Proof of Liquidity

What is proof of liquidity?

Proof-of-Liquidity (PoL) is a groundbreaking consensus mechanism designed to strengthen chain security by increasing the liquidity available on the network.

Building on the Proof-of-Stake (PoS) model, which secures the chain through an initial stake of the native gas token, PoL introduces a distinctive soulbound governance token. This token plays a dual role: it determines the reward potential for stakers based on delegation from others, and it rewards individuals who contribute liquidity to the chain through regulated reward vaults.

How will Grizzy Fi implement proof of liquidity?

A percentage of Grizzy Fi's revenue will go directly into buying the Berachain native gas token $BERA as well as the rewards vault in order to promote the strength of the Berachain network and increase the amount of liquidity available. The $BERA purchased by Grizzy will then be used as an Active Validator to secure the network. The $BGT governance token rewards awarded from the rewards vault will then be awarded to $GRIZZY token stakers as well as used to delegate to our Active Validator to receive a higher rewards rate. Integrating Berachain's native proof of liquidity concept into our platform will strength ecosystem relationships and create a mutually beneficial relationship between both parties.