Berachain is an emerging Layer 1 blockchain designed specifically for decentralized finance (DeFi), capturing widespread attention thanks to its innovative Proof-of-Liquidity (PoL) model and vibrant, bear-themed community. As a high-performance, Ethereum Virtual Machine (EVM)-compatible chain, Berachain introduces a fresh take on tokenomics and user incentives. This comprehensive FAQ breaks down the core concepts—$BERA**, **$BGT, $HONEY, and PoL—to help you navigate the ecosystem with confidence.
Getting Started with Berachain
What Is Berachain?
Berachain is a next-generation Layer 1 blockchain built for DeFi scalability and user engagement. It leverages the BeaconKit consensus framework and maintains full EVM compatibility, enabling seamless integration with existing Ethereum tools and dApps. At its heart is Proof-of-Liquidity (PoL), a novel consensus mechanism that rewards users not just for staking, but for actively providing liquidity to decentralized applications.
This design fosters a more dynamic ecosystem where participation directly translates to governance power and financial incentives.
👉 Discover how Berachain is redefining DeFi participation and liquidity rewards.
What Makes Berachain Unique in DeFi?
Three key innovations set Berachain apart:
- Proof-of-Liquidity (PoL): Incentivizes liquidity provision instead of passive staking, aligning users, validators, and dApps.
- Tri-Token Model: Uses $BERA (gas), $BGT (governance), and $HONEY (stablecoin) to optimize functionality across the network.
- Community Governance: $BGT holders earn influence over protocol upgrades, validator boosts, and ecosystem development.
These features create a self-reinforcing economy where active contributors shape the platform’s future.
Understanding Proof-of-Liquidity (PoL)
PoL is Berachain’s answer to traditional Proof-of-Stake (PoS). While PoS secures the network through staked tokens, PoL expands this model by rewarding users who supply liquidity to approved dApps. By depositing assets into liquidity pools, users earn $BGT, the governance token, which can later be used to vote or boost validators.
This mechanism ensures that network security and DeFi activity grow hand-in-hand.
PoL vs. PoS: What’s the Difference?
| Aspect | Proof-of-Stake (PoS) | Proof-of-Liquidity (PoL) |
|---|---|---|
| Focus | Network security via staking | Liquidity-driven ecosystem growth |
| Rewards | Block validation incentives | Governance tokens for liquidity provision |
| Participant Roles | Validators and delegators | Liquidity providers, validators, dApp users |
In PoL, validators are incentivized to support popular dApps, while users are rewarded for fueling DeFi activity—creating a three-way alignment between users, apps, and infrastructure.
Wallet Compatibility
Berachain supports all major EVM-compatible wallets. You can use:
- MetaMask
- Coinbase Wallet
- Trust Wallet
- Rainbow Wallet
Simply add the Berachain network manually using the RPC details from the official docs.
👉 Learn how to securely connect your wallet and start exploring DeFi on Berachain.
How to Add Berachain to Your Wallet
To interact with Berachain:
- Open your wallet (e.g., MetaMask).
- Go to "Networks" > "Add Network."
Enter:
- Network Name: Berachain Mainnet
- RPC URL:
https://artio.rpc.berachain.com - Chain ID:
80084 - Currency Symbol: BERA
- Block Explorer:
https://artio.beratrail.io
Save and switch networks.
Block Time and Transaction Speed
- Block Time: 2 seconds
- TPS (Transactions Per Second): Up to 375 TPS
- Finality: Single-slot finality for fast confirmations
These specs make Berachain ideal for high-frequency DeFi interactions like swaps, lending, and yield farming.
Berachain’s Tri-Token System
What Is $BERA?
$BERA is Berachain’s native gas token. It’s used to pay transaction fees and secure the network through validator staking. Think of it as the fuel powering all on-chain activity.
You can acquire $BERA via:
- Centralized exchanges (e.g., OKX, Bybit)
- Decentralized swaps on BeraHub
- Burning $BGT at a 1:1 ratio
- Bridging from other chains via LayerZero
Validators must stake $BERA to participate in consensus, ensuring network integrity.
What Is $BGT?
$BGT is Berachain’s governance token, but with a twist: you cannot buy it. It must be earned through active participation in PoL.
