So, you're ready to dive into the Berachain. But which place to begin? Because its ecosystem is teeming with action, and right at the very center are the "bear" dApps - decentralized applications designed to make your DeFi experience smoother, more rewarding, and even fun.Let's break down the key tools in this bear market (pun intended, of course).
Key Takeaways
- Swap tokens, provide liquidity and earn rewards on the Berachain’s exchange BeraSwap.
- Lend your assets to generate passive income or unlock liquidity by borrowing $HONEY against your crypto collateral.
- Trade leveraged perpetual futures (up to 100x) on the platform created by professionals for professionals.
- Manage your stablecoins seamlessly with the Honey Swap dApp for smooth transitions within DeFi.
- Earn $BGT and take part in governance to build the future of Berachain together.
Berachain's Core dApps: Your DeFi Toolkit
Before we go into the dApps, let's take a quick look at Berachain.
Berachain is a brand new, community-oriented Layer 1 blockchain, developed and tailored for DeFi. Using innovative Proof-of-Liquidity (PoL) mechanism, it has shifted the paradigm where the entire ecosystem is more collaborative and profitable for all participants. To put it simply, it's like one big team working together to make trading and all other financial activities easier and more effective.
Berachain also contains a three-token system unique to it: $BERA, $BGT, and $HONEY, which work in unison to keep the platform running as it should. You can find more about the foundational ideas of Berachain and PoL in our starting article here: "What is Berachain and Why should I care?".
Berachain is not about holding tokens, but about using them. These simple dApps form the core of the DeFi experience.
BeraSwap: Berachain Exchange
The Berachain Exchange, also known as BeraSwap (BEX), is a user-friendly decentralized exchange in which you can swap tokens and actively participate in the Berachain network. Here, you can contribute to liquidity pools and earn rewards for helping to facilitate smooth trading and ecosystem liquidity.
BeraSwap is powered by an efficient automated market maker, thus offering unique advantages. You save on gas, have a smooth trading experience with full-range liquidity, as on Uniswap V2. The feature like "gasless" transactions enabling you to pay fees in the swapped token, not gas. With support of a form of account abstraction, users are able to submit off-chain orders and define custom logic for their execution by relayers. This could eventually mean even more complex trading strategies and automation, while still maintaining the security and transparency of the blockchain. Think of BeraSwap as the engine that powers Berachain's trading activity: making it easy and rewarding for everyone to participate.
BEND: Berachain Lending & Borrowing
Think of BEND as the friendly crypto lending and borrowing platform on Berachain. Got some stablecoins sitting around not doing much? Let's put them doing some work, lending them on BEND. This way, it will grow major interest for you. If not, use other cryptos as collateral: for instance, wBTC, to borrow stablecoins. This way you will also have the necessary liquidity without being obliged to sell your precious assets.
Berachain's native stablecoin $HONEY, serves as the primary and exclusive token available for borrowing.
What's even cooler - BEND is non-custodial, and you are always in control of your assets. In addition, when you borrow $HONEY, you also get rewarded with $BGT, Berachain's governance token, it's like a little "thank you" for participating!
Just a friendly reminder: borrowing always involves some risk, so make sure you understand how it works and only borrow what you can manage.
BERPS: Berachain Perpetual Futures
Feeling adventurous? BERPS is where Berachain experienced traders play out on the edge. This is where you can dive into the world of perpetual futures ("perps"), trading crypto-asset pairs with up to 100x leverage. Think of it as turning up the volume on your trades – way up. With great power comes great responsibility, though. Higher leverage means the potential for bigger gains, but also bigger losses, so make sure you know what you're doing before you jump in.
On BERPS, you'll trade using Berachain's own stablecoin, $HONEY, and you'll appreciate the zero slippage feature, meaning you get the price you see, no nasty surprises. Not just this, but providing liquidity to the bHONEY vault can also bring rewards. For lovers of speed in trading, the “One Click Trading” option lets you execute orders in a flash. Just remember, BERPS is non-custodial - no KYC requirement, so you're always in control of your funds. If you're an experienced trader with an appetite for risk, BERPS might just be your new favorite trading ground.
Honey Swap
HONEY is more than Berachain's native stablecoin, but rather a dedicated exchange framework. The core of the Honey Swap is providing the critical service of seamless exchange between $HONEY and other popular stablecoins.
How is $HONEY created? It is minted by locking up other eligible crypto assets as collateral in special smart contracts known as "HONEY vaults." Every vault is built for a specific kind of collateral and, consequently, has its very own rules about minting and redemption, thereby ensuring $HONEY always represents real value.
The HONEY dApp, with its power vault system at its back, makes your experience with stablecoin easy and fluent in the Berachain environment. It's all about making your journey through DeFi as smooth as possible.
BeraHub: Managing BGT Tokens
BeraHub is where your earned $BGT becomes supercharged. It is the central hub for managing and participating in the governance of Berachain with your $BGT. Here, you are able to delegate your $BGT to validators you support so that you earn a share of their rewards while helping to secure the network.
You can view live reward vaults and validators, and you can claim your $BGT rewards and even redeem those for $BERA. It is kind of a mission control of your influence in the direction that the platform goes. By being actively participating at BGT Station, you're going to be one of the key part of the Berachain community, driving the future of the entire DeFi ecosystem.
So, there you have it – a whirlwind tour of Berachain's native dApps. From BeraSwaps’s trading hub to BEND's lending and borrowing, and even the high-flying world of BERPS's perpetual futures, there is something for everyone. And don't forget the Honey Swap dApp for easy stablecoin swaps, and BGT Station, where you can get involved in the governance of the project.
Berachain is still quite new but fast-growing, and it is a big player coming into the space of DeFi. If you are looking forward to some fresh, community-oriented, and maybe promising DeFi exposure, why not jump in and see what this "Bera" buzz is all about?
The information provided by DAIC, including but not limited to research, analysis, data, or other content, is offered solely for informational purposes and does not constitute investment advice, financial advice, trading advice, or any other type of advice. DAIC does not recommend the purchase, sale, or holding of any cryptocurrency or other investment.
