I’ll admit it - I’m down bad for Berachain. It’s the only blockchain that makes me feel like I’m dating a red-flag crypto trader who’s also an absolute genius.
Why do I love Berachain? Simple: Proof of Liquidity (PoL) Unlike my ex, Berachain actually rewards commitment. The more you provide liquidity, the more influence you get. Basically, the blockchain version of “I scratch your back, you scratch mine.”
BGT (Bera Gov. Token) The more I stake, the more power I have. Feels like a DAO where only the degens who actually contribute get a say. Imagine a crypto ecosystem where the tourists don’t get free airdrops. Revolutionary.
Berps, BEX, and Bend: It’s an entire DeFi empire built for traders, gamblers, and liquidity addicts like me. Options? Check. Perps? Check. Lending? Check. My ability to stop throwing money at it? Unchecked.
Bear-Themed Everything, Berachain is like if a team of gigabrains decided to make the most sophisticated DeFi system but also said, let’s make everything about cartoon bears. The vibes are immaculate. It’s like investing in a meme, but the meme has actual fundamentals.
At the end of the day, Berachain is that crazy, high-maintenance, but brilliant blockchain that I just can’t quit. Do I wake up at 3 AM to check prices? Absolutely. Have I explained “Proof of Liquidity” to my friends for the 50th time? You bet. Am I going to keep stacking BGT and pretending I have self-control? …Probably not.
See you at the Bera top. Or at least in the liquidity pool.
Thanks for breaking the ice. Can you plz explain to my POL one more time ^ ^ I’m a bit late to the party (as with crypto currencies in general) and I missed the whole testnet days but I immediately fell in love with the beras. But I’m still catching up. I understand Liquidity pools in general but I have not found a good explanation how dollar values are included and synced. Do we heave some wiki? So I set up two tokens. Say eth and Bera. In an ideal world supply and demand would change the liquidity in thje pool and so determine the value. But as these assets are also traded outside the price needs to be somehow set. But then Why would I set up pools with different ratios then 50/50 if the price actually determines how many bera i get for an Eth?!. And on the other side, how does an imbalance in a pool affect the pice of the token in reverse?
Please help me to understand my beloved bearas better. So that the only thing to hate for me that should remain is the amount of actions required in my hardware wallet to create a pool, deposit, stake and delegate…
I know of course Weighted Pools | Berachain BEX Docs But the documentation there is just even more confusing, so my governance proposal would be to set up an official wiki as wikis tend to get better over time. Additionaly more information in the pool creation Ui would be helpfu.
So as you may know most blockchains require validators to stake tokens to secure the network, e.g. Eth and Sol. In Proof of Liquidity (PoL) instead of staking, validators must provide liquidity.
Validators must provide liquidity in specific pools to be eligible for validating the network. Then instead of earning traditional staking rewards, they receive BGT and fees from trading activity.
The more liquidity they provide, the more influence they have in proposals and governance. But if a validator misbehaves or stops providing liquidity, they can get slashed meaning they lose a portion of their LP stake as a punishment.
PoL also guarantees deep liquidity pools for trading and means that tokens aren’t simply stagnant in staking contracts (a big issue on Eth).
PoL brings many other positives and I would recommend getting on Youtube and watching @SmokeyTheBera podcasts, there are loads, this should get the algorithm working and help you on your Bera journey to understanding PoL at a deeper level.
You’re right that liquidity pools usually work based on supply & demand. But since assets are also traded outside of Berachain on CEXs etc. price discrepancies can appear.
Arbitrage Trading – If BERA is trading at $10 on Binance but $9.50 in a Berachain pool, traders will buy the cheaper BERA and sell it for a profit elsewhere until prices match.
Auto-Balancing Mechanisms – Some baked-in protocols like BEX will have built-in ways to help rebalance pools that use oracles and external prices feeds to maintain balance.
Why Would You Want To Create Unbalanced Pools?
Its a really good question to be honest.
The number one reason is for better capital efficiency – If you’re ultra-bullish on certain token cough Bera cough, you might want a pool that’s mostly BERA (like 80% Bera / 20% Eth). This lets you keep more exposure to BERA while still earning trading fees. This can also work inversely to help mitigated loss on a volatile token, usually described as impermanent loss.
There are also incentives and governance – The community (via proposing and voting) might decide that certain custom pools should receive more rewards, making them more attractive than standard 50/50 pools.
Proof of Liquidity (PoL) Unlike my ex, Berachain actually rewards commitment. The more you provide liquidity, the more influence you get. Basically, the blockchain version of “I scratch your back, you scratch mine.”
Berps, BEX, and Bend: It’s an entire DeFi empire built for traders, gamblers, and liquidity addicts like me. Options? Check. Perps? Check. Lending? Check. My ability to stop throwing money at it? Unchecked.
See you at the Bera top. Or at least in the liquidity pool. 
