In this episode of Tap Talk, Smokey the Bera joins twMatt to discuss Berachain, tokenomics, collaborations, and more!
Read our notes below to learn more.
How did Berachain begin?
Berachain started as a passion project of two friends who had careers in the healthcare space but shifted to the tech industry, investing in different protocols in the crypto space.
The idea behind Berachain was inspired by their experience in the DeFi ecosystem, particularly with the Olympus community.
They were drawn to the idea of a decentralized reserve currency and the interesting mix of smooth brain and big brain energy in the OHM community.
The idea for Berachain started as a joke about creating JPEGs of bears smoking weed, which eventually evolved into a larger project.
Tokenomics
The triple token model of Bera consists of three tokens: $BERA, $BGT, and $HONEY.
$BERA serves as a network token, $BGT as a governance token in the form of an NFT, and $HONEY as a stablecoin.
The idea behind this model is to create a system that allows for a unit of transactions ($BERA), a stablecoin for real-world adoption ($HONEY), and a governance token ($BGT) that rewards those who have demonstrated interest in the ecosystem and contributing to it.
The network is secured by different tokens including L1 tokens and stablecoins through a consensus mechanism called Proof of Liquidity Consensus.
This means that the weight or say in consensus is proportional to the amount of liquidity or financial value contributed to the ecosystem.
People can deposit various cryptocurrencies including wrapped Bitcoin, wrapped AVAX, $ATOM, $USDC, $USDT, $DAI, and mint $HONEY against these deposits.
This helps in securing the network and provides liquidity for Index Perpetual Futures.
TODAY’S EDITION IS BROUGHT TO YOU BY TREZOR HARDWARE WALLET
Navigating the waters of crypto is risky; even the biggest CEXs & stable coins can have huge risks…
Act now, click the link below & become your own bank via self-custody.
Collaboration with CrocSwap
In February of last year, the Berachain team started talking to the Crocswap team.
Crocswap was in a relatively early stage and had some core ideas built out for a deck-like solution for the next-generation decentralized exchange.
Berachain team was interested in building a deck-like solution into their blockchain.
The collaboration with Crocswap has been a combination of mentorship and problem-solving.
Crocswap has a single contract deck that allows for both concentrated and ambient liquidity within the same pools and allows the blockchain to maximize its capital efficiency.
Berachain team has been working with the Crocswap team to implement their concepts as Cosmos SDK modules instead of EVM contracts.
The partnership with Crocswap has allowed the speaker's team to check many boxes for their decentralized exchange needs and maximize their flexibility from an Automated Market Maker (AMM) perspective.
$HONEY
The Ether Library has been modified extensively for the EVMOS project, requiring significant rework of the middleware for the implementation of proof of liquidity in the staking modules.
The engineering team was able to achieve results thought to be impossible, and the speaker hints that the work done on the Ether Library might warrant its own set of libraries in the future.
$HONEY is a token that will be minted with a 150% collateral ratio against various exogenous deposits such as $ETH, $BTC, $USDC, and $USDT, among others.
$HONEY is built into the Cosmos chain at a fundamental level and serves as a router for anything coming in and out of the ecosystem in terms of blue-chip assets.
Protocols Launching on Berachain
The bera ecosystem is seeing a healthy level of activity, with various projects being built by the original community and adjacent DeFi community.
These projects cover a wide range of areas such as long tail yield decks, governance aggregators, NFTs, money markets, synthetic assets, games, sports betting and more.
The focus is now on finding sustainable solutions that can withstand tough times in the market and exploring opportunities in network infrastructure, liquidity, and speculation.
Check Out These Important Links
TODAY’S EDITION IS BROUGHT TO YOU BY TREZOR HARDWARE WALLET
Navigating the waters of crypto is risky; even the biggest CEXs & stable coins can have huge risks…
Act now, click the link below & become your own bank via self-custody.