Layer-1 Protocol Berachain Secures $42M In Series A Funding Round Now Valued At Over $420M

TL;DR:

  • Berachain, a layer 1 blockchain focused on decentralized finance (DeFi), has raised $42 million in a Series A funding round at a valuation of $420.69 million.
  • The round was led by Polychain Capital and included participation from venture capital firms Hack VC, dao5, Tribe Capital, Shima Capital, CitizenX, and Robot Ventures.
  • Berachain’s “proof of liquidity” consensus technology will enable staked assets to be used in DeFi protocols, providing more liquidity and capital efficiency on-chain.

Berachain, a layer 1 blockchain focused on decentralized finance (DeFi), has raised $42 million in a Series A funding round at a valuation of $420.69 million. The round was led by Polychain Capital and included participation from venture capital firms Hack VC, dao5, Tribe Capital, Shima Capital, CitizenX, and Robot Ventures, as well as several undisclosed centralized crypto exchanges.

Berachain’s technology will enable staked assets to be used in DeFi protocols, providing more liquidity and capital efficiency on-chain. The Bera ecosystem already has over $250 million in committed capital to deploy, and will launch a public incentivized testnet in the coming weeks. The platform will also introduce its native gas token, BERA, its governance token, BGT, and a stablecoin, HONEY. The project’s origins trace back to a non-fungible token (NFT) collection, Bong Bears, which was created by three of the four pseudonymous co-founders in August 2021.

The project’s aim is to create an ecosystem in which staked assets can be used in DeFi protocols, unlocking liquidity and capital efficiency on-chain. Berachain’s “proof of liquidity” consensus will enable users to simultaneously stake assets on Berachain and use them to trade, borrow or lend on-chain.

The Berachain project began as a non-fungible token (NFT) collection, Bong Bears, launched by three of the four pseudonymous co-founders in August 2021. The collection of 100 “zooted” NFT bears was inspired by the rebasing protocol OlympusDAO, which was gaining popularity within the crypto community. Following the success of Bong Bears, the team decided to create a fully-fledged layer-1 blockchain that could take the liquidity generated and use it to build a DeFi ecosystem.

The Series A funding round, led by Polychain Capital, was finalized in December and included participation from Hack VC, dao5, Tribe Capital, Shima Capital, CitizenX, Robot Ventures and several undisclosed centralized crypto exchanges. Berachain’s $420.69 million valuation highlights its commitment to crypto flair and suggests the project is not afraid to embrace the culture of the industry. The bear theme, as evidenced in the founders’ pseudonyms and the Bong Bears collection, is a sly nod to the crypto rallying cry of Hodl.

Berachain is not the only project to pivot from NFTs to a fully-fledged blockchain platform. The high-flying, degenerate, and high-yield DeFi projects of 2021, prior to the slew of frauds, bankruptcies, and Wells Notices, may have influenced Berachain’s launch. The project’s unique approach to liquidity and capital efficiency could bring significant value to the DeFi space.

Berachain’s successful Series A funding round and impressive valuation demonstrate the crypto community’s support for the project’s unique approach to liquidity and capital efficiency. Berachain’s ability to unlock liquidity by allowing staked assets to be used in DeFi protocols could change the DeFi space, creating more liquidity and capital efficiency on-chain. The project’s origins as an NFT collection and its bear-themed approach to the culture of crypto suggest that Berachain is unafraid to embrace its roots while pushing the industry forward.

 

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