Berachain — Bera Village Tour

This article does not cover the basics of Berachain. If you're new to Berachain, we recommend reading "Berachain — The Bear that Captures Both Liquidity and Security" before proceeding with this article.

Please note that the protocol links included in this article may be deleted or modified after the mainnet launch, so please be cautious when accessing and using them.

1. Introduction

Berachain is a Layer 1 network featuring the PoL (Proof of Liquidity) consensus mechanism that aligns the interests of validators, liquidity providers, and protocols. Currently, it's operating its second testnet, 'bArtio Testnet,' which addresses limitations identified in the first testnet.

The bArtio Testnet has unveiled testnet versions of numerous ecosystem protocols. As of January 2nd, the Berachain Ecosystem website showcases 234 protocols, and the cumulative number of wallets participating in the bArtio Testnet to test these protocols and engage in Berachain's PoL mechanism has surpassed 2.38 million, demonstrating intense market interest in Berachain and its ecosystem even at the testnet stage.

Smokey The Bera, Berachain's founder who has been promoting "Q5 mainnet launch" as a meme since late 2024, recently hinted through an X post introducing Boyco that "Q5 will come much sooner than April," suggesting an imminent mainnet launch. This has attracted not only existing Berachain users but also many new users to the ecosystem.

However, Berachain's ecosystem protocols fundamentally require participants to understand the PoL mechanism, and the complex financial products emerging from inter-protocol collaborations to gain advantages in the PoL mechanism even before mainnet launch pose significant entry barriers for new users.

This article aims to lower these entry barriers by examining the Berachain ecosystem by sector, highlighting protocols and projects positioned to become key ecosystem players, and detailing how each protocol utilizes the PoL mechanism.

2. DEX

Berachain features a native DEX called BEX (which will launch as BeraSwap on mainnet) that will launch alongside the network to enable smooth liquidity trading within the ecosystem and ensure efficient operation of the PoL mechanism. Given BEX's presence, other DEXs preparing to launch on Berachain are developing strategies to attract users and liquidity by offering their own unique efficient and convenient services.

2.1. Kodiak

Kodiak is a DEX that emerged from Berachain's incubation program 'Build a Bera'. Like Uniswap v3, Kodiak offers CLAMM (Concentrated Liquidity Automated Market Maker) functionality that allows liquidity providers to set and concentrate liquidity within specific ranges.

Users can farm $BGT more efficiently relative to their provided liquidity by supplying liquidity to narrow ranges through CLAMM pools. Additionally, Kodiak offers an Island feature that executes automated CLAMM range resets and rebalancing, reducing the hassle of managing liquidity provision positions. When performing rebalancing, it utilizes BeraSwap, establishing a complementary rather than competitive relationship.

Furthermore, while CLAMM liquidity provision position tokens are typically difficult for other protocols to utilize due to the customizable nature of liquidity ranges, Kodiak standardizes users' CLAMM liquidity provision positions through the Island feature, enabling their use in other protocols and facilitating more flexible ecosystem plays.

Kodiak has already established itself as a core infrastructure by partnering with many projects in the Berachain ecosystem before mainnet launch. It also operates its own Berachain node as a validator, and as of January 3rd, it has received the second-highest amount of BGT delegation in the bArtio Testnet.

2.2. Honeypot Finance

Honeypot Finance is a protocol that supports all aspects of a token's lifecycle, from issuance to liquidity provision and efficient trading, consisting of the following sub-protocols:

• Henlo DEX: A DEX specializing in protecting users from MEV attacks by offering limit orders and Batch-A2MM functionality that collects users' orders over a specific period and executes them at the same price
• Dreampad: A launchpad protocol that provides incubation and funding opportunities to promising projects preparing to launch on Berachain while ensuring fair token launch and distribution to users
• Pot2Pump: A meme coin launchpad offering safer meme coin launching and trading environments with features like bot sniping prevention and refunds to participating users if the 24-hour fundraising target isn't met

Like Kodiak, Honeypot Finance also plans to operate as a validator after mainnet launch, offering its governance token $HPOT as delegation incentives to users who delegate $BGT.

Furthermore, Honeypot Finance strengthens $HPOT's liquidity by using the accumulated $BGT to emit to $HPOT liquidity pools. It also boosts token value by purchasing and burning $HPOT with node operation revenues, preserving the value of incentives paid to $BGT delegators and further solidifying $HPOT's liquidity.

