What is Proof-of-Liquidity? 🛡️

Proof-of-Liquidity (PoL) is a consensus mechanism used by BeraChain that secures the network by incentivizing participants to provide liquidity rather than just staking tokens. In this system, users deposit assets into liquidity pools, which are utilized in decentralized finance (DeFi) activities like trading. This not only enhances network security but also drives liquidity within the ecosystem. Participants are rewarded with native tokens and governance power based on the liquidity they contribute.