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Glossary

BERA Token

The native token of the Berachain ecosystem, used for governance, staking, and paying transaction fees.

BGT Token

Berachain's staking and governance token, used to secure the network, earn rewards via Proof of Liquidity, and vote on governance proposals.

Block

A data unit containing a list of transactions, which is permanently added to the blockchain in a sequential manner.

Bend

Berachain's native lending protocol.

Bex

Berachain's native dex.

Berps

Berachain's native perpetuals exchange.

Block Time

The time it takes to create a new block on the blockchain. Berachain has a block time of 5 seconds.

CometBFT

A consensus engine used by Berachain to achieve high throughput and fast finality in transactions.

Consensus Mechanism

The protocol by which nodes in the Berachain network agree on the state of the blockchain. Berachain uses Proof of Liquidity to select validators based on their provided liquidity.

Delegation

The process by which a token holder grants voting or validation power to another participant in the network.

DEX (Decentralized Exchange)

A platform that enables the buying and selling of tokens directly on the blockchain, without a centralized intermediary. All liquidity is verifiably owned by smart contracts.

Finality

The assurance that once a transaction is confirmed on the blockchain, it cannot be altered or reversed. Berachain provides instant finality for transactions.

Governance

The system by which decisions are made within the Berachain ecosystem. Governance involves proposals, voting, and the implementation of changes, often using BGT tokens for participation.

HONEY

The native stablecoin of the Berachain ecosystem, pegged to 1 USDC. It is used throughout the Berachain ecosystem and involves minting and burning fees.

Liquidity

The availability of liquid assets to facilitate trading on the Berachain network. Liquidity is often provided by users through liquidity pools.

Liquidity Pool

A collection of funds locked in a smart contract, used to provide liquidity for decentralized exchanges and other DeFi services. Liquidity pools on Berachain can contain 2-8 tokens.

Liquidity Provider

A user who deposits tokens into a liquidity pool, earning a portion of the fees generated from swaps in the pool.

Mainnet

The primary network where real transactions occur on the Berachain blockchain, as opposed to test networks used for development.

Polaris EVM

An implementation of the Ethereum Virtual Machine used by Berachain's Eng team to provide compatibility with Ethereum-based smart contracts built on top of Cosmos's CometBFT.

Proof of Liquidity

A consensus mechanism utilized by Berachain, where validators are selected based on the amount of liquidity they provide to the network.

Staking

The process of locking up tokens to support the operations of a blockchain network. In Berachain, staking is used to secure the network and participate in governance.

Swap

The process of exchanging one token for another on a decentralized exchange. Swaps involve a fee, which varies depending on the pool's settings.