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.
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.
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 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.
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.
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
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 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 staking@chorus.one to get started or to learn more.
To read more about Berachain, we recommend the official documentation available in docs.berachain.com.
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.
Welcome back to the another edition of the (Re)staking Synopsis, your go-to source for the latest in Ethereum staking, presented by Chorus One.
Cutting right to the chase: EigenLayer now holds the second spot in Total Value Locked (TVL) for a protocol, boasting over $12.8 billion USD (~3.6 million ETH) restaked. Impressively, nearly 2 million ETH has been natively restaked via EigenPods, marking a significant surge in restaking activity.
Additionally, the EigenLayer and EigenDA Holesky Testnet is live and thriving, with a staggering total of 157,433.0897 ETH already restaked! After a seamless testing phase on Goerli, we're thrilled to support this new phase as we progress towards Mainnet operations.
With a meticulously crafted AVS strategy, we prioritize the safety of the funds delegated to Chorus One. Learn more about restaking with Chorus One: https://forum.eigenlayer.xyz/t/operators-mainnet-campaign/12828/145?u=chorusone
Without any further ado, let’s dive in.
(Source: Dune Analytics)
OPUS Dedicated enables you to set up dedicated ETH validators, and directly restake your staked ETH with EigenLayer in a few clicks.
Note: At present, you can only deposit your staked ETH into EigenLayer; the option to delegate to Chorus One will be possible upon the EigenLayer Mainnet.
We will notify you once the delegation feature on EigenLayer becomes operational, indicating that it's time to delegate your restaked ETH. At that point, you will be able to delegate to Chorus One with just a few clicks.
How to restake ETH with EigenLayer
OPUS Pool enables you to stake any amount of ETH, mint osETH, and restake a variety of LST’s including osETH, cbETH, stETH, and more directly with EigenLayer in a just a few clicks.
Note: Restaking LSTs with EigenLayer is currently on hold and will resume once the deposit cap is raised. In the meantime, you are welcome to use OPUS Pool to stake any amount of ETH and mint osETH.
Visit OPUS Pool
How to Stake ETH and mint osETH
Read it here.
MEV-Boost targets the highest bid for Ethereum block space. However, a glitch arises when blocks include withdrawals, distorting the MEV valuation and making some bids appear more valuable than they really are, leading to losses for proposers.
Beyond individual losses, this issue has wider implications for the Ethereum ecosystem, inflating proposers' profits, cutting down overall transactions and gas usage, and consequently, decreasing ETH burning.
Our research team analysed the full impact of this bug, originally published on ETHResearch.
We explore how Ethereum's resilience is shaped by client diversity, offering an in-depth analysis of two of its most prominent Consensus Layer (CL) clients: Lighthouse and Teku.
Read it here.
If you’re interested in staking/restaking with Chorus One, or learning more, simply reach out to us at info@chorus.one and we’ll be happy to get back to you!
Additionally, if you’d like us to share further resources on any topic, please let us know!
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.
Imagine a world where online interactions don't come at the cost of your privacy. Where you can participate, transact, and share data on your own terms, shrouded in a cloak of cryptography. This is the future envisioned by Aleo, a revolutionary blockchain project that throws open the doors to a privacy-centric internet. Let's delve into Aleo, exploring its technology, participants, and the diverse ecosystem it cultivates.
At its core, Aleo is a layer-1 blockchain that leverages zero-knowledge proofs (ZKPs) to unlock unprecedented possibilities for private applications. ZKPs allow users to prove the legitimacy of information without revealing the underlying data itself. This translates to applications where users can participate, interact, and share data confidently, with their privacy remaining more sacred.
Credit: A credit is the native asset of the network. It is used to pay for deployment and execution fees of zero-knowledge programs. Credits can also be staked on the network as a form of governance to protect the integrity and security of the protocol.
Microcredit: A microcredit is a subdivision of the native asset (credit). One credit can be further divided into smaller units, and a microcredit is one millionth of a credit.
Prover: A prover is a node on the network that computes zero-knowledge proofs. These proofs, which can be of two types (solutions and transactions), are crucial for validating and securing transactions and activities on the network.
Solutions: In the context of zero-knowledge proofs, a solution attests to the execution of a randomly-sampled Aleo program. When a prover successfully proves the execution, a reward is distributed to both the prover and the stakers on the network.
Transactions: Transactions attest to the execution of user-deployed Aleo programs. When a prover provides a valid transaction proof, a transaction fee is rewarded and distributed to the network.
Stakers: These individuals contribute to the network's security by locking up their Aleo credits (ALEO), earning rewards in return.
Validators: Similar to traditional blockchains, validators verify transactions and secure the network, ensuring its integrity and preventing fraud.
The robust architecture of Aleo rests on three key pillars:
AleoBFT is a DAG-based BFT protocol inspired by Narwhal and Bullshark. Validators propose batches of transmissions, await 2ƒ + 1 signatures, certify the batch, and advance rounds synchronously for an honest majority. In odd rounds, validators elect a leader for the previous even round, ensuring availability thresholds are met. This process ensures all validators advance together, assuming honesty.
