Infrared launches staking token 'sIR'… “Introducing rewards based on protocol revenue”

Infrared, a Berachain-based liquid staking protocol, said on the 29th that it has launched sIR (staked IR), a staking token that allows users to earn yield by depositing its native token IR.

sIR is a staking token designed to let IR holders directly participate in protocol revenue. Staking returns are funded by revenue generated across the Infrared protocol, and a portion of that revenue is used to buy back IR tokens. The repurchased IR is then distributed to sIR holders, creating a structure in which staker rewards increase as the protocol grows.

Rewards are not reflected by increasing the number of tokens held, but rather by the exchange rate between sIR and IR rising over time. Accordingly, the amount of IR redeemable for 1 sIR gradually increases, and sIR functions as a kind of receipt representing a staking position. Users who request unstaking will receive their principal IR and accumulated rewards after a 7-day waiting period.

sIR rewards are based on protocol revenue generated from Infrared’s various products and services. Revenue secured through fees and other sources is used to repurchase IR tokens, which are then redistributed to sIR holders.

Infrared views the launch of sIR as part of a strategy to expand economic activity within the Berachain ecosystem. The company also plans to introduce a Dutch auction system that would allow other protocols to secure BGT token emissions using IR. Through this, each protocol is envisioned to be able to reliably secure the BGT emissions needed for liquidity pools (LPs).

“Through staking and the auction system, we have put in place a structure in which protocols can secure liquidity returns and users can earn ongoing rewards,” Infrared said, adding that “this will contribute to long-term growth not only for Infrared but across the broader Berachain ecosystem as well.”