Binance Labs Backs Infrared Finance in First-Ever Berachain Investment

• Infrared Finance, a leading liquid staking protocol within the Berachain ecosystem, recently received significant investment from Binance Labs, the venture capital arm of Binance.
• This marks Binance Labs’ first foray into the Berachain platform, highlighting its strategic interest in the area’s burgeoning blockchain ecosystem.
• “This investment amplifies our mission to push boundaries in the DeFi space,” stated Raito Bear, CEO of Infrared Finance, during the announcement of the private token round.

Explore Infrared Finance’s innovative strides in DeFi and the strategic importance of Binance Labs’ investment in emerging blockchain ecosystems.

The Breakthrough SAFT Funding Model

In an unprecedented move earlier this month, Binance Labs became the exclusive investor in a strategic funding round for Infrared Finance, utilizing the Simple Agreement for Future Tokens (SAFT) model. This funding approach, popular in the cryptocurrency sector, allows investors to acquire rights to tokens that will be issued in the future. Previously, Infrared Finance had secured $2.5 million during a seed funding round through the same SAFT model, attracting venture capital firms like NGC Ventures, Tribe Capital, Shima Capital, and Signum Capital.

Innovative Plans for Infrared

Founded under the Berachain Foundation’s “Build-A-Bera” initiative, Infrared Finance aims to create liquid staking tokens specifically for Berachain’s primary tokens, BGT (governance token) and BERA (gas token). By developing liquid staking tokens named iBGT and iBERA, Infrared hopes to significantly enhance the utility and liquidity of Berachain’s native tokens. Although the company has not disclosed the total amount raised or its current valuation, the vision remains focused on fostering significant advancement in DeFi functionality.

Implications for Industry Stakeholders

Several key points emerge for industry stakeholders:

• The strategic investment from Binance Labs underscores a growing interest in the Berachain ecosystem.
• Employing the SAFT model remains a popular method within the crypto industry for future token acquisition.
• Infrared Finance’s emphasis on liquid staking tokens can potentially revolutionize token liquidity and functionality within Berachain.
• The absence of direct competition provides Infrared with a unique market advantage as it looks towards its mainnet launch.

Currently in its development phase, Infrared Finance plans to launch on the Berachain V2 testnet shortly. This will enable the team to garner critical user feedback, which will be instrumental in refining their offerings before a full-scale mainnet deployment.

Conclusion

Infrared Finance’s innovative approach, backed by significant funding from Binance Labs, positions it as a potential game-changer within the Berachain ecosystem. The upcoming testnet phase will be crucial for gathering insights and fine-tuning the platform, ensuring a robust launch that could set new standards in token liquidity and functionality.