In addition to Kodiak and Honeypot Finance mentioned above, protocols offering efficient and convenient asset trading features are preparing for Berachain mainnet launch, including BurrBear which supports capital-efficient trading by pooling three or more synthetic asset tokens maintaining similar prices to specific underlying assets (similar to Curve Finance), liquidity aggregator OogaBooga, and cross-chain abstraction swap protocol Shogun.

3. Liquid Staking

In typical Proof-of-Stake (PoS) networks, network rewards are distributed to validators who stake a certain amount of native tokens and operate nodes. Therefore, without a native token delegation structure in the network itself, general users who don't operate nodes cannot receive network rewards.

In response, Liquid Staking Protocols receive native token deposits, delegate node operation, and distribute rewards, providing convenient accessibility to network staking. They also issue liquid tokens to depositors proving ownership of staked native tokens, enhancing ecosystem liquidity. Through these functions, they have recently emerged as core infrastructure in PoS-based networks.

While Berachain requires 250,000 $BERA for node operation on mainnet, it also has a structure where liquidity providers receive $BGT as network rewards along with interest on their liquidity when they supply liquidity to ecosystem protocols and deposit their received liquidity tokens into Berachain. Therefore, although the method and order may differ, it can be seen that the functionality of a liquid staking protocol is essentially built into the network itself.

However, in Berachain, existing protocols can only bootstrap liquidity pools by either negotiating with validators to provide incentives and receive votes, or by operating their own nodes to build self-sustaining flywheels, as demonstrated by Kodiak and Honeypot Finance.

In this context, Berachain's liquid staking protocols provide functionality to liquidize $BGT, which represents voting rights for emission pools. This allows Berachain ecosystem protocols to incorporate liquidized $BGT into their protocol mechanisms without negotiating with validators or operating nodes. In other words, it enables ecosystem protocols to more easily adopt structures that tightly integrate the PoL mechanism.

3.1. Infrared

Infrared is a liquid staking protocol incubated through Berachain's 'Build a Bera' program alongside Kodiak.

Infrared operates vaults that can accept LP tokens from liquidity pools generating $BGT emissions while simultaneously running network nodes. When users deposit LP tokens into these vaults, Infrared uses them to generate $BGT, and users can claim $iBGT (liquidized $BGT) proportional to their deposited LP tokens.

Users can utilize their received $iBGT in the following ways:

• Stake in Infrared to receive incentives generated by the node
• Utilize in other DeFi protocols
• Sell to realize profits

Thus, Infrared makes previously unutilizable $BGT liquid and usable, adopting a structure that concentrates and distributes incentives generated from the PoL mechanism to a smaller number of $iBGT stakers. It also helps other protocols in the Berachain ecosystem incorporate $iBGT into their protocol mechanisms, allowing them to offer higher yields to their users. Furthermore, it plans to launch functionality that receives and liquidizes $BERA required for node operation while executing node operation and sharing generated profits.

A prime example of effectively utilizing Infrared's functionality is Kodiak's Island pool, which we introduced in the DEX sector. After mainnet launch, Infrared plans to launch Kodiak's Island pool vault (already operational in testnet), enabling users to conduct more efficient $iBGT farming using Kodiak's CLAMM, and then either restake the received $iBGT in Infrared or redeposit it in Kodiak's $iBGT/$BERA Island pool for additional $iBGT farming, among other efficient ecosystem plays.

Based on this protocol interconnectivity and provision of efficient ecosystem plays, Infrared has gained user attention and currently receives the most $BGT delegation in the bArtio Testnet. Moreover, numerous ecosystem projects have already partnered with Infrared and plan to launch various derivative products, suggesting it will establish itself as the most crucial infrastructure after mainnet launch.

Meanwhile, clear details about how Infrared will select pools for $BGT emissions using delegated $BGT have not yet been disclosed. Therefore, it's important to closely monitor whether Infrared will implement this process in a decentralized manner, and if so, to whom it will provide voting rights for its held $BGT.

3.2. BeraPaw

BeraPaw is a liquid staking protocol that operates vaults between various validators and liquidity pools registered with BeraPaw without running its own nodes, issuing $LBGT as a $BGT liquidization token.

