Berachain BERA Layer 1 Guide

If you're searching for the best Layer 1 blockchain for DeFi in 2025, Berachain's BERA stands out with its Proof of Liquidity consensus that keeps liquidity flowing directly into apps like DEXs and lending protocols. This guide compares Berachain against 11 other top Layer 1 options, focusing on transaction costs, consensus models, TPS, and DeFi suitability to help you pick the right network for building, trading, or providing liquidity.

Berachain runs as an EVM identical Layer 1 blockchain launched February 6, 2025, using Proof of Liquidity to reward validators for providing active liquidity in DeFi pools rather than idle staking. Its tri token system-BERA for fees, BGT for governance, HONEY stablecoin-keeps transactions cheap while directing emissions to dApps like BEX DEX and Bend lending.

Consensus: PoL ensures validators maintain liquidity pools, yielding base BERA rewards via a dedicated module. Mainnet supports onchain DeFi with single slot finality from Cosmos SDK and BeaconKit for Ethereum upgrades.

• Deploy Ethereum dApps without code changes, slashing migration time.
• Liquidity providers earn BGT tokens, boosting yields up to 20-30% APY in early vaults.
• Low fees persist even under load, unlike PoS spikes.
• Tri token avoids single asset inflation, stabilizing HONEY at $1 peg.
• Governance active for BGT holders, influencing reward vaults.

Start with testnet interactions for airdrop eligibility; connect MetaMask directly as EVM compatible. Watch for PoL v2 updates doubling rewards for high performance dApps.

Ethereum: The DeFi Standard Layer 1

Ethereum powers most DeFi with 318 million ETH market cap and upgrades like Dencun cutting Layer 2 data costs. It handles up to 119 TPS natively, relying on PoS for security after The Merge.

Fees average $0.50 during calm periods but climb to $5 in congestion, offset by rollups like Optimism at $0.05 tx. Ecosystem includes thousands of dApps, from Uniswap to Aave.

• Top security with $100B+ staked ETH.
• Mature tooling for developers.
• High composability across protocols.
• Fees volatile during peaks.
• Slower base TPS limits retail use.

Use L2s for daily DeFi to dodge high gas; bridge assets via official portals for safety.

Solana: High Throughput Speed King

How fast is Solana for Layer 1 trading? It processes thousands of TPS at $0.00025 per transaction using Proof of History for timestamping, ideal for memecoins and high volume DEXs like Jupiter.

• Sub second finality beats most rivals.
• Low costs support retail arbitrage.
• Growing DeFi TVL over $5B.
• Occasional outages from spam.
• Less EVM friendly tooling.
• Rust based development steeper curve.

Stake SOL for 7% APY; monitor network status before large trades to avoid rare downtimes.

Avalanche: Subnet Flexibility Leader

Avalanche hits sub second finality across 4,500 TPS potential with $17B market cap in June 2025. Its subnet architecture lets teams spin custom Layer 1s for DeFi or RWAs, all interoperable.

Transaction costs stay at $0.01-$0.20, drawing institutions for tokenization. Three chain setup-X, P, C-separates execution from consensus.

• Custom chains for niche use cases.
• Strong RWA adoption.
• AVAX staking yields 8-10%.
• Subnet launch fees around 2 AVAX.

Launch subnets via Avalanche Portal; pair with Trader Joe DEX for liquidity.

BNB Chain: Volume Driven DeFi Hub

BNB Chain processes massive daily volume with $0.10 average fees on its dual chain setup-Beacon for speed, Smart for contracts. EVM compatible, it hosts PancakeSwap with billions in TVL.

Proof of Staked Authority selects 21 validators via staking, keeping operations efficient without new token mints.

Daily users: Millions, fueled by Binance integration. High throughput suits perpetuals and farms.

• Instant swaps under $0.15.
• Easy Ethereum porting.
• BNB burns reduce supply.
• Centralization concerns with few validators.
• Less focus on pure decentralization.

Farm CAKE on PancakeSwap; use BNB for gas to minimize costs.

Polkadot: Parachain Interoperability

Polkadot connects parachains for shared security, with fees at $0.05-$0.50 per tx. Nominated PoS lets DOT holders delegate to validators securing up to 1,000 TPS aggregate.

Auctions allocate parachain slots for 6-24 months, fostering ecosystems like Moonbeam for EVM DeFi.

• Cross chain messaging via XCM.
• Scales via parallel chains.
• DOT governance evolves fast.
• Auction barriers for new projects.
• Complex for solo users.

Crowdloan DOT during auctions; bridge to parachains like Acala for lending.

Cardano: Research Backed Security

Cardano splits settlement (CSL) from computation (CCL), enabling secure dApps at $0.15 tx fees. Ouroboros PoS delivers peer reviewed scalability for DeFi and NFTs.

Recent upgrades boost smart contract throughput to 1,000 TPS potential.

Stake ADA pools yielding 4-5%; ecosystem grows with Minswap DEX.

• Energy efficient PoS.
• Strong academic foundation.
• Hydra for future scaling.
• Slower dApp rollout historically.

