Why pay attention to Infrared?
On one hand, Infrared is currently executing a points program phase, and there will be airdrops in the future.
On the other hand, on the surface, Infrared appears to be part of the LSD (Liquid Staking Derivatives) sector. However, Infrared differs from existing LSD projects like Lido.
POL proof of Berachain
As the liquidity infrastructure of the Berachain ecosystem, the differentiation designed by Berachain is one of the fundamental reasons why Infrared is unique.
The dual-token model separates security from incentives.
◆ Dual-token model: Berachain uses a dual-token model, $BERA+$BGT.
$BERA, like other tokens, supports transfers, trading, etc. However, $BGT is non-transferable and non-tradable.
$BGT is a governance token, and its monetization model is to redeem it at a 1:1 ratio, destroy $BGT, and exchange it for $BERA. However, conversely, $BERA cannot be exchanged for or purchased with $BGT.
◆ Security: The top 69 validators stake $BERA as a security guarantee. At the same time, they receive GAS fees ($BERA), ecological shares (various ecological tokens), and fixed block rewards ($BGT) as cost compensation and basic income.
◆ Incentives: Validators and users delegate $BGT to validators to earn Boost rewards. This portion of the rewards primarily incentivizes validators and users to provide liquidity to Berachain.
◆ Security separation: If there are issues with the validator’s work, some of their staked $BERA may be deducted. However, this will not affect the $BGT delegated by users.
Liquidity compound interest
◆ Ways to obtain $BGT
› Validators earn fixed block rewards while working, which are distributed in $BGT.
› Delegating $BGT to validators earns Boost rewards distributed in $BGT.
› Add liquidity in permitted DEXs to obtain LP tokens. Staking LP tokens can earn $BGT rewards.
◆ Liquidity compound interest
First, in the Berachain ecosystem, adding liquidity to DEX can earn transaction pool fee revenue.
Second, staking the corresponding LP tokens can earn $BGT rewards.
Third, delegating $BGT to validators can earn delegation rewards again, including Berachain block Boost rewards, validator voting rewards, and dividends from ecological Dapps.
This is the triple liquidity compounding of the Berachain ecosystem, which gives the funds in the Berachain ecosystem a higher utilization rate, distinguishing it from the coin-generation model of POS consensus.
Pol-vaults+iBGT optimize the user participation process.
Risks and complexities of native POL
◆ Risks faced by native POL users
In POS mode, users can participate in mining by purchasing and staking the public chain coin, assuming only the risks associated with fluctuations in the public chain coin. Additionally, users can reduce such risks at any time by buying and selling the public chain coin.
In the native POL model, since $BGT cannot be traded or transferred, users must first add LP before staking LP tokens to earn $BGT. While users gain triple liquidity compounding, they also bear the dual risks of LP impermanent loss and LP asset price fluctuations.
Furthermore, users cannot reduce short-term risks through flexible buying and selling of $BGT. They must either give up $BGT, destroy it, and exchange it for $BERA, or continue holding $BGT.
◆ Complexity of participation for native POL users
On the other hand, when users choose validators for delegation, they need to analyze the overall situation of each validator and frequently monitor and adjust the delegation targets. For example, when a validator reduces their staked $BERA, it decreases the probability of that validator receiving rewards. Similarly, if too much $BGT is delegated to a validator, it may reduce the Boost rewards that users receive. This presents users with challenges related to choice complexity and timeliness.
Pol-vaults+$iBGT optimize the user participation process.
◆ More flexible separation of processes into two stages
Infrared has keenly identified these pain points of users and launched the Pol-vaults+$iBGT model.
Users deposit LP tokens into Infrared's Pol-vaults. The Infrared protocol deposits the LP tokens into Bera's native POL. After obtaining $BGT, it issues the corresponding $iBGT. The returns that users receive from Infrared's Pol-vaults are not $BGT, but $iBGT.
Compared to the non-tradable and non-transferable $BGT, $iBGT has strong flexibility, allowing it to be traded on DEX and transferred between wallets.
Users can separate participation in the two stages of LP and delegation to validators. In the first stage, users can deposit LP tokens to earn $iBGT.
In the second stage, users stake $iBGT to earn Boost delegation rewards from delegating $BGT.
Users can choose:
› Participate only in the first stage. For example, when bearish, use WBTC+WETH to add LP, then mine $iBGT to sell.
› Participate only in the second stage. For example, when bullish, directly buy or borrow $iBGT and stake (LP of equal value may earn $iBGT more slowly through the first stage).
› Of course, you can continuously participate in the first and second phases.
