Beyond Proof of Stake: How Berachain's Proof of Liquidity reimagines capital efficiency 🐻⛓

Chorus One
Chorus One
April 5, 2024
5 min read
April 5, 2024
5 min read

Chorus One is proud to be a validator on Berachain, a high-performance modular EVM compatible blockchain powered by Proof-of-Liquidity. In this article, we provide an overview of everything you need to know about Berachain, how it works and use cases. ‍

Berachain, currently in Testnet phase, is changing how DeFi users access liquidity, supercharging applications, and providing flexibility and adaptability to the thriving digital economy. It combines the capabilities of the Cosmos SDK and introduces its novel 'Proof of Liquidity' as well as their new modular implementation of the EVM called Polaris. This not only tackles current obstacles but also paves the way for fresh avenues of creativity and advancement within the DeFi industry.

A brief introduction to Berachain

Berachain is a DeFi-focused Layer 1 blockchain running on Proof of Liquidity consensus built on the Cosmos SDK. Berachain emphasizes modularity in its design approach. By incorporating Polaris, Berachain not only ensures EVM compatibility but also supports a modular framework that allows for easy separation of the EVM runtime layer and crafting stateful precompiles and unique modules enabling the creation of smarter and more effective contracts.

Berachain operates a tri-token system: BERA (native token of Berachain i.e gas), HONEY (stablecoin) and BGT (governance token). Berachain Blockchain also provides a user-friendly interface and a comprehensive array of tools for developers and builders to create and deploy their applications.

What is Proof of Liquidity(PoL)?

Proof of Liquidity is a concept introduced by the Berachain team that enables users to stake various tokens and delegate this stake to validators. Users can stake assets like BTC, ETH, L1 tokens wBTC, wAVAX, wETH, wADA, and stablecoins.

Proof of liquidity models seeks to address challenges in common decentralized systems like liquidity fragmentation and stake centralization. Though Proof of Liquidity builds on the concept of proof of stake, the token used for staking is no longer the same token used for many on-chain actions. Moreover, the sole way to acquire new governance tokens (BGT) is through providing  liquidity into DeFi applications.

Image source: Berachain Documentation

The concept behind PoL implies that users stake different tokens to enhance the chain's liquidity and bolster the Layer 1  security at the same time. This setup enables users to earn fees by contributing liquidity through staking while also receiving block rewards. Moreover, users have the option to mint HONEY by providing assets as collateral and utilize them within the Berachain ecosystem without constraints.

Berachain’s Modular EVM - Polaris

Berachain's EVM compatibility is derived from the Berachain Polaris EVM library, which enhances the EVM experience compared to the traditional Ethereum setup. Polaris Ethereum not only provides the standard Ethereum features but also empowers developers with the ability to design stateful precompiles and custom modules for crafting smarter and more robust contracts.

Polaris can be easily integrated into any consensus engine or application, including Cosmos-SDK. This modular approach streamlines the EVM integration process and reduces the time and overhead cost for developers to implement their own EVM features.

The Use Case of Berachain

For DeFi Users - Berachain BEX

BEX is Berachain’s decentralized exchange that allows users to add liquidity to an asset pool and receive trading fees and incentives.

BEX introduces the concept of House pools, which serve as the backbone of the exchange. These default pools hold significant importance as they generate BGT rewards, which could be staked later with validators to participate in governance.

BEX also introduces Metapools, a liquidity pool where LP tokens can then be used as part of an asset pair in another pool, helping to increase capital efficiency across the chain.

For Lenders - Bends

Berachain Bends allow users earn interest and rewards by supplying assets like (ETH, BTC, and USDC) and borrowing HONEY. On Bend users can deposit collaterals to contribute to the platform liquidity, earn BGT rewards by utilising and borrowing HONEY within the ecosystem.


Berps by Berachain (Perpetual Futures Contract Trading) provides users with endless trading opportunities with a wide array of asset access EVM and Cosmos.  It is liquidity efficient, robust and easy to use.

Chorus One’s role in the Berachain ecosystem

Chorus One will be providing staking services and contributing extensive knowledge in infrastructure development to the network. Our role as validators in the Berachain community symbolizes a collaborative effort aimed at delving into new horizons and enhancing the potential within this ecosystem.

Users providing liquidity in the BEX liquidity pools will gradually accumulate BGT, and can be used to create and vote on governance proposals such as proposals that decide on which LP pools receive BGT emissions.  BGT can also be burned 1:1 for BERA. This is a one-way function, BERA cannot be converted into BGT.

Reach out to to get started or to learn more.

To read more about Berachain, we recommend the official documentation available in

About Chorus One

Chorus One is one of the biggest institutional staking providers globally, operating infrastructure for 50+ Proof-of-Stake networks, including Ethereum, Cosmos, Solana, Avalanche, and Near, amongst others. Since 2018, we have been at the forefront of the PoS industry and now offer easy enterprise-grade staking solutions, industry-leading research, and also invest in some of the most cutting-edge protocols through Chorus Ventures. We are a team of over 50 passionate individuals spread throughout the globe who believe in the transformative power of blockchain technology.


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