Infrared Finance Crypto: Elevating Berachain’s Proof of Liquidity

This guide explores how Infrared Finance supports Berachain by delivering liquid staking for BGT and BERA, turning participation in Proof of Liquidity (PoL) into a simple, capital-efficient experience through iBGT, iBERA, and automated vaults built for DeFi.

Infrared is an infrastructure-first protocol centered on Berachain’s PoL design. In practice, users connect a wallet, deposit BGT or BERA, and mint iBGT or iBERA as liquid representations of their staked position. The protocol routes the underlying stake into validator-driven PoL participation so rewards can accrue over time, while the liquid token remains usable across DeFi. When a user wants to exit, they typically redeem back to the underlying asset through the protocol’s redemption flow (or swap on secondary markets if liquidity is available), with the final amount determined by the current redemption rate and any protocol-defined timing or fees.

Liquid staking can increase flexibility for DeFi users, but it also introduces smart-contract, validator, and liquidity risks that should be evaluated alongside the potential yield.

• Frictionless Onboarding. Intuitive products reduce complexity, helping holders of BGT and BERA convert to iBGT and iBERA and optimize staking rewards.
• Capital Efficiency and Liquidity. Retain mobility of staked positions to pursue additional crypto strategies within the Berachain ecosystem, such as using iBGT/iBERA as collateral, providing liquidity in pools, or rotating into other yield opportunities. The trade-off is that these strategies can add exposure to DeFi-specific risks (like liquidity conditions and position management), and liquidity or pricing for the liquid token may not always be consistent across venues.
• End-to-End PoL Alignment. Integrated staking, governance, and validator participation aim to capture the full economic surface of PoL for users and builders.

What Is Infrared Finance?

It is a DeFi protocol purpose-built for Berachain that abstracts PoL participation. Users can stake BGT and BERA to receive liquid tokens—iBGT and iBERA—that continue to earn staking rewards.

How Does Liquid Staking Work on Infrared?

You deposit BGT or BERA and mint iBGT or iBERA. These representations can move through DeFi while the underlying stake earns yield, combining flexibility with ongoing rewards.

What Are iBGT and iBERA?

They are liquid staking tokens that represent a claim on staked BGT and BERA within Infrared’s accounting system. Their value is generally supported by (1) the protocol’s redemption relationship to the underlying stake and accumulated rewards and (2) market pricing on exchanges where the tokens trade, which can diverge from the redemption value during volatility or low liquidity.

Converting back typically involves using the protocol’s redemption flow to burn iBGT/iBERA and withdraw the underlying asset according to the prevailing redemption rate, potentially subject to timing constraints, fees, or queueing mechanisms. Users should also consider risks such as smart-contract failure, validator slashing impacts on the underlying stake, and depegging or liquidity shortfalls that can affect exit pricing.

What Are Infrared Vaults?

Vaults are automated strategies that handle PoL interactions for you. Depending on the vault, strategies can include straightforward staking-and-hold vaults, incentive-routing vaults that optimize where emissions flow, or auto-compounding approaches that periodically reinvest rewards.

Vault participation can add additional risks beyond basic staking, including strategy risk (the vault behaving differently than expected in changing conditions), smart-contract risk, and liquidity risks if the strategy interacts with pools where price impact or impermanent loss can occur.

How Does Infrared Strengthen Berachain’s Infrastructure?

Infrared works with node providers to broaden and decentralize the validator set, improving resilience, security, and reliability for the network.

What Is the Infrared Points Program?

A pre-token incentive system that grants points for contributing to PoL vaults, adding liquidity to trading pairs, and staking the protocol’s liquid staking tokens. Points are intended to convert into the native token at launch.

How Accessible Is Infrared Finance?

Infrared is generally accessed non-custodially through a wallet connection, meaning typical eligibility is having a compatible wallet and the required assets (such as BGT or BERA) plus network fees. Because access is on-chain, there is usually no built-in account creation or KYC step at the protocol level, but availability of the user interface can still depend on local rules and how front-ends handle compliance.

Geographic or regulatory restrictions can vary by jurisdiction, and some regions may face limitations based on local laws or how specific interfaces choose to operate. For non-technical users, the experience is typically designed around simple deposit-and-mint flows with dashboards that track positions and rewards, but users still need to understand wallet security, confirmations, and basic DeFi transaction risks.

Is Infrared Finance Sustainable?

Sustainability for a protocol like Infrared is mainly about whether it can maintain secure operations, a healthy validator set, and continued product usage over time. Longevity tends to depend on factors like prudent risk management, the ability to maintain and upgrade smart contracts, and sustained adoption of its liquid tokens and vaults across the ecosystem.

Economic sustainability is tied to how rewards and incentives are funded (for example, PoL-driven emissions, fees, and incentive programs) and whether those incentives remain attractive without relying on short-lived subsidization. Environmentally, Infrared builds on a proof-of-stake-style design, which is generally less energy-intensive than proof-of-work systems, though the protocol’s footprint still depends on the broader network it runs on.

Is There an Inverse Crypto Token Associated With Infrared Finance?

Infrared’s core products are liquid staking tokens (such as iBGT and iBERA) and vault positions, which are designed to represent staked exposure rather than an “inverse” instrument. An inverse token would typically be structured to move opposite the price of an underlying asset or index, and Infrared is not positioned around that type of product in its primary staking design.

Where Can You Buy Infrared Finance (IR)?

Availability depends on whether the IR token is live and where it is listed. In many cases, protocol tokens are first available on decentralized exchanges on the native network and through swap interfaces that support the relevant chain. If IR is listed on centralized exchanges, those venues typically require an account and may require identity verification depending on jurisdiction.

To purchase, users commonly (1) acquire the base asset used for trading on the relevant network, (2) use a supported exchange or swap interface, and (3) verify they are interacting with the correct token contract before swapping and storing the token in a compatible wallet.

What Is the Price of Infrared Finance (IR) and Infrared BGT (iBGT)?

Token prices change continuously and depend on where the assets trade. The most reliable way to get up-to-date pricing is to check the live market price shown in the trading venue where IR or iBGT is exchanged, or within interfaces that display current on-chain swap quotes and liquidity conditions.

Because iBGT is a liquid staking token, it can trade at a premium or discount to its underlying redemption value depending on liquidity, demand, and market conditions. For that reason, users often compare both the market price and the protocol’s redemption rate when evaluating an entry or exit.

Is Infrared Finance (IR) a Good Investment?

Whether IR is a good investment depends on your goals and risk tolerance. Common factors to evaluate include token utility, demand drivers in the Berachain ecosystem, incentive design, liquidity, concentration risk, and how protocol revenues or emissions support long-term participation.

Key risks can include smart-contract vulnerabilities, incentive changes, liquidity constraints, regulatory uncertainty, and broader market volatility. Potential rewards generally come from ecosystem growth, token utility, and any value capture mechanisms associated with protocol usage.