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I feel like most people don't get proof of liquidity with Berachain and why it's a great option for DeFi users, teams, and investors.
This is a great long form overview. I would say a tl;dr -
1. If you're a DeFi user looking for yield, you can supply capital here and earn not only fee yield but stake in an L1 directly that gives you equity in future fees earned by the chain. OP and ARB don't do this, and Base doesn't even have a token. Rewards are distributed every second so you don't have to wait and be promised an airdrop which can never happen. Some options include Beraborrow, Infrared, or any of the existing pools in the main Hub, which is the protocol's native Dex.
2. If you're a project, by launching on Berachain it allows you to optimize your liquidity and marketing spend. You don't have to airdrop, but you can work with an existing validator to reward your project with BGT emissions while you DCA rewards over time in incentives.
3. If you're an investor, Berachain is going through a Curve Wars where a few local cartels are buying up Berachain LSDs and driving rewards to their portcos. For less than $10M, you can buy up a fairly reasonable stake of Berachain and create your own validator to drive rewards to projects you own and help boost usage in your own portfolio companies. If you have less than $10M, you can join an existing cartel (Berapaw, Infrared) by buying one of the existing LSDs and likely pushing yield to your own portcos via governance.
https://www.youtube.com/watch?v=csdc3opDR7I& 2 replies
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Sustainability is always relative.
For 2, if you're raising funds, you have cash available for marketing. As well you typically structure some kind of airdrop. What teams in berachain do is typically structure a deal where instead of airdrops, they work with a validator to push streaming rewards to the validator, then the validator pushes some BGT emissions back to your project vault. This is more sustainable to me to stream rewards versus an airdrop which is typically gamed and botted to all hell.
For 3, you are in charge of some amount of funds, so it does make strategic sense to buy into some kind of protocol rather than spend marketing budget, and technically your portco airdropping into mercenary capital. I'm honestly shocked seeing some $10M gamefis try to make their own L2 or L1, rather than just take development costs and buy a validator in berachain, then boost their own game ecosystem vaults. There at least you have the option of BERA upside. Granted if you did that so far you lost some money, but the R/R right now is better than it was 3 months ago.
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