GuShiio.com From a realistic perspective, explore the actual ecology on the chain.
Author: Berachain
Compiled by: Shenchao TechFlow
Finally here.
After two years of waiting, Berachain’s Mainnet launch event was released last Thursday, and Beras has been cooking. There is a lot to do, and it’s difficult to fully understand what’s happening on any chain-but this article will provide a comprehensive understanding of almost everything you can do on Berachain right now.
Berachain itself does not need to be introduced more, but its consensus mechanism, Proof-of-Liquidity (PoL, Proof of Liquidity), is at the core of promoting Berachain’s economic innovation. Initially, when the idea of this new consensus mechanism was proposed, Berachain was just a community, not an L1. But the situation is very different now. After attracting more than US$3 billion in deposits through the Boyco program, Berachain has been officially launched, started issuing blocks, and attracted a large number of dapps and users.
This blog usually focuses on Berachain’s fundamentals and explores its future potential, but this time it will look at the actual ecology of the chain from a realistic perspective. Let’s get started!
Explore Berachain’s DeFi ecosystem
First, we start with Berachain’s overview of the DeFi ecosystem. Much of the ecosystem’s functionality relies on assets deposited through Boyco, and the dApp team is also working to introduce new strategies and on-chain capabilities.
According to DefiLlama, Berachain’s total locked position (TVL) is just over $1.9 billion, but this does not include all of Boyco’s assets. Captain Jack Bearow wrote an excellent summary of Boyco’s market operations and the flow of these assets, which you can read here.
Give a brief explanation of how Boyco works, and then we will enter the main network dynamics.
Boyco’s plan selected a total of 12 applications and more than 20 asset issuers. Boyco assets are divided into three categories: primary assets, third-party assets and hybrid assets. Depending on the asset category, different multiples and deadlines were applied, and each team submitted application scripts explaining where the assets would be used after they were launched on the main network.
Judging from Berachain’s TVL data, not only is it evenly distributed among dApps, but it is also very healthy among pools, assets, and strategies. Next, we will list some activities on the chain, highlight some specific strategies and pools, and demonstrate their possibilities.
Starting with BeraHub, we can see how PoL magic works.
When you open the website, you’ll see several different tabs, but let’s start with the liquidity pools. TVL’s top five liquidity pools allow you to deposit HONEY or WBERA, paired with assets including BYUSD, USDC.e, WETH and WBTC, depending on your risk appetite.
These liquidity offering (LP) certificate tokens can be used as collateral for reward vaults, the main way to earn BGT rewards on Berachain. There are currently five reward vaults-corresponding to these five liquidity pools-that have been whitelisted and open for deposits, with different BGT capture rates and annualized rates of return (APR) for each vault.
As of this writing, Kodiak’s TVL has exceeded $690 million-so where does this funding come from? How can LP users take advantage of Kodiak’s infrastructure?
If we look at TVL’s top ten liquidity pools, we can see that Kodiak has considerable liquidity in multiple trading pairs, which are distributed among the three asset classes mentioned earlier. Among these trading pairs, WETH pairs account for three of the top five, with the rest including STONE, WBTC, HONEY and beraETH.
Boyco deposited more than $375 million in WETH in its plan, most of which is now deployed on the Berachain main network.
Kodiak not only provides incentives for depositing more standardized assets, but also launches “Sweet Islands”, a product specifically designed for BERA/HONEY, BERA/WETH and YEET/BERA pairings, with annualized yields of up to three digits. No matter what your needs are, Kodiak can meet them, has grown to more than US$1.1 billion in assets, and continues to launch new features and farms, such as WBTC/BERA’s “Sweet Island”, integration with Zapper, and the continued launch of new tokens in the Berachain ecosystem.
D2 Finance currently provides Berachain with some unique strategies such as Hyperbera.usdc, Hyperbera.Weeth, Kodiak ++, Dgnberaland and Hyperbera. At the time of writing, the TVL of the agreement has exceeded $10 million and efforts have been made to provide differentiated products that leverage the broader Berachain ecosystem.
D2 recently wrote about their ideas around Berachain and Pol, but the team wanted to put tokenized derivative strategies on Berachain that not only provide attractive benefits, but also benefit from Pol’s reflective and incentive structure. If you want to reward passive farm BGT through a series of actively managed strategies, D2 may be your ideal destination.
Ooga Booga is a native liquidity aggregator that has completed nearly US$200 million in transaction volume since its launch. These transaction volumes come from a variety of tokens, mainly including BERA, HONEY and USDC.e.
In addition to transaction volume, Ooga Booga is also constantly launching new tokens and allowing users to trade assets on multiple DEXs, providing a concise user experience, while continuing to launch new partnerships and integrations.
In addition to transaction volume, Ooga Booga is also constantly launching new tokens and allowing users to trade assets on multiple DEXs, providing a concise user experience, while continuing to launch new partnerships and integrations.
The Dolomite agreement has attracted nearly US$1 billion in assets to the platform, of which more than US$32 million has been loaned. Dolomite is building a money market and margin trading protocol to serve Berachain and those who want to make the most of its assets.
For users who want to pledge BGT or BERA, Infrared is the key.
The platform is a user-friendly liquidity pledge solution focused on PoL. Infrared has attracted more than 180 million BERA, through which users can pledge BERA and obtain iBERA, a 1:1-backed liquidity token (ERC-20). The deposited BERA tokens are pledged through Infrared’s verifier network, and users can receive pledge rewards without any action.
