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Berachain has the following properties:
  • Block time: Block times vary, check Berascan for the latest.
  • Transactions per Second (TPS): This can vary but the following should help with the number of possible transactions (Block gas limit (30m) / Average gas limit per txn) / Block time (2s) = TPS.
  • Finality: single slot finality
DEX stands for Decentralized Exchange. It is a place where you can buy and sell tokens directly on the chain instead of through any one centralized service. This means that all liquidity can be seen directly on-chain, and the smart contracts themselves verifiably own it. A DEX enables you to swap tokens directly from your wallet, as well as allowing anyone to launch their own tokens and provide liquidity.
A swap is the process of exchanging one token for another. This can be thought of as a buy or a sell, depending on which token you’re looking at. For example, if you’re looking to buy $BERA with $ETH, you would be swapping $ETH for $BERA. This is essentially “selling” $ETH and “buying” $BERA.
Each swap has a fee that varies depending on the fee set when the pool was created. Common fees are 0.05%, 0.1%, 0.3% or 1% but you should always check when performing a swap to ensure you are okay with the fee on that pool.
Liquidity is the term for the amount of a token available to swap. The more liquidity a token has, the easier it is to swap that token.
Liquidity pools are pairings of 2 or more tokens that liquidity providers deposit tokens into. This enables DEX users to swap between any of the tokens in the pool.
Liquidity providers deposit tokens into a liquidity pool. They earn a portion of the fees generated from swaps in the pool.
APY stands for annual percentage yield. In the context of BEX pools, this refers to the current APY for a given pool. APY yield comes from fees collected on every swap made using that pool.
$HONEY is the native stablecoin of the Berachain ecosystem. It is a multicollateral backed stablecoin, and is used throughout the Berachain ecosystem.
To ensure stability, there is a small fee on every mint and burn of $HONEY. Additionally, because minting & burning requires a transaction, there will be a small gas fee in $BERA.
$BGT is Berachain’s staking & governance token. That means it is used to secure the network & earn rewards via Proof of Liquidity as well as to vote on governance proposals.
A validator can refer to three things:
  1. A blockchain node that validates transactions, produces blocks, and comes to consensus with other validators in the network
  2. The entity that owns and operates the validator node
  3. The blend of points #1 and #2 that manages a portion of Proof of Liquidity & Governance votes
Delegating $BGT allows you to participate in Proof of Liquidity while helping secure the network.
Rewards are the main reason. With Proof of Liquidity, you can earn many different types of rewards:
  • A share of protocol-provided incentives, provided in exchange for $BGT emissions directed to those protocols’ Reward Vaults
  • A share of Berachain core dApp fees, namely fees from BEX and HoneySwap
You earn $BGT through Reward Vaults when validators direct $BGT emissions towards them. See Earning $BGT for more.
Governance is the process by which the community decides what changes to make to the Berachain protocol. This includes how to upgrade the node and what parameters to set for various components on the chain.
Each eligible (whitelisted) pool on BEX has an associated LP token. Once you deposit liquidity into a BEX pool, the pool issues an LP token relative to your total contribution percentage. You must then stake this LP token into its respective Reward Vault to become eligible to receive $BGT. As validators direct $BGT emissions to Reward Vaults, you accumulate $BGT to claim. You must perform an additional action to claim $BGT — the protocol does NOT automatically send it to you.
Anyone with the required minimum amounts of $BGT can propose and vote on proposals.
  • Validators stake $BERA
  • Network incentives come in $BGT
Yes, validators only need to stake $BERA within the designated min and max range of 250,000 and 10,000,000, and once in the active set they will propose blocks. Validators receive rewards in $BGT.