New L1 blockchain to launch
The L1 blockchain project “Berachain” announced on the 20th that it has raised approximately 5.6 billion yen ($42 million) in a private round.
Polychain Capital led the funding. Venture funds of multiple centralized crypto asset (virtual currency) exchanges have also invested, although their names have not been named. Berachain is a DeFi (decentralized finance) L1 blockchain that is compatible with the Ethereum virtual machine (EVM).
We’re excited to announce our $42.0M fundraise from leading funds and angels including @polychaincap @hack_vc @daofive @tribecap @citizenxcrypto @shimacapital @robotventures @zmanian @musalbas and many others to build the deepest pools of liquidity in DeFi. pic.twitter.com/GZq04A7n1z
— Berachain 🐻⛓⚛️ (@berachain) April 20, 2023
What is DeFi
Abbreviation for “Decentralized Finance.” Refers to financial services or systems that utilize blockchain and are performed in the absence of a central administrator.
connection: What is DeFi (decentralized finance) | A thorough explanation of the advantages and disadvantages that even beginners can understand
Berachain’s project does not disclose much information on its official website, and as for this funding, the funding amount and investors have only been announced as shown in the above tweet.
According to The Block, which interviewed the co-founder of the nickname “Smokey the Bera,” the company will use the funds raised to launch the L1 blockchain.
The Berachain project, which has been in development since late 2021, started this round of funding shortly after the FTX bankruptcy in November 2022. Procurement was carried out at “SAFT”, which sells tokens to be issued in the future.
A development network (devnet) is now available, and we plan to launch an incentivized public testnet in the coming weeks and a mainnet later this year. The plan is to launch the token at the same time as the mainnet.
About 33.5 billion yen ($250 million) is already locked in the Berachain ecosystem.
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Berachain is built on Cosmos SDK, a development kit from Cosmos (ATOM), and introduces a consensus protocol called Proof of Liquidity. According to the information on GitHub, it seems that an organization called “Berachain Foundation” is responsible for the management of tools.
As you can see from the Twitter account, Berachain is a bear-themed blockchain. The ecosystem uses three tokens:
- bera: gas token (this investor will receive bera)
- honey: stablecoin
- BGT (Bera Governance Token): Non-transferable governance token
The L1 blockchain is said to be the second project for the Berachain co-founder. We have already started the NFT (Non-Fungible Token) project, and it is possible to purchase an NFT collection called “Bong Bears” on OpenSea.
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