In the fast-evolving world of decentralized finance (DeFi), new opportunities to earn yield and accumulate future token allocations are constantly emerging. One such opportunity gaining traction in the Berachain ecosystem is Infrared Finance, a next-generation liquid staking protocol designed to unlock liquidity for native governance tokens while offering users a path to long-term rewards.
This comprehensive guide walks you through everything you need to know about Infrared Finance, including how to participate in its staking and liquidity mining programs, earn valuable points, and position yourself ahead of a potential token generation event (TGE) in late 2025.
What Is Infrared Finance?
Infrared Finance is a core liquid staking protocol built on the Berachain ecosystem. Its primary mission is to solve one of the most persistent challenges in Proof-of-Stake blockchains: illiquidity of staked governance tokens.
By introducing two innovative liquid staking tokens—iBGT and iBERA—Infrared allows users to maintain exposure to staking rewards while freeing up capital for use across DeFi applications.
Unlike traditional staking, where assets are locked and inactive, Infrared enables continuous utility. This not only improves capital efficiency but also strengthens the overall health and activity of the Berachain network.
The Problem: Locked Liquidity in $BGT Staking
When users stake $BGT (Berachain’s governance token), those tokens become locked, reducing available market liquidity. This can hinder trading volume, limit DeFi integrations, and discourage participation due to opportunity cost.
Infrared addresses this by tokenizing staked positions into tradable, composable assets—effectively turning illiquid stakes into productive, yield-generating instruments.
Core Features of Infrared Finance
1. iBGT – Liquid Staking Token for LP Positions
The iBGT token is generated when users stake liquidity provider (LP) tokens from decentralized exchanges (DEXs) like Berachain’s native DEX. These LP tokens typically represent paired assets used in liquidity pools involving $BGT.
Once deposited, Infrared wraps these LP tokens and mints iBGT, which represents both the underlying liquidity and accrued staking rewards. Users can then:
- Trade iBGT on DEXs
- Use it as collateral in lending protocols
- Restake it in other yield-generating strategies
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This mechanism unlocks otherwise dormant value and encourages deeper liquidity across Berachain’s ecosystem.
2. iBERA – Liquid Staking for $BERA Holders
For users holding $BERA (Berachain’s native utility token), iBERA offers a familiar yet powerful solution similar to Ethereum’s stETH from Lido.
By staking $BERA directly through Infrared, users receive iBERA at a 1:1 ratio. This derivative token accrues staking rewards in real time and remains fully transferable and usable across DeFi platforms.
Although redemption functionality is not yet live, the team has confirmed plans to enable withdrawals in the future, adding trust and long-term viability to the model.
3. Points Program: Build Early Participation Rewards
One of the most compelling aspects of Infrared Finance is its points accumulation system, launched in April 2025.
Users earn points based on specific on-chain activities, including:
- Staking $BERA to mint iBERA
- Depositing LP tokens to generate iBGT
- Providing liquidity to designated pools
- Maintaining long-term participation
These points are expected to be redeemable for Infrared’s native token during a planned Token Generation Event (TGE) in Q3 2025. While the exact conversion rate will be announced at TGE, early adopters stand to benefit significantly from higher point accrual rates and multiplier bonuses.
This incentive structure mirrors successful models seen in projects like Arbitrum, zkSync, and LayerZero—where early contributors were rewarded handsomely upon token launch.
How to Participate in Infrared Finance
Getting started with Infrared is straightforward for anyone familiar with interacting with DeFi protocols on EVM-compatible chains.
Step-by-Step Participation Guide
Connect Your Wallet
- Use a Web3 wallet like MetaMask or OKX Wallet.
- Ensure you’re connected to the Berachain network (testnet or mainnet).
Choose Your Staking Path
- To mint iBERA: Deposit $BERA directly into the Infrared staking vault.
- To mint iBGT: First provide liquidity on a DEX (e.g., Bex), then deposit your LP tokens into Infrared.
Start Earning
- Once assets are deposited, you’ll receive iBERA or iBGT instantly.
- Points begin accumulating immediately based on your stake size and duration.
Track Your Points Balance
- Use the official Infrared dashboard to monitor your growing point balance.
- Watch for announcements regarding TGE timing and redemption mechanics.
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Why Infrared Matters in the Berachain Ecosystem
Infrared isn't just another yield farm—it's foundational infrastructure for Berachain’s long-term scalability and user engagement.
By enabling liquid staking, Infrared:
- Increases circulating liquidity of $BGT and $BERA
- Encourages broader DeFi adoption within Berachain
- Reduces centralization risks by distributing governance power
- Attracts cross-chain users seeking high-efficiency yield opportunities
Moreover, its integration with existing DEXs and lending protocols makes it a plug-and-play solution for developers building on Berachain.
Frequently Asked Questions (FAQ)
Q: When will the Infrared native token be launched?
A: The Token Generation Event (TGE) is expected in Q3 2025. Exact dates will be announced closer to launch.
Q: Can I trade iBGT and iBERA?
A: Yes. Both tokens are ERC-20 compatible and can be traded on decentralized exchanges that support Berachain assets.
Q: Is there a risk of impermanent loss with iBGT?
A: While iBGT itself doesn’t expose you to impermanent loss, the underlying LP tokens used to mint it do carry that risk—just like any standard liquidity provision.
Q: How are points calculated?
A: Points are earned based on the amount staked, duration of participation, and type of activity (e.g., direct staking vs. LP staking). Longer participation typically yields bonus multipliers.
Q: Will there be a public sale for the native token?
A: No public sale has been announced. The primary path to acquiring tokens appears to be through the points program.
Q: Can I unstake my assets anytime?
A: $BERA staked as iBERA may have withdrawal limitations until full redemption is enabled. Always check the latest protocol updates before depositing.
Final Thoughts: Position Yourself Early
Infrared Finance represents a strategic entry point into one of the most promising ecosystems in 2025—Berachain. With its innovative approach to liquid staking and a well-designed points program, it offers both immediate utility and long-term upside potential.
Whether you're a seasoned DeFi user or just beginning your journey in crypto yield generation, participating in Infrared now could pay significant dividends later.
As always, conduct your own research, understand the risks involved in smart contract interactions, and only commit funds you’re comfortable with locking up for an extended period.
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Note: This article is for informational purposes only and does not constitute financial advice. Digital assets carry high risk due to price volatility and evolving regulatory landscapes. Always perform independent due diligence before engaging with any blockchain protocol.