Architecture

Scope

The Infrared protocol is a comprehensive liquidity and chain infrastructure built around the Proof-of-Liquidity system. This includes deep integrations and abstractions of Proof-of-Liquidity staking, Proof-of-Stake Bera staking, block-building, and governance.

There are three components to running a full node in the Berachain Proof-of-Liquidity system:

  1. Execution client (e.g., Go-Ethereum)
  2. Consensus client (e.g., Beacon-Kit)
  3. BGT delegations to the active validator

Only with these three components can a validator propose blocks, attest to blocks, and mint significant block rewards.

Infrared ties all these moving pieces into one cohesive protocol. It offers the iBera product to abstract the economic and technical aspects of block building and staking. The InfraredRewardsVault product abstracts the economic and liquidity aspects of managing staked Proof-of-Liquidity positions. Most importantly, the iBGT product empowers the Berachain ecosystem with a powerful, liquid, yield-bearing asset for DeFi, while also providing delegations to the validators powering the protocol via iBera.

The protocol emphasizes simplicity in the staking process, aiming to make it as easy as approving, staking, and claiming. The InfraredVault.sol smart contract achieves this by employing industry-standard APIs for staking and claiming rewards.

Liquidity providers can stake existing positions or mint new ones. By connecting directly to BerachainRewardsVault.sol, any account can call the harvest public method to automatically mint iBGT rewards at a 1:1 rate minus fees when BGT becomes available to claim.

Key features

  1. Ease of use: The Infrared protocol is designed for simplicity. Users can easily approve, stake, and claim rewards without needing to navigate complex procedures.
  2. Seamless integration: With products like iBera and InfraRewardsVault, the protocol integrates various economic and technical aspects, streamlining the user experience.
  3. Automated reward distribution: Through the harvest method, rewards are automatically minted and distributed, ensuring that users receive their earnings promptly and efficiently.

By focusing on these key features, the Infrared protocol not only simplifies the staking and reward process but also enhances the overall efficiency and attractiveness of the Berachain ecosystem. This approach ensures that participants can maximize their returns with minimal hassle, fostering a more active and engaged community.

Berachain full node

There are three critical components to running a full node in the Berachain Proof-of-Liquidity system:

  1. Execution client (e.g., Go-Ethereum): This component is responsible for processing transactions, executing smart contracts, and maintaining the state of the blockchain. It ensures that all transactions are correctly processed and that the blockchain remains consistent and up-to-date.

  2. Consensus client (e.g., Beacon-Kit): This client handles the consensus protocol, which is crucial for maintaining the integrity and security of the blockchain. It ensures that all nodes agree on the state of the blockchain and that blocks are added in a secure and orderly manner.

  3. BGT delegations to the active validator: This involves delegating Berachain Governance Tokens (BGT) to an active validator. The delegations are essential for validators to participate in the consensus process and secure the network.

Only with these three components can a validator propose blocks, attest to blocks, and mint significant block rewards. The execution client handles the actual operations on the blockchain, the consensus client ensures agreement among nodes, and the BGT delegations provide the necessary stake to participate in validation and governance. Together, they form the backbone of a secure and efficient Proof-of-Liquidity system on Berachain.

Liquidity staking pool

The protocol emphasizes simplicity in the staking process, aiming to make it as easy as approving, staking, and claiming. The InfraredVault.sol smart contract achieves this by employing industry-standard APIs for staking and claiming rewards.

Liquidity providers can stake existing positions or mint new ones. By connecting directly to BerachainRewardsVault.sol, any account can call the harvest public method to automatically mint iBGT rewards at a 1:1 rate minus fees when BGT becomes available to claim.

Key features

  1. Ease of use: The protocol's design ensures a straightforward process for users, making staking and claiming rewards simple and user-friendly.
  2. Automated reward distribution: By utilizing the harvest method, rewards are automatically minted and distributed, ensuring timely and efficient reward delivery.

