In-depth exploration of the Berachain ecosystem Liquidity infrastructure Infrared

Why follow Infrared?

On one hand, Infrared is currently implementing the points program phase, and there will be an airdrop in the future.

On the other hand, on the surface, Infrared is part of the LSD( Liquid Staking Derivatives) sector. However, Infrared differs from existing LSD projects like Lido.

Berachain's POL proof

As the liquidity infrastructure of the Berachain ecosystem, the differentiation designed by Berachain is one of the fundamental reasons why Infrared stands out.

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, transactions, etc. However, $BGT is non-transferable and non-tradable.

$BGT is a governance token, and its monetization model involves redeeming $BGT at a 1:1 ratio for $BERA while destroying $BGT. 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 sharing ( various ecological tokens ), block fixed rewards ($BGT), as cost compensation and basic income.

◆Incentive: Validators and users will delegate $BGT to validators to earn Boost rewards. This part of the reward is primarily to incentivize validators and users to provide liquidity to Berachain.

◆Safety Separation: If there is a problem with the validator's work, a portion of their staked $BERA may be deducted. However, it will not affect the user's delegated $BGT.

liquidity compound interest

◆Ways to obtain $BGT

Validators earn a fixed block reward while working, and the reward is distributed in $BGT.

Delegate $BGT to validators, and the Boost rewards will be distributed in $BGT.

Add liquidity on approved DEXs to receive LP tokens. Staking LP tokens can earn you $BGT rewards.

◆Liquidity Compound Interest

First, in the Berachain ecosystem, adding liquidity to the DEX can earn you transaction fee revenue from the trading pool.

Second, by staking the corresponding LP tokens, you can earn $BGT rewards.

Third, by delegating $BGT to validators, you can earn delegation rewards again, including Boost rewards from Berachain blocks, validator voting rewards, and dividends from ecological Dapps.

This is the liquidity triple compounding of the Berachain ecosystem, which allows for a higher utilization of funds within the Berachain ecosystem. It differs from the coin generation model of POS consensus.

Pol-vaults + iBGT optimize user participation process

The Risks and Complexity of Native POL

◆Risks faced by native POL users

In POS mode, users can participate in mining by purchasing and staking public chain coins, and they only need to bear the risks brought by the fluctuations of the public chain coins. Moreover, users can reduce this risk at any time by buying and selling public chain coins.

Under the native POL model, since $BGT cannot be traded or transferred, users must first add LP and then stake LP tokens to obtain $BGT. While users enjoy triple liquidity compounding, they also bear the dual risks of impermanent loss and price volatility of LP assets.

Moreover, users cannot reduce short-term risks through flexible buying and selling of $BGT. They must either give up $BGT, burn it, and exchange it for $BERA, or continue to hold $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 follow up and adjust their delegation targets. For example, when a validator reduces the staked $BERA, this decreases the probability of that validator receiving rewards. Similarly, if too much $BGT is delegated to a validator, it may result in a reduction of the Boost returns allocated to the user. This presents users with challenges related to selection complexity and timeliness.

Pol-vaults+$iBGT Optimization of User Participation Process

◆More flexible to separate the process 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, and the Infrared protocol deposits the LP tokens into Bera's native POL. After obtaining $BGT, it issues the corresponding $iBGT. The earnings 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 the two stages of participating in LP and delegating to validators. In the first stage, users can deposit LP tokens to earn $iBGT.

In the second phase, users stake $iBGT to earn Boost delegation rewards from delegating $BGT.

Users can choose:

Only participate in the first phase. For example, when bearish, use WBTC+WETH to add LP, then mine $iBGT with LP and sell.

Only participate in the second phase. For example, when bullish, directly buy or borrow $iBGT and stake it. Earning $iBGT through the first phase with LP of equal value may be slower.

Of course, you can also participate continuously in the first and second phases.

In summary, the two-stage separation provides users with sufficient flexibility, allowing them to better formulate their profit and risk strategies.

◆Liquidity Delegated Agency Service

The user's earnings from staking $iBGT come from the delegation of the underlying $BGT to validators, which generates 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 validator.

Essentially, it provides users with liquidity delegation services. On one hand, it greatly simplifies the process for users to participate. On the other hand, it maximizes the delegation returns for users.

( Ecological Data

◆Pol-vaults data

The total TVL of Pol-vaults is currently close to $340 million, with the highest APR exceeding 500%.

