[FUNDAMENTAL ANALYSIS IN CRYPTO MARKET (PART II)] New Generation Blockchain Ecosystems - Berachain & Monad

4. Berachain Ecosystem – DeFi-native Blockchain with unique consensus mechanism Proof of Liquidity

4.1. Overview

Berachain is a new generation Layer 1 blockchain project, developed with a special orientation of “DeFi-native”. This means that from the beginning, Berachain has been designed to optimize and serve the decentralized finance (DeFi) ecosystem. Traditional blockchains often have limitations when applied to DeFi applications, but with Berachain, everything has been built from the ground up to support DeFi transactions to take place quickly, securely and optimally.

This project was developed by a very special founding team in the crypto community. Berachain originally came from a panda meme community “Bong Bears” on Non-Fungible Token Twitter. Although it started as just an Non-Fungible Token collection, the Berachain development team saw the potential of blockchain technology development and gradually shifted to building a real blockchain. Berachain not only has a separate consensus mechanism but also owns a unique ecosystem and technology, aiming to support and promote DeFi closer to the community.

4.2. Technology and differences

✅ 1. Proof of Liquidity (PoL) consensus mechanism

Unlike blockchains that use Proof of Stake (PoS) – where only those who hold more Token can become validators, Berachain takes a different approach: Validators are selected based on the liquidation they contribute to the DeFi system.

That is: Whoever provides a lot of liquidation to DeFi pools (LP Token), is nominated as a validator and receives rewards from the network.

Advantage:

• Linking Staking activities to DeFi ecosystem efficiency

• Avoid the situation of "sharks Stake and then... sit around" → encourage cash flow to go into actual use

2. Unique 3 Token structure

Berachain does not have just 1 Token like many other blockchains but operates based on 3 types of Token with different Vai :

Berachain uses a more complex Token system than usual with 3 different types of Token : BGT, BERA and HONEY. In which:

BGT: Berachain's Governance Token , non-transferable and obtainable by providing liquidation to native DEX BEX. Used to determine pool rewards similar to Curve's veToken. BGT can also be converted 1:1 to BERA for trading fees but not vice versa.

BERA: Pays transaction fees on the network and rewards validators. Token inflation is estimated at 10% per year and all Token used to pay Gas Price will be burned.

HONEY: USD-pegged stablecoin that can be Mint via 150% collateral or swapped directly on BEX. HONEY will be used for liquidation matching on BEX.

→ This structure helps to clearly decentralize governance, usage and liquidation, reducing the risk of “inflation” or system manipulation.

Berachain's 3- Token mechanism

✅ 3. EVM compatible – easy to develop

• Berachain is built on Cosmos SDK + CometBFT, but is still fully EVM compatible → meaning Ethereum projects can easily migrate over without rewriting code.

• In addition, the system can integrate in the future with IBC chains ( Cosmos chain ) → expanding cross-chain interoperability.

4.3. DeFi-native ecosystem on Berachain

Berachain is building its own ecosystem with Shard from various sectors including:

DeFi: Beradrome, Aori, Honeypot Finance,...

Non-Fungible Token: Bera Collective, Bera Punks, Beranames,

Gaming: Gamblino, Wizzwoods, BOINK,...

Infrastructure: Shogun, Infrared, Hyacinth

DAOs: MijaniDao, Apiology DAO, notrealDAO,...

Featured projects in the Berachain ecosystem

5. Monad Ecosystem – Redefining EVM Performance

5.1. General overview

Monad is a new generation Layer 1 blockchain project that is currently receiving a lot of attention from the developer community and venture capitalists in the Web3 industry. Although still in the testing phase (testnet), Monad has quickly been evaluated by experts as one of the "heavyweight candidates" for the position of the next Ethereum Killer - that is, a blockchain that can surpass Ethereum in performance while still maintaining a familiar experience for users and developers.

The biggest difference between Monad and the new generation of Layer 1 like Sui or Aptos is: Monad does not invent a new language like Move, nor does it change the entire blockchain model. Instead, Monad keeps the Ethereum ecosystem intact, using Solidity as the main language, fully EVM compatible, but optimizes the entire infrastructure to increase processing speed by hundreds of times. Thanks to that, Monad aims to create a blockchain with the performance of Solana, but the experience and tools of Ethereum - as their manifesto states: "Bringing Solana performance in the Ethereum experience".

Although the mainnet has not been officially launched until early 2025, Monad has shown great attraction when successfully raising 225 million USD from leading investment funds such as Paradigm, Dragonfly Capital, Coinbase Ventures, Electric Capital, etc. This not only shows the project's technological potential, but also reflects the great expectations from investors for a blockchain that can create the next wave of innovation in the EVM space. With a solid foundation and strong backing, Monad is expected to become a new pillar in the increasingly fragmented and rapidly developing Web3 landscape.

5.2. Outstanding technology

Monad does not create a new language, but chooses to thoroughly optimize the Ethereum experience through breakthrough performance technologies:

✅ 1. MonadVM – New, extremely fast EVM Arm Virtual Machine

• Monad does not use the old EVM like Ethereum, but builds MonadVM - still 100% compatible but upgraded in speed, memory, CPU optimization.

• That is: Solidity still runs as normal, but runs much faster.

✅ 2. Pipelined Execution – Parallel Block processing

• Current blockchains usually have to process each Block sequentially: Block A is processed before Block B → time consuming.

• Monad processes multiple Block at the same time in a pipeline, like a “multi-level conveyor belt” → speeds up the entire system.

👉 This is a huge difference compared to current L1s.

✅ 3. Parallel Transaction Execution – Transactions run in parallel

• Like Aptos or Sui, Monad also allows running multiple transactions at the same time without conflicts → reducing congestion and increasing actual TPS.

📌 Monad will be a standalone Layer 1 , not Layer 2 or Rollup, but will provide an experience similar to Ethereum → extremely convenient for onboarding developers and existing users.

5.4. Monad Ecosystem: In Formation

Currently, Monad is building and developing its own ecosystem with outstanding projects in each area as follows:

• DeFi: Ambient, iZUMi Finance, Aori,...

• Infrastructure: LayerZero, Wormhole, Pyth Network,...

• Non-Fungible Token: Monadians, Blocknads, Poply,...