What is Infrared? A comprehensive overview of the liquidity hub in the Berachain ecosystem

If you’re looking for yield opportunities within the Berachain ecosystem, Infrared Finance is almost certainly a name you can’t ignore. This protocol, known as the “PoL Gateway,” has become the highest total value locked (TVL) project on Berachain, accounting for nearly 60% of the ecosystem’s DeFi TVL.

How does it actually work? And why does it attract such substantial capital?

01 Project Positioning: When PoL Meets User-Friendly Design

Infrared Finance is a liquidity proof infrastructure protocol dedicated to serving the Berachain network. Its core mission is very clear: to enable ordinary users to easily and securely participate in Berachain’s unique Proof of Liquidity (PoL) mechanism without needing to understand the underlying complex technical details.

In traditional PoS blockchains, users need to stake tokens to maintain network security, which means assets are locked and cannot participate in DeFi activities simultaneously. Berachain’s innovation lies in its PoL mechanism—it directly links network security with liquidity provision, rewarding those who genuinely contribute liquidity to the ecosystem.

However, participation in PoL itself has barriers. Users need to understand LP strategies, participate in BGT delegation, assess vault cost-effectiveness, and interact with validators—complex processes. Infrared’s value lies here: it provides simple, user-friendly tools that automate this series of complex operations, creating a “one-click” PoL participation experience.

02 Core Products: Decoding the Dual-Drive of iBGT and iBERA

Infrared’s most innovative core is its liquid staking tokens iBGT and iBERA, which address two major native tokens’ key pain points in the Berachain ecosystem.

iBGT: Making Non-Transferable Governance Tokens Liquid

BGT is Berachain’s governance token, but it has a unique property—soulbound, meaning it cannot be transferred or traded. While users can earn BGT by providing liquidity, these tokens are highly restricted in use.

iBGT, as the liquid staking version of BGT, perfectly solves this problem. When users stake BGT in Infrared’s vaults, they do not receive the non-transferable BGT directly but instead receive freely tradable iBGT.

Currently, iBGT has become the most dominant product in the Berachain LST (liquid staking token) market, even approaching a 45% premium.

iBERA: Lowering Validator Participation Barriers

Running validator nodes on Berachain requires staking BERA, which demands technical knowledge and significant capital from ordinary users. iBERA, as the liquid staking version of BERA, allows users to participate in staking with smaller amounts while maintaining asset liquidity.

After staking BERA via Infrared, users receive 1:1 pegged iBERA, which can earn staking rewards while still being used for trading, collateral, or other DeFi applications.

03 Technical Architecture: How the PoL Vault Achieves Automated Yield

Infrared’s technical core is its PoL vault system—a set of smart contracts that automatically manage the entire liquid staking process on behalf of users.

When users deposit LP tokens into Infrared’s vaults, the system automatically performs the following complex operations:

1. Asset Staking: Stake users’ liquidity assets into Berachain’s PoL system;
2. Reward Collection: Obtain BGT rewards from the system;
3. Delegation Optimization: Automatically delegate the earned BGT to Infrared-operated validator nodes;
4. Token Conversion: Convert non-transferable BGT into freely tradable iBGT.

This fully automated process eliminates the need for manual operations, greatly lowering the technical barrier to participating in PoL. Through this design, Infrared creates a virtuous cycle of “liquidity-security-reward,” driving the development of the entire Berachain ecosystem.

04 Yield Strategies: From Basic Staking to Advanced Combinations

Participating in Infrared can generate multiple forms of yield, allowing users to choose strategies based on their risk preferences.

Basic Staking Yields

The most straightforward method is staking BERA or iBGT. Staking BERA yields iBERA and staking rewards, while staking iBGT earns rewards based on the underlying BGT, distributed in HONEY and WBERA, with annual yields once reaching up to 245%.

Liquidity Pool Yields

Users can provide liquidity for major trading pairs on decentralized exchanges like Kodiak and BEX via Infrared’s vaults. For example, WBERA-iBGT and WBERA-iBERA liquidity pools not only offer basic returns but also provide a 1.375x points bonus.

Points Rewards and Airdrop Expectations

Infrared officially launched its points program on April 23, 2025. Users can automatically accumulate points through staking or providing liquidity. These points are expected to be redeemable for Infrared’s native tokens in the future, with a token generation event planned for Q3.

05 Ecosystem Integration: Building Berachain’s Liquidity Network

Infrared’s success lies not only in its product design but also in its deep integration within the Berachain ecosystem.

As a project incubated under the Build-a-Bera plan by the Berachain Foundation, Infrared has established partnerships with several key protocols within the ecosystem. For example, collaboration with Dolomite allows users to deposit lending market liquidity into Infrared’s vaults, enhancing capital efficiency.

Additionally, iBGT, as a composable liquid staking token, has been widely adopted in Berachain’s DeFi protocols, serving as collateral for lending and trading pairs, further boosting its liquidity and utility.

06 How to Participate: Three Steps to Start Your Infrared Journey

To begin using Infrared, you can follow these basic steps:

Step 1: Preparation

Set up a wallet supporting the Berachain network, ensure it holds some BERA for gas fees, and prepare assets for staking or providing liquidity.

Step 2: Choose Participation Method

Visit the Infrared Finance official website and select:

• Stake BERA directly on the iBERA page to get iBERA;
• Choose a PoL vault under the Vaults tab to provide liquidity, recommended to select vaults with points bonuses like WBERA-iBGT Kodiak LP Vault;
• If you already have iBGT, stake it to earn additional rewards.

Step 3: Monitoring and Management

After participating, you can view your portfolio on the Portfolio page and monitor points accumulation on the Points page. All yields and points are automatically accumulated without additional operations.

Future Outlook

With Berachain launching PoL v2 upgrade in July 2025, users staking BERA can now directly share in the ecosystem protocol revenue through buyback rewards, providing a more sustainable yield model for Infrared participants.

Infrared’s value lies not only in offering high-yield opportunities but also in encapsulating the complex PoL mechanism into products that are understandable and operable by ordinary users. By lowering technical barriers, it is bringing more users into the Berachain ecosystem—precisely the infrastructure any emerging public chain needs.

For users seeking opportunities within the Berachain ecosystem, understanding and participating in Infrared may be the first key to opening this door.