As Infrared Finance launches PoL vaults / iBGT / iBERA, this article will take you through what Infrared is and how it becomes the best entry point for participating in Berachain's high yield and locked liquidity.
Infrared Finance Background and Positioning
Infrared Finance is the infrastructure layer protocol focusing on the PoL (Proof of Liquidity) mechanism within the Berachain ecosystem. Its mission is to lower the participation threshold for PoL, allowing more users, liquidity providers (LPs), and other DeFi projects to conveniently access the Berachain liquidity ecosystem. As part of the Berachain “Build‑A‑Bera” incubation program, Infrared has received significant attention and support from early institutions and the community.
How to participate in PoL through Infrared? Process and operation steps
The participation process is relatively simple:
- Connect Wallet on the Infrared platform;
- Choose the assets / trading pairs you want to provide liquidity for in the Vault (such as BERA, BTC, ETH, stablecoins, etc);
- After depositing, you can start earning rewards - the platform will return tokens such as iBGT or iBERA.
- After obtaining iBGT / iBERA, you can choose to continue staking, participate in DeFi, or trade / withdraw - maintaining liquidity and flexibility in usage.
Unlike traditional staking, you do not have to lock up BGT/BERA for many years, nor do you need to worry about liquidity being locked - this is precisely the advantage of “liquid staking + liquidity pool.”
Current market performance and the latest price of IBGT
As of now, the market price of IBGT is approximately US$ 0.8474. Although this price is significantly lower than its historical high (which reached around US$ 11.74), the decline is evident. However, in the long run, if you are optimistic about the development of Berachain and its ecosystem, the greater value of IBGT may not lie in short-term trading prices, but rather in the liquidity it represents, the rights to participate in the ecosystem, and the potential for future growth.
PoL vaults Actual Earnings & Common Vault Introduction
Infrared’s PoL vaults support a variety of assets/liquidity pairs (LPs). According to recent data, the total locked value (TVL) on the platform has reached approximately US$ 189.86M. Some vaults offer attractive annual percentage rates (APR). For example, certain BERA-related vaults show an APR of about ~80.9%. Of course, different vaults come with varying risks and asset classes. Vaults for stablecoins or large mainstream assets (like BTC/ETH) typically have lower APRs, while vaults for high-risk/high-reward pools (like certain BERA/liquidity pairs) present both higher returns and risks. Investors need to choose suitable vaults according to their own risk tolerance.
Why are investors starting to pay attention to Infrared? Advantages & Risk Analysis
Advantages
- Convenience + Liquidity: Unlike traditional staking with locked assets, Infrared offers liquid staking + vault + token liquidity, allowing for one-click participation.
- High Yield Potential: Some vaults offer high APR, which is very attractive to users who are willing to take certain risks and hold/participate in the long term.
- Ecological Infrastructure: As an important component of the Berachain ecosystem, the development of Infrared is closely related to the entire ecosystem - if the ecosystem expands, its token and liquidity value may significantly increase.
Risk
- Token price volatility / Downside risk: The current IBGT has significantly retreated from its historical high, and there is volatility and uncertainty in the secondary market.
- Smart Contracts / Liquidity Pool Risks: Any DeFi protocol may have contract vulnerabilities, insufficient liquidity, and losses caused by drastic fluctuations in asset prices.
- Ecological Dependence: The value of Infrared highly depends on the development of the Berachain ecosystem. If the ecosystem expansion is unsuccessful or the usage rate is low, it will affect liquidity / yield / long-term value.
Who is it suitable for? User profile and usage suggestions
- Users who prefer DeFi and are willing to try liquid staking - they want to balance returns and liquidity, not wanting their funds to be locked up for years.
- Users with a certain tolerance for risk and return — those who can accept price fluctuations / liquidity pool risks and hope to achieve a higher annualized return (APR).
- Investors who are optimistic about the long-term development of the Berachain ecosystem — believe that the ecosystem will expand in the future and that the value of the tokens may rebound/increase.
Suggestion: Do not invest all funds in high-risk vaults / single assets - consider diversification (stablecoins, mainstream assets, liquidity pairs), and regularly pay attention to ecosystem and protocol updates.
Conclusion
Infrared Finance provides a channel that combines liquidity, staking, and DeFi usage, allowing users to enjoy returns without sacrificing liquidity — an attractive option for those seeking flexibility and high returns. Of course, any high return comes with risks — understanding the mechanisms, diversifying investments, and carefully selecting vaults are key to reducing risks and seizing opportunities. If you are optimistic about the Berachain ecosystem in the future, Infrared’s long-term potential is worth paying serious attention to.
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