In summary, separating into two stages provides users with sufficient flexibility, allowing them to better formulate their yield and risk strategies.
◆ Liquidity delegation agency service
The returns from staking $iBGT for users come from the underlying $BGT delegated to validators, generating delegation rewards.
In native POL, users need to personally select validators for delegation. However, when staking $iBGT, the Infrared protocol selects validators and executes the delegation.
The Infrared protocol can monitor the status and data of Berachain validators in real-time, allowing $BGT to be delegated to the most suitable validators.
Essentially, it provides users with liquidity delegation services. On one hand, it greatly simplifies the participation process for users. On the other hand, it maximizes the delegation rewards for users.
Ecosystem data
◆ Pol-vaults data
Currently, the total TVL of Pol-vaults is close to $340 million, among which the highest APR exceeds 500%.
The highest TVL is for cross-chain satSolvBTC to Berachain, with a TVL exceeding $80 million. This shows that Infrared's Pol-vaults also support non-LP single asset liquidity.
In addition, liquidity for non-Berachain native assets is also supported. For example, the LP for the WBTC-WETH trading pair has a TVL exceeding $7 million, with an annualized yield of 30%.
◆ $iBGT data
Since its launch six months ago, the TVL of iBG has generally been between $15 million and $30 million, with a current TVL of $22.94 million and an ARP of 79.36%.
iBERA participates in the role of validator.
Staking rewards automatically compound.
Users can stake $BERA in Infrared to obtain $iBERA. Infrared will use these $BERA as validator stakes and distribute the validator earnings obtained on this basis to $iBERA holders.
$iBERA holders indirectly participate in the role of Berachain validators. Users can earn validator rewards, including miner fees and additional incentives, possibly including MEV rewards.
$iBERA's staking rewards are automatically compounded, meaning users do not need to operate manually, as staking rewards will automatically continue to compound. Therefore, the yield of $iBERA is reflected through the appreciation of $iBERA/$BERA.
iBERA is the product most similar to Lido (the difference is that Lido can infinitely increase validator nodes with the increase of staked ETH, while iBERA can earn rewards from only 69 validator nodes).
iBERA ecological data
In the second half of 2025, the TVL of iBERA stabilizes, with a current TVL of $174 million and an APR of 3.24%.
iVault advanced strategy
In late July, Infrared launched the iVault advanced strategy product.
The first product of iVault is BYUSD, where users can deposit LP for the BYUSD-HONEY stablecoin trading pair and harvest $iBGT, among other potential earnings from Berachain's POL, BEX, and additional incentives.
BYUSD was launched less than a month ago, and its TVL has reached $14.6 million, with an ARP of 15.02%.
More products from Infrared
For developers
In addition to the products mentioned above for regular users, Infrared also provides many products for developers, such as various API tools.
Moreover, Infrared provides additional incentives for validators to guide validator behavior (provided it does not disrupt the Berachain ecosystem) through a function set.
Infrared also offers robotic tools that automatically collect and stake $iBGT, allowing developers to collect and stake $iBGT more promptly, thereby increasing their returns.
Iterative new version
At the end of July, Infrared released the introduction of version 1.7, marking the 7th upgrade, which includes four major updates:
First, the iBGT auction system. The $BGT rewards for staking $iBGT are no longer directly converted to $wBERA at a 1:1 ratio, but are minted as $iBGT and auctioned for $wBERA. This is to maintain the price of $iBGT/$BERA in line with market supply and demand.
Second, the reward form of iBERA has been updated. iBERA will still automatically compound, but when the premium of $iBERA/$BERA reaches 1.2 or higher, the rewards will be kept as $iBGT and will no longer be converted into $BERA for reinvestment.
Third, the dynamic minting fee for $iBGT. When minting $iBGT based on $BGT, a dynamic minting price will be used. When the price of $iBGT/$BGT is high, a higher minting fee will be applied, while a lower minting fee will be applied when the price is low, thus balancing the price of $iBGT/$BGT.
Fourth, temporarily restrict the redemption of $iBGT. When the price of $iBGT/$BGT falls below 1.0, temporarily restrict the redemption of $iBGT to stabilize the price of $iBGT/$BGT.
The main motivation for this update is to strengthen the price balance of $iBGT/$BGT and $iBGT/$BERA, ensuring that it aligns with market supply and demand without causing excessive volatility.
Security
As a financial protocol, security is always of paramount importance.
Open source
First, Infrared code is open source, with the most recent update being 4 hours ago, and 12 hours ago...
