Infrared Finance: Leading PoL Staking on Berachain

Infrared Finance has emerged as a pioneering DeFi protocol on Berachain, focusing on Proof-of-Liquidity (PoL) staking and providing an optimal Liquid Staking solution for users. In this article, we will delve into the details of Infrared Finance, its operating mechanism, products, and potential for growth.

What is Berachain?

Before diving into Infrared Finance, it’s essential to understand Berachain, the blockchain platform that underpins this protocol. Berachain is a Layer-1 blockchain designed to address scalability and efficiency issues in DeFi. What sets Berachain apart is its PoL consensus mechanism, an alternative to the traditional Proof-of-Stake (PoS). In PoL, users are incentivized to participate in liquidity creation activities on the network to earn rewards, rather than simply holding tokens.

Infrared Finance was created as a solution to optimize Berachain’s PoL mechanism. This protocol allows users to stake BGT (Berachain’s governance token) efficiently and securely while maintaining the liquidity of their assets.

So why is Infrared Finance so highly regarded? The answer lies in its perfect combination of advanced technology, attractive earning potential, and an experienced development team.

What is Infrared Finance?

Infrared Finance is making waves in the DeFi market as the leading Proof-of-Liquidity (PoL) staking protocol built on Berachain. With a mission to optimize benefits for users and drive the development of the Berachain ecosystem, Infrared Finance offers a comprehensive suite of products and services revolving around the unique PoL mechanism.

Infrared Finance’s business model focuses on simplifying the staking process and maximizing rewards for users participating in the Berachain network. The protocol acts as a bridge connecting users with validators, making it easy for them to stake BGT and earn rewards securely and efficiently.

Features of Infrared Finance

Optimized Staking returns

Maximizing PoL utilization: It is designed to fully leverage Berachain’s PoL mechanism, ensuring users receive the highest possible staking rewards.
Efficient reward distribution: The protocol employs an intelligent reward distribution algorithm, ensuring users receive rewards commensurate with their contribution level.
Transparency and fairness: All staking activities and reward distributions are transparently recorded on the blockchain, ensuring fairness for all users.

Simplified user experience

User-friendly interface: Infrared’s interface is designed to be intuitive and easy to use, suitable even for DeFi newcomers.
Easy Staking participation: Users simply need to deposit BGT into PoL Vaults, and Infrared will automatically handle the staking process.
Convenient asset management: Users can monitor their assets and rewards at any time through the Infrared interface.

Enhanced liquidity

Liquid Staking with iBGT: iBGT allows users to earn staking rewards while maintaining the liquidity of their assets.
Using iBGT in DeFi: Users can utilize iBGT in other DeFi applications on Berachain, such as lending and borrowing, trading on DEXs, etc.
Supporting ecosystem growth: iBGT contributes to stimulating liquidity and promoting the development of the DeFi ecosystem on Berachain.

Security and reliability

Decentralized validator network: Infrared Finance has built a decentralized and reliable validator network to ensure the security of the staking process.
Collaboration with berachain foundation: Infrared Finance is one of the pioneering projects in the Berachain Foundation’s “Build-A-Bera” incubator, receiving direct support from the Berachain development team.
Security audits: Infrared Finance’s smart contracts have been audited by reputable entities to ensure the security and safety of users’ assets.

With these highlights, Infrared Finance is gradually asserting its position as the leading PoL staking protocol on Berachain. The project promises to bring attractive investment opportunities to users and contribute to the development of the DeFi ecosystem.

Main products of Infrared Finance

iBGT (Liquid Staking Token)

iBGT is the heart of the Infrared Finance ecosystem, serving as a Liquid Staking Token (LST) representing staked BGT. When users stake BGT through Infrared, they receive a corresponding amount of iBGT.

Benefits of iBGT

Maintaining liquidity: Unlike staking BGT directly, iBGT allows users to continue using their assets in other DeFi activities on Berachain. Users can trade, lend, or use iBGT as collateral in other protocols.
Increased capital efficiency: iBGT helps users optimize capital utilization by simultaneously earning staking rewards and participating in other profitable opportunities in DeFi.
Simplified process: iBGT helps users avoid the complex processes associated with managing validators and maintaining nodes when staking BGT directly.

PoL Vaults

PoL Vaults are secure and efficient “safes” for users who want to stake BGT through Infrared.

Advantages of PoL Vaults:

Ease of Use: Users simply deposit BGT into the vault, and the protocol automatically handles the entire staking process, including validator selection and reward optimization.
Security: User assets are protected by the protocol’s decentralized and trusted validator network.
Efficiency: PoL Vaults are designed to maximize staking returns for users by selecting high-performance validators with low transaction fees.

Validator network

Infrared is building a decentralized and reliable validator network to ensure the security and efficiency of the protocol’s operations. This validator network plays a crucial role in:

Transaction validation: Validators verify and process transactions on the Berachain network.
Maintaining consensus: Validators ensure consensus among nodes on the network, helping to maintain the stability and security of Berachain.
Reward distribution: Validators distribute staking rewards to users through Infrared.

