EVM compatible L1 project “Berachain”, testnet released

10 months ago 72

Testnet “Artio” released

On the 11th, Berachain, a layer 1 project built using the Cosmos (ATOM) development kit, released its public test network Artio. It describes its unique PoL (proof of liquidity) consensus mechanism, which is a type of PoS (proof of stake).

Berachain’s Public Testnet “Artio” is now live.

The March of the Beras begins at:

https://t.co/Wozhn33i5u pic.twitter.com/HKW1PLzKFs

— Berachain (@berachain) January 11, 2024

Berachain is an L1 blockchain specialized for DeFi (decentralized finance) and is compatible with Ethereum Virtual Machine (EVM). Last April, the company raised approximately 5.6 billion yen in a private round led by Polychain Capital.

connection: EVM-compatible new L1 blockchain “Berachain” raises approximately 5.6 billion yen through SAFT

According to Berachain, during the private testnet stage, around 50 teams deployed contracts in one month. Additionally, more than 30 Berachain-specific projects are underway, and more than 100 teams from other networks such as Sudoswap and Abracadabra are reportedly considering joining the chain.

What is DeFi (decentralized finance)?

Refers to financial services or systems that utilize blockchain and are performed without a central administrator. Abbreviation for “Decentralized Finance.” Financial services provided by DeFi include stablecoin issuance, currency lending, and virtual currency exchanges. Many platforms use the Ethereum blockchain.

Virtual currency glossary

Unique PoL mechanism

With the proof-of-liquidity mechanism, users can earn staking tokens “BGT” by providing liquidity to decentralized exchanges (DEX) and stablecoin lending platforms built into Berachain. can.

It is also possible to delegate BGT to validators and earn fees. Berachain explained that BGT cannot be purchased on the market.

Validators and governance play a major role within the PoL system, controlling the “reward rate” of the various ways to earn BGT across the chain.

For each block, validators send inflation (staking rewards) back into the Berachain ecosystem, keeping the network liquid. In the future, this allocation may also be made to various approved smart contracts.

He continued that by contributing to on-chain liquidity, users can enhance security and earn rewards.

It also states that protocols that pass the governance vote will be able to integrate smart contracts into Berachain’s liquidity pool, attracting liquidity while reducing costs.

In addition to the BGT token, the Berachain ecosystem currently includes the stablecoin “HONEY”, which is scheduled to be backed by USDC, and the tradable gas token “BERA”.

BGT holders will be able to burn their BGT and exchange it for tradable BERA tokens. You will also be able to delegate your BGT to validators and earn fees in the form of HONEY, as well as other rewards from various on-chain protocols.

connection: Cosmos community begins voting on ATOM’s minimum inflation rate proposal of 0%