What is Infrared (IR)?

Deep Dive

1. Protocol Purpose & Value Proposition

Infrared Finance is positioned as the essential DeFi backbone for Berachain, a high-performance blockchain using Proof-of-Liquidity (PoL). Its primary value is simplifying user interaction with Berachain's unique staking mechanics. The protocol allows users to stake Berachain's native governance token (BGT) and gas token (BERA) to receive liquid, tradable versions (iBGT and iBERA). This unlocks liquidity for users while letting them retain governance rights and staking rewards. Additionally, its automated PoL Vaults help users optimize yield generation from providing liquidity, aiming to make advanced DeFi strategies accessible in "a single click" (Infrared Finance).

2. Token Utility & Governance

The IR token is designed to decentralize protocol control and distribute value. Its core utility, as outlined in its launch announcement, involves staking IR to receive sIR (staked IR). Holding sIR grants two key benefits: voting power on protocol decisions and a share of protocol fees. A portion of these fees is directed to a community-controlled "Red Fund," which buys back IR tokens to fund initiatives and incentives. This structure aims to directly tie the token's value to the protocol's usage and financial health (Introducing IR).

3. Tokenomics & Supply Mechanics

IR has a fixed total supply of 1,000,000,000 tokens. The distribution is designed for long-term alignment: 23.5% to the ecosystem, 21.3% to investors, 18% to the team, 15.2% to the treasury, 10% to Build-a-Bera, 9.25% for liquidity, and 2% for an airdrop. Major allocations (ecosystem, treasury, team, investors) are subject to vesting schedules with cliffs and linear releases over 24 months to prevent immediate sell pressure. The airdrop was the only portion fully liquid at the token generation event (TGE) in December 2025 (Introducing IR).

Conclusion

Infrared is fundamentally a governance and revenue-sharing token that powers the primary liquid staking and yield engine for the Berachain ecosystem. Its value is intrinsically linked to the adoption of Berachain's Proof-of-Liquidity model and the success of its automated vaults. How effectively will Infrared capture and grow Berachain's nascent DeFi activity?