Here’s how the Quorum for Block Production in Even Rounds is achieved:
The native token of the Aleo ecosystem, Aleo credits (ALEO), serve multiple purposes:
How Aleo Credits are distributed:
AleoBFT operates over a simple set of data structures - a committee, batch proposal, and block. Let’s understand these one-by-one:
Committee:
Batch Proposal: In each round, every committee member suggests a batch to certify, using batch proposals to communicate and maintain agreement on the DAG's status. Each batch proposal contains a Batch ID, Batch Header and a Batch Certificate.
Block: A block is created when the commit rule is activated in AleoBFT. It includes a block header, a sequence of batch certificates, ratifications, solutions, transactions, and a list of aborted transmission IDs.
The true mark of a successful blockchain lies in its ability to foster a vibrant community and diverse applications. Aleo boasts a rapidly growing ecosystem with projects already exploring its potential across various domains:
Talking about recent updates - Aleo is now considered as one of the top 5 fastest-growing ecosystems for overall developers. Also, Aleo has completed the security audits of snarkOS & snarkVM, which was performed by Trail of Bits.
Aleo worked hard to make the technical details of the project easier to understand. They've simplified and explained the main basics in a straightforward way. For example:
As a validator and staking infrastructure provider, Chorus One is deeply impressed by Aleo's groundbreaking approach to privacy in the blockchain space. The potential to unlock entirely new use cases and empower individuals with greater control over their data resonates deeply with our mission to build a more inclusive and accessible crypto ecosystem.
We're particularly excited about the unique technology stack, including snarkOS and snarkVM, which pave the way for scalable and efficient privacy-preserving applications. We believe Aleo has the potential to significantly impact various industries, from DeFi and healthcare to supply chain management, and Chorus One is proud to be a part of this journey. We are looking forward to actively contributing to the network's security and growth through staking infrastructure and look forward to witnessing Aleo's continued development and the exciting applications it enables.
Website: https://aleo.org/
Twitter: https://twitter.com/AleoHQ
Youtube: https://www.youtube.com/@AleoLabs/featured
Github: https://github.com/AleoHQ
Discord: https://discord.gg/aleo
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.
As Ethereum restaking gains momentum, we wanted to take a moment to enumerate some of the risks that you as a user might be exposed to when choosing to restake your tokens. While restaking’s innovative consent can offer benefits to Ethereum staking, like generating more value for your staked tokens, it is also important to think clearly and consider some of these potential risks:
Slashing
As with any staking activity on Ethereum, your pledged ETH is subjected to networks rules that can result in the partial or total loss of your tokens, in the case of proven malicious activity that targets the network. Although slashing is a relatively rare occurrence (and has never happened to any of Chorus One’s validators), it is still the biggest risk you might be subjected to. When users are able to delegate tokens, they would be susceptible to slashing penalties from both Ethereum and Actively Validated Services (AVS's).
Smart contract risk
A more common source of risk is related to the smart contracts that govern the protocols and services on Ethereum, as they are susceptible to bugs on their code that can be exploited, as well as unexpected behavior under untested conditions. Projects built on Eigenlayer (like our OPUS 'Pool' restaking fuctions) ultimately secure their funds within the contracts of Eigenlayer. In the event of an attack on the Eigenlayer contract, the funds of associated projects may be jeopardized. This would be true as well of the code associated with different AVSs.
Eigenlayer has been audited twice in the past, a first audit done by Consensys Diligence, and a second audit done by Sigma Prime. You can read more about the auditing process here: https://docs.eigenlayer.xyz/eigenlayer/security/audits
Additional risks
Although the first two would be the most definitive scenarios that could have a direct effect on your restaked assets, there’s another suite of known (and possible unknown) risks that can be linked to this new technology:
Chorus One puts a premium on the security of all its users, recognizing its paramount importance in fostering trust and peace of mind. Through our comprehensive security framework, we ensure that your investments are well-protected: both, in our OPUS Pool and OPUS Dedicated products, in our underlying infrastructure, and at every step when deciding to onboard a network or protocol.
ISO 27001:2022 Certification
Chorus One adheres to stringent regulatory requirements, safeguarding your assets in accordance with data protection and privacy laws. In October 2023, we attained the coveted ISO 27001:2022 certification ensuring world-class security for all our customers.
Resilient infrastructure
We guarantee our high-quality of service with minimal disruptions, due to a strategic combination of multiple availability zones for our infrastructure; and network security procedures such as stringent access control, encrypted connections, firewall fortifications and security configurations. Our team is trained and provided with security awareness workshops to ensure our best line of defense.
Careful research process
Our dedicated research team conducts in depth due diligence on all the networks and protocols we onboard, to understand any potential risks we can be exposed to when participating on the systems. We go above and beyond to build a more security-minded ecosystem and to promote professional standards in the industry.
Learn more about Chorus One’s commitment to security here: https://security.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.