BeraPaw has a governance token called $PAW, which users can stake to vote on which liquidity pools should receive $BGT emissions using BeraPaw's held $BGT. The incentive revenue generated from $BGT deposited by node operators through this method is distributed to $LBGT holders.

BeraPaw has thus adopted a structure that separates the two utilities of $BGT tokens - 1)receiving incentives and 2)voting for $BGT emission pools - into two tokens: $LBGT and $PAW. Through this structure, users and protocols utilizing the $PAW token for $BGT emission pool voting can exercise more voting rights with relatively less capital. In particular, protocols in the Berachain ecosystem seeking initial liquidity bootstrapping are expected to actively utilize $PAW to generate $BGT emissions for their liquidity pools.

We've now examined two liquid staking protocols preparing for official launch on Berachain. While these protocols make the ecosystem more complex by diversifying derivative products and enriching users' ecosystem strategies, in the Berachain network where validators' authority and position grow with more delegated $BGT, liquid staking protocols providing $BGT liquidization functionality will be adopted by many users and protocols to become core infrastructure.

4. Lending

Berachain has a native lending protocol BEND alongside BEX, which provides the following functions:

• Borrow $HONEY using $WBTC, $WETH as collateral
• Deposit $HONEY

Unlike typical lending protocols, BEND has two distinctive characteristics: 1)$HONEY cannot be used as collateral, and 2)$WBTC, $WETH deposits don't generate interest, but instead generate $BGT rewards when borrowing $HONEY against them.

Through this structure, BEND strengthens Berachain's triple tokenomics structure by generating base interest for $HONEY while enriching ecosystem liquidity by increasing borrowing demand through $BGT. Users can also execute $BGT leverage farming by repeatedly swapping borrowed $HONEY back to $WETH, $WBTC and depositing it in BEND.

Let's examine in detail the major lending protocols preparing to launch on Berachain and the functions they provide.

4.1. BeraBorrow

BeraBorrow is an over-collateralized stablecoin issuance protocol that mints $NECT stablecoins. It uniquely allows not only common assets like $BERA and $HONEY but also BEX and Berps LP tokens and Infrared's $iBGT as collateral assets. The $NECT minted against deposited assets can be deposited in BeraBorrow's Liquid Stability Pool, where depositors can receive borrowing fees and liquidation fees from $NECT borrowers, establishing a structure that supports basic demand for $NECT.

Additionally, BeraBorrow has a governance token called $POLLEN alongside $NECT, which serves as an incentive token in the following ways:

• Used as an incentive for acquiring $BGT emissions for the Liquid Stability Pool
• Encourages collateral deposits in liquidity pools with high $NECT debt
• Distributed as incentives to Liquid Stability Pool depositors

Beyond this basic structure, LP tokens deposited in BeraBorrow are automatically deposited in Infrared to generate $iBGT, which is then automatically re-deposited in Infrared to generate compound interest. Users can borrow $NECT to provide liquidity in other protocols, receive LP tokens, and redeposit these in BeraBorrow, enabling them to build leverage positions for the above ecosystem plays.

Furthermore, BeraBorrow plans to emit $BGT to the DEX liquidity pool for $NECT and $iBGT trading, strengthening $NECT's demand and market liquidity while providing high deposit yields to liquidity providers.

With demand supported in various ways, $NECT is expected to establish itself as a core native stablecoin in the Berachain ecosystem alongside $HONEY.

4.2. Gummi

Gummi is a lending protocol being incubated through Build a Bera, operating without oracles and allowing anyone to create lending pools permissionlessly. Using this structure, it plans to provide functionality for easily building leverage positions of up to 100x on any asset in the Berachain ecosystem with one click.

Even before mainnet launch, Gummi has partnered with core infrastructure protocols like Infrared and Kodiak, and plans to support leverage yield farming position functionality for various LP tokens from $iBGT and Kodiak.

Thus, unlike lending protocols in other networks that are primarily used for leverage and hedge positions on specific assets, Berachain's lending protocols can also amplify $BGT emissions from the PoL mechanism. Therefore, as more protocols launch on Berachain and the ecosystem diversifies, the utility and demand for lending protocols will increase together, establishing them as important ecosystem components.

5. Derivatives

Currently, various derivatives protocols utilizing the PoL mechanism in diverse ways are preparing to launch on Berachain. The basic infrastructure includes Berps, a native perpetual DEX that will be released by the Berachain team following the mainnet launch, alongside BEX and BEND.

