Developers of the EVM-compatible Layer 1 blockchain Berachain have launched the public test network Artio.
Read our full announcement and blog post on today’s release:https://t.co/6nrgTs7fi7
— Berachain ?⛓⚛️ (@berachain) January 11, 2024
The protocol is built on the Cosmos SDK and employs the Proof-of-Liquidity (PoL) consensus algorithm. This variant of delegated PoS allows users to stake tokens while simultaneously providing liquidity for projects within the network.
“In PoL, the only way to contribute to network security is to first perform the ‘work’ of providing liquidity to a set of on-chain DeFi primitives—native DEX, derivatives exchange, and stablecoin lending platform,” the statement reads.
In the network’s three-token system, users earn BGT for providing liquidity. This coin cannot be sold.
Delegating BGT to validators or various protocols allows users to earn HONEY stablecoins. Additionally, users can burn BGT at any time to receive liquid BERA tokens at a 1:1 ratio. This process is irreversible.
The team believes Berachain’s mechanics enable sustainable capital attraction for ecosystem projects at a low cost.
In 2023, the blockchain project raised $42 million in a funding round led by Polychain Capital.