Infrared Finance, a liquid staking protocol within the Berachain ecosystem, has successfully secured investment from Binance Labs, the venture capital division of Binance. This funding, confirmed by Infrared’s CEO, known as Raito Bear, through a private token round, marks Binance Labs’ inaugural venture into the Berachain platform, showcasing its strategic interest in this emerging blockchain ecosystem.
What is the SAFT Funding Model?
Earlier in the month, Binance Labs participated as the sole investor in a strategic funding round, utilizing the Simple Agreement for Future Tokens (SAFT) model. This method is commonly employed in the cryptocurrency industry, enabling investors to acquire rights to future tokens once they are issued. Previously, Infrared had raised $2.5 million through a seed funding round, also using the SAFT model, with contributions from various venture capital firms such as NGC Ventures, Tribe Capital, Shima Capital, and Signum Capital.
How Does Infrared Plan to Innovate?
Established last year under the Berachain Foundation’s “Build-A-Bera” program, Infrared aims to develop liquid staking tokens for Berachain’s main tokens, BGT (governance token) and BERA (gas token). The liquid staking tokens, named iBGT and iBERA, are intended to enhance the functionality and liquidity of Berachain’s native tokens. Despite the significant funding rounds, CEO Raito Bear has not disclosed the total amount raised or the current valuation of the company.
Concrete Takeaways for Industry Stakeholders
Key insights for industry stakeholders include:
- Infrared Finance’s strategic partnerships and funding highlight the growing interest in the Berachain ecosystem.
- The use of the SAFT model underscores a common approach in the crypto industry for future token acquisition.
- Infrared’s focus on developing liquid staking tokens could significantly improve token liquidity and functionality within the Berachain network.
- The absence of direct competitors may provide Infrared with a unique market positioning advantage.
Currently, Infrared is in the development stage and expects to launch on the Berachain V2 testnet soon. This phase will allow the team to gather valuable user feedback and make necessary improvements before the mainnet launch, fostering a robust and innovative market environment.