![])https://img-cdn.gateio.im/webp-social/moments-7581995f89d5d37e70fc301b49ccda08.webp###

The highest TVL is the satSolvBTC cross-chain to Berachain, with a TVL exceeding 80 million USD. It is evident that Infrared's Pol-vaults also support non-LP single currency liquidity.

In addition, the liquidity of non-Berachain native assets is also supported. For example, the LP for the WBTC-WETH trading pair has a TVL of over $7 million and an annualized yield of 30%.

◆iBGT data

Since its launch six months ago, the TVL of iBG has basically been between 15 million to 30 million USD, and the current TVL is 22.94 million USD, with an ARP of 79.36%.

( iBERA participates in the validator role

)# Staking Yield Auto-Compound

Users can stake $BERA on Infrared to receive $iBERA. Infrared uses these $BERA as a validator's stake, and the validator's earnings obtained on this basis are distributed to the holders of $iBERA.

The holders of $iBERA indirectly participate in the validator role of Berachain. Users can earn validator rewards, including miner fees and additional incentives, and may even include MEV rewards.

The staking yield of $iBERA is automatically compounded, so users do not need to operate manually; the staking yield will continue to be staked automatically. Therefore, the yield of $iBERA is reflected by the appreciation of $iBERA / $BERA.

iBERA is the product most similar to Lido. The difference is that Lido can infinitely increase the number of validator nodes as the staked ETH increases. In contrast, iBERA can have a maximum of 69 validator nodes that can earn rewards.

iBERA Ecological Data

In the second half of 2025, the TVL of iBERA is stabilizing, currently at 174 million USD, with an APR of 3.24%.

![]###https://img-cdn.gateio.im/webp-social/moments-ea61e2901e47b23bac4a53a6c6752856.webp(

)# iVault Advanced Strategy

In late July, Infrared launched the iVault premium strategy product.

The first product of iVault is BYUSD, where you can deposit LP of the stablecoin trading pair BYUSD-HONEY and earn $iBGT, among others. Possible sources of income include Berachain's POL, BEX, and additional incentives.

BYUSD was launched less than a month ago, and the TVL has reached $14.6 million, with an ARP of 15.02%.

![]###https://img-cdn.gateio.im/webp-social/moments-d9f61b6b050af49f40a7f5adc6e7403f.webp(

) More products of Infrared

For Developers

In addition to the products aimed at ordinary users mentioned above, Infrared also offers many products for developers, such as various API tools.

For example, Infrared provides additional incentives for developers to validate, thereby guiding validator behavior. The premise is not to disrupt the function set of the Berachain ecosystem.

Infrared also provides automated tools for collecting and staking $iBGT. This allows developers to collect and stake $iBGT more promptly, thereby increasing their returns.

New Version in Iteration

At the end of July, Infrared released the introduction of version 1.7, which is the 7th upgrade of Infrared, including four major updates:

First, the iBGT auction system. The $BGT rewards staked for $iBGT will no longer be directly converted to $wBERA at a 1:1 ratio, but will instead be minted as $iBGT and auctioned for $wBERA. This is to ensure that the price of $iBGT/$BERA aligns with market supply and demand.

Secondly, the reward form of iBERA has been updated. iBERA will still automatically compound, but when the $iBERA/$BERA premium reaches 1.2 or higher, the rewards will be retained as $iBGT, rather than being converted to $BERA for reinvestment.

Thirdly, the dynamic minting fee for $iBGT. When minting $iBGT based on $BGT, a dynamic minting price will be used. When the $iBGT/$BGT price is high, a higher minting fee will be applied; when the $iBGT/$BGT price is low, a lower minting fee will be applied, thus balancing the $iBGT/$BGT price.

Fourth, temporarily restrict the redemption of $iBGT. When the $iBGT/$BGT price falls below 1.0, temporarily restrict the redemption of $iBGT to stabilize the $iBGT/$BGT price.

The main motivation for this update is to strengthen the price balance of $iBGT/$BGT and $iBGT/$BERA, which aligns with market supply and demand and avoids excessive volatility.

Security

As a financial protocol, security is always of utmost importance.

Open Source

First, the Infrared code is open source, and the last update was 4 hours ago, 12 hours ago...