In Berps, users can create 100x leverage positions on various assets using $HONEY, or deposit $HONEY to provide liquidity needed for traders' positions and receive trading fees, funding fees, and $BGT in return.

Through this structure, Berps assigns $HONEY a definite use case as the base asset in Berachain's native perpetual DEX, while also providing a simple but effective $BGT farming entry point for new users who find the PoL mechanism intimidating by enabling $BGT farming with single token $HONEY deposits. It is expected to become the most crucial protocol supporting Berachain's triple tokenomics.

Let's examine some distinctive derivatives protocols preparing to launch on Berachain.

5.1. SMILEE

SMILEE is an options protocol that enables creating hedging positions for DEX liquidity provision positions. Options created in SMILEE have a structure that generates more profit with higher price volatility, creating exactly the opposite effect of impermanent loss, where liquidity providers incur greater losses with higher volatility.

Users must pay a certain premium to create option positions in SMILEE, and three types of option positions are available:

• Bull: Bet on significant price increase volatility until expiry
• Bear: Bet on significant price decrease volatility until expiry
• Smile: Bet on significant upward or downward volatility until expiry

In addition to such options trading, users can provide liquidity for option positions created by options traders and receive premiums paid by traders. While liquidity providers are exposed to impermanent loss equivalent to traders' profits, similar to providing liquidity to DEXs, SMILEE offers functionality to reduce liquidity providers' impermanent loss by real-time rebalancing of liquidity provision positions whenever options trades occur.

Berachain network protocols are expected to mainly create liquidity pools on DEXs, including the native dapp BeraSwap, to enhance their token liquidity and generate $BGT emissions for these pools. In this environment, SMILEE is expected to be widely adopted by liquidity providers and protocols farming $BGT as a hedging tool for LP positions. Furthermore, if SMILEE's option positions start receiving $BGT emissions in the future, SMILEE's position in the Berachain ecosystem will become even more solid.

5.2. Exponents

Exponents is a derivatives protocol enabling liquidation-free leverage positions on all ecosystem assets, built using their self-developed inverse asset issuance protocol called IBC (Inverse Bonding Curves).

IBC adopts inverse bonding curves, the opposite concept of bonding curves, a price discovery mechanism recently adopted by many meme coin launchpad protocols like Pump.fun. While traditional bonding curves implement price increases by reducing the amount of desired assets as more collateral assets are deposited in the liquidity pool, IBC can implement inverse assets where prices decrease even with increased demand by increasing the amount of receivable assets as more collateral assets are deposited.

Exponents uses the IBC mechanism to enable long/short positions on all assets without oracles, and aims to provide liquidation-free leverage positions by making the bonding curve slope steeper by adjusting IBC mechanism parameters.

Additionally, IBC includes functionality for staking issued synthetic assets in the protocol and sharing protocol-generated profits. When combined with Berachain's PoL mechanism, this allows distributing $BGT emissions as incentives to users who stake assets issued through IBC. In other words, it enables aggressive ecosystem plays by using $BGT as an incentive to encourage users to create short positions on competing protocol tokens.

Beyond SMILEE and Exponents discussed above, various derivatives protocols are preparing to launch on Berachain, including IVX offering 0-DTE functionality for high leverage positions with short expiration at low cost, and Polarity Finance providing loans with options as collateral. Each takes more diverse and sophisticated forms than derivatives in other network ecosystems, either complementing Berachain's PoL mechanism or utilizing it to highlight their unique advantages.

6. Others

So far, we've examined how protocols functioning as basic infrastructure in recent blockchain ecosystems - DEX, liquid staking, lending, and derivatives protocols - highlight their unique advantages and utilize the PoL mechanism in Berachain.

However, beyond the DeFi sectors and protocols introduced so far, various types of projects are preparing to launch on Berachain. These either adopt Berachain-specific structures by actively utilizing the PoL mechanism, achieve high synergy with ecosystem protocols without direct mechanism utilization, or present concepts that align well with Berachain's cultural code, each attracting user interest and attention through their unique characteristics.

Let's examine in detail some notable protocols preparing to launch on Berachain with these characteristics.

