Explore Berachain: Analysis of Native Protocols and Technical Points

Berachain: An innovative Layer1 blockchain based on PoL consensus mechanism

Berachain, as the highly anticipated Layer1 blockchain, has attracted many communities and developers with its innovative features and PoL (Proof-of-Liquidity) consensus mechanism. Berachain, which is about to launch the main network, will launch incentive plans and TGE to support early ecological users and project development. As the official audit partner of many well-known blockchains, Beosin will conduct in-depth analysis of Berachain's architecture, three major native applications and its contract execution process.

1. Architecture: Double-layer design, compatible with EVM

Berachain adopts a two-layer architecture:

• BeaconKit consensus layer: Based on CometBFT consensus algorithm and integrating PoL mechanism, it realizes fast transaction confirmation and Byzantine fault tolerance. CometBFT is an improved version of Tendermint, which BeaconKit encapsulates to make it compatible with the EVM execution environment.
• EVM execution layer: Adopts the same EVM as Ethereum and supports existing Ethereum toolchains, smart contracts and ecosystems. Developers can easily port dApps.

Berachain nodes are divided into verification nodes and RPC nodes, supporting full node and archive node modes. Each node combines an execution client and a consensus client, supporting mainstream EVM execution clients (Geth, Eragon, Nethermind, Besu, Reth and Ethereumjs) and Berachain's BeaconKit consensus client.

2. Proof-of-Liquidity (PoL): Triple Token Model

The core of Berachain's PoL mechanism is the triple token model:

• $BERA: Native gas tokens for payment of transaction fees and verifier stake.
• $BGT: Governance tokens, non-transferable soulbound tokens, can be exchanged 1:1 for BERA, incentivizing users to participate in ecological construction.
• $HONEY: Native stablecoin, value pegged to 1 USD, is used for stable transactions inside and outside the ecosystem.

PoL mechanism encourages users to participate in the ecosystem. Taking BEX (Berachain native DEX) as an example:

• User pledges BERA to become a verifier.
• The validator proposes blocks and receives BGT rewards, allocated to different reward vaults.
• Liquidity providers provide liquidity in BEX, obtain LP tokens and pledge them to the reward vault, and earn BGT.
• BGT holders can delegate to validators to increase their reward weight.

Berachain's three native DApps (BEX, Bend, Berps) are the main sources of BGT.

3. PoL and BEX: Native Decentralized Exchange

BEX is the native DEX of Berachain, which is closely integrated with PoL:

• The liquidity pool can be upgraded to a PoL reward vault.
• Liquidity providers can stake LP tokens to earn BGT.
• Governance mechanism allows new liquidity pools to be included in the PoL reward vault whitelist.

BEX's code structure is divided into three parts: BeraCrocMultiSwap contract (multipath redemption), CrocSwapDex contract (user interacts with pools) and Path contract (proxy contracts with different functions). The main logic includes adding liquidity, removing liquidity, token exchange, etc., and optimizing gas consumption using technologies such as curve state management and step-by-step transaction execution.

4. PoL and Bend: Unmanaged Lending Agreement

Bend is Berachain's non-custodial lending agreement, providing HONEY lending services and combining them with the PoL mechanism:

• Borrowers mortgage cryptocurrency to borrow HONEY and receive a BGT reward.
• HONEY providers provide liquidity to earn interest.
• The liquidator liquidates the debt owed users and receives rewards.

Bend's main contracts include: supply, lending, repayment and liquidation contracts, which respectively manage liquidity provision, lending, repayment and liquidation processes.

5. PoL and Berps: Decentralized Leveraged Trading Platform

Berps is Berachain's decentralized leveraged trading platform that supports perpetual futures contract trading, using $HONEY as collateral. Treasurer earns transaction fees and PoL rewards.

Berps' key contracts include: entry contracts, fee calculation contracts, market management contracts, order management contracts, settlement contracts and vault contracts.

6. Summary

Berachain provides innovative solutions to the DeFi ecosystem through the PoL consensus mechanism and triple token model. Its native DApp (BEX, Bend, Berps) and PoL mechanisms are expected to improve Berachain's transaction depth and user experience.

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