Infrared BGTPrice

(IBGT)

Infrared BGT (iBGT) is a liquid wrapper for BGT tokens, backed 1:1 by BGT through Infrared's smart contracts. It functions as a liquid staking solution that transforms the non-transferable BGT into a liquid staking derivative, offering users greater flexibility and opportunities within the Berachain ecosystem.

BGT is the core governance token of the Berachain network, central to its Proof of Liquidity (PoL) mechanism. Unlike many other governance tokens, BGT is non-transferable and illiquid, meaning it cannot be directly bought or sold once earned and is tied to the address that acquires it. Users earn BGT by engaging with native Berachain decentralized applications (dapps) or providing liquidity to eligible PoL pools. iBGT was created to simplify the management of BGT, providing a liquid version that can be freely used and traded, while still allowing holders to earn rewards associated with the underlying BGT.

iBGT is primarily earned by farming through Infrared vaults or other protocols built on top of them. Users stake assets, such as eligible liquidity, into Infrared vaults. The assets deposited into these vaults must be whitelisted for a BGT gauge and actively receive BGT emissions. By depositing liquidity into an eligible LP vault, users automatically receive iBGT.

Holding iBGT offers several advantages. It maximizes Proof of Liquidity rewards on Berachain and yield for DeFi users. Unlike BGT, iBGT provides enhanced liquidity, allowing it to be freely traded. Holders can stake iBGT to earn underlying BGT rewards, typically paid in HONEY and wBERA. iBGT also integrates with various DeFi protocols, such as adding it to liquidity pools on decentralized exchanges or for lending and borrowing on other platforms. Furthermore, iBGT enables participation in governance through an on-chain proposal and voting system, with a minimum token requirement to submit proposals. Automated systems can also simplify claiming and re-staking rewards.

Infrared Points are a reward mechanism within the Infrared ecosystem designed to acknowledge and incentivize user contributions. Users can earn these points by staking assets, providing liquidity, or participating in Infrared PoL Vaults, including staking iBGT. These points are intended to increase a user's weight for future reward allocations or airdrops. The Infrared team has indicated an estimated Token Generation Event (TGE) where these Infrared Points are expected to be exchangeable for native tokens.

As with any cryptocurrency project, there are inherent risks associated with iBGT. These include general smart contract vulnerabilities. While not explicitly stated for iBGT, some Proof-of-Stake protocols may impose "slashing" penalties for malicious behavior or network downtime, a general risk in similar ecosystems. Additionally, the Annual Percentage Yield (APY) for staking iBGT is dynamic and can fluctuate based on various network parameters, such as the total amount of iBGT staked and protocol emissions, impacting potential returns.