a Layer 1 network characterized by its PoL( Proof of Liquidity) consensus mechanism, and it is currently undergoing its second testnet "bArtio Testnet". As of January 2, 234 protocols have participated in the testing, with a total of over 2.38 million wallets. Founder Smokey The Bera has recently hinted that the mainnet is about to launch, attracting both new and existing users to join the ecosystem.

However, participating in the Berachain ecosystem requires understanding its PoL mechanism, and the complex financial products launched by various protocols to compete for the advantages of the PoL mechanism have created a significant entry barrier for new users. This article aims to explore the various areas of the Berachain ecosystem, discuss the standout projects, and how they leverage the PoL mechanism to lower the entry barriers for user participation.

DEX

Berachain has a native DEX BEX, which will launch on the mainnet as BeraSwap. Other DEXs are preparing various convenient and efficient services and strategies to compete with BEX.

Kodiak

Kodiak is a DEX incubated from "Build a Bera". In addition to supporting Uniswap v2 functions, it also offers CLAMM features similar to Uniswap v3, allowing liquidity to be concentrated within a specific range. The Island feature helps automatically reset the CLAMM range, reducing management hassle. Kodiak has collaborated with multiple projects in the ecosystem to establish a core infrastructure position.

Honeypot Finance

Honeypot Finance supports the full lifecycle of coins, including:

• Henlo DEX: A DEX that protects users from MEV attacks
• Dreampad: A Launchpad protocol that provides incubation and financing for projects
• Pot2Pump: Provides a safer environment for meme coin issuance and trading.

Honeypot Finance plans to operate verification nodes, providing $HPOT as delegation rewards, and utilizing $BGT to enhance $HPOT liquidity.

Liquidity Staking

Berachain has integrated liquid staking into the network protocol. Ecological projects can provide rewards by collaborating with validators or operating their own nodes. The liquid staking protocol will offer $BGT redemption functionality, facilitating project integration of the PoL mechanism.

Infrared

Infrared is a liquidity staking protocol incubated in collaboration with Kodiak. Its vault accepts LP tokens and generates $BGT interest rates. Users can deposit LP tokens to receive $iBGT, which can be used for:

• Claim node rewards in Infrared staking
• Use in other DeFi protocols
• Sell profit

Infrared has obtained the maximum $BGT delegation on the bArtio Testnet, becoming an important infrastructure.

BeraPaw

BeraPaw runs a treasury across different nodes and liquidity pools, issuing $LBGT as the $BGT settlement token. Its structure divides the use of $BGT into two types of tokens: $LBGT( to receive rewards) and $PAW( for voting). Using $PAW allows for exercising more voting power with less capital.

Lending

The Berachain native lending protocol BEND allows borrowing $HONEY with $WBTC and $WETH, and depositing $HONEY. BEND strengthens the triple token economic structure, generating basic interest for $HONEY while increasing lending demand through $BGT.

BeraBorrow

BeraBorrow is an over-collateralized stablecoin issuance protocol that allows various assets to be used as collateral to mint $NECT. Its governance token $POLLEN is used to incentivize liquidity pools that receive $BGT Emission, among other things. BeraBorrow also plans to allocate $BGT to DEX liquidity pools to enhance the demand for $NECT and market liquidity.

Gummi

Gummi is a lending protocol that does not require oracles, allowing for the establishment of lending pools at will. It plans to support leverage farming features for $iBGT and Kodiak LP tokens.

Derivative Protocol

Berachain's native Perp DEX Berps allows for 100x leveraged positions with $HONEY, or provides liquidity to earn trading fees, funding fees, and $BGT.

SMILEE

SMILEE is an option protocol created for hedging positions in DEX liquidity pools. The option structure generates more profit during periods of high price volatility, in contrast to uncompensated losses.

Exponents

Exponents achieves non-liquidation leveraged positions through its self-developed IBC mechanism. IBC uses a reverse Bonding Curve, where the price decreases as demand increases.

Other Projects

Goldilocks

Goldilocks is a DAO developing DeFi infrastructure specifically for Berachain, including:

• Goldiswap: Ensures the bottom price of $LOCKS with the FSL pool and exchanges $HONEY/$LOCKS with the PSL pool.
• Goldilend: NFT collateral lending protocol
• Goldivaults: Use time locks to generate interest on assets

Beradrome

Beradrome brings together users' liquidity coins, distributing profits generated and negotiating rewards. It uses three tokens: $oBERO, $BERO, and $hiBERO, to encourage the internalization of rewards within the protocol.

Yeet

Yeet is an on-chain betting game protocol where the users who deposit into $BERA win 80% of the total deposits. Non-winners receive $YEET rewards, which can be staked in the Liquidity Trifecta Vault to earn interest.

Ramen

Ramen is the Launchpad protocol that supports two modes: fixed price and price exploration. It plans to launch the Airdrop Recipes feature to simplify token airdrops.

PuffPaw

PuffPaw is a Vape 2 Earn project where users earn $VAPE tokens through vaping. It encourages quitting smoking and offers a device rental program.

Community

Many Berachain ecosystem protocols attract liquidity with high yields and use NFTs and memes to build communities. Some projects establish community reputation first, and then generate and distribute profits.

The Honey JAR

The Honey JAR is a community developed around the Honeycomb NFT, collaborating with ecological projects to provide benefits to NFT holders. It produces educational materials, offers testnet Faucet services, and incubates projects such as S&P and Bera Infinity.

Conclusion

The Berachain ecosystem protocol combines various functions to create complex financial services, attracting users through the PoL mechanism and community culture. Berachain recently announced the Boyco, RFA, and RFC plans, supporting the issuance of $BERA and initial ecosystem liquidity.

As of January 31, the Pre-Boyco and Boyco treasury has accumulated deposits of $2.35 billion. After the mainnet launch, the TVL is expected to increase significantly. The ecosystem and community cases built by Berachain before the mainnet will serve as an important reference for future projects.