Recently, #Berachain has faced a lot of criticism in the market, but we have seen figures like Rui starting to bottom-fish. Overall, it should be close to the bottom area, in a state where it cannot drop further. So at this moment, the #Berachain ecosystem is worth digging deeper, as there may be some potential opportunities. Today we will discuss the yield 'issuance layer' of Berachain's native assets—InfraredFinance, which offers double benefits, Pendle doubles!
#Infrared (@InfraredFinance) is a liquidity intermediary and yield router on #Berachain, allowing ordinary users to earn #BGT returns without running nodes. It can be simply likened to: #Infrared's role in #Berachain ≈ Lido's role in ETH Staking on Ethereum, while also allowing early realization of these returns and leveraging points.
Core mechanism breakdown (since it is quite complex, we will explain it as simply as possible).
1. Understanding background knowledge: What is #BGT?
• BGT (Berachain Governance Token) is the native governance token of #Berachain, similar to veCRV, non-transferable, and can only be staked to earn block rewards.
• To obtain BGT, you usually need to provide liquidity (for example, by participating in the $HONEY/$BERA pool as PoL, Protocol-Owned Liquidity).
• Pain point: Regular people cannot buy directly.
2. The birth of iBGT: a liquidity mirror of #BGT.
• iBGT = transferable 'mirror BGT', users can obtain iBGT by providing liquidity through #Infrared.
• iBGT can also be staked to earn BGT staking rewards, with an APR yield of around 185%.
• This creates a liquidity bridge: indirectly obtain the yield rights brought by BGT through liquid assets.
• The iBGT flywheel allows users to deposit PoL assets through Infrared, enabling participation in various pools to maximize BGT returns (see image below).
3. Pendle is great, doubling the returns: yields are tradable + points are doubled.
#Infrared connects its yield tokens (iBGT, iBERA) to #Pendle.
• iBGT can be split into:
• PT (Principal Token): represents the principal, with assets returned at maturity.
• YT (Yield Token): represents yield + points during the period, with real-time yield receipt.
• Users can choose:
• Buy PT to lock in future returns (similar to a fixed deposit).
• Buy YT to gain future returns + points in advance, leveraging Infrared's point value.
4. Infrared Points incentive mechanism.
• Infrared Points are the core incentive mechanism of Infrared, expected to be redeemable for governance token airdrops in the future (comparable to the CVGT model).
• All interactions on Pendle with iBGT/iBERA (YT, PT, LP) can earn points; YT can also receive double points (currently 2x).
• Good news: All users who used iBGT or iBERA before 4/30/2025 have automatically received retroactive points (excluding 2x).
If you are also a loyal user of #Berachain, we recommend the following gameplay strategy:
A stable player, let's keep it simple; directly stake iBGT to earn returns, with a decent APR of 185%.
High-risk players seek maximum returns. So buy YT iBGT (Pendle) to acquire future returns and double points, but the risks will be higher.
If you are a profit-seeker, you can refer to the third option, but as more people participate in the future, returns will definitely shrink first.
A step-by-step guide on how to use #Pendle to play #Infrared's points & yield arbitrage:
#Pendle divides each yield asset into two parts:
• PT (Principal Token): retains part of your principal, redeemable at maturity on a 1:1 basis.
• YT (Yield Token): represents the yield you can earn during this period.
You can think of it this way: PT is a 'deposit certificate', and YT is an 'interest certificate'.
A simple example and practical plan: the entire process of buying YT iBGT.
Assuming you have $1000 and want to participate in Infrared's points track.
1. Open Pendle's Berachain market page:
👉 app.pendle.finance/trade/points?c…
2. Find iBGT-Yield Token, for example: 'YT-iBGT-maturing in July 2025'.
(This date is very important; only after maturity can you claim all yields + points.)
3. Choose to buy, for example, if you use $1000 to buy YT-iBGT.
(Note: this $1000 is equivalent to 'buying the interest and points for the next few months').
4. Wait for maturity, after which you will receive:
• On-chain yield generated from iBGT itself (real APR).
• #Infrared gives you points (calculated based on holding time/quantity).
• Points are the only proof for future #Infrared airdrops.
#Infrared project data📊 is still quite stable as of now.
• TVL exceeds 1.3 billion USD, indicating good market acceptance.
• Over 66% of iBGT is staked, indicating users' confidence in the sustainability of returns.
• Annualized APR reaches up to 185%-500% (depending on the strategy).
• Integration with Pendle brings point leverage and tradeability, enhancing liquidity.
Compared to the current tight liquidity market, this data performance is quite impressive.
#Infrared has a high-quality investment and financing background:
The total financing amount reached: 18.75 million USD, with notable investment institutions including: YZi Labs, Framework Ventures, Synergis Capital, Dao5, Shima Capital, Animoca Ventures, and other well-known organizations.
The recognition of institutions and investors fully proves the project's potential and ensures a long-term stable development foundation.
In summary: #Infrared is one of the most 'infrastructure'-like projects in the current #Berachain ecosystem, the foundational layer of yield financialization, and a bridge on the road to the marketization of #BGT. It lowers the threshold for BGT returns and achieves leverage of returns through #Pendle. Its value lies not only in high APR but also in the innovative combination of 'tradeability of BGT + point-based leverage'. It is worth participating in and paying attention to.