One of the main advantages of liquid pledged tokens is not only the easy pledge income, but also its additional capital efficiency. In the Berachain ecosystem, you can use iBERA to provide liquidity, lend money or serve as collateral without having to forgo pledge rewards. Infrared will also launch iBGT, a liquidity variant of its BGT for users who want to maximize PoL rewards, more information can be read here.
If you want to maximize your exposure to the Berachain ecosystem, you can deposit it in Yeet’s Liquidity Trifecta Vault (detailed here).
One introduction that is too long to read is that Yeet has partnered with Beradrome and Kodiak to release a very friendly automatic revenue product that allows depositors to earn mining revenue and add it back to Yeet/Bera LP positions.
Instead of manually providing liquidity, pledging certificate tokens to Beradrome and routing through Kodiak’s YEET/BERA “sweet island”, users can now do all of these operations directly through Yeet without going through cumbersome steps. If you want, you can even withdraw the LP certificate tokens from the liquidity trifecta vault and use them for other purposes. The option is in your hands.
Beradrome officially launched on February 9, with the goal of becoming the preferred liquid market for any income asset on Berachain. Although its structure is quite complex (you can see details in their documentation), it doesn’t stop community users from depositing assets and turning on the “flywheels.”
Beradrome’s architectural inspiration came from observing the Solidly model and trying to optimize it. With PoL’s underlying operation, Beradrome was able to build deeper liquidity through reward vaults and revenue tokens. If this dApp continues to grow, users will be more motivated to participate in BERO, hiBERO, and oBERO, taking advantage of both Beradrome and PoL.
Last but not least, Smilee Finance has launched gBERA, a unique liquidity pledge token designed to automatically re-benchmark and accumulate rewards through Berachain Verifier. Unlike other liquid pledged tokens such as iBERA, gBERA is unique in that it can automate the reward collection process and roll rewards back to BERA without requiring additional actions for users. The team plans to launch more integrated features in the coming weeks that will allow users to package gBERA and use it in various applications across the ecosystem.
GameFi, SocialFi and MemeFi on Berachain
If DeFi is not your interest, that’s okay.
Berachain is not just another DeFi chain, its ecosystem has shown considerable diversity even after just a week after the main network was launched.
Maybe you just want to bridge to Berachain, take a break, avoid dApps for a while, and plan your next move. If so, check out bera.tv. The team described it as “the first cross-dimensional AI-generated TV show” and aired only on Berachain. If you like to watch two AI Bear News anchors talk about various topics, then you have come to the right place.
What if you want to bet but are not interested in sports? Over/Under has been launched on the main network, allowing you to bet on the results of live video games in real time, and you can also set up multiple parays. Streaming has become one of the most popular ways to gain viewers, and data doesn’t lie-more than 7 million independent anchors used Twitch last year, with an average of 2 million simultaneous online viewers.
If cryptocurrencies want to break out of their own circles and start attracting more users, catering to their interests is an important way to potential success. Over/Under hopes to become the preferred center for anchors and speculators, and is limited to Berachain.
Memeswap aims to create a top destination for memecoin traders, offering an experience similar to pump dot fun, but is designed specifically for the Berachain community. If you want to take advantage of the increasingly active activity on the chain but don’t want to purchase tokens directly, you can pledge your BERA through Memeswap to provide rental liquidity for new token issues and earn revenue.
For users who want to actually trade tokens, they can use Memeswap to track new token deployments, recent bindings, and other details to stay up-to-date. Memeswap has completed more than 370,000 BERA transactions and integrated with Infrared, Ooga Booga and other teams to provide a seamless experience for all types of traders.
Shogun is building a platform to make it easier for users to connect online through gun.fun Users can transfer assets from any chain to Berachain with one click. The team went online on February 11, and even though Berachain is an EVM equivalent chain, Shogun allows anyone to send assets to Berachain from a non-EVM chain.
Honey Chat is a native Berachain Social networks application that aims to redefine social dynamics through on-chain mechanisms. After users register and connect to their existing X accounts, they can access a network where social reputation truly matters, which is governed through tokens.
Advance Proof of Liquidity (PoL)
Speaking of which, we can talk about PoL, even though it has not yet been officially launched.
Instead of waiting for PoL to activate, proactively think about how PoL integrates with existing on-chain liquidity and how you can leverage it. Whether you’re switching between different dApps based on a reward plan, or choosing to be loyal to one or two dApps, it’s valuable to think about these issues in advance.
As mentioned earlier, there are currently only five whitelist reward vaults-what will happen once more agreements start the whitelist process? The current BGT capture rate distribution is still relatively balanced, but this situation is likely to not last long. For more information on how the reward vault actually works, you can check the documentation.
Berachain’s token economics aims to promote a healthy balance between behavior on the chain, separating gas tokens and governance tokens for good reasons. Unlike releasing 10% of BERA’s supply every year, users and dApps can get BGT, whose unit dynamics and game theory are completely different.
Simply put, there are already some opportunities on the chain, such as Infrared’s iBGT, which currently provides good annualized yields (even stablecoin gains).
When PoL is activated and officially launched, those who worked early will be rewarded for their patience and hard work, while others will need to catch up and understand why Berachain is so different from PoS Chain.
At present, this article should have provided you with enough directions for thinking and action, but there is still a lot that cannot be covered. If you want to keep up to date with Berachain’s latest developments, you can start with the foundation’s X account and ecosystem pages, which will be updated as more teams go online.
Thanks for reading, Beras.
