Frequently Asked Questions about Infrared Finance

Infrared Finance is a Proof-of-Liquidity (PoL) protocol built on Berachain. It allows users to deposit tokens into PoL vaults and earn iBGT — the liquid, yield-bearing version of BGT (Berachain Governance Token) — along with additional boosted rewards.

Infrared Finance acts as a liquidity layer between DeFi protocols and Berachain's consensus mechanism. By aggregating BGT emissions and directing them to the most productive vaults, Infrared Finance maximizes yield for depositors while deepening liquidity across the ecosystem.

PoL (Proof-of-Liquidity) vaults are smart contract vaults that accept liquidity pool tokens from protocols like Kodiak, BEX, Bend, Beraborrow, and others. When you deposit LP tokens into a Infrared Finance PoL vault, your position is automatically staked in the underlying reward contract to earn BGT emissions.

Infrared Finance then converts those BGT emissions into iBGT, which is continuously distributed back to vault depositors. You also keep earning regular trading fees and protocol incentives from the underlying LP position.

• Stablecoin vaults: low impermanent loss, steady yield
• BERA-paired vaults: higher APR, some exposure to BERA price
• BTC & ETH vaults: blue-chip token exposure with iBGT rewards

Getting started with Infrared Finance is straightforward:

• Step 1: Connect your wallet (supports most EVM-compatible wallets) at infrared.finance.
• Step 2: Acquire the tokens needed for the vault you want to enter (e.g., sUSDe + HONEY for the sUSDe-HONEY vault).
• Step 3: Navigate to the PoL vaults page and select a vault.
• Step 4: Click "Deposit", approve the tokens, and confirm the transaction.
• Step 5: Start earning iBGT and boosted yield automatically.

You can monitor your position and accumulated rewards in the Portfolio section at any time.

BGT (Berachain Governance Token) is Berachain's non-transferable governance and staking token. It cannot be traded or transferred between wallets, which limits its utility for DeFi users who want liquidity.

iBGT, issued by Infrared Finance, is a liquid, 1:1 backed receipt token for BGT. When Infrared Finance earns BGT emissions from PoL vaults, it mints equivalent iBGT and distributes it to depositors. iBGT is:

• Fully transferable and tradeable
• Redeemable for BGT at any time at a 1:1 ratio
• Usable as collateral in other DeFi protocols
• A source of ongoing yield through Infrared Finance's validator operations

iBGT unlocks the economic value of BGT without sacrificing governance participation, since Infrared Finance votes with the underlying BGT on behalf of the ecosystem.

iBERA is Infrared Finance's liquid staking token for BERA, Berachain's native gas token. By staking BERA through Infrared Finance, you receive iBERA, which accrues staking rewards over time. iBERA can be used freely across DeFi while your underlying BERA continues to earn yield.

IR is Infrared Finance's native governance and utility token. IR holders can:

• Participate in protocol governance decisions
• Earn a share of protocol revenue
• Boost rewards in select PoL vaults
• Access the Auction mechanism to direct BGT emissions

Together, iBGT, iBERA, and IR form the core token ecosystem of Infrared Finance, designed to capture and redistribute the full value of Berachain's PoL flywheel.

The APR displayed for each Infrared Finance vault is a composite figure that includes multiple yield sources:

• BGT/iBGT emissions — the primary reward from Berachain's PoL mechanism, directed to the vault's underlying gauge
• Trading fees — earned from swaps in the underlying liquidity pool
• Protocol incentives — additional rewards offered by the underlying DeFi protocol (e.g., Kodiak, Bend, Beraborrow)
• Bribe rewards — external parties can bribe Infrared Finance validators to direct more BGT to specific vaults

APR values are variable and update in real time based on vault TVL, BGT emission rates, and token prices. The warning triangle icon next to certain APR values indicates that the rate may be significantly higher or lower than historical averages due to low liquidity or recent volatility.

Like all DeFi protocols, Infrared Finance involves certain risks that users should understand before depositing:

• Impermanent Loss (IL): Liquidity pool positions are subject to IL when the price ratio between the two tokens in a pair changes significantly. Stablecoin vaults have minimal IL risk; BERA/BTC/ETH paired vaults have higher IL exposure.
• Smart contract risk: Although Infrared Finance contracts are audited, no smart contract is entirely risk-free. Always invest only what you can afford to lose.
• Underlying protocol risk: Each vault is connected to an external protocol (Kodiak, Bend, etc.), which introduces additional smart contract and liquidity risk.
• Token price risk: The value of iBGT, iBERA, and IR fluctuates with market conditions.

Infrared Finance publishes security information at its security page. Always do your own research before depositing funds.

Withdrawing from a Infrared Finance vault is straightforward and non-custodial — you retain full control of your funds at all times:

• Navigate to your Portfolio on Infrared Finance.
• Select the vault you wish to exit.
• Click the withdraw or manage button, enter the amount you want to remove, and confirm the transaction.
• Your LP tokens will be returned to your wallet immediately.
• Any accrued iBGT rewards will also be claimable at the same time.

There are no lock-up periods or withdrawal fees imposed by Infrared Finance itself. Some underlying protocols may have their own terms — check the vault details page for specifics.

Infrared Finance is deployed on Berachain, an EVM-compatible Layer 1 blockchain. To interact with Infrared Finance, you need a wallet that supports Berachain's network configuration.

Supported wallets include:

• MetaMask
• Coinbase Wallet
• WalletConnect-compatible wallets
• Rabby Wallet
• Most modern EVM wallets

You will need BERA for gas fees. If you're new to Berachain, visit the Education section on Infrared Finance to learn how to bridge assets and set up your wallet.

There are several official resources to learn more about Infrared Finance and stay up to date with the latest developments:

• Documentation: infrared.finance/docs — technical and conceptual deep dives
• Blog: infrared.finance/blog — announcements, strategy guides, and market updates
• Education: infrared.finance/education — beginner-friendly articles on PoL and DeFi
• Discord: discord.gg/infrared-finance — community support and discussion
• Twitter/X: @infraredfinance — real-time updates and news
• GitHub: github.com/infrared-dao — open-source code and audits