6.1. Goldilocks

Goldilocks is a DAO and platform developing Berachain-specific DeFi infrastructure, consisting of the following sub-protocols:

• Goldiswap: Comprises FSL pools (Floor Supporting Liquidity Pool) guaranteeing a minimum floor price for Goldilocks' governance token $LOCKS, and PSL pools (Price Supporting Liquidity Pool) for exchanging $HONEY and $LOCKS. The structure continuously increases $LOCKS' floor price using fees generated from $LOCKS trading in PSL pools. Users receive $PORRIDGE as rewards for staking $LOCKS, which grants rights to purchase $LOCKS at floor price, and can borrow $HONEY using staked $LOCKS as collateral.

• Goldilend: NFT-collateralized lending protocol for Berachain ecosystem NFTs.
• Goldivaults: Utilizes assets deposited in time-locked vaults in Berachain ecosystem DeFi protocols to generate interest. Depositors receive OT (Ownership token) granting rights to claim the principal at maturity and YT (Yield Token) granting rights to claim generated interest. This enables trading of future interest earnings, providing functionality similar to Ethereum's Pendle Finance. (For detailed information about this functionality, please refer to the article "Pendle Finance — Discovering Unexplored Trading Market").

Thus, Goldilocks provides Berachain-optimized services like NFT-collateralized lending and interest trading functionalities in the Berachain ecosystem, where protocol-issued NFTs and liquidity provision play more important roles compared to other networks. Furthermore, it's expected to secure more users and liquidity progressively through its self-token with a gradually increasing price structure and lending services utilizing this token.

Meanwhile, Pendle Finance has emerged as a core DeFi protocol adopted by major protocols in the current Ethereum ecosystem for boosting their airdrop campaigns by distributing protocol points for liquidity deposits through YT. Similarly, it will be interesting to see if Goldilocks can achieve a dominant position in Berachain by creating various types of Goldivaults through collaboration with multiple protocols preparing token launches in the Berachain ecosystem.

6.2. Beradrome

Beradrome is a protocol that pools users' liquidity tokens and distributes profits generated along with incentives negotiated through collaborations with other protocols to users. It employs the following three native tokens to create a structure where user profits generated in Beradrome are reinternalized into the protocol:

• $oBERO: Token rewarded to users who deposit liquidity tokens in Beradrome. By burning $oBERO, users can either gain voting rights for $oBERA reward emission rates in liquidity pools or deposit $HONEY equivalent to the burned $oBERO amount in Beradrome to mint and receive $BERO.
• $BERO: Beradrome's main token. Always maintains value above 1 $HONEY due to its structure allowing receipt of $HONEY deposited during minting when burned along with $oBERO.
• $hiBERO: Beradrome's governance token receivable by staking $BERO. Can vote on which liquidity pools should receive $oBERO emissions using Beradrome's held $BGT, and can receive protocol-generated profits. Also enables borrowing $HONEY up to the amount of staked $hiBERO as collateral.

Thus, Beradrome encourages the reinternalization of incentives generated within the protocol through its $BERO minting mechanism using $oBERO, which maintains $BERO and $hiBERO prices above $1 while providing liquidation-free borrowing opportunities against $HONEY deposited during $BERO minting to $hiBERO holders. This continuously attracts and internalizes external liquidity, encouraging more protocols to bootstrap liquidity through Beradrome and establishing a self-sustaining flywheel that redistributes their provided incentives back to users.

Additionally, Beradrome plans to operate its own node to obtain $BGT emission rights by receiving external $BGT delegation, separate from its protocol operation mechanism, and emit $BGT to the $hiBERO staking pool. If this plan succeeds in the future, $hiBERO holders will be able to receive both Beradrome's profits and $BGT emissions, potentially attracting more liquidity to the Beradrome ecosystem.

6.3. Yeet

Yeet is an on-chain betting game protocol using $BERA. Anyone can participate in the game by betting $BERA (approximately 0.5% higher than the previous depositor's $BERA) in Yeet's liquidity pool during the set game time, and the last user to deposit $BERA takes 80% of the total $BERA deposited in that liquidity pool.

Even if users don't win the game, they can receive Yeet's native token $YEET as a reward proportional to their bet amount, and users can stake their received $YEET in Yeet's Liquidity Trifecta Vault to earn staking interest.

The Liquidity Trifecta Vault also receives 9% of the $BERA that users deposit in the game's liquidity pool alongside users' staked $YEET. The vault maximizes interest paid to stakers by providing liquidity to Kodiak using the deposited assets and then redepositing the liquidity tokens received from Kodiak into Beradrome.

