Recently, Infrared has partnered with Pendle, and users can earn Infrared points by interacting with Infrared's liquid staking tokens (mainly iBGT and iBERA) through the Pendle platform. Specifically, it includes PT/YT trading and liquidity provision. Some users don't know exactly what it means, so here's a brief introduction. For beginners, there is a lot of background involved, and a lot of content needs to be disassembled to understand. First of all, the PT in Pendle refers to the principal token, which represents the principal and is returned at maturity. YT is a yield token, which represents income and can be claimed in real time. That is, through the Pendle protocol, users can split the yield assets (iBGT and iBERA) on Infrared: PT (principal tokenization) + YT (yield tokenization). PT principal tokens can redeem the initial assets (iBGT, iBera) after expiration, and YT yield tokens represent the future income of assets in a specific period, of which iBGT can get BGT rewards, and iBera can get Bera staking rewards (BGT rewards + transaction fees calculated by Bera, etc.). In other words, Infrared's cooperation with Pendle is mainly based on the revenue splitting mechanism of the Pendle protocol. So, what motivation does an Infrared user have to play such a split operation? If you are a first-time user (familiar users can skip it), you can first briefly learn about Infrared(@InfraredFinance). Infrared is a DeFi infrastructure protocol on Berachain that aims to lower the barrier to entry for users to enter the Bera ecosystem. The core mechanism of Berachain (@berachain) is based on the PoL (Proof of Liquidity) + three-token model (BERA, BGT, HONEY), while Infrared is designed around the PoL mechanism and token mechanism of Berachain. Participating in the Bera network, such as providing liquidity to Berachain's whitelisted DeFi protocols, liquid staking, earning higher yield rewards, participating in governance, etc., can be made simpler by participating in Infrared. In a sense, Infrared can be understood as Lido in the Ethereum ecosystem, which lowers the threshold for users to participate in asset staking, and is also a protocol that provides liquidity for asset staking. It is currently the core infrastructure of the Berachain ecosystem, with more than 60% of BGT staked through it, and the overall TVL is currently about $500 million. However, there are also differences with Lido, mainly because the specific consensus mechanisms of the two sides are different, the token models are different, and the governance mechanisms are different (don't mention it first, otherwise you can write another long article). To put it simply, users can participate in PoL consensus by staking Bera (Berachain's native token) through Infrared; or obtain BGT (governance token, non-transferable) by providing liquidity. By staking on Infrared or LP operation, two tokens are generated: iBera and iBGT tokens, which are pegged 1:1 to Bera and BGT, respectively. So why don't users operate directly by themselves, but have to operate it like the Infrared protocol? The main reason is that Berachain's PoL operation process is too complicated for ordinary users, such as providing liquidity to whitelisted DeFi protocols, staking LP tokens to the treasury and managing the distribution of BGT. Through Infrared, users only need to deposit Bera and LP token assets to participate in PoL, and Infrared will handle the rest of the operations without more operations. In addition to lowering the threshold for operation, liquidity can also be unlocked through Infrared (similar to lido), iBGT and iBERA are equivalent to releasing the liquidity locked by BERA staking, and also solve the liquidity of BGT tokens as non-transferable governance tokens. So why are Infrared users motivated to play on Pendle? Here's why: First, it is possible to seek benefits based on market changes or personal needs. iBERA and iBGT can be split into PT (Principal Token) and YT (Yield Token), users can trade YT or PT on pendle, and can either lock in fixed income, hedge risk or amplify exposure according to the user's own judgment of market conditions. For example, users can cash out by trading YT in advance without waiting for the stake to expire. This is attractive to some Infrared users, who can sell early to earn a profit, and buy users who often benefit from selling at a discounted price. Of course, in the end, the change in the value of iBERA and iBGT itself is crucial. Second, there is a chance to get additional rewards. Infrared has launched a points reward system on Pendle. For example, users can earn points by interacting with iBGT and iBERA on pendle (providing LP, trading, holding YT, etc.), and the points may be used for future airdrops (this is just a prediction, and the final announcement shall prevail). Finally, tokenizing the yield of iBGT and iBERA is beneficial for enhancing the liquidity of both, which is good for the Infrared protocol and the Berachain ecosystem itself. So why do users on Pendle have an incentive to engage with assets on pendle? Here's why: First, there are opportunities for high returns. Pools on pendle offer APR with a higher yield, which is attractive to pendle users. The second is the bonus of extra points. Users on pendle hold YT assets in iBGT and iBERA and have a chance to earn a bonus of 2x points. For Pendle veterans, you can get high returns by going long YT, or you can buy PT to lock in income; It is also possible to earn trading fees and Infrared points rewards by providing liquidity in the Pendle AMM pool. Finally, unless you are a DeFi veteran, if you are a newbie, you should know that there is also a high risk behind any high return, and how to assess the risk is always an important premise. Therefore, in addition to seeing high returns, participating in DeFi also needs to understand the risks in advance and evaluate the changes in the market, so as to formulate a strategy suitable for your own risk control and return preference.