Code security audit
Additionally, from April 2024 to now, Zellic, Zenith, Cantina, and Spearbit have conducted 12 security reviews on Infrared, including code audits, security assessments, and security competitions.
The last two audit reports were published in July 2025, conducted by Cantina and Zenith, respectively.
Infrared's audit report from July 1 found 0 critical risks, 1 high risk (all resolved), 4 medium risks (all resolved), 5 low risks (3 resolved), and 15 informational risks (4 resolved).
Infrared's audit report from July 8 found 0 critical risks, 0 high risks, 2 medium risks (all resolved), 9 low risks (8 resolved), and 4 informational risks (2 resolved).
The relationship between Infrared and Berachain.
Infrared has a close cooperative relationship with Berachain but belongs to two different teams.
First of all, these two projects complement each other.
Breachain provides the foundation for Infrared's innovation.
Berachain's POL consensus innovation provides an innovative foundation for Infrared. iBera is a liquidity product similar to Lido. However, POL Vault+iBGT is an innovation based on POL consensus.
Infrared improves Breachain's ecosystem liquidity.
First, Infrared issues $iBGT based on $BGT. $iBGT is tradable and transferable, thus adding vitality to the Breachain ecosystem's liquidity.
Second, Infrared has not yet issued tokens and is in the points program phase, which can attract more funds to participate in the ecosystem, thereby increasing liquidity for Berachain.
Third, Infrared has designed more liquidity products based on Berachain, adding more ways to participate in the Berachain ecosystem.
Infrared tends to be the monopolist of Breachain liquidity.
According to Berahub, among the validators ranked by the highest number of Boosts, almost all are occupied by Infrared's nodes.
According to Infrared's official website, the platform's total TVL has reached $533 million. Defillama uses different metrics to estimate Infrared's TVL at $334 million, while the same metric estimates the total TVL of the Berachain ecosystem at $383 million.
This set of data indicates that Infrared has provided almost all liquidity for Berachain.
In comparison, Lido accounts for 40.74% of Ethereum's liquidity, Kamino 24.45% of Solana's liquidity, and Pancake 26.51% of BSC's liquidity... Echo may hold slightly more of Aptos' liquidity, at only 34.89%.
Infrared almost occupies a monopolistic position in the liquidity of the Berachain ecosystem.
Especially for the application of $iBGT, its underlying corresponding $BGT actually exists within the Infrared protocol. Users trade $iBGT in the Swap, which does not affect the destruction of $BGT in real-time. When many users sell $iBGT, Infrared may then destroy $BGT. Therefore, Infrared has become an important factor affecting the supply of $BGT.
According to Berascan, the total supply of $BGT is 19,930,102, while the total supply of $iBGT is 14,451,374, accounting for 72.51% of the total $BGT supply.
To some extent, Infrared has almost become the central bank of $BGT.
The possibility of Infrared stepping out of Berachain.
Berachain and Infrared may have a subtle relationship. This subtle relationship could give Infrared potential future competitiveness.
Such competitiveness will encourage Infrared to develop beyond the Berachain ecosystem.
In fact, both Infrared and Berachain's lead investors include Framework. However, Infrared's lead investors also include Binance (YZi) and Synergis. Investment institutions outside the lead investors also differ. This indicates that Infrared may obtain resources and support from outside the Berachain ecosystem.
Final thoughts
Infrared has innovated more liquidity products based on the Berachain ecosystem. Among them:
POL-vault+iBGT is the first liquidity product of its kind in the entire network, with the advantage that users can flexibly participate in LP mining and delegate to validators in stages. The returns from POL-vault are primarily in $iBGT, while the returns from staking iBGT are mainly in $wBERA+$HONEY.
iBERA is a liquidity product similar to Lido, with the advantage of automatic compound interest. After staking $BERA once, you can hold $iBERA. The yield of iBERA is reflected in the premium of $iBERA/$BERA.
$iVault is a high-level liquidity product, with the first product being BYUSD (LP for the BYUSD-HONEY trading pair). Its advantage is the stablecoin-stablecoin trading pair, which has very low risk. The yield of BYUSD is primarily from $BYUSD+$iBGT+$wBYUSD.
All profit-generating products can increase points, which can be redeemed for airdrops in the future. Additionally, there are several products for developers, and more designs to balance the price of $iBGT/$BGT are being updated.
The uniqueness of Infrared lies in its innovative liquidity products, which are different from existing LSD products; and it is rare for a liquidity protocol like Infrared to almost monopolize the ecosystem.
Infrared's innovative capability, its relationship with Berachain, and its financing background may indicate greater potential for Infrared, even the possibility of stepping out of the Berachain ecosystem.
