Discussion on the Characteristics of the Berachain Ecosystem and Overview of Core Projects

Introduction

Berachain is a Layer 1 network that uses a PoL (Proof of Liquidity) consensus mechanism. It is currently conducting 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. Berachain founder Smokey The Bera recently hinted that the mainnet will be launched before April, attracting the attention of both new and existing users.

This article aims to explore various fields of the Berachain ecosystem, lower the barriers to user participation, discuss prominent projects in each area, and detail how each protocol utilizes the PoL mechanism.

DEX

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

2.1 Kodiak

Kodiak is a DEX incubated from "Build a Bera". In addition to supporting Uniswap v2 features, it also offers CLAMM functionality similar to Uniswap v3. Users can provide liquidity within a narrow range through CLAMM pools, allowing for more efficient mining of $BGT. Kodiak also provides an Island feature to help automatically reset and balance the CLAMM range.

Kodiak has collaborated with multiple projects in the ecosystem to establish a core infrastructure position. It also operates verification nodes, obtaining the second highest BGT authorization.

2.2 Honeypot Finance

Honeypot Finance supports all aspects of the token lifecycle, including:

• Henlo DEX: A DEX that protects users from MEV attacks.
• Dreampad: A Launchpad protocol that provides incubation and funding for projects.
• Pot2Pump: A platform that provides a secure environment for the issuance and trading of meme coins.

Honeypot Finance plans to operate verification nodes and provide $HPOT rewards to delegated BGT users. It will also use the income from node operations to buy and burn $HPOT, enhancing the value of the token.

liquidity staking

Berachain has integrated liquid staking into the network protocol. Existing protocols can only provide rewards through collaboration with validators or self-operated nodes. The liquid staking protocol will offer BGT liquidation functionality, making it easier for ecological projects to adopt a structure that closely integrates the PoL mechanism.

3.1 Infrared

Infrared is a liquidity staking protocol co-incubated with Kodiak. It operates a repository that accepts LP tokens and generates BGT interest rates. Users who deposit LP tokens can receive $iBGT proportional to their deposit.

Users can transfer $iBGT:

• Earn node rewards by staking in Infrared
• Used in other DeFi protocols
• Sell for profit

Infrared turns BGT into a liquid token, centralizing and distributing rewards to $iBGT stakers, while helping other protocols incorporate $iBGT. Infrared accepts the maximum BGT delegation on the testnet and collaborates with multiple ecological projects, becoming an important infrastructure for the mainnet.

3.2 BeraPaw

BeraPaw operates a treasury between different nodes and registered liquidity pools, issuing $LBGT as the BGT settlement token. Its governance token $PAW can be used for BGT emission voting.

BeraPaw divides the use of BGT into two tokens: $LBGT and $PAW. Users who vote using $PAW can exercise more voting power with less capital. Protocols seeking initial liquidity are expected to actively utilize $PAW to generate BGT rewards for their liquidity pools.

Lending

Berachain has a native lending protocol BEND, which allows users to borrow $HONEY by collateralizing $WBTC or $WETH, or to deposit $HONEY. The characteristics of BEND are that $HONEY cannot be used as collateral, deposits of $WBTC and $WETH do not earn interest, but borrowing $HONEY generates BGT rewards.

4.1 BeraBorrow

BeraBorrow is an over-collateralized stablecoin issuance protocol that allows multiple assets to be used as collateral to mint $NECT. Its governance token $POLLEN serves as an incentive token for:

• Reward for obtaining BGT Emission liquidity pool
• Encourage staking deposits to the liquidity pool of up to $NECT debt
• Reward liquidity stable pool depositors

BeraBorrow also plans to allocate BGT to the DEX liquidity pool to strengthen the demand for $NECT and market liquidity.

4.2 Gummi

Gummi is a lending protocol that does not require oracles, allowing anyone to create lending pools without restrictions. It plans to support leveraged farming of $iBGT and Kodiak's LP tokens.

Derivative Protocol

Berachain will launch its native Perp DEX Berps, where users can establish 100x leverage positions using $HONEY or provide liquidity to earn transaction fees, funding fees, and BGT rewards.

5.1 SMILEE

SMILEE is an options protocol that creates hedge positions for DEX liquidity positions. Its options generate more profit during significant price fluctuations, in contrast to impermanent loss. Users can choose from three types of options positions: bullish, bearish, and smile.

5.2 Exponents

Exponents achieves all assets' non-liquidation leveraged positions through its self-developed IBC mechanism. IBC uses a reverse Bonding Curve, where the price decreases as demand increases. Exponents will also distribute BGT Emission as rewards to users who issue assets through IBC.

Other

In addition to DeFi, various projects are also prepared to launch on Berachain:

6.1 Goldilocks

Goldilocks is the exclusive DeFi infrastructure DAO of Berachain, which includes:

• Goldiswap: Guarantees a trading pool with a bottom price of $LOCKS
• Goldilend: NFT collateral lending protocol
• Goldivaults: Generate interest by locking assets

6.2 Beradrome

Beradrome gathers user liquidity tokens, distributing profits and rewards. It uses three types of tokens: $oBERO, $BERO, and $hiBERO, to encourage internalized rewards.

6.3 Yeet

Yeet is an on-chain betting game protocol where users bet $BERA to participate in the game and earn $YEET rewards. The YeetBond feature will also be launched, allowing users to claim specific token bonds at a discount.

6.4 Ramen

Ramen is a Launchpad protocol that helps new projects promote and raise funds. It supports both fixed price and price exploration models, and will also launch the Airdrop Recipes feature.

6.5 PuffPaw

PuffPaw is a Vape 2 Earn project where users earn $VAPE tokens through e-cigarettes. It offers a device lending program and plans to support the value of $VAPE through data monetization.

Community

Many projects adopt strategies that allocate high returns and use NFTs and memes to build communities. Some projects first establish communities and then generate and distribute profits.

7.1 The Honey JAR

The Honey JAR develops the community through Honeycomb NFT, collaborating with ecological projects to provide benefits to NFT holders. It has also incubated projects such as S&P and Bera Infinity, becoming the most influential core community in the ecosystem.

Conclusion

The Berachain ecosystem project combines the PoL mechanism and community culture to attract users with high returns and entertainment. Berachain is about to support token issuance and initial ecological liquidity through the Boyco, RFA, and RFC programs.

As of January 31, the accumulated deposits in the Pre-Boyco and Boyco treasury reached $2.35 billion. If these funds are used directly on the mainnet, Berachain's TVL will surpass that of Sui, which ranks 8th.

The ecological and community cases established by Berachain before the mainnet are relatively rare and will serve as an important reference for future projects.