Additionally, Yeet plans to launch YeetBond functionality that sells bonds allowing users to claim specific tokens at a discounted price from market price at maturity. In Berachain, where various methods exist to create future value using liquidity, YeetBond offering this functionality is expected to be actively utilized by various protocols as a means to secure liquidity.

Thus, Yeet, which plans to provide both "fun features" and "efficient features" optimized for Berachain, is building a solid community from the testnet stage centered around its unique cheerful and humorous memes, including Yeetard NFT with $YEET reward boosting functionality.

6.4. Ramen

Ramen is a launchpad protocol, similar to Honeypot Finance's Dreampad, helping new protocols preparing to launch on Berachain promote their protocols and securely raise funds through fair token sales. It supports two types of launchpad methods:

• Fixed Price Mode: Method to purchase tokens at a fixed price. Users must either register on the whitelist to participate in the launchpad or secure Gacha tickets by staking Ramen's native token $RAMEN and consume these tickets to win in the draw
• Price Discovery Mode: Unlike fixed price mode, anyone can participate. Users who wish to purchase deposit assets equivalent to their desired token price * quantity for blind bidding to determine the settlement price. The right to purchase tokens at the settlement price is granted starting from users who submitted the highest bids

In addition to launchpad functionality, Ramen plans to introduce Airdrop Recipes functionality that allows easy setting and execution of token airdrop criteria. By providing all necessary functions from token launch to sale and distribution, Ramen is expected to establish itself as core infrastructure adopted by many new projects from Berachain's mainnet launch.

However, for Ramen to maintain consistent user interest, it has a somewhat protocol-dependent characteristic where projects that sold tokens through Ramen need to operate successfully and provide profits to token purchasers. Therefore, it will be necessary to continuously observe the long-term growth of projects conducting token sales through Ramen, as well as whether promising projects choose to utilize the Ramen launchpad.

6.5. PuffPaw

PuffPaw is a Vape 2 Earn project where users can mine tokens by vaping e-cigarettes. It measures users' vaping activity through self-produced vaping devices and liquid cartridges, distributing $VAPE tokens with higher rewards for vaping liquids with lower nicotine content to encourage smoking cessation.

Additionally, through its Leasing-Borrowing program, users who don't wish to smoke but want to participate in the project can lend devices to users who couldn't purchase devices and share profits, creating a structure that can attract and accommodate Berachain ecosystem users regardless of their smoking status.

In December 2023, PuffPaw successfully sold out its PUFF PASS NFT sale, which serves as a project participation ticket, and plans to strengthen its image as a vape brand and expand its ecosystem through additional device sales. Furthermore, it plans to generate additional revenue by collecting and providing user device usage data to entities like AI companies and insurance companies, supporting the value of $VAPE provided as incentives through this revenue, and also plans to establish methods to generate additional revenue for $VAPE holders using the PoL mechanism.

Up to this point, we've examined representative protocols preparing to launch on Berachain, each with their unique advantages. Additionally, although not covered in detail in this article, various projects that can be enjoyed without understanding liquidity mechanisms, like Yeet games and PuffPaw, are preparing to launch on Berachain:

• Beratone: Life simulation, role-playing game
• Junky Ursas: GambleFi platform
• Fable: Decentralized media/game platform
• Onikuma: On-chain SocialFi platform

Moreover, various vault/on-chain fund protocols like Dirac Finance, NAV, and D2 are scheduled to launch, simplifying various DeFi strategies in the Berachain ecosystem that became difficult for new users to understand and utilize as protocol functions combined, helping with convenient risk management and profit generation.

The above-mentioned protocols are expected to not only enrich Berachain's ecosystem liquidity by encouraging more user inflow to the Berachain network but also significantly contribute to activating the Berachain network.

7. Community

Most Berachain ecosystem protocols adopt structures that make it easy to secure liquidity by offering high yields to users providing liquidity to actively utilize the PoL mechanism, and they're adopting approaches of building communities using NFTs and memes as means to further strengthen and expand these structures.

Meanwhile, due to the PoL mechanism where holding more $BGT and liquidity in the ecosystem leads to higher negotiation authority and resulting incentives in the network, there are also movements aiming to generate and distribute profits subsequently by forming communities through NFTs and memes and building reputation and position through various community activities, even without providing specific functions as protocols.

