Berachain:

Berachain is an EVM-identical Layer 1 (L1) blockchain that uses the novel Proof of Liquidity (PoL) consensus mechanism to align liquidity and security at the network level. PoL enables users to earn directly from the network for contributing liquidity or performing incentivized actions—transforming the chain's inflation into fuel for its applications and their users. This model aligns incentives with users who support the network over the long term, creating a sustainable ecosystem where the network's growth and liquidity reinforce each other. What started as an NFT project in 2021 has evolved into a full-fledged blockchain ecosystem backed by a grassroots army of left and right curvers.

Adventure Layer:

Adventure Layer is an L2 on top of Berachain, custom made for Fully Onchain Games (FOCG), built by the Adventure Gold DAO. Adventure Layer focuses on supporting FOCGs that at their core resembles a financial market. The Adventure Gold token ($AGLD), once a fair launch token airdropped to the Loot NFT in 2021, now focuses on incentivising player activities & liquidity in FOCGs, empowered by a community that arose from the Loot NFT. Similar to trading, playing FOCGs on Adventure Layer will provide users with a thrilling experience amplified by PNL. Skill, capital and luck all contribute to in-game advantages, while monetary incentives shift in-game behaviours. As the games are fully onchain, the gamified financial markets are transparent, traceable, and more importantly composable. This enables yield opportunities & “trading strategies” similar to what we see in DeFi.

Liquidity Loves Liquidity

Three years after shaking up the industry with one of the most exciting airdrop experiences,  Adventure Gold DAO now has a warchest of over $20M in more than 15M AGLD, ready to start incentivising the in-game volume & liquidity on Adventure Layer. By teaming up with Berachain, Fully Onchain Games, as a unique form of financial market, will have access to the most incentivised and active liquidity hub. Players can enjoy incentives from both Adventure Layer and Berachain simply by playing Fully Onchain Games. For liquidity providers on Berachain, they now have access to powerful gamified yield generators.

The flywheel is simple:

1. Incentives attract more players with more capital

2. More players in the lobby with more stakes on the table means better thrill, resulting in higher in-game volume/GDP.

3. Higher volume results in more fees for the game stake holders, benefiting liquidity providers and incentive providers. This allows more incentives to be provided to the best gamified financial markets.

Win-Win Situation

By integrating as an L2 on top of the PoL L1, the Adventure Layer <> Berachain integration brings a much needed wind of innovation & new product to the crypto community. For onchain degens, they can now generate alpha outside of simply trading & yield farming. Users make money by competing in games as if they are trading. For the long-awaited crypto gamers**,** this integration brings Onchain gaming towards the best Onchain liquidity reward system, exposing gamers to a more efficient and fairer reward system

Integrating with Berachain as an L2

To enable the win-win situation we mentioned earlier, Adventure Layer would be using Berachain as a settlement layer. This allows incentives to be received by liquidity on either chain via establishing a seamless bridge between Berachain & Adventure Layer. Together with the integration, AGLD DAO will offer liquidity incentive for AGLD<>Honey pair alongside with gaming yield vaults on Berachain. Users can interact with the vault without leaving Berachain while enjoying the yield generated on Adventure Layer. The integration will also bring community events for both players and developers, such as gaming tournaments and hackathons.

Generating yield for liquidity via FOCGs

To help users understand how yield is generated in FOCGs, we will use The Adventure Slither Game as an example.

The Adventure Slither Game will be the first Fully on-chain game on Adventure Layer upon integration with Berachain. Each game session will be played with only 1 token, so it’s more comparable to a derivative instrument, similar to futures.

• Inspired by Slither.io, Adventure Slither is a multi-player game where snakes consist of a number of dots. The more dots a snake is able to collect, the longer the snake gets longer. A longer snake has some advantage when playing against a shorter snake. When snake A’s head touches another snake, snake A dies and leaves the dots it has been collecting into the map for other snakes to pick up.

• Unlike Slither.io, which is played with worthless points, Adventure Slither is played with real token/money

• The initial length of the snake is represented by the capital/principal amount a player puts in.

  • If a player puts 5 AGLD into the snake, the snake begins with 5 length units.

  • If another player puts 50 AGLD into the snake, the snake begins with 50 length units, 10X of the 5 AGLD snake.

• Players can make money by collecting dots in the game (scattered around the map, or as a result of another snake dying) while avoiding being killed by another snake.

• The player loses all principal when the snake he/she control dies.

• When a player makes a profit, a fee will be charged by the game, generating yield.

• Lending protocols can be built around the game, where quality players can borrow before entering the game, securing a larger capital size and consequently more in-game advantage. A fee will be paid upon winning & returning the borrowed capital, generating yield for the lender within a short time-frame of 1 game session.

• Similar to trading, different strategies can be carried out by players according to their different capital size and risk preferences

  • Quick trading: avoid competing directly with other snakes. Only pick up the loose pieces scattered around the map. Low risk, low reward, similar to short-term trades with tight TP/SL margins.

  • Smart wallet copy trade: identify a snake with a high win rate. Follow the snake. As soon as that snake kills another snake, the player can pick up the residuals without too much strategizing. Mid risk, mid reward, similar to copy trading strategies from smart wallets in meme coin trading.

  • Market Manipulation: a player group can set up multiple snakes with a huge capital input, dominating a part of the map with collaboration to capitalize on all other players. High risk, high reward. This is similar to tokens with a highly concentrated supply, where whales can manipulate the market.

  • Short-squeezing: when a game session is dominated by a few snakes, other players can enter the game with numerous small snakes trying to take them down. With some coordination & some luck, once one of the larger snake is killed, those small snakes can grow very quickly, turning the game against the big players. High risk, high reward. This is similar to the famous GameStop mania, where retail conduct a short squeeze on the hedge funds.

Liquidity Experience on Adventure Layer, as an L2 on Berachain:

FOCGs can provide a similar experience to DeFi liquidity in the Berachain ecosystem.

1. Liquidity was originally sitting in AMM pools on Berachain.

2. The liquidity can bridge from Berachain to Adventure Layer.

3. The liquidity can generate yield actively by playing the game directly, delegating towards a player, or even delegating towards an AI agent playing the game. This is similar to trading directly, or investing tokens into a trading fund.

4. The liquidity can generate yield passively & securely by either providing liquidity into a lending vault (generating yield from lending fees), or to bootstrap a game session (generating yield from in-game fees).

5. Liquidity, when idle on Adventure Layer, receives reward from Bera as part of the native yield generation for synthetic tokens on Bera-L2s.

6. Users can deposit into a vault on Berachain. Upon deposit, the vault bridges tokens towards passive pools on Adventure Layer for yield. Upon exit, the vault withdraws principals & yields, bridge back to Berachain, and withdraw for users.