Berachain is online, how can holders increase their income through Chorus One stake BERA

Author: Chorus One

Compiled by Felix, PANews

Berachain mainnet officially goes live. This marks the beginning of the DeFi transformation era, where security and liquidity can scale simultaneously under Berachain's innovative Proof of Liquidity (PoL) consensus.

Liquidity Proof: The Foundation of Berachain

The goal of the Berachain Proof of Liquidity (PoL) consensus mechanism is to allow for the simultaneous scalability of security and liquidity. In traditional Proof of Stake (PoS) blockchains, a large amount of funds are locked to ensure network security. While these staked capital ensures network security, it remains idle and cannot contribute to the ecosystem liquidity. The underlying idea behind Proof of Liquidity is to eliminate the trade-off between security and liquidity by incentivizing DeFi activities with sustainable staking income.

Three Generation Token Model

Berachain's economic design revolves around three different tokens:

• BERA: The native token of the network, used for paying gas fees and staking.
• BGT (Berachain Governance Token): Non-transferable governance asset, only obtainable through liquidity provision
• HONEY: Native stablecoin minted by over-collateralization

Validators propose blocks based on their BERA Stake and allocate the issuance of BGT, which can be allocated to the reward pool. The amount of issuance they can allocate depends on their BGT Stake: the frequency of proposals depends on their BERA Stake; and the allocation of BGT based on proposals depends on their BGT stake. Users providing DeFi liquidity can stake their receipt tokens in these reward pools to receive BGT rewards.

Supporting key applications for Berachain

‍BEX: Berachain Exchange

BEX is a native decentralized exchange with House Pools and Metapools functions that can improve liquidity efficiency. Liquidity providers can not only earn transaction fees but also accumulate BGT, which can be staked with validators to participate in governance and optimize emissions.

‍Bends: Native Lending Market

Bends allows users to borrow HONEY using collateral such as ETH, BTC, and USDC. By interacting with Bends, users can deepen liquidity and earn BGT, thereby creating a dual incentive model for sustainable lending.

‍Berps: A native perpetual futures trading platform, providing high-performance derivative trading with deep liquidity and efficient capital deployment.

BeraBoost Introduction: Optimizing Delegator Earnings

With Berachain's unique issuance mechanism, trustees need to devise complex strategies to maximize returns. This is where BeraBoost comes in - it is an automatic allocation algorithm developed by Chorus One Research that dynamically optimizes BGT allocation to maximize returns.

BeraBoost Working Principle

Validators on Berachain play a crucial role in the issuance and distribution. Delegators who stake with validators can benefit from the strategy of guiding the issuance to the reward pool. BeraBoost takes it further by achieving this goal in the following ways:

• Allocation issuance through algorithms, to maximize the rewards of delegators on their reward pool positions.
• Transparently channeling liquidity to where it's most needed
• Maximize the income and automate the process to reduce the complexity of the delegate's pledge.

This reflects the working principle of traditional DeFi yield farming strategies, but integrates them directly at the consensus layer. As Camila Ramos emphasizes, Berachain's PoL effectively allows users to outsource their farming strategies to validators, providing a way for both experienced and novice users to optimize returns without active management.

You can learn more about BeraBoost here.

Why Berachain will break through the limits of DeFi infrastructure

Berachain's PoL brings about a fundamental shift in the blockchain economics. By combining security with capital efficiency, Berachain not only strengthens the incentives for validators but also promotes a deeper liquidity for the entire ecosystem. The introduction of BeraBoost further enhances this model, allowing delegators to passively maximize returns while reinforcing the network's decentralization and security. With the mainnet launch, Berachain is poised to redefine on-chain liquidity dynamics, governance participation, and validator incentives - all while maintaining seamless Ethereum compatibility. Builders, liquidity providers, and institutional participants now have a powerful new platform to engage with.

About Chorus One

Chorus One is one of the world's largest institutional staking providers, operating infrastructure for over 60 Proof of Stake (PoS) networks, including Ethereum, Cosmos, Solana, Avalanche, Near, and more. Since 2018, Chorus One has been at the forefront of the PoS industry, providing user-friendly enterprise staking solutions, conducting industry-leading research, and investing in innovation through Chorus One Ventures. As an ISO 27001 certified provider, Chorus One also offers slashing and double signing insurance for its institutional clients.