Introduction to Proof-of-Liquidity (PoL)
Proof-of-Liquidity (PoL) on Berachain is a revolutionary consensus mechanism, intertwining network security with active liquidity provision. Unlike traditional systems, PoL rewards participants for contributing liquidity, aligning the interests of validators, $BGT holders, farmers, protocols, and the Bera Foundation.
Validators and PoL
Validators in PoL don’t just validate transactions—they strategically direct $BGT rewards to gauges, optimizing returns through AquaBera’s advanced liquidity strategies. This active role allows validators to maximize delegation and rewards, setting PoL apart from traditional consensus models.
Learn more about Validators in PoL.
$BGT Holders & Farmers
$BGT holders and farmers are critical to PoL, as their delegations influence the distribution of $BGT rewards. AquaBera’s directional liquidity strategies protect these asset owners, reducing risks while boosting income, making their participation in PoL more profitable.
Explore the role of $BGT Holders & Farmers in PoL.
The Bera Foundation’s Influence
The Bera Foundation, through core dApps like BEX, BEND, and BERPS, generates fees that create demand for $BGT. AquaBera’s integration of directional liquidity into PoL enhances capital efficiency, reduces the cost of liquidity, and supports the value of $BGT and $BERA.
Discover how the Bera Foundation drives the ecosystem forward.
Supporting Ecosystem Projects
PoL allows ecosystem projects to bootstrap liquidity by directing $BGT rewards to their gauges. AquaBera’s strategies enable projects to achieve higher extractable liquidity and trading fees, attracting protocols to Berachain even before their full launch.
Learn how Ecosystem Projects benefit from PoL.
Gauges and Their Roles
Gauges are vital in PoL, directing liquidity and rewards. Validators and $BGT holders work together, using AquaBera’s strategies to ensure liquidity strengthens token value rather than dilutes it, maintaining a robust liquidity ecosystem on Berachain.
Understand Gauges and Their Roles in PoL.
Importance of PoL
PoL ensures Berachain's security and economic sustainability by focusing on liquidity provision. AquaBera enhances this framework, driving the value of $BGT and $BERA, making PoL a cornerstone of Berachain's thriving ecosystem.