Verachain Implements PoL System, Annual Yield of iBERA Increases by 2661%

# Berachain Implements Proof of Liquidity System, Boosting Ecosystem Activity Berachain, a Layer 1 blockchain, has officially launched its Proof of Liquidity (PoL) system, bringing significant changes to its digital asset ecosystem. This new mechanism is fostering ecosystem revitalization by shortening reward cycles and driving yield increases, prompting attention within the decentralized finance (DeFi) community. On October 25, Berachain rolled out its PoL system, which allows users to provide liquidity and, in return, receive rewards while gaining opportunities to participate in governance activities. Users who deposit assets into Berachain's decentralized exchange (BEX) are rewarded with governance tokens called BGT. # A Deeper Dive into Berachain’s Token Economy The governance token, BGT, is one of three primary tokens in the Berachain ecosystem. It can be delegated to validators or used in governance voting but cannot be transferred. BGT is exchangeable with Berachain’s base token, BERA, on a 1:1 basis, although the conversion is strictly one-directional from BGT to BERA. Berachain’s base token, BERA, plays a critical role in the ecosystem by being used for transaction fee payments and validator staking. Meanwhile, the auxiliary token HONEY facilitates DeFi rewards within the ecosystem. # Enhanced Rewards and Rising APY The adoption of the PoL system has reduced the BGT reward distribution cycle from seven days to three days. This accelerated cycle has led to an immediate yet temporary increase in annual percentage yield (APY). For instance, the iBERA pool recently recorded an astonishing APY of 2,661%. Stablecoin activity within the ecosystem has also experienced substantial growth. As of October 26, the total stablecoin supply within the Berachain ecosystem exceeded $1.3 billion, while the HONEY token supply stood at $726 million, further demonstrating the platform’s growing traction. # Market Potential and Community Attention The Berachain community has highlighted the blockchain project as one of the most promising newcomers with a high potential for real-world application. With a relatively low circulating supply and a market capitalization of approximately $600 million, some analysts suggest that Berachain could be subject to upward market re-evaluation over time. Additionally, certain market observers speculate that BERA could serve as a stable store of value, even during periods of declining trading volume, further strengthening its appeal. # TVL and Market Performance Since the introduction of PoL, Berachain's total value locked (TVL) has increased by over $500 million, reflecting growing user participation and asset inflows. As of 5:40 PM (KST) on October 28, BERA was trading at $8.13 on Binance, marking a 0.28% decrease from the prior day. Berachain’s recent developments and robust ecosystem metrics underscore its potential to redefine liquidity management and governance within the blockchain space. For both investors and developers, the platform represents a noteworthy opportunity in the evolving DeFi landscape.