GuShiio.com The automatic allocation algorithm BeraBoost dynamically optimizes BGT allocations to maximize returns.
Author: Chorus One
Compiled by: Felix, PANews
Berachain’s main website was officially launched. This marks the beginning of a transformation period for DeFi, where security and mobility can be expanded simultaneously under Berachain’s novel Proof-of-Liquidity (PoL) consensus.
Proof of liquidity: Berachain’s foundation
The goal of the Berachain Proof-of-Liquidity (PoL) consensus mechanism is to allow both security and liquidity to expand. In traditional proof-of-stake (PoS) blockchains, large amounts of money are locked up to ensure network security. While ensuring network security, these pledged capital are idle and cannot contribute to ecological liquidity. The basic idea behind proof of liquidity is to eliminate the trade-off between security and liquidity by incentivizing DeFi activities with sustainable pledge revenue.
Three-token model
Berachain’s economic design revolves around three different tokens:
- BERA: Native tokens to the network used to pay gas fees and pledges
- BGT (Berachain Governance Tokens): Non-transferable governance assets acquired only through the supply of liquidity
- HONEY: Native stablecoin minted through over-collateral
The verifier proposes blocks based on its BERA Stake and allocates issues of BGT, which can be allocated to reward vaults. The amount of circulation they can allocate depends on their BGT Stake: the frequency of proposals depends on their BERA Stake; and how much BGT they allocate based on proposals 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 functions to improve liquidity efficiency. Liquidity providers can not only earn transaction fees, but also accumulate BGTs, which can be pledged with validators to participate in governance and optimize emissions.
Bends: Native lending markets
Bends allows users to borrow HONEY with collateral such as ETH, BTC and USDC. By interacting with Bends, users can deepen liquidity while gaining BGT, creating a dual incentive model for sustainable lending.
Berps: A native perpetual futures exchange that provides high-performance derivatives trading with deep liquidity and efficient capital deployment.
Introduction to BeraBoost: Optimizing Principal Revenue
With Berachain’s unique issuance mechanism, principals need to develop complex strategies to maximize benefits. That’s where BeraBoost does-it’s an automatic allocation algorithm developed by Chorus One Research that dynamically optimizes BGT allocations to maximize returns.
How BeraBoost works
Verifiers on Berachain play a vital role in distribution. Principals pledging with the verifier can benefit from the verifier’s strategy of directing issuance to the reward vault. BeraBoost takes it one step further and achieves this goal by:
-
Allocate issuance through algorithmic allocation to maximize principal’s reward on its reward treasury positions
-
Transparency directs liquidity where it is needed most
-
Automate the revenue maximizing process and reduce the complexity of client pledges
This reflects how traditional DeFi revenue farming strategies work, but integrates them directly at the consensus level. As Camila Ramos emphasizes, Berachain’s PoL effectively allows users to outsource their farming strategies to validators, providing skilled and novice users with a way to optimize returns without proactive management.
Learn more about BeraBoost here.
Why Berachain breaks the boundaries of DeFi infrastructure
Berachain’s PoL brought a fundamental shift in blockchain economics. By combining security with capital efficiency, Berachain not only enhances incentives for verifiers, but also promotes deeper liquidity for the entire ecosystem. The introduction of BeraBoost further improves this model, allowing clients to passively maximize returns while enhancing the decentralized security of the network. With the launch of the mainnet, Berachain is preparing to redefine on-chain liquidity dynamics, governance participation and verifier incentives-while maintaining seamless Ethereum compatibility. Builders, mobility providers and institutional participants now have a powerful new platform to participate.
About Chorus One
Chorus One is one of the world’s largest institutional pledge 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-class pledge solutions, conducting industry-leading research, and investing in innovation agreements through Chorus One Ventures. As an ISO 27001-certified provider, Chorus One also provides cutback and double signature insurance to its institutional customers.
