What Is Infrared Finance? The Leading Proof of Liquidity Protocol on Berachain

2025-12-17 06:51:35

Infrared Finance is the flagship infrastructure protocol on Berachain, designed to simplify and optimize interaction with the network’s innovative Proof of Liquidity (PoL) consensus mechanism. Launched in 2025, Infrared reimagines liquid staking by providing users with liquid products like iBGT—a staked version of Berachain’s governance token BGT—that allow participation in PoL rewards without locking assets. With over $252 million in TVL as of late 2025 and backed by prominent investors including YZi Labs (associated with Binance Labs), Framework Ventures, and others in a $18.75 million raise, Infrared has established itself as a core DeFi primitive in the Berachain ecosystem, handling validator infrastructure and boosted yields for liquidity providers.

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How Does Infrared Finance Work on Berachain?

Berachain’s Proof of Liquidity (PoL) unifies staking and liquidity provision, rewarding users for contributing to network security and DeFi pools simultaneously. Infrared acts as the user-friendly gateway:

Liquid Staking: Deposit assets to receive iBGT, maintaining liquidity while earning PoL rewards.
PoL Vaults: Automated strategies for maximized yields across Berachain protocols.
Validator Support: Infrastructure for running or delegating to validators.
Capital Efficiency: Users avoid opportunity costs of traditional staking.

This setup has driven rapid adoption, with peak TVL exceeding $1.7 billion earlier in 2025 and consistent revenue generation.

Key Product: iBGT – Liquid staked BGT for flexible PoL participation.
TVL Milestone: $252M+ current, reflecting resilient demand.
Ecosystem Role: Primary entry point for Berachain liquidity mining.

Funding and Backers: Including YZi Labs Investment

Infrared has raised $18.75 million across rounds, with a $14 million Series A led by Framework Ventures and participation from YZi Labs (Binance Labs’ investment arm), Hack VC, Animoca Brands, and others. This backing validates Infrared’s position in the PoL narrative and Berachain’s growing Layer-1 momentum.

Total Raised: ~$18.75 million.
Key Investors: Framework Ventures (lead), YZi Labs/Binance Labs, Shima Capital.
Valuation Signal: Strong support for Berachain-native infrastructure.

Token and Future Outlook for Infrared

While Infrared’s core products revolve around iBGT and ecosystem tokens, the protocol may introduce governance or utility tokens in future phases. As Berachain expands with mainnet features and cross-chain integrations, Infrared is poised to capture more liquidity flows in the evolving PoL landscape.

Berachain Synergy: Central to network’s liquidity and staking flywheel.
DeFi Trends: Aligns with 2025–2026 focus on efficient, reward-bearing assets.
Growth Potential: Validator tools and vaults drive sustained TVL.

In summary, Infrared Finance stands as the premier Proof of Liquidity application on Berachain, offering liquid staking via iBGT and infrastructure for maximized rewards—with $252M+ TVL and backing from YZi Labs and top VCs. As Berachain matures, Infrared’s role in simplifying PoL participation positions it for continued leadership in Layer-1 DeFi innovation. Explore the official site for vaults and docs, track Berachain updates, and engage securely in emerging ecosystems.

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