iBGT as collatoral

PoL made liquid

Beraborrow leverages iBGT, a liquid version of the Berachain Governance Token (BGT), as a collateral asset within its protocol. When providing liquidity on Berachain users earn BGT, which is non-transferrable, and can either be used for governance or redeemed for Bera tokens. By Staking LP positions with Infrared, BGT emissions are made liquid to be used throughout DeFi. Read more here

Staking iBGT

1. When users deposit iBGT into Beraborrow, the asset is atomically staked with Infrared. This means that the iBGT is staked with Infrared in the same transaction that it is deposited into Beraborrow and and siBGT is kept in theDen.By staking the iBGT users are able to earn additional yield on their holdings, essentially being paid to borrow. Simultaneously, the deposited iBGT frees up liquidity through the minting of NECT, which can then be utilised throughout various DeFi applications.

iBGT that was deposited into Den staked with Infrared

2. When a user looks to redeem their position the siBGT is unstaked for iBGT in the same transaction and iBGT is withdrawn from Infrared directly to the users wallet.

siBGT in beraborrw

By using iBGT as collateral, Beraborrow ensures that users can maintain exposure to iBGT, earn yield all whilst maintaining Governance power in the Berachain ecosystem.