What is Infrared (IR)?

Deep Dive

1. Purpose & Value Proposition

Infrared solves liquidity inefficiencies in Berachain’s PoL system, where assets like BGT (governance token) and BERA (gas token) are typically illiquid. By wrapping these into tradable tokens (iBGT, iBERA), users gain flexibility to stake, trade, or farm yield while retaining governance rights (Infrared Blog). This unlocks capital efficiency for DeFi protocols and individual users, addressing a key pain point in PoL ecosystems.

2. Technology & Ecosystem

The protocol automates yield aggregation via PoL vaults, which optimize staking rewards and liquidity provisioning. Key innovations include:
- Liquid Staking: Converts staked BERA into iBERA, enabling yield accrual without locking assets.
- Validator Infrastructure: Enhances node performance and decentralization.
- Partner Integrations: Collaborates with protocols like Pendle and Beefy Finance to expand use cases.

With $1.7B peak TVL, Infrared anchors Berachain’s DeFi activity, serving as a middleware layer for yield strategies (CoinMarketCap).

3. Tokenomics & Governance

IR’s 1B supply is allocated to ecosystem development (23.5%), investors (21.3%), and community incentives (2% airdrop). Staking IR grants sIR, which confers voting power and a share of protocol fees. A portion of fees funds the Red Fund, which buys back IR to support community initiatives. Vesting schedules for team and investors include cliffs and linear releases to align long-term incentives.

Conclusion

Infrared is Berachain’s liquidity backbone, transforming locked assets into productive capital while embedding governance and sustainability into its token model. How will its PoL vaults evolve as Berachain’s ecosystem matures?