7.1. The Honey JAR

The Honey Jar is a community united around the core philosophy of building sticky liquidity through community-driven flywheels, which developed around an NFT called Honeycomb in 2023.

The Honey Jar community has expanded similarly to how Berachain grew, by issuing and distributing derivative NFT series of Honeycomb to holders. Based on the expanded community, it has strengthened its position by partnering with various projects being developed within Berachain and providing various benefits from these projects to NFT holders.

Subsequently, it creates various Berachain-related educational materials and provides various services helpful to users newly entering the Berachain ecosystem, such as testnet faucets. Furthermore, it functions as a venture studio in the Berachain ecosystem by incubating S&P(Standard & Paws), a community-based evaluation service assessing the credibility of projects in the Berachain ecosystem, and Bera Infinity, a platform measuring and rewarding contributions to the Berachain ecosystem.

According to Honey Jar's Ecosystem Explorer, as of January 11th, there are 89 projects that Honey Jar is directly involved with or has partnerships with, establishing itself as the most influential core community in the current Berachain ecosystem. Additionally, users holding Honeycomb NFTs are scheduled to receive whitelists for NFT minting and token airdrops from many collaborating and involved projects, making Honeycomb NFT maintain the highest floor price of 0.6 ETH among Berachain ecosystem NFTs excluding Bong Bears and rebase NFTs.

In the current bArtio Testnet, the node operated by Honey Jar receives the third-most $BGT delegation after nodes operated by Infrared and Kodiak. Looking at community-based node validators, we can see that community-based node validators like Beraland, which provides Berachain-related information through event aggregators and podcasts introducing ecosystem protocols, and TTT, which provides educational materials for Vietnamese users and operates validator services, receive the next most $BGT delegation after Honey Jar.

This suggests that the methodology of gaining advantages in the PoL mechanism based on community is working well as a useful strategy in the current Berachain ecosystem.

8. Conclusion

We've examined how even basic infrastructure protocols like DEXes, liquid staking, and lending protocols in the Berachain ecosystem combine their functionalities to create complex financial services. We've also looked at ecosystem examples that attract user interest and liquidity by simultaneously providing 'high yields' and 'entertainment' through Berachain's PoL mechanism and unique community culture code.

Meanwhile, suggesting that the mainnet launch is imminent, Berachain has announced Boyco and RFA (Request for Application), RFC (Request for Community) programs for efficient $BERA token distribution and initial ecosystem liquidity bootstrapping, and continues to update related news.

• Boyco: A pre-launch liquidity acquisition platform that enables protocols planning to launch on Berachain to transparently negotiate liquidity and future rewards with liquidity providers before protocol launch
• RFA (Request for Application), RFC (Request for Community): Programs that allocate $BERA tokens after mainnet launch to entities who have contributed to Berachain through active protocol development or community building. Selected RFA and RFC recipients are expected to use these allocations to continue protocol development and activities on mainnet, and distribute directly to ecosystem users, aiming to promote initial ecosystem network activity and liquidity bootstrapping

Through these programs, Berachain mainnet is expected to show steep growth from its initial launch, and users planning to participate in the early ecosystem should develop their ecosystem strategy by paying close attention to the movements of RFA and RFC recipients.

Currently, Pre-Boyco vaults operated by protocols like Stakestone, Ether.fi, and Ethena, along with Boyco vaults that launched on January 28th, have been allocated 2% of the initial $BERA token supply. As of January 31st, these vaults have accumulated deposits totaling $2.35B, and if this liquidity is utilized directly by ecosystem protocols after mainnet launch, the Berachain network would have a higher TVL than the Sui network, which currently ranks 8th in TVL.

As the Boyco program approaches its closing date of February 3rd, the total TVL is expected to increase further as users seek to deposit funds in high-yield vaults during the final days. Moreover, considering that Berachain has a PoL structure that encourages liquidity inflow and recirculates generated profits back into the network, the network's TVL after mainnet launch is expected to grow significantly larger than this.

However, we cannot definitively say that Berachain's network incentive structure prioritizing the ecosystem, and attempts to strengthen this through Boyco and RFA/RFC, perfectly guarantee the network's long-term sustainability. Nevertheless, Berachain's successful ecosystem building case, forming diverse protocols and solid communities rarely seen in existing blockchain networks based on these methods even before official launch, will certainly serve as an important reference case for future networks.