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Code Security Audit

Secondly, from April 2024 to now, Zellic, Zenith, Cantina, and Spearbit have conducted a total of 12 security reviews on Infrared, including code audits, security assessments, and security competitions.

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The two recent audit reports were published in July 2025, with the auditing firms being Cantina and Zenith.

The Infrared audit report on July 1 found 0 fatal risks, 1 high risk ) has been resolved, 4 moderate risks ### have been resolved, 5 low risks ( have resolved 3, and 15 informational risks ) have resolved 4.

The infrared audit report on July 8 found 0 critical risks, 0 high risks, 2 medium risks ( have been resolved, 9 low risks ) have resolved 8 (, and 4 informational risks ) have resolved 2 (.

) The relationship between Infrared and Berachain

Infrared has a close collaborative relationship with Berachain, but they belong to two different teams.

First of all, these two projects achieve each other.

(# Breachain provides the foundation for Infrared innovation

The POL consensus innovation of Berachain provides an innovative foundation for Infrared. iBera is a liquidity product similar to Lido. However, the POL Vault + iBGT is an innovation generated based on the POL consensus.

)# Infrared improves Breachain ecosystem liquidity

First, Infrared issues $iBGT based on $BGT, and $iBGT is tradable and transferable, thus adding vitality to Breachain's ecosystem liquidity.

Second, Infrared has not issued tokens yet and is currently in the points program stage, 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 gameplay to the Berachain ecosystem.

(# Infrared Tends to Be the Monopoly of Breachain Liquidity

According to Berahub, the majority of the top-ranked validators by Boost count are occupied by Infrared's nodes.

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According to the Infrared official website, the platform's total TVL has reached $533 million. Defillama uses different metrics for statistics, with Infrared's TVL being $334 million, while the total TVL of the Berachain ecosystem, using the same metric, is $383 million.

![])https://img-cdn.gateio.im/webp-social/moments-03db926b2544952606782e015a56d790.webp(

This set of data means that Infrared provides almost all the liquidity for Berachain.

In comparison, Lido accounts for 40.74% of Ethereum's liquidity, Kamino accounts for 24.45% of Solana's liquidity, and Pancake accounts for 26.51% of BSC's liquidity... Echo accounts for slightly more of Aptos's liquidity, at only 34.89%.

Infrared occupies a near-monopoly position in the liquidity of the Berachain ecosystem.

In particular, the application of $iBGT corresponds to $BGT in the Infrared protocol. Users trading $iBGT in the Swap will not directly affect the destruction of $BGT in real-time. It is only when a significant number of users sell $iBGT that Infrared may decide to 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 supply of $BGT.

To some extent, Infrared has almost become the central bank of $BGT.

) Possibility of Infrared stepping out of Berachain

Berachain and Infrared may have a subtle relationship. This subtle relationship could give Infrared a potential future competitive advantage.

This competitiveness will drive Infrared to develop beyond the Berachain ecosystem.

In fact, Infrared and the leading institutions of Berahchain both include Framework. However, the leading institutions of Infrared also include Binance ( YZi ) and Synergis. The investment institutions outside of the leading institutions also vary. This means that Infrared has the potential to gain resources and support beyond the Berachain ecosystem.

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written at the end

Infrared has innovated more liquidity products based on the Berachain ecosystem. Among them:

POL-vault+iBGT is a pioneering liquidity product in the entire network, with the advantage that users can flexibly participate in LP mining and delegated verification in stages. The earnings of POL-vault are mainly in $iBGT, while the earnings from staking iBGT are mainly in $wBERA+$HONEY.

iBERA is a liquidity product similar to Lido, with the advantage of automatic compounding. 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, and the first product is the BYUSD###BYUSD-HONEY trading pair LP( mining. Its advantage is the stablecoin-stablecoin trading pair, which carries very low risk. The returns from BYUSD mainly consist of $BYUSD + $iBGT + $wBYUSD.

All profitable products can increase points, which can be redeemed for airdrops in the future. In addition, there are several developer-focused products, and more designs to balance the $iBGT/$BGT price are being updated.

The uniqueness of Infrared lies in the fact that its innovative liquidity products are different from existing LSD products; and it is very rare for a liquidity protocol to almost monopolize the ecosystem like Infrared.

The innovative capabilities of Infrared, its relationship with Berachain, and its financing background may indicate greater potential for Infrared, even the possibility of stepping out of the Berachain ecosystem.