$2 billion in pre-deposits for Boyco on Berachain: the arrival of the mainnet

Yesterday, Boyco, a pre-launch liquidity platform created in collaboration with Enso, Berachain, and LayerZero, was launched. 

Up to now, the platform has already raised more than 2.3 billion dollars in pre-liquidity.

Source: https://twitter.com/roycoprotocol/status/1884430713824633253

Boyco and the pre-deposits on Berachain

Boyco allows pre-deposits on Berachain to earn incentives. 

It is based on the Royco protocol, an Incentivized Action Market (IAM) that allows anyone to create a market for any on-chain action.

An IAM protocol allows an Incentive Provider (IP) to offer incentives, such as tokens or points, to Action Providers (AP) who perform certain on-chain actions, such as depositing funds on a particular protocol, minting NFTs, executing a series of transactions, and more.

The protocol indeed allows IP and AP to make offers and counteroffers until they agree on the amount of the incentive. Once the amount is agreed upon, the transactions of the AP are executed on-chain and the incentives are automatically assigned to the AP.

Boyco was launched yesterday and will end on February 3rd.

Each application participating in Boyco sets up a script that determines what is done with the deposits once connected to Berachain. 

In addition to the 2.3 billion dollars in pre-deposits, Boyco has already surpassed 115 million dollars in TVL, and a volume exceeding 118 million dollars. 

The Berachain project

Berachain is a high-performance blockchain framework compatible with EVM (Ethereum Virtual Machine) created for developers looking to build or migrate applications with ease.

The framework is based on a modular design that allows the development of custom L1 blockchains for specific needs. In particular, thanks to its modularity, it aims to solve the problem of liquidity fragmentation, one of the most important obstacles to the smooth exchange of assets between different blockchain.

It is based on a unique consensus mechanism, called Proof-of-Liquidity, thanks to which the efficient allocation of liquidity is incentivized. 

Being compatible with Ethereum’s ERC standards and opcodes, it ensures developers the ability to leverage the vast ecosystem of tools and services already existing based on Ethereum.

Additionally, it also adopts a tri-token model for its economic and governance structure, with different tokens serving different purposes, such as facilitating transactions, incentivizing certain behaviors, or governing the development of the platform.

Boyco, Royco and Berachain

Thanks to the integration with Berachain, with Boyco the dApps can create liquidity markets already in the pre-launch phase, allowing users to deposit funds before the project’s mainnet becomes active.

Previously, however, it was necessary to actually deposit funds on smart contracts or directly on the project’s wallets, whereas now a third-party platform is used. 

With Boyco and Berachain, users deposit their funds in a sort of “vault,” where they are then locked until the launch of the mainnet.

The objective is to solve the so-called “cold start” problem, which is the cold start of new dApps due to a lack of liquidity. 

Royco is the protocol on Berachain that allows the creation of liquidity markets, while Boyco is a specific and concrete implementation of the Royco protocol created specifically for the launch of the Berachain mainnet.

Currently, everything is managed on the Ethereum blockchain until February 3rd, when the liquidity collected will be transferred to Berachain. Subsequently, the BERA token, one of the three tokens of Berachain, will be launched. 

The problem of liquidity and the cold start for new dApps

When you want to create a new blockchain or a new dApp, it is not easy to gather liquidity even before launching it.

Furthermore, in the past, the forms used to raise liquidity before the launch often proved to be lacking in transparency, if not outright fraudulent in some cases. 

This initiative based on the Berachain project aims to do so securely, ensuring participants that their funds are actually deposited into the new projects that will be launched. 

Obviously, the risks are not completely eliminated, but only reduced; however, the risk that the funds deposited before the launch of a project end up being collected only by the creators of the project is often one of the major risks, although not the only one. 

To this must be added that ensuring the funds allocated to a project are available on the project at the time of launch, and cannot be used before the launch or outside of it, allows users to be at least sure they can actually use them on the project itself. This may seem obvious at a superficial analysis, but in reality, it often hasn’t been the case in the past.