What is Infrared (IR)?

Deep Dive

1. Purpose & Value Proposition

Infrared Finance is designed as the essential yield infrastructure for Berachain. Its primary value proposition is simplifying user participation in Berachain's unique Proof-of-Liquidity (PoL) consensus mechanism. PoL rewards users for providing liquidity to the network instead of traditional staking. Infrared abstracts this complexity by allowing users to stake Berachain's native tokens (BERA and the governance token BGT) and receive liquid, tradable versions (iBERA and iBGT). This unlocks liquidity and yield opportunities that would otherwise be locked up, acting as the foundational rails for Berachain's DeFi ecosystem (Introducing IR | Blog).

2. Technology & Ecosystem Fundamentals

The protocol operates through smart contracts on Berachain. Its core product suite includes PoL Vaults, which automate yield strategies, and the liquid staking tokens iBGT and iBERA. By converting staked assets into these liquid tokens, users maintain exposure to staking rewards and governance rights while gaining the flexibility to use the tokens in other decentralized applications. This creates a more efficient and composable yield economy on the layer-1 blockchain (Terms of use | Infrared Finance).

3. Tokenomics & Governance

The IR token has a total supply of 1 billion. Its core utilities are centered on protocol alignment and community governance. Holders can stake IR to receive sIR, which grants voting power on protocol decisions and entitles them to a share of the protocol's generated fees. A portion of these fees is directed to a community treasury, the Red Fund, which buys back IR tokens to fund initiatives and incentives, creating a circular economy within the protocol (Introducing IR | Blog).

Conclusion

Fundamentally, Infrared (IR) is the economic engine designed to bootstrap and sustain liquidity within the Berachain network by bridging its novel consensus mechanism with accessible DeFi primitives. Will its model of converting locked value into liquid yield prove sustainable as the broader Berachain ecosystem evolves?