Ways to earn $BGT:
- Provide liquidity to approved pools
- Stake LP tokens in Reward Vaults
- Borrow $HONEY on BEND Lending
$BGT grants voting rights on governance proposals and allows users to "boost" validators, earning a share of their rewards.
What Is $HONEY?
$HONEY is Berachain’s over-collateralized **native stablecoin**, pegged to $1 USD. It’s used across DeFi apps for trading, lending, and borrowing without exposure to crypto volatility.
You can obtain $HONEY by:
- Minting via HoneySwap using approved collateral (e.g., BYUSD)
- Swapping other tokens on BeraHub
Governance-controlled risk parameters ensure stability and trust in the peg.
Proof-of-Liquidity & Reward Mechanisms
How Do You Earn Rewards?
There are three primary ways to earn in Berachain’s PoL economy:
- Provide Liquidity → Earn trading fees + LP tokens
- Stake LP Tokens → Earn $BGT in Reward Vaults
- Delegate $BGT → Boost validators and earn additional rewards
This layered reward system encourages sustained participation.
What Are Liquidity Pools?
Liquidity pools are smart contracts holding paired tokens (e.g., BERA/USDC) that enable automated trading on DEXs like BeraSwap. When you deposit assets, you become a liquidity provider (LP) and receive LP tokens as proof of your share.
What Are Receipt Tokens (LP Tokens)?
LP tokens represent your stake in a liquidity pool. On Berachain, these are not just receipts—they’re your ticket to earning $BGT when staked in Reward Vaults.
What Is a Reward Vault?
A Reward Vault is a smart contract where users stake LP tokens to earn $BGT. Validators allocate a portion of their emissions to vaults supporting specific dApps, creating direct alignment between infrastructure and application success.
The more validators route rewards to a vault—and the more $BGT is boosted to them—the higher the yield for stakers.
How Much $BGT Can You Earn?
Earnings depend on:
- Number of validators directing rewards to your vault
- Total $BGT delegated ("boosted") to those validators
- Your share of staked LP tokens in the vault
Yields fluctuate based on ecosystem activity and validator behavior.
How to Claim $BGT Rewards
After staking LP tokens in a Reward Vault:
- Wait for $BGT accrual
- Manually claim via BeraHub
- Claiming is not automatic—you must initiate it
Always monitor your positions to maximize returns.
Staking & Validator Participation
What Does “Staking” Mean on Berachain?
The term "staking" has multiple meanings:
- Validators stake $BERA to secure the network
- Users stake LP tokens in Reward Vaults to earn $BGT
- **Users delegate $BGT** to boost validators (often called "staking $BGT")
Each form drives different incentives within the ecosystem.
How to Delegate $BGT
- Connect your wallet to BeraHub
- Navigate to the "Validators" section
- Choose a validator
- Enter the amount of $BGT to delegate
- Confirm the transaction
Your delegation increases the validator’s influence and earns you a portion of their rewards.
How to Choose a Validator
Consider these factors:
- Uptime and reliability
- Commission rate
- Alignment with dApps you support
- Incentive programs (some share extra rewards)
Validators that actively support ecosystem growth often offer better long-term yields.
Frequently Asked Questions (FAQ)
Q: Can I buy $BGT directly?
A: No. $BGT cannot be purchased—it must be earned through liquidity provision or borrowing $HONEY.
Q: Is Berachain EVM-compatible?
A: Yes. It supports Ethereum tools like MetaMask, Hardhat, and Solidity-based dApps.
Q: How do I bridge assets to Berachain?
A: Use the official Berachain Bridge powered by LayerZero for secure cross-chain transfers.
Q: What’s the role of $HONEY in governance?
A: While $HONEY is used across DeFi, only $BGT holders can vote on governance proposals.
Q: Are there risks in providing liquidity?
A: Yes. Impermanent loss and smart contract risk exist. Always assess pool composition and project credibility.
Q: Does Berachain have a testnet?
A: Yes. The Artio testnet allows developers and users to experiment before mainnet deployment.
👉 Start earning yield today by exploring DeFi opportunities on Berachain with OKX.
Core Keywords: Berachain, Proof-of-Liquidity, $BERA, $BGT, $HONEY, DeFi blockchain, EVM-compatible, Reward Vaults