Infrared Finance
Infrared Finance is a protocol built on Berachain that simplifies interaction with Proof of Liquidity (PoL) through liquid staking products. It provides infrastructure and tools designed to help users maximize their rewards within the Berachain ecosystem. [1] [2]
Overview
Infrared Finance operates as a DeFi protocol focused on building infrastructure around Berachain's Proof of Liquidity (PoL) mechanism. The protocol aims to maximize value capture for users by providing accessible liquid staking solutions for BGT (Berachain Governance Token) and BERA tokens, node infrastructure, and specialized PoL vaults. These solutions are designed to enhance user experience and drive growth within the Berachain ecosystem.
The core value proposition of Infrared Finance centers on simplifying participation in Berachain's Proof of Liquidity system, making it more accessible to a broader range of users. By offering "one-click" solutions, Infrared reduces the technical barriers to entry that might otherwise prevent users from fully participating in and benefiting from the PoL mechanism.
In 2024, Infrared Finance secured significant funding to expand its operations and further develop its product suite, indicating growing interest and confidence in its approach to DeFi infrastructure development on Berachain. [1] [2] [3]
Key Products and Services
Infrared Finance offers several core products designed to enhance participation in the Berachain ecosystem:
iBGT
iBGT is Infrared's liquid version of the Berachain Governance Token (BGT). This product allows users to stake their BGT tokens while maintaining liquidity, enabling them to participate in governance and earn rewards without locking up their assets completely. The liquid staking approach helps users maximize their Proof of Liquidity rewards while retaining flexibility with their assets.
iBERA
iBERA functions as Infrared's liquid staking solution for BERA tokens, the native token of the Berachain network. This product makes staking BERA tokens accessible to everyone, regardless of technical expertise or the amount of tokens held. Users receive iBERA tokens in exchange for their staked BERA, which can be used throughout the DeFi ecosystem while the underlying BERA continues to generate staking rewards.
Vaults
Infrared vaults are specialized products that simplify participation in Berachain's Proof of Liquidity system. These vaults are designed to help users maximize their rewards by optimizing strategies for PoL participation. The vaults handle the technical complexities of interacting with the PoL mechanism, allowing users to deposit their assets and receive enhanced returns without needing to understand the underlying processes. [2] [4] [5] [6]
Technology
Proof of Liquidity Integration
Infrared Finance's technology is built specifically around Berachain's Proof of Liquidity consensus mechanism. PoL is a novel approach that incentivizes users to provide liquidity to the network, which helps maintain stability and functionality. Infrared's products are designed to optimize interaction with this mechanism, making it more accessible and rewarding for users.
Liquid Staking Implementation
The protocol implements liquid staking technology that allows users to stake their assets (BGT and BERA) while receiving liquid tokens (iBGT and iBERA) in return. These liquid tokens represent the staked assets and can be used throughout the DeFi ecosystem, providing users with flexibility while their original assets continue to generate staking rewards. This approach solves the traditional problem of capital inefficiency in staking, where assets would otherwise be locked and unusable.
Node Infrastructure
As part of its comprehensive approach to the Berachain ecosystem, Infrared Finance also provides node infrastructure. This infrastructure supports the network's operations and contributes to its security and decentralization. By operating nodes, Infrared plays a direct role in maintaining the Berachain network while also gaining insights that inform the development of its user-facing products.
Funding and Investments
Infrared Finance has secured significant funding to support its development and expansion. In 2024, the protocol raised $14 million in a Series A funding round, demonstrating strong investor confidence in its approach and potential.
Binance Labs, the venture capital and incubation arm of Binance, has invested in Infrared Finance to support the growth of Proof of Liquidity. This investment highlights the strategic importance of Infrared's work in advancing PoL mechanisms within the broader blockchain ecosystem.
According to The Block, Infrared Finance raised funds through both a Series A equity round and a token round, indicating a hybrid funding approach that has become common for blockchain projects seeking to balance traditional venture capital with token-based fundraising. [1] [2] [9] [8]
Berachain Integration
Infrared Finance is built specifically for and on Berachain, a blockchain platform that utilizes the Proof of Liquidity consensus mechanism. This deep integration with Berachain is central to Infrared's value proposition and technical architecture.
The relationship between Infrared Finance and Berachain appears to be symbiotic, with Infrared providing infrastructure and tools that enhance user participation in Berachain's ecosystem, while benefiting from the growing adoption and success of the Berachain platform.
Infrared's products are designed to work seamlessly with Berachain's native tokens (BGT and BERA) and its PoL mechanism, creating a specialized suite of tools for users of this particular blockchain.
Community and Social Presence
Infrared Finance maintains an active presence on social media platforms, particularly on X (formerly Twitter), where it shares updates, educational content, and community engagement initiatives. This social presence helps build awareness and adoption of its products while fostering a community of users interested in Berachain and Proof of Liquidity.
The protocol also publishes content on Medium, providing more in-depth explanations of its products, technology, and vision. These articles serve as educational resources for users seeking to understand Infrared's offerings and the broader context of Proof of Liquidity.
Infrared Finance maintains a GitHub presence under the organization name "infrared-dao," suggesting a commitment to open-source development and transparency. This GitHub repository likely contains code for the protocol's smart contracts, interfaces, and other technical components.
According to Crunchbase, Infrared Finance is positioned in the cryptocurrency, blockchain, and financial services sectors. This positioning reflects its focus on providing DeFi infrastructure specifically designed for the Berachain ecosystem.
As a specialized protocol built for a specific blockchain (Berachain), Infrared Finance occupies a niche within the broader DeFi landscape. Its success is likely tied to the adoption and growth of Berachain itself, as well as the perceived value of its liquid staking and PoL optimization products.
The protocol's focus on simplifying complex DeFi mechanisms (specifically Proof of Liquidity) for average users addresses a common barrier to adoption in the blockchain space, potentially giving it a competitive advantage in user acquisition and retention. [12] [11] [10] [9] [1] [2] [3] [7]
