Berachain is online, how holders can increase revenue through Chorus One pledge BERA

Author: Chorus One

Compiled by: Felix, PANews

Berachain main network is officially launched. This marks the beginning of the DeFi transition period, where security and liquidity can be simultaneously scaled under Berachain’s novel Proof of Liquidity (PoL) consensus.

Liquidity Proof: The Basics of Berachain

The goal of the Berachain Proof of Liquidity (PoL) consensus mechanism is to allow security and liquidity to expand simultaneously. In traditional Proof of Stake (PoS) blockchains, a large amount of funds are locked in to ensure network security. While ensuring network security, these pledged capitals are idle and cannot contribute to ecological liquidity. The basic idea behind liquidity proof is to eliminate the trade-off between security and liquidity by incentivizing DeFi activities with sustainable pledge income.

Three token model

Berachain's economic design revolves around three different tokens:

• BERA: The native token of the network, used to pay gas fees and stakes
• BGT (Berachain Governance Token): Non-transferable governance assets, obtained only through liquidity supply
• HONEY: Native stablecoins minted through over-collateralization

Verifiers propose blocks and allocate BGTs' issuances based on their BERA Stake, which can be allocated to the reward vault. The amount of issuance they can allocate depends on their BGT stake: the frequency of the proposal depends on their BERA stake; how much BGT is allocated according to the proposal depends on their BGT stake. Users who provide DeFi liquidity can pledge their receipt tokens in these reward vaults to receive BGT rewards.

Key applications that support Berachain

‍BEX: Berachain Exchange

‍BEX is a native decentralized exchange with House Pools and Metapools features that improve liquidity efficiency. Liquidity providers can not only earn transaction fees, but also accumulate BGTs that can be pledged with validators to participate in governance and optimize emissions.

‍Bends: Native lending market

‍Bends allows users to borrow HONEY on collateral such as ETH, BTC and USDC. By interacting with Bends, users can deepen liquidity while obtaining BGT, creating a dual incentive model for sustainable lending.

‍Berps: Native perpetual futures exchange, providing high-performance derivatives trading with deep liquidity and efficient capital deployment.

BeraBoost Introduction: Optimizing client income

With Berachain’s unique issuance mechanism, the client needs to develop complex strategies to maximize profits. This is where BeraBoost works—a automated allocation algorithm developed by Chorus One Research that dynamically optimizes BGT allocations to maximize returns.

How BeraBoost works

‍Verifiers on Berachain play a crucial role in issuance allocation. A principal pledged with a validator can benefit from the validator's strategy to direct the issuance to the reward vault. BeraBoost goes a step further and achieves this goal by:

• Algorithm allocates issuance to maximize the principal's reward on its reward vault position

• Transparently direct liquidity to where it is needed most

• Automate the process of maximizing returns and reduce the complexity of principal pledges

This reflects how traditional DeFi earnings farming strategies work, but integrates them directly at the consensus level. As Camila Ramos highlights, Berachain’s PoL effectively allows users to outsource their farming strategies to validators, providing a way for skilled and novice users to optimize returns without proactive management.

Learn more about BeraBoost here.

Why Berachain breaks the boundaries of DeFi infrastructure

Berachain’s PoL brings a fundamental shift in blockchain economics. By combining security with capital efficiency, Berachain not only enhances the incentives of validators, but also promotes deeper liquidity for the entire ecosystem. The introduction of BeraBoost further refines this model, allowing clients to passively maximize returns while strengthening the decentralized security of the network. With the mainnet online, Berachain is ready to redefine on-chain liquidity dynamics, governance participation and validator incentives – while maintaining seamless Ethereum compatibility. Builders, liquidity providers and institutional players now have a strong new platform to participate.

About Chorus One

Chorus One is one of the world's largest institutional staking providers, operating infrastructure for more than 60 Proof of Stake (PoS) networks, including Ethereum, Cosmos, Solana, Avalanche, Near, etc. Since 2018, Chorus One has been at the forefront of the PoS industry, providing easy-to-use enterprise-grade staking solutions, conducting industry-leading research, and investing in innovation agreements with Chorus One Ventures. As an ISO 27001 certified provider, Chorus One also provides cut and double signature insurance for its institutional clients.