The liquidity staking protocol Infrared @InfraredFinance of the Berachain ecosystem has launched a points doubling activity. Infrared is the core DeFi infrastructure on Berachain, occupying a major share of TVL. A recent collaboration with Pendle has updated the gameplay.
This article mainly revolves around the yield splitting and trading of Infrared's liquidity staking tokens iBGT and iBERA on the Pendle platform. Users can split these two assets into PT (Principal Token) and YT (Yield Token) through Pendle, participating in liquidity provision, trading, and other operations to earn Infrared points rewards and enjoy incentives such as points doubling. Below is a detailed introduction to this gameplay and a beginner's guide.
➤ Analysis of the core mechanism of Infrared and Pendle collaboration
1. Pendle Protocol
- PT (Principal Token) represents the principal part, which can be redeemed for the corresponding iBGT or iBERA assets upon maturity, locking in the principal value.
- YT (Yield Token) represents future earnings. Users holding YT can receive corresponding yields in real-time, such as BGT rewards from iBGT and Bera staking rewards from iBERA (including BGT rewards and trading fee sharing).
Through the Pendle protocol, users can split iBGT and iBERA into PT and YT, trading or holding them separately to implement strategies for locking in fixed yields, hedging risks, or amplifying yield exposure.
2. Core Mechanism of Berachain
Berachain features its Proof of Liquidity (PoL) consensus mechanism and a unique three-token model:
- BERA: Gas token used for paying transaction fees and participating in network security (by staking to validators).
- BGT: Governance token that is non-transferable and earned through 'constructive' activities within the ecosystem (such as providing liquidity), used for governance voting and guiding the distribution of block rewards.
- HONEY: The native consensus collateral stablecoin of the ecosystem.
3. Core Products and Advantages of Infrared
Infrared mainly simplifies participation in PoL and unlocks liquidity.
Staking BERA in Infrared will earn iBERA tokens.
After earning BGT by providing liquidity through Infrared or participating in other designated activities, it can be converted into iBGT tokens through Infrared.
Both iBERA and iBGT maintain a 1:1 pegged relationship with their corresponding native tokens (BERA and BGT) (theoretically). This not only releases the liquidity locked by users staking BERA but also solves the liquidity issue of BGT as a non-transferable governance token, allowing these assets to be further utilized in DeFi protocols.
For previous information about the 【Berachain Liquidity King Infrared Points Program Operation Tutorial】, you can refer to the article below.
https://x.com/lianyanshe/status/1917068666686075102
➤ Beginner's Simple Guide
1. Understand the meanings of PT and YT
- PT locks in the principal, which can be redeemed for the original asset upon maturity.
- YT represents future earnings, and yields can be received in real-time.
Through splitting, users can choose to lock in yields or trade yield tokens.
2. How to Participate
- Split iBGT and iBERA into PT and YT on the Pendle platform.
- Based on market judgment, buy or sell PT or YT to lock in yields or speculate on future yield changes.
- Provide liquidity for iBGT and iBERA in Pendle's AMM pool to earn trading fees and points rewards.
3. Points Rewards
- Participating in trading, liquidity provision, or holding YT can all earn points.
- Pay attention to the points doubling activity and leverage the 2x points reward for quick accumulation.
- Points can be exchanged for Infrared tokens in the future, enhancing long-term value.
4. Risk Warning
- High returns come with high risks, involving smart contract risks, market volatility, and liquidity risks.
- Beginners should first understand the Pendle and Infrared mechanisms and reasonably assess risks and returns.
- Develop an investment strategy that suits your risk appetite, avoiding blind chasing of highs.
➤ Summary
The collaboration between Infrared and Pendle provides flexible yield management and efficient liquidity solutions through yield tokenization (PT/YT splitting) and points reward mechanisms.
Users can not only lock in yields or speculate on future yields but also earn additional points rewards through liquidity provision and trading. The points doubling activity further enhances the incentive. For users who wish to participate in the Berachain ecosystem and enjoy liquidity staking returns, this gameplay reduces operational difficulty and offers diversified yield strategy options.
The above content integrates information from the Infrared official blog, Pendle protocol introduction, and related news, helping you to fully understand the Infrared points doubling gameplay and its specific operations.
