Staked IR is live

Introducing staked IR (sIR), a direct way for holders to earn yield on IR. The yield for stakers is sourced from protocol revenue, a portion of which is used for IR buybacks. These repurchased tokens are then distributed back to sIR holders, creating a flywheel that rewards stakers as Infrared grows.

What is Staked IR?

sIR is a non-rebasing token, similar to wstETH. The exchange rate between sIR and IR grows over time as rewards accumulate, meaning each sIR becomes redeemable for more IR. This token acts as a receipt for your staked position, granting you access to ongoing revenue share.

To unstake, you simply initiate a withdrawal, which includes a seven-day cooldown period before your original IR + yield tokens are returned.

How staked IR works

The staking contract serves as the core mechanism for locking IR tokens and distributing sIR to participants. By staking their IR, users receive sIR, which represents their staked position and enables them to earn protocol rewards. sIR can be redeemed for liquid IR at any time by initiating an unstake, subject to a 7-day unlocking period to ensure system stability and alignment with long-term participation.

Rewards distributed to sIR holders come from protocol revenue, including fees collected across Infrared's products. This revenue is used to buy back IR and redistribute it to sIR holders, providing sustainable and compounding yields tied to the protocol's overall performance.

Driving growth on Berachain

The launch of sIR is part of a broader set of features designed to drive economic activity on Berachain. We are soon introducing a Dutch auction system that allows other protocols to bid for BGT emissions using IR. Through this auction, protocols can secure a consistent stream of BGT emissions for their LP pairs. We’ll provide more details on this soon.

Together, staking and the auction system provide a sustained and simple way for protocols to acquire LP yield and for users to earn rewards. We believe these features will support the long-term growth of both our protocol and the entire Berachain ecosystem.