Delegate ADA via Yoroi wallet; test contracts on previewnet first.

Near Protocol: User Friendly Scaling

Near hits 12,000 TPS at $0.01 tx with sharded Thresholded PoS, perfect for social dApps and DeFi. Nightshade sharding divides state for parallel processing.

Account abstraction simplifies wallets-no seed phrases needed.

• Fast, cheap for mass adoption.
• Developer grants abundant.
• Ref Fi DEX with deep liquidity.
• Smaller DeFi TVL vs leaders.
• Sharding adds complexity.

Create accounts via email; stake NEAR for 10% APY.

Cosmos: IBC Powered Interchain

Cosmos hubs 100+ chains via IBC at $0.01 tx, using Tendermint for fast finality. Ideal for DeFi spanning ecosystems like Osmosis DEX.

App chains customize consensus, boosting interoperability.

TVL across hub: Over $2B. ATOM staking at 15-20% APY.

• cross chain transfers.
• Modular SDK for builders.
• Growing DeFi primitives.
• Fragmented liquidity risks.

Route via IBC relayers; use Keplr for multi chain management.

Injective: Derivatives Specialist

Injective, Cosmos based, offers near zero fees for perps trading up to 20x leverage. PoS secures high frequency DeFi with Helix DEX.

Connects to 50+ chains for omni assets.

• Pro level orderbook trading.
• INJ staking 17% APY.
• Fast IBC settlements.
• Niche derivatives focus.
• Smaller general DeFi.

Trade INJ perps; provide liquidity for fee shares.

Sui: Parallel Processing Powerhouse

Sui uses object centric model for parallel tx at $0.001 each, targeting gaming and DeFi. PoS finalizes in 400ms.

Narrowscale DEX handles high volumes without congestion.

Market cap growth signals adoption; stake SUI for base yields.

• Ultra low latency.
• Move language secures assets.
• Scales to 297K TPS theoretical.
• Early ecosystem stage.

Deploy via Suiet wallet; test Move code on devnet.

Kadena: Enterprise Scalability

Kadena's Chainweb PoW scales to 480K TPS at $0.0001 tx via braided chains. Pact smart contracts suit secure dApps.

Gas stations enable fee delegation for UX.

• PoW security without energy waste.
• Enterprise pilots active.
• Free tx via stations.
• Limited DeFi yet.
• Pact learning curve.

Use Kuro wallet; gas pay with KDA for bulk ops.

Understanding Proof of Liquidity in Berachain DeFi

Proof of Liquidity (PoL) requires Berachain validators to supply liquidity to pools, earning BGT governance tokens instead of pure staking rewards. This keeps DeFi apps like BEX (AMM DEX) and Bend (lending) flush with capital, targeting 20-30% higher yields than standard PoS.

• Validators direct one third emissions to BERA yield module-delegate for native APY.
• Reward vaults timer gated, doubling output for top dApps.
• Tri token splits roles: BERA pays gas (~$0.001), HONEY stables collateral, BGT votes.
• EVM + Cosmos SDK yields single slot finality, faster than Ethereum's 12s.
• Airdrops reward testnet users; claim via OKX Wallet post TGE.

PoL solves liquidity fragmentation, making Berachain ideal for Layer 1 DeFi where idle capital drags returns.

Layer 1 Metrics: TPS, Fees, and TVL Explained

Transactions per second (TPS) measures throughput-Solana leads retail at thousands real time, while Ethereum prioritizes security at 119. Fees vary: under $0.01 on Berachain/Sui, up to $5 Ethereum peaks; TVL gauges locked value, with BNB Chain over $5B from volume.

• Scalability types: Sharding (Near), subnets (Avalanche), parachains (Polkadot).
• Consensus impact: PoL (Berachain) boosts DeFi yields; PoH (Solana) cuts latency.
• EVM compatibility: Berachain, BNB, Avalanche ease Ethereum migrations.
• TVL thresholds: $1B+ signals maturity (e.g. Berachain growing post mainnet).

Match needs: high TPS for trading, low fees for microtx, PoL for liquidity plays.

How to Choose and Use the Best Layer 1 for DeFi

1. Assess your focus-pick Berachain for PoL DeFi yields, Solana for speed, Ethereum for security.
2. Check EVM fit: port Solidity code to Berachain/BNB without rewrites, saving weeks.
3. Test fees live-send $10 tx on explorers like Berachain's or Snowtrace for Avalanche.
4. Stake for yields: Delegate BERA (PoL module, 10-15% est.), SOL (7%), AVAX (8%).
5. Bridge wisely-use official IBC for Cosmos/Berachain, LayerZero for cross L1.
6. Join testnets: Berachain for airdrops, Sui devnet for Move experiments.
7. Monitor TVL on DefiLlama-target chains over $500M for liquidity depth.
8. Wallet setup: MetaMask for EVM (Berachain), Phantom for Solana, Keplr for Cosmos.
9. Govern: Vote BGT on Berachain vaults, DOT on Polkadot proposals.
10. Scale up: Launch subnets on Avalanche or app chains on Cosmos for custom DeFi.