Berachain has unveiled a novel proof-of-liquidity (PoL) mechanism, allowing validators to stake liquidity provider (LP) tokens instead of idle tokens. This approach aims to enhance network security while optimizing asset efficiency. The blockchain operates on a three-token model: BERA for gas fees, BGT for liquidity governance, and HONEY as an over-collateralized stablecoin.
The EVM-compatible chain has raised over $140 million in funding and seeks to tackle liquidity lock-up and misaligned incentives prevalent in traditional proof-of-stake systems. Berachain's ecosystem includes the decentralized exchange BEX, lending protocol BEND, and perpetual platform BERP, positioning it as a comprehensive solution for blockchain liquidity challenges.
Berachain Launches Proof-of-Liquidity Mechanism with Three-Token Model
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.