Berachain focuses on building “decorrelated populations” of users to protect against the reflexivity of the market, said Smokey The Bera, the pseudonym founder of The Blockchain, on the stage of the Consensus 2025 event of COINDESK in Toronto.
Reflexivity is a great concern in decentralized finances and cryptography. It refers to the effect of self-reference of the feeling of the market. The increase in prices often attracts buyers and creates a positive feedback cycle. However, the same process can operate in reverse, which leads to a catastrophic collapse in prices.
Berachain’s plan for the second and third quarter is to support the profitable companies that exist on web2 and are not correlated for existing defi and cryptography markets.
Doing it will help Berachain protect against reflexivity, help him with the volatility of the weather market and retain a deep liquidity, Smokey said.
Jason Atkins joined Smokey from the Auro Market Manufacture firm, when they discussed all the things to do liquidity, essentially how easy and quickly buy or sell a cryptographic asset without a significant impact on its price.
