Boyco has successfully concluded, and the Berachain mainnet is about to be launched. It's time to deeply understand the Berachain ecosystem and gameplay. The 7-day Boyco event accumulated over 30 billion+ in TVL, and the @berachain mainnet, which has not yet been launched, has already become the 6th largest public chain in TVL! These funds will enter the major dApps on the Berachain mainnet at the time of launch, becoming on-chain liquidity! So, what ecosystem dApps are worth paying attention to after the mainnet launch? The following summarizes the outstanding ecological applications in 7 tracks including DEX, lending, and liquid staking, for your reference.
I. DEXBeraSwap @BeraSwap_Defi
BeraSwap is the native DEX of Berachain, inspired by the design of Balancer V2. BeraSwap will support smooth liquidity trading within the ecosystem and ensure the effective operation of the PoL mechanism. The Berachain governance update announced on January 31st states that only the LPs in BeraSwap will receive $BGT emissions during the governance zero phase, i.e., at the time of mainnet launch. The specific LP pairs will be announced by the official later. Even without participating in Boyco, you can still earn $BGT rewards by providing LP on the mainnet launch day through the PoL mechanism. Whether you are a new or old user, you can start earning rewards on the first day you join, which is the charm of the PoL mechanism! Latest governance update: blog.berachain.com/b...Kodiak @KodiakFi
Kodiak is a project selected for the Build a Bera incubator.
Kodiak supports CLAMM similar to Uniswap v3, allowing LPs to set and concentrate liquidity within a specific range. By providing liquidity in a more concentrated range, the capital efficiency is improved.
Island is a very user-friendly feature provided by Kodiak, which can automatically balance the CLAMM range through BeraSwap, reducing the hassle of liquidity management.
Panda Factory is a no-code token deployment factory, which can deploy new tokens and initial liquidity without permission, such as memecoins, and can be efficiently and conveniently launched on Kodiak!
Honeypot Finance @honeypotfinance
Honeypot Finance is a comprehensive DeFi tool, from token issuance to liquidity provision to efficient trading. Through Honeypot, meme coins can be published in 5 seconds, which is very suitable for the development of the meme ecosystem.
Its main products include:
Pot-Wasabee DEX: Meets the needs of all meme coin and long-tail asset enthusiasts, with a unique meme-centric approach and enhanced incentives, as well as a seamless user experience.
Dreampad: Supports various token launch methods, including fair token offering (FTO) models as well as Fjord Foundry's LBP and fixed-price sales.
Pot2Pump: Is a meme launchpad that combines a liquidity-centric meme model and a fair launch mechanism similar to Daos.fun's pre-dex stage. Early participants will become LPers on Meteora like the LP army, with the support of the ALM (Automatic Liquidity Manager) to ensure the best concentrated liquidity management, providing strong support for liquidity providers.
There are also Curve-like stablecoin Swap BurrBear @moneygoesburr, and Jupiter-like liquidity aggregator ooga booga @0xoogabooga, which are important on-chain DeFi infrastructures.
These DEXs have different focuses and can complement and expand each other, providing users with more choices and laying the foundation for the prosperity of the on-chain ecosystem.
II. LendingBEND
BEND is the native lending protocol of Berachain, where users can use $WBTC, $WETH as collateral to borrow the stablecoin $HONEY, or deposit $HONEY.
BEND is different from typical lending protocols:
1. $HONEY cannot be used as collateral,
2. Deposits of $WBTC $WETH do not earn interest, but borrowing $HONEY will earn $BGT rewards
Therefore, it is also a very good way to earn $BGT. This mechanism also strengthens and fully utilizes the PoL mechanism of Berachain, increasing the demand for lending through $BGT and enriching the liquidity, while providing a smoother experience for the ecosystem with $HONEY.
Beraborrow @beraborrow
Beraborrow is an over-collateralized stablecoin protocol that supports the native token of Bera, liquidity staking derivatives $iBGT, or LP positions as collateral to mint the stablecoin $NECT.
$NECT can be used throughout the Berachain DeFi ecosystem, releasing more opportunities while maintaining the original asset exposure.
Gummi @GummiFi
Gummi is a lending project selected for the Build a Bera incubator. Gummi is a permissionless money market by default, which can support any asset in a matter of minutes. Gummi has partnered with core infrastructures like Infrared and Kodiak, planning to support $iBGT and various LP tokens from Kodiak with leverage mining features. Unlike other public chain lending protocols, Berachain's PoL mechanism allows the on-chain lending protocols to amplify the $BGT emissions. As more protocols are launched and the ecosystem diversifies, the lending protocols will play a greater role.
III. Derivative Protocols
Derivative protocols are also important DeFi infrastructures on-chain, and the derivative protocols on Berachain that utilize the PoL mechanism in various ways also have their own characteristics.BerpsBerps is the native Perp DEX of Berachain. Users can establish leveraged positions on various assets using $HONEY on Berps, or deposit $HONEY to provide the liquidity needed for traders' positions, earning trading fees, funding fees, and $BGT.
