What Is Infrared Finance (IR)? A Guide to Berachain's Liquid Staking Hub

Key Takeaways

• What is Infrared Finance (IR)?: Infrared is a protocol on Berachain that builds essential infrastructure around the Proof of Liquidity (PoL) mechanism, making it simpler and more rewarding for users.

• Core Products: The platform offers liquid staking solutions, including iBGT (a liquid wrapper for Berachain Governance Token) and iBERA (a liquid staked version of BERA), to maximize user rewards and unlock asset composability.

• IR Token Utility: The native IR token is used for governance through a Delegated Incentive System, where staking IR for sIR grants access to fee rewards and control over incentives.

• Ecosystem Growth: By making staked assets liquid, Infrared creates new opportunities and enhances capital efficiency, playing a crucial role in the growth of the Berachain ecosystem.

• Availability: You can trade IR on Phemex.

Summary Box (Quick Facts)

• Ticker Symbol: IR

• Chain: Berachain

• Contract Address: 0xa1b644aec990ad6023811ced36e6a2d6d128c7c9

• Primary Use Case: Liquid staking, Proof of Liquidity maximization, and governance.

• Availability on Phemex: Yes (Spot)

What Is Infrared Finance?

Infrared Finance (IR) is a decentralized finance (DeFi) protocol that functions as core infrastructure for Berachain's innovative Proof of Liquidity (PoL) consensus mechanism. Explained simply, Infrared solves the key challenge of illiquidity in staking. It builds solutions around PoL to enhance the user experience and drive the overall growth of the Berachain ecosystem.

The project simplifies participation in the network by allowing users to maximize their rewards from Berachain's native tokens, BERA and BGT (Berachain Governance Token). By creating liquid versions of these assets, Infrared enables them to be used across other DeFi applications, fostering a more dynamic and composable ecosystem.

How Many IR Are There?

The total supply and distribution of the IR token are structured to support long-term growth and align the interests of all stakeholders. The allocation is as follows:

• Ecosystem: 23.50%

• Investors: 21.30%

• Team: 18.00%

• Treasury: 15.20%

• Build-a-Bera: 10.00%

• Liquidity: 9.25%

• Airdrop: 2.00%

• Alpha TGE Sale: 0.75%

To ensure long-term commitment, tokens are subject to vesting schedules. The Core Contributors, Investors, and Berachain Foundation allocations have a one-year cliff followed by a 24-month linear vesting period. The Ecosystem fund has a 20% unlock at the Token Generation Event (TGE), with the remainder vesting linearly over 24 months.

Furthermore, the protocol will introduce the "Red Fund," which uses a portion of protocol fees to buy back and lock IR tokens for 12 months, creating a mechanism to support the token's value over time.

For the latest news about IR and its tokenomics, traders should refer to official project channels.

What Does the IR Token Do?

The IR token is the native governance token of the Infrared Finance ecosystem. The primary IR use case is centered around its Delegated Incentive System, which empowers holders to influence the protocol and share in its success.

• Governance and Staking: Users can stake IR to receive sIR (staked IR), which grants them governance power and access to fee rewards. This system allows sIR holders to delegate incentive control within the protocol.

• Fee Generation for Users: A portion of the protocol's fees, particularly from its iBGT product, is used to buy back IR tokens from the market. These tokens are then distributed to sIR stakers, effectively auto-compounding their positions.

• Incentives for Protocols: Other protocols can stake IR in specialized vaults to gain governance power over Infrared’s validator system. This allows them to direct PoL rewards toward their own liquidity strategies, creating a powerful incentive for ecosystem collaboration.

IR vs. Numine Token (NUMI)

While both IR and NUMI operate in the Web3 space, they target fundamentally different sectors. Infrared is a core DeFi infrastructure project for a new Layer 1, whereas Numine is an integrated platform for the blockchain gaming (GameFi) industry.

The Technology Behind IR

Infrared Finance's technology is designed to integrate seamlessly with Berachain's Proof of Liquidity (PoL). PoL rewards users with the network's governance token, BGT, for providing liquidity to key DeFi pools.

Infrared's core technology is its liquid derivatives, which unlock liquidity for staked assets:

• iBERA: This is a liquid staking token (LST) backed 1:1 by BERA, Berachain's gas token. Users can stake BERA with Infrared’s validators to receive iBERA, which earns rewards while remaining usable in other DeFi applications like lending and trading.

