Infrared Finance, a liquid staking protocol operating within the Berachain ecosystem, has received investment from Binance Labs, the venture capital division of Binance. This funding, facilitated through a private token round, demonstrates Binance Labs' entry into the Berachain platform and its interest in this evolving blockchain network.
Understanding the SAFT Funding Model
Recently, Binance Labs engaged as the exclusive investor in a strategic funding round using the Simple Agreement for Future Tokens (SAFT) model. This model, prevalent in the cryptocurrency industry, allows investors to acquire rights to future tokens upon issuance. In the past, Infrared secured $2.5 million in seed funding through the SAFT model, with contributions from venture capital firms like NGC Ventures, Tribe Capital, Shima Capital, and Signum Capital.
Innovative Strategies by Infrared
Founded under the Berachain Foundation's 'Build-A-Bera' initiative last year, Infrared is dedicated to creating liquid staking tokens for Berachain's primary tokens, BGT (governance token) and BERA (gas token). These tokens, namely iBGT and iBERA, aim to improve the functionality and liquidity of Berachain's native tokens. Although the exact funding amount and company valuation remain undisclosed by CEO Raito Bear.
Implications for Industry Players
Significant points for industry participants to consider are:
- Infrared Finance's partnerships and funding emphasize the increasing interest in the Berachain ecosystem.
- The use of the SAFT model reflects a common strategy in the crypto sector for acquiring future tokens.
- Infrared's focus on liquid staking tokens could enhance token liquidity and functionality within Berachain's network.
- The lack of direct competitors might give Infrared a distinct market advantage.
Presently, Infrared is in the development phase and anticipates a launch on the Berachain V2 testnet soon. This phase will enable the team to gather user feedback and implement necessary enhancements before the official launch, fostering innovation in the market.