Berps provides a simple and clear use case for $HONEY, while also offering an effective entry point to earn $BGT. Even new users who are not familiar with DeFi can earn $BGT rewards in a simple way through Berps.
SMILEE @SmileeFinance
SMILEE is an options protocol that can provide hedging positions for DEX liquidity, i.e. LPs.
The options created in SMILEE generate more profits when the price fluctuates greatly, producing the opposite effect of unrealized losses. Users need to pay a certain option premium to establish option positions in SMILEE, including:
Bull: Betting on a significant price increase until expiration.
Bear: Betting on a significant price decrease until expiration.
Smile: Betting on significant upward or downward price fluctuations until expiration.
In addition, users can also earn option fees by providing liquidity for option positions! Although this may face unrealized losses equal to the trader's profits, SMILEE can reduce unrealized losses through real-time rebalancing of liquidity.
Exponents @Exponents_Fi
Exponents is a non-liquidation derivative platform for each on-chain asset, with an embedded incentive system for projects and traders. Through its self-developed reverse asset issuance protocol IBC (Inverse Bonding Curve), it realizes non-liquidation leveraged positions for all assets within the ecosystem! Bonding Curve is the price discovery mechanism adopted by many meme launchpads like Pump.fun, while IBC is a corresponding reverse mechanism, where the price will decrease as demand increases, so more collateral assets will be deposited, and the amount of receivable assets will increase. Exponents uses the IBC mechanism to realize long and short positions for all assets, without the need for oracles, with the aim of making the Bonding Curve slope steeper by adjusting the IBC mechanism parameters, thereby providing non-liquidation leveraged positions.
IBC is also applicable to the issuance of synthetic assets in the protocol for staking and profit distribution functions. Combined with the PoL mechanism, the issuance of assets through IBC can also obtain $BGT rewards, realizing more diverse gameplay.
In addition to the above three, Berachain also has various derivative protocols with unique innovative mechanisms. Including:
@ivx_fi, which allows users to establish short-term high-leverage positions at low cost through 0-DTE functionality.
@Polarityfi, which is the first to introduce composable options, allowing traders to buy liquid options through its options market maker and utilize unrealized gains to obtain secondary liquidity.
Liquid Staking
In typical POS public chains, only nodes can earn native token rewards by verifying the network. Liquid staking protocols allow ordinary users to also earn native rewards by accepting staking of native tokens and delegating them to nodes.
In Berachain, when liquidity providers deposit the liquidity tokens they obtained from ecosystem protocols into Berachain, they can receive rewards denominated in $BGT as well as liquidity earnings. Berachain has actually embedded the liquidity reward mechanism into its inherent operating mechanism.
On-chain protocols can cooperate with validator nodes to provide rewards and obtain voting rights, or run their own nodes to establish a self-sustaining flywheel model.
Infrared @InfraredFinance
Infrared is also a project selected for the Build a Bera incubator.
Users can deposit the LP tokens of liquidity pools into Infrared's vault, and Infrared will use these LPs to generate $BGT earnings, with users receiving $iBGT proportional to their LP deposits. Infrared runs its own nodes! $iBGT can be used in three ways:
1. Staking in Infrared to earn node operation rewards
2. Using in other DeFi protocols
3. Selling for profit
Infrared uses this method to make $BGT a liquid token, distributing the rewards generated through the PoL mechanism to $iBGT stakers, and integrating $iBGT into more applications in the ecosystem.
Infrared will also launch new features, which can not only operate nodes and distribute earnings, but also receive and liquidate the $BERA required for node operation, such as the example of Kodiak's Island mentioned in the previous tweet. Many ecosystem projects have already collaborated with Infrared and plan to launch various derivative products based on Infrared.
BeraPaw @0xBeraPaw
BeraPaw is an innovative liquid staking protocol that converts Berachain's native token into a more widely used and liquid asset, providing users with a seamless experience.
BeraPaw does not run nodes, but operates a Vault between different nodes and the liquidity pools registered with BeraPaw, and issues $LBGT as the liquidation token for $BGT. The BeraPaw governance token is $PAW, and $PAW holders are the owners of the protocol, with the right to decide how to delegate $BGT among validators, and also receive protocol rewards.
BeraPaw divides the use cases of the $BGT token through $LBGT and $PAW, with $LBGT used to receive rewards and $PAW having governance rights! Users can use $LBGT for trading, staking, entering leveraged positions, etc. in the entire Berachain ecosystem, and all PoL interactions are automated, with $LBGT having better flexibility and earnings than $BGT due to the non-transferable and non-tradable nature of $BGT. Therefore, liquid staking protocols are also an indispensable core DeFi infrastructure for Berachain.
