If you’re looking for yield opportunities within the Berachain ecosystem, Infrared Finance is a name you can’t afford to overlook. Known as the "PoL Gateway," this protocol has become the largest by total value locked (TVL) on Berachain, accounting for nearly 60% of the ecosystem’s DeFi TVL.
How does it work? And what makes it so attractive to such a large amount of capital?
01 Project Positioning: When PoL Meets User-Friendly Design
Infrared Finance is a liquidity proof infrastructure protocol purpose-built for the Berachain network. Its core mission is clear: to enable everyday users to easily and securely participate in Berachain’s unique Proof of Liquidity (PoL) mechanism, without needing to master the complex underlying technical details.
On traditional Proof-of-Stake (PoS) blockchains, users must stake tokens to secure the network, which means their assets are locked and can’t be used for DeFi activities at the same time. Berachain’s innovation lies in its PoL mechanism—it directly ties network security to liquidity provision, rewarding those who genuinely contribute liquidity to the ecosystem.
However, participating in PoL comes with its own barriers. Users need to understand LP strategies, delegate BGT, evaluate vault efficiency, and interact with validators—a set of complex processes. This is where Infrared adds value: by offering simple, intuitive tools that automate these intricate operations, Infrared delivers a true "one-click" PoL participation experience.
02 Core Products: Decoding the Dual Engine of iBGT and iBERA
Infrared’s most notable innovation is its liquid staking tokens, iBGT and iBERA, each designed to address critical pain points for Berachain’s two native tokens.
iBGT: Unlocking Liquidity for Non-Transferable Governance Tokens
BGT is Berachain’s governance token, but it has a unique property—it’s soulbound, meaning it cannot be transferred or traded. While users can earn BGT by providing liquidity, the utility of these tokens is severely limited.
iBGT, as a liquid staking version of BGT, solves this problem perfectly. When users stake liquidity in Infrared’s vaults, they don’t receive non-transferable BGT directly; instead, they are issued freely tradable iBGT.
Currently, iBGT has become the largest liquid staking token (LST) by market share on Berachain, at times trading at nearly a 45% premium.
iBERA: Lowering the Barrier for Validator Participation
Running a validator node on Berachain requires staking BERA, which demands both technical know-how and significant capital—often out of reach for regular users. iBERA, the liquid staking version of BERA, allows users to stake smaller amounts while keeping their assets liquid.
After staking BERA via Infrared, users receive iBERA at a 1:1 ratio. These tokens let users earn staking rewards and remain usable for trading, collateral, or other DeFi applications.
03 Technical Architecture: How PoL Vaults Automate Yield Generation
Infrared’s technical backbone is its PoL vault system—a set of smart contracts that automate the entire liquid staking process on behalf of users.
When users deposit LP tokens into Infrared’s vaults, the system automatically executes the following complex operations:
- Asset Staking: Stakes users’ liquidity assets in Berachain’s PoL system;
- Reward Collection: Collects BGT rewards from the system;
- Delegation Optimization: Automatically delegates earned BGT to validator nodes operated by Infrared;
- Token Conversion: Converts non-transferable BGT into liquid iBGT.
This fully automated process eliminates the need for manual intervention, significantly lowering the technical barrier to PoL participation. With this design, Infrared creates a virtuous cycle of liquidity, security, and rewards, fueling growth across the Berachain ecosystem.
04 Yield Strategies: From Basic Staking to Advanced Combinations
Infrared offers multiple avenues for earning yield, allowing users to choose strategies based on their risk preferences.
Basic Staking Yield
The most straightforward approach is staking BERA or iBGT. Staking BERA earns iBERA and staking rewards. Staking iBGT allows users to earn rewards from underlying BGT, distributed in HONEY and WBERA, with annualized yields previously reaching as high as 245%.
Liquidity Pool Yield
Users can use Infrared’s vaults to provide liquidity to major trading pairs on decentralized exchanges like Kodiak and BEX. For example, the WBERA-iBGT and WBERA-iBERA pools not only offer base yields but also provide a 1.375x points multiplier.
Points Rewards and Airdrop Expectations
Infrared launched its points program on April 23, 2025. Users automatically accumulate points by staking or providing liquidity. These points are expected to be redeemable for Infrared’s native tokens in the future, with a token generation event planned for Q3.
05 Ecosystem Integration: Building Berachain’s Liquidity Network
Infrared’s success stems not only from product design but also from its deep integration with the Berachain ecosystem.
Incubated by the Berachain Foundation’s Build-a-Bera program, Infrared has established partnerships with several key protocols. For instance, its collaboration with Dolomite allows users to deposit lending market liquidity into Infrared’s vaults, boosting capital efficiency.
Additionally, iBGT, as a composable liquid staking token, is widely used across Berachain’s DeFi protocols—as collateral for lending and trading pairs—further enhancing its liquidity and utility.
06 How to Participate: Three Steps to Start Your Infrared Journey
Ready to get started with Infrared? Follow these basic steps:
Step One: Preparation
Set up a wallet compatible with the Berachain network and ensure you have enough BERA to cover gas fees, along with assets you plan to stake or use for liquidity provision.
Step Two: Choose Your Participation Method
Once on the Infrared Finance website, you can choose to:
- Stake BERA directly on the iBERA page to receive iBERA;
- Select a PoL vault under the Vaults tab to provide liquidity—vaults with points multipliers, like the WBERA-iBGT Kodiak LP Vault, are recommended;
- If you already have iBGT, you can stake it to earn additional rewards.
Step Three: Monitor and Manage
After participating, you can view your portfolio on the Portfolio page and track your points accumulation on the Points page. All rewards and points are automatically accrued—no extra action required.
Looking Ahead
With Berachain set to launch its PoL v2 upgrade in July 2025, users staking BERA will soon be able to directly share in buyback rewards generated from ecosystem protocol revenues, offering Infrared participants a more sustainable yield model.
Infrared’s value lies not only in its high-yield opportunities but also in its ability to package the complex PoL mechanism into a product that regular users can understand and operate. By lowering the technical barrier, Infrared is onboarding more users into the Berachain ecosystem—a foundational need for any emerging blockchain.
For those seeking opportunities in Berachain, understanding and participating in Infrared may well be the key that unlocks the door.
