The Big Picture
Infrared, a key player in the Berachain ecosystem, just raised $14 million in a Series A funding round to expand its liquid staking protocol. This brings its total funding to $18.75 million, making it one of the biggest projects on Berachain. But what does this mean for the crypto world, and why should you care?
The Hook: Why This Matters
Berachain is a rising blockchain that just launched last month, but its native token BERA has already dropped 57% since its debut. Despite this, Infrared is securing major funding, showing that investors still believe in Berachain’s long-term potential. If you understand liquid staking and how big money moves in crypto, you can anticipate future trends before they explode.
Breaking It Down: What’s Going On?
1. What is Infrared Doing?
Infrared is a liquid staking protocol, meaning it lets users stake their assets and still use them in DeFi. Instead of locking up funds completely, you get a liquid staking token (LST) that represents your staked assets, which can be traded, used for loans, or reinvested elsewhere.
Key Words to Remember:
- Liquid Staking – Staking crypto but still being able to use it
- LST (Liquid Staking Token) – A token representing your staked asset
- TVL (Total Value Locked) – The total amount of crypto locked in a protocol
Infrared has created two liquid staking tokens:
- iBGT → Linked to Berachain’s governance token (BGT)
- iBERA → Linked to Berachain’s gas token (BERA)
2. Why Is This Important?
Berachain’s total TVL is $3 billion, and Infrared alone holds $1.7 billion, making it the largest protocol on the chain. This shows that users are trusting Infrared to manage their staked assets, which strengthens its position in the ecosystem.
3. Who’s Betting Big on Infrared?
Framework Ventures led the investment, with big players like:
- Citizen X
- Halo Capital
- No Limit Holdings
- NGC Ventures
- Selini Capital
Binance Labs was an early investor, but they’ve now rebranded as YZi Labs. This shows that even with Berachain’s recent struggles, major firms still believe in its growth.
4. The Future of Berachain and Infrared
Berachain is an EVM-compatible Layer 1 blockchain, meaning it works like Ethereum but with a different structure. It introduced Proof of Liquidity, a new staking mechanism. However, it’s been controversial because of concerns that insiders control too much of BERA’s supply, affecting its price.
Despite this, investors see Infrared as the key to unlocking more liquidity and efficiency on Berachain. The company is also expanding its team, looking to hire top talent in DeFi and the Asia-Pacific region, hinting at global ambitions.
Why This Matters for Your Knowledge and Strategy
- Liquid Staking is the Future
- Projects like Lido on Ethereum have already proven how powerful liquid staking is. Infrared is aiming to do the same for Berachain.
- If you understand how liquid staking works, you can spot early investment opportunities before they become mainstream.
- Follow the Smart Money
- Even though BERA is down 57%, big funds are still investing in the ecosystem. This could mean they expect a long-term comeback.
- Watching how VCs allocate money can give you insights into where crypto is headed next.
- Innovation vs. Controversy
- Proof of Liquidity could be a game-changer, but if insiders control too much of the supply, it might hurt decentralization.
- Understanding these risks helps you decide whether a project is overhyped or actually revolutionary.
Final Takeaway: Should You Care About Infrared?
Yes, if you’re serious about crypto trends. Liquid staking is a growing sector, and Berachain’s approach could disrupt how staking works. However, the controversy around BERA’s price drop means you should watch carefully before making moves. If Infrared succeeds, it could be the Lido of Berachain—a massive opportunity in the making.
