Infrared BERA (iBERA) is a liquid staking token (LST) for BERA, the native gas and staking token of the Berachain blockchain. It enables users to stake their BERA tokens while maintaining liquidity and automatically compounding staking rewards. ^{[1] [7] [8]}

Overview

Infrared Bera functions as an index token within the Berachain ecosystem, allowing users to participate in the network's Proof of Liquidity consensus mechanism without sacrificing token liquidity. When users stake BERA with Infrared, they receive iBERA tokens in return, which represent their staked position plus accumulated rewards. The value of iBERA increases over time relative to BERA as staking rewards are automatically compounded into the token's value.

The platform is designed to simplify interaction with Berachain's Proof of Liquidity mechanism through liquid staking products. This approach allows token holders to maintain exposure to BERA's value while simultaneously earning staking rewards. The yield generated through staking is realized either through iBERA's price appreciation against BERA or by withdrawing from the system.

As a liquid staking solution, iBERA addresses one of the primary limitations of traditional staking: the lack of capital efficiency. By tokenizing staked positions, Infrared enables users to utilize their staked assets in other DeFi applications while continuing to earn staking rewards. ^{[11] [2] [4] [7]}

Technology

Staking Mechanism

iBERA employs a rebasing mechanism where the token's value increases relative to BERA as staking rewards accumulate. This happens through periodic "sweep events" where rewards are collected and distributed to iBERA holders. Unlike fixed reward rate systems, iBERA's rewards are directly tied to validator activity on the Berachain network.

The staking process works as follows:

1. Users deposit BERA tokens into the Infrared protocol
2. They receive iBERA tokens representing their staked position
3. The protocol delegates these BERA tokens to validators
4. Staking rewards are periodically swept and reflected in iBERA's value
5. Users can redeem their iBERA for the original BERA plus accumulated rewards at any time

APR Calculation

The Annual Percentage Rate (APR) for iBERA is calculated differently from other staking products. Instead of a fixed reward rate, the APR is determined by:

1. Monitoring the time elapsed between sweep events
2. Measuring the percentage increase in value from each sweep event
3. Annualizing rewards based on sweep frequency by scaling the total reward from the last sweep event

This approach ensures that the APR reflects the most up-to-date reward distributions based on actual validator performance.

iBERA has a circulating supply that represents 100% of the total supply.

Unlike some cryptocurrencies with fixed maximum supplies, iBERA's supply can increase as more BERA tokens are staked through the platform. The token's value is directly backed by the staked BERA and the accumulated staking rewards. ^{[2] [3] [4] [7] [9]}

Technical Integration

Infrared provides comprehensive documentation for developers looking to integrate with the iBERA ecosystem. The platform offers:

1. Smart contract APIs for programmatic interaction with the protocol
2. Integration guides for various components including staking pools
3. Contract deployment information for different environments
4. Price feed mechanisms for accurate token valuation

These resources enable third-party applications to build on top of the iBERA liquid staking solution, expanding its utility within the broader Berachain ecosystem. ^{[10] [1]}

Berachain

iBERA is intrinsically linked to the Berachain blockchain, as it represents staked BERA tokens. Berachain is a relatively new blockchain platform that utilizes a Proof of Liquidity consensus mechanism, differentiating it from the more common Proof of Stake or Proof of Work systems.

The Infrared platform, which issues iBERA, serves as a key infrastructure provider for Berachain, enabling more efficient capital utilization within the ecosystem. By allowing BERA holders to stake their tokens while maintaining liquidity, Infrared contributes to the overall security and decentralization of the Berachain network while enhancing capital efficiency.

iBERA operates in the growing liquid staking token (LST) sector, which includes similar products across various blockchain ecosystems. While iBERA is specifically designed for Berachain, it competes conceptually with other liquid staking solutions such as Lido's stETH (for Ethereum), Marinade's mSOL (for Solana), and various other blockchain-specific LSTs.

The primary differentiating factor for iBERA is its focus on Berachain's unique Proof of Liquidity consensus mechanism, which creates specific requirements and opportunities for staking that may differ from other blockchain networks. As Berachain continues to develop its ecosystem, iBERA's position within the broader LST market will likely evolve accordingly.

Smart Contract Implementation

iBERA is implemented as an ERC-20 compatible token on the Berachain blockchain. The token contract is deployed on the Berachain network, allowing for seamless integration with compatible wallets and decentralized applications.

The smart contract implementation includes functionality for:

• Minting new iBERA when BERA is staked;
• Burning iBERA when staked BERA is withdrawn;
• Tracking and distributing staking rewards;
• Managing the exchange rate between BERA and iBERA.

These functions enable the core liquid staking capabilities that define iBERA's utility within the Berachain ecosystem. ^{[1] [2] [3] [4] [5] [6] [7] [8] [9] [10]}