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Berachain: Next Generation Liquidity
Key Takeaways
14 min read
  • Berachain is an upcoming L1 built on the Cosmos SDK, and aims to solve the L1 mercenary capital rotation issue with its ‘Proof of Liquidity’ consensus mechanism.
  • The tri-token model provides a specific purpose for each token, which aims to align the incentives to reward long term users as a way to maintain ‘sticky liquidity’ on the chain.
  • The ecosystem is already brimming with over 40 native projects as well as prominent protocols such as Synapse, Redacted Cartel, dAMM Finance set to launch on the chain.
  • One way to gain exposure to Berachain at the moment is through NFTs - namely the Bong Bears collections, 0xhoneyjar collectibles and the Tour de Berance collection.
  • While the chain is backed by prominent individuals, there are many risks associated with it since there is little open-source information available about it. Centralization and security are major concerns, as is the chain's ability to attract liquidity from the outset to kick off the "flywheel”.


Berachain is an upcoming L1 blockchain built on the Cosmos SDK, utilizing the Tendermint core consensus. Berachain's core tenets include a 'Proof of Liquidity' consensus mechanism, whereby users can stake whitelisted assets to receive block rewards and contribute to chain security. The governance token of Berachain can only be earned from staking BERA. This aims to reward long-term users and drive "sticky liquidity", incentivizing protocols/DAOs who have a stake to stay on the chain. It aims to tackle the issue of mercenary capital in the current L1 landscape that results in the cycle of farming and dumping tokens before moving onto the next new chain.

The team behind Berachain was largely inspired by...