Author: 1912212.eth, Foresight News
On March 25, BeraChain officially launched Proof of Liquidity (POL), with its token price rising from around $5 to $8.6, standing out in the generally bearish mainstream cryptocurrency market. After entering the governance stage, its ecosystem opportunities have begun to attract the attention of keen investors. Beraborrow officially launched its public offering today, with 2.5% of the total token supply of POLLEN to be provided through Fjord Foundry at a $42 million FDV, with Beraborrow planning to raise $1 million. Users can enter the Fjord Foundry page and participate according to the prompts.
As a decentralized lending protocol based on the BeraChain blockchain, Beraborrow has become one of the most notable DeFi projects on BeraChain since early 2025 with its unique interest-free loan model and innovative Proof of Liquidity (PoL) mechanism.
What is Beraborrow?
Beraborrow is a DeFi lending protocol on the BeraChain, aimed at providing users with efficient and flexible asset liquidity solutions. BeraChain itself is known for its unique PoL consensus mechanism, building a blockchain network focused on ecosystem prosperity by rewarding users who provide liquidity, rather than traditional Proof of Work (PoW) or Proof of Stake (PoS).
Beraborrow supports the stablecoin Nectar (NECT) through the Proof of Liquidity (PoL) mechanism, releasing instant liquidity of BeraChain assets. Beraborrow is designed with simplicity and flexibility at its core, aiming to provide users with maximized opportunities without sacrificing yield.
The protocol allows users to deposit collateral assets into Dens to mint over-collateralized stablecoin NECT. NECT can be used in the BeraChain DeFi ecosystem, unlocking more opportunities while maintaining exposure to the original assets. Initially, Beraborrow was primarily built around iBGT, but has now developed into a multi-collateral asset platform supporting BeraChain native tokens, liquid staking derivatives (LSD), and LP positions as collateral to mint NECT.
Core highlights are as follows
Instant Liquidity
Unlock liquidity without selling BeraChain assets. Users can deposit collateral into Dens, mint Beraborrow's over-collateralized stablecoin NECT, while still holding the original assets. After borrowing, NECT can be seamlessly used in various DeFi protocols.
Automatic Leverage
Using flash loans, Beraborrow provides users with seamless on-chain leverage. By simply adjusting the slider, users can expand exposure or maximize returns, with the system automatically managing the complexity of synthetic leverage through recursive borrowing.
Earn through Liquidation
Participate in the Liquid Stability Pool to fully realize the potential of NECT assets. Staking NECT earns liquidation rewards and fees from other users' operations on Beraborrow.
Auto-Compounding Dens
Dens now support auto-compounding, with users' earnings automatically reinvested into iBGT, gradually increasing the collateralization rate over time, creating a self-enhancing yield mechanism to maximize returns on deposited assets.
Tokenized Dens
Beraborrow unlocks new governance and incentive mechanisms through Dens tokenization. These tokenized assets can be deposited into the Infrared vault, with the vault's earnings automatically reinvested, providing users with continuous rewards and continuously optimizing collateral positions.
LP Positions as Collateral
Beraborrow allows users to use Bex and Berps LP positions as collateral, borrowing funds while still earning liquidity rewards. This dual-reward model allows liquidity providers to balance liquidity and returns, creating more value.
Arbitrage Strategies
Beraborrow's Liquid Stability Pool provides arbitrage opportunities. Users can use sNECT to arbitrage between the liquidation asset pool and decentralized exchanges, maximizing returns while enhancing the protocol's fund stability.
Tokenomics
On March 25, Beraborrow's private sale raised $170,000, and today will officially launch its public offering on Fjord Foundry. Beraborrow's governance token POLLEN has a total supply of 420 million, with POLLEN holders able to participate in key protocol decisions such as adjusting collateral types and protocol parameters. Currently, users can accumulate POLLEN points by using NECT in ecosystem activities (such as providing liquidity on Kodiak Finance or holding NECT), which can be exchanged for POLLEN tokens in the future. According to official data, Beraborrow's TVL has exceeded $390 million since launch, with NECT minting over $100 million.
It enables the protocol to capture value from "Proof of Liquidity" without creating separate reward vaults for each NECT (our stablecoin) use case.
More NECT use cases encourage more users to use Beraborrow for leveraged operations, thereby increasing overall interest rates and fees, with these revenue streams flowing to the BeraChain rewards vault of sPOLLEN, which is then used to incentivize liquidity and drive further ecosystem growth. This cycle repeats, forming a "flywheel effect".
37.4% of the token supply is allocated to the community, 31.6% to seed and strategic round investors, 18% to the team and advisors, 5% to the treasury, 5% to the liquidity pool, 2.5% to the public offering round, and 0.5% to the community round.
It's worth noting that the official has previously stated that after voting, 60% of protocol fees will be allocated to governance plans determined by vePOLLEN holders.
Summary
For a popular blockchain, the development of ecosystem infrastructure such as DEX and lending protocols is extremely important. If a representative project can be listed on a major exchange, it will have a positive effect on both the ecosystem and the blockchain itself. Investors should comprehensively consider market trends and project fundamentals when participating in ecosystem opportunities, and pay attention to risk control.
