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Berachain marches to the mainnet: how to prepare (testnet and airdrop)

By ifiwasfrank | In the mood for crypto | 15 Feb 2024


Berachain is a project that has been gaining significant attention lately, thanks to various ongoing campaigns on testnet. It is a blockchain with a radically new approach to consensus, combining compatibility with EVM and implementation on Cosmos SDK, thus being labeled as EVM-equivalent-plus. In this article, we will explore its ecosystem and discover the main actions to qualify for a potential future airdrop.

Berachain and PoL

Berachain is a Layer1 EVM-compatible blockchain implemented with Cosmos SDK, introducing a new consensus protocol in the crypto world called Proof-of-Liquidity (PoL). PoL aims to align network incentives by creating synergy between network validators and ecosystem projects. Berachain utilizes Polaris EVM, a tool developed by the team, as its development framework.

Through Proof of Liquidity, the project aims to address key issues in decentralized networks, such as stake centralization, block manipulation, inefficient trading, and a lack of attractive incentives for liquidity providers. In this system, the network’s governance token can be acquired by performing on-chain actions, such as providing liquidity in key pools, borrowing stablecoins, or depositing in specific protocols.

To better understand Berachain, it’s crucial to introduce the three main network tokens and their functionalities.

Tokens

Berachain’s ecosystem revolves around its three native tokens:

  • BERA: The network’s gas token, used to pay transaction fees when sending tokens or signing smart contracts.
  • BGT: The governance token of the network. BGT is not transferable, cannot be purchased, but can be obtained by providing liquidity on BEX in LPs that offer rewards in BGT. Delegating BGT to a validator allows voting on governance proposals and receiving rewards from the network and validators (bribes). BGT can also be burned to obtain BERA at a 1:1 ratio (the reverse operation is not possible).
  • HONEY: The stablecoin of Berachain pegged to the dollar.

Now we can move on to explore the testnet and the existing protocols.

Testnet

Understanding the mechanisms of Berachain, let’s see how to start using it. Firstly, you need to add the testnet to your wallet. Not all crypto wallets currently support this network, but MetaMask is a safe choice. Here are the details for configuration:

- Network: Berachain Artio
- RPC URL: https://artio.rpc.berachain.com/
- Chain ID: 80085
- Currency symbol: BERA
- Block explorer URL: https://artio.beratrail.io/

Once done, you’ll need some BERA to perform transactions. Click on the official faucet, enter your address to receive 0.1 testnet BERA (claims available every 8 hours). Now you’re ready to start testing the main protocols currently available on Berachain.

BEX

Berachain’s decentralized exchange where you can trade between tokens, participate in liquidity pools, and collect earned rewards. Pools allowing you to farm BGT include STGUSDC/HONEY (stable pool), BERA/HONEY, WBTC/HONEY, and WETH/HONEY. Add liquidity multiple times and occasionally collect the earned BGT as you’ll need it on BGT Station.

BGT STATION

The hub dedicated to Berachain’s governance. In the station, you can choose from available validators and delegate your BGT. Remaining in the Delegate section, you can redelegate your tokens to another validator or redeem the delegation. With the voting power gained through delegation, participate in governance votes in the dedicated section. Finally, in the Redeem section, you can burn your BGT to obtain BERA at a 1:1 ratio (not vice versa).

HONEY

In this portal, you have the opportunity to mint HONEY through the STGUSDC stablecoin with a fixed fee of 0.5%. You can also perform the reverse operation, going from HONEY to STGUSDT.

The value of the two stablecoins can fluctuate more or less significantly compared to the dollar, making this an arbitrage tool. Redeem STGUSDC when the value of HONEY exceeds the dollar and vice versa. Remember that you can buy HONEY on BEX with any other token you possess.

BEND

Bend is a decentralized non-custodial lending protocol through which users can lend or borrow the stablecoin HONEY. Currently, you can only deposit HONEY, WBTC, and WETH on Bend. Borrowing HONEY from the protocol can earn rewards in BGT. However, note that depositing HONEY in the protocol only allows you to earn interest. Only WBTC and WETH deposits can be used as collateral to borrow HONEY.

BERPS

Berachain Berps is a easy to use decentralized leveraged trading platform. In the Berpetuals section, users can open positions with leverage up to 100x using the stablecoin HONEY. The Vault on the platform ensures the proper functioning of transactions: profits of users are withdrawn, and losses are deposited. The vault also captures a portion of the exchange fees, used to reward stakers providing their HONEY to the protocol.

By depositing HONEY into the vault, you receive bHONEY in return, a token representing the underlying ownership in the vault that includes staking rewards (thus bHONEY > HONEY). Upon withdrawal, bHONEY will be burned, and the corresponding amount of HONEY will be paid to the user. bHONEY holders also earn rewards in BGT, which can be claimed in the Vault’s dedicated section.

To conclude this section, take a look at the Berachain Foundation, where you’ll find additional in-depth material. Want to check the transactions made? There’s Beratrail, the network’s block explorer. Try experimenting with all these protocols, not only in the context of an airdrop but also to fully understand the potential of this project.

Community

One of Berachain’s strengths is undoubtedly its community. The Discord server is the starting point for every user approaching the project. Interact with other users, try to be active, and perhaps an admin will reward you with the Bera Cub role.

Accumulate points in the March of The Beras on Galxe. Complete the Onboarding mission and try to perform the daily task related to the faucet worth 5 points. Still have energy? The Honey Jar is a large community on Berachain created by the creators of the NFT collection HoneyComb, providing members with guidance and suggestions on new projects in the Berachain ecosystem.

Their faucet allows minting NFTs on the testnet, which may have future utility (or serve only as interactions with the network). Through quests, you can acquire badges that allow you to claim a certain amount of BERA on the internal faucet. Each badge is associated with the amount of BERA that can be claimed daily by the owner.

Badges are assigned to users who complete the quests every Friday, so don’t be alarmed if you don’t see them immediately on your profile. To fully embrace the honey jar, join the Discord server.

Conclusions

Berachain is a complex ecosystem challenging to summarize in an article. However, with this general overview, you have all the tools to start interacting with the testnet and the community. To think about a hypothetical airdrop, it will likely be necessary to interact with the protocols multiple times.

Recently, wenser.xyz, an airdrop monitoring tool, has also added Berachain. The parameters used are those of the Arbitrum airdrop, making it somewhat unreliable, considering that criteria vary from airdrop to airdrop, but it can still provide an indication.

Meanwhile, for some lucky owners of one of the NFTs mintable on the honey jar, the Ooga Booga Ticket, the first airdrop has already arrived. It is the PLUG token belonging to the Beraplug project available on Ethereum. Find all the useful information in this tweet.

In short, in my opinion, Berachain is a project worth closely following, especially since we are still on the testnet, and the only investment required is time. If you enjoyed the article, leave a like and share.

Ooga Booga, bears!

| Note: This is not financial advice. Before investing, we encourage you to conduct your own research. |

 

 

 

This post was previously published here.

 

 

Follow me on Twitter: @ifiwasfrank
 

 

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ifiwasfrank
ifiwasfrank

I'm an Italian crypto holder with a degree in "International cooperation, development, and human rights". Co-Founder Bull&Bear ITA | #CryptoAddicted / #NFTcollector / #DeFiDegen / #Cosmonaut | Contact me on Twitter for collabs and articles (@ifiwasfrank)


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