• iBGT: This is a liquid wrapper for the BGT token. It is backed 1:1 by BGT earned from liquidity deposited into Infrared’s vaults. While iBGT itself doesn't earn rewards, it can be deposited into Infrared's vaults to earn all associated BGT rewards. Importantly, iBGT is not redeemable for BGT.

Team & Origins

The documentation available on the Infrared Finance website does not provide specific details about the founders, developers, or any venture capital backing. In the crypto space, it is not uncommon for development teams to remain anonymous or pseudonymous to prioritize decentralization and security. The project's focus remains on its technical infrastructure and contribution to the Berachain ecosystem.

Key News & Events

As a project built on Berachain, a network still in its early stages, the most significant events for Infrared Finance are tied to the development and launch of Berachain itself.

• Berachain Launch: The mainnet launch of Berachain will be the most critical event for Infrared, as it will enable the full functionality of its PoL vaults and liquid staking products.

• Airdrop: The Infrared Finance website has mentioned a future airdrop, a highly anticipated token distribution event to reward early users and community members.

• Phemex Listing: The listing of IR on Phemex is a key event, providing traders with a reliable and secure platform to access the token. This allows users to trade IR and speculate on the IR price.

Is IR a Good Investment?

Determining if IR is a good investment depends on an individual's risk tolerance and belief in the future of the Berachain ecosystem.

Potential Positives:

• First-Mover Advantage: As a foundational DeFi protocol on a new, hyped blockchain, Infrared is well-positioned to capture a significant share of the liquid staking market within Berachain.

• Strong Tokenomics: The Red Fund's buyback-and-lock mechanism, along with vesting schedules for early stakeholders, is designed to support long-term value.

• Ecosystem Integration: The IR investment potential is tied to its deep integration with Berachain's novel PoL model, which could drive significant demand if the ecosystem succeeds.

Potential Risks:

• New and Untested: Berachain is not yet live on mainnet, and its PoL model is experimental. The success of this new technology is not guaranteed.

• Market Volatility: Like all cryptocurrencies, the IR price will be subject to high volatility.

• Competition: While it has an early advantage, other liquid staking protocols may emerge on Berachain, creating competition.

Disclaimer: This is not financial advice. Cryptocurrency trading involves significant risks; only invest what you can afford to lose. Always conduct your own research before making investment decisions.

Community Perspectives (via Reddit)

Discussions about Infrared Finance on platforms like Reddit are generally centered on its role within the highly anticipated Berachain ecosystem. Community members often express excitement about the novel Proof of Liquidity concept and Infrared's position as a key infrastructure project.

Common topics include speculation on the potential rewards from staking iBGT and iBERA, questions about the mechanics of the Delegated Incentive System for the IR token, and strategies for participating in the upcoming airdrop. While there is a strong sense of optimism, potential investors also discuss the risks associated with a new and untested blockchain. Overall, the sentiment reflects a community that is keenly watching Berachain's development, with Infrared viewed as a critical project for its success.

How to Buy IR on Phemex

For those interested in acquiring the token, the process is straightforward. To learn more, visit Phemex's detailed guide on "How to Buy IR". The page provides step-by-step instructions for a seamless purchasing experience.

FAQs

1. What is the main function of Infrared Finance?
Infrared Finance builds infrastructure on Berachain to support its Proof of Liquidity mechanism. It provides liquid staking solutions (iBERA and iBGT) so users can earn rewards while keeping their assets usable in DeFi.

2. What is the difference between BGT and iBGT?
BGT is Berachain's non-transferable governance token earned via PoL. iBGT is a liquid token wrapper from Infrared, backed 1:1 by BGT from its vaults. iBGT can be traded and used to earn BGT rewards when deposited in an Infrared vault, but it cannot be redeemed for BGT.

3. How does the IR token generate rewards for holders?
Users can stake their IR tokens to receive sIR. A portion of the fees generated by Infrared's products is used to buy IR from the market and distribute it to sIR holders.

Summary: Why It Matters

Infrared Finance is more than just another DeFi protocol; it is a fundamental building block for the emerging Berachain ecosystem. By tackling the critical issue of staking illiquidity within a novel Proof of Liquidity framework, it enhances capital efficiency and simplifies user participation. For traders and investors looking for exposure to the next wave of blockchain innovation, Infrared Finance represents a key project with the potential to drive significant growth.

Trade IR Now on Phemex