Solving the Proof-of-Liquidity Dilemma: Infrared Introduces iBGT
**Infrared Finance**, the liquid staking protocol backed by **Binance Labs**, **Framework Ventures**, and **Tribe Capital**, has formally released the technical architecture for **iBGT**—the first composable liquid staking derivative designed for Berachain's non-transferable BGT governance token.
In Berachain's Proof-of-Liquidity architecture, BGT (Bera Governance Token) can only be earned by providing liquidity to verified ecosystem pools and cannot be transferred or traded on secondary markets. While this mechanism prevents mercenary governance attacks, it inherently creates a liquidity opportunity cost for active participants. Infrared solves this core challenge by allowing users to deposit their liquidity positions and receive **iBGT**, a liquid ERC-20 token that mirrors the voting power and yield generation of native BGT.
"Proof-of-Liquidity is the most elegant consensus mechanism since Proof-of-Stake, but users need composability. iBGT unlocks the full velocity of capital without compromising the security incentives of Berachain validators," stated **Infrared Finance Lead Researchers**.
Core Architectural Pillars of Infrared
The Infrared protocol introduces several major technological breakthroughs:
- **1:1 Yield Mirroring**: iBGT holders continuously accrue native Berachain validator rewards and swap fees directly to their wallets.
- **Seamless DeFi Composability**: Unlike soulbound BGT, iBGT can be utilized as collateral in lending markets, paired in AMMs, or integrated into yield aggregators.
- **Automated Gauge Optimization**: Infrared algorithms automatically route validator voting power to the highest-yielding ecosystem pools, maximizing yields for depositors.
- **Enterprise Validator Security**: Developed in partnership with institutional node operators to guarantee 99.99% uptime and zero slashing exposure.
Next Steps for the Infrared Community
With public testnet participation surging past 250,000 unique wallets, Infrared has confirmed that early testnet contributors, vault depositors, and governance participants will play a central role in the protocol's upcoming **$IRED** token distribution.
Users are encouraged to interact with the testnet dApp, mint testnet iBGT, and participate in active community voting to qualify for top-tier rewards.