The perfect combination of iBGT, PoL Vaults, and the validator network has created a comprehensive and convenient PoL staking ecosystem on Berachain. Infrared Finance is committed to continuously upgrading and expanding its products to provide the best possible user experience.

How Infrared Finance works

The operating mechanism of this protocol is designed to optimize the benefits for users participating in PoL staking:

Users deposit BGT into PoL vaults

Users connect their wallets to the platform.
Select the PoL Vault that corresponds to their staking needs.
Deposit the desired amount of BGT into the vault.

Infrared delegates BGT to IRED validators

Infrared automatically delegates the BGT received from users to IRED validators in the network.
IRED validators are nodes carefully selected by Infrared Finance, ensuring the stability and security of the network.

IRED validators participate in PoL and earn rewards

IRED validators use the delegated BGT to participate in Proof-of-Liquidity activities on Berachain, such as providing liquidity on DEXs, participating in liquidity pools, etc.
By participating in PoL, validators earn rewards in the form of BGT.

Infrared collects and distributes rewards

Infrared Finance automatically collects BGT rewards from IRED validators.
The protocol then distributes these rewards to users who have staked BGT proportionally to the amount of BGT they have deposited into the vault.

Users receive rewards and manage assets

Users can track the amount of BGT rewards they have received on the Infrared interface.
They can choose to withdraw BGT at any time or continue staking to earn more rewards.
Infrared provides tools for users to easily manage their assets and track staking profits.

Team, Roadmap and Competitors

Team

Infrared Finance boasts an experienced team in the DeFi and blockchain space. They are pioneers, builders, and investors who have been involved in numerous Web3 projects, with deep expertise in CeDeFi, LSD, and blockchain infrastructure. Notably, this team has participated in supporting the core development of Berachain, giving them a deep understanding of the PoL mechanism and the potential of this ecosystem.

As one of the first five projects selected for the Berachain Foundation’s “Build-A-Bera” incubator, Infrared Finance receives direct support from the Berachain development team. This gives them an advantage in terms of technology, community, and resources, enabling them to confidently build and develop the protocol.

Roadmap

Infrared Finance has been implementing a clear and ambitious development roadmap:

Q1/2024:

Completed a seed funding round with $2.5 million from reputable investment funds.
Started developing PoL Vaults and the validator network.
Launched the Liquid Staking Token (LST) iBGT.

Q2/2024

Expanding the validator network to ensure the security and efficiency of the staking process.
Beta testing the platform with early users to gather feedback and improve the product.

Q3/2024

Officially launching the mainnet for the PoL staking protocol.
Establishing partnerships and integrating with other DeFi projects and blockchain networks.

Q4/2024

Implementing marketing campaigns to attract users and increase platform adoption.
Expanding the ecosystem by introducing new features and services.

Competitors

Currently, Berachain’s PoL model is unique in the market, so Infrared Finance does not have any direct competitors. However, in the future, as other liquid staking protocols like Lido and Rocket Pool expand to Berachain, Infrared Finance will face stiffer competition.

Despite facing potential competition, Infrared Finance still possesses significant competitive advantages:

Focus on PoL: Infrared Finance is the first PoL staking protocol on Berachain, giving them a first-mover advantage and a deep understanding of this mechanism.
Support from berachain foundation: As one of the projects supported by the Berachain Foundation, Infrared Finance receives numerous benefits in terms of technology, community, and resources.
Strong community: Infrared Finance has built a strong community of users and investors, which contributes significantly to the project’s development.

Infrared Finance status, partnerships and Tokenomics

Project status

Infrared Finance is in a strong development phase and has achieved significant milestones:

Successful fundraising: Infrared Finance has completed a seed funding round raising $2.5 million, led by Synergis and joined by many reputable investment funds such as NGC Ventures, Tribe Capital, Shima Capital, CitizenX, Dao5, etc. This funding round demonstrates investors’ confidence in the project’s growth potential.
Product launch: The protocol has officially launched its iBGT (Liquid Staking Token) and PoL Vaults products, allowing users to participate in PoL staking easily and efficiently.
Validator network expansion: Infrared Finance is actively expanding its validator network to enhance the security and decentralization of the protocol.
Community building: The project is making efforts to build a vibrant community of users and developers through communication channels and community activities.

Partnerships

Infrared Finance has established strategic partnerships with many projects in the Berachain ecosystem, notably:

Kodiak: The leading decentralized exchange on Berachain. This partnership allows users to trade iBGT on Kodiak and participate in farming activities to earn additional rewards.
Gummi: A decentralized lending protocol. Users can use iBGT as collateral to borrow other assets on Gummi.
BeraBorrow: A protocol that allows users to borrow the NECT stablecoin using iBGT interest-free.

These partnerships help expand the utility of iBGT and attract more users to the Infrared Finance ecosystem.

Tokenomics

Currently, there is no official information about Infrared Finance’s token.

In conclusion, Infrared Finance is a promising PoL staking protocol on Berachain, offering an optimal liquid staking solution for users. With advanced technology, an experienced team, and strong support from the Berachain Foundation, Infrared Finance is expected to continue to grow and contribute to the growth of the DeFi ecosystem on Berachain.

Let’s follow Blockchain Global Network to track and explore the new progress of Infrared Finance in the future!