By focusing on these key features, the protocol not only simplifies the staking and reward process but also enhances the overall efficiency and attractiveness of the liquidity staking pool. This approach ensures that participants can maximize their returns with minimal hassle, fostering a more active and engaged community.

iBGT staking pool

The $iBGT staking pool employs a similar staking API to the liquidity staking pool. This staking pool architecture emphasizes the principle of 1 Stake, N Rewards, meaning that all rewards that natively staked BGT is entitled to are passed through this staking pool to iBGT stakers.

Reward Mechanism

The rewards for staking iBGT come primarily in the form of $Honey generated from Berachain dapp fees and incentives earned by the protocol. This setup ensures that users benefit from the fees collected across the Berachain decentralized application (Dapp) ecosystem, providing a continuous and potentially growing reward stream.

Key features

  1. Unified staking experience: By using a similar API to the liquidity staking pool, the iBGT staking pool offers a familiar and straightforward staking process, making it easy for users to participate.
  2. Multiple reward streams: The 1 Stake, N Rewards architecture ensures that staking iBGT provides access to multiple reward streams. This enhances the value of staking by allowing users to earn various types of rewards from a single staking action.
  3. Earnings from dapp fees: Stakers receive $Honey rewards sourced from Berachain dapp fees, aligning the interests of stakers with the success and growth of the Dapp ecosystem.
  4. Efficient reward distribution: The staking pool is designed to efficiently pass through rewards that would otherwise go to natively staked BGT, ensuring that iBGT stakers receive their fair share without any additional complexity.

User benefits

  • Increased returns: By staking iBGT, users can maximize their returns through multiple reward streams, enhancing the profitability of their staking activities.
  • Passive income: The rewards from dapp fees provide a steady stream of passive income, making staking iBGT an attractive option for long-term holders and investors.
  • Aligned incentives: As the Berachain ecosystem grows and Dapp usage increases, the potential rewards from staking iBGT also grow, aligning the interests of stakers with the overall success of the ecosystem.

By providing a robust and efficient staking mechanism, the iBGT staking pool not only simplifies the staking process but also enhances the overall rewards and benefits for users. This approach ensures that participants can leverage their iBGT holdings to earn significant rewards, fostering a more engaged and invested community within the Berachain ecosystem.

Bera staking pool

The protocol aims to provide both large and small holders with access to staking Bera and the benefits of participating in a Berachain full node. By staking Bera, users receive iBera, an ERC-20 token that can be used within the DeFi ecosystem.

Reward mechanism

The staking pool will be entitled to various rewards from block proposals, including:

  • MEV (Miner Extractable Value): Rewards derived from the ordering of transactions within a block.
  • Miner tips: Additional incentives provided by users to prioritize their transactions.
  • Incentives: Various incentives provided by the network to encourage participation and ensure security.

Key features

  1. Accessibility for all holders: The staking pool is designed to accommodate both large and small holders, democratizing access to staking rewards.
  2. DeFi integration: Staked Bera is converted into iBera, an ERC-20 token that can be utilized across various DeFi platforms, enhancing the utility and liquidity of staked assets.
  3. Diverse reward streams: The pool aggregates rewards from multiple sources, ensuring that stakers benefit from a comprehensive range of incentives.

User benefits

  • Increased earnings: By staking Bera, users can earn multiple types of rewards, maximizing their potential returns.
  • Enhanced liquidity: iBera tokens provide liquidity and can be actively used in DeFi applications, allowing users to participate in additional earning opportunities.
  • Passive income: The rewards from block proposals provide a steady stream of income, making staking Bera an attractive option for both active and passive investors.
  • Network participation: Stakers contribute to the security and efficiency of the Berachain network, playing a vital role in its governance and operation.

By integrating these features, the Bera staking pool not only simplifies the staking process but also maximizes the rewards and benefits for users. This approach ensures that participants can leverage their Bera holdings to earn significant returns, fostering a more engaged and supportive community within the Berachain ecosystem.

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