It is no wonder that Berachain’s native token has skyrocketed by an astounding 59,999.99%. It increased for three consecutive days, from $2.7 at the lowest point to $4.7 at its highest. This increase comes in the wake of several significant accomplishments within the Berachain ecosystem. Most importantly, it concerns the iBGT token and its innovative yield generating possibilities. As of writing, the TVL in iBGT is $28.73 million, offering a compelling annualized rate of 245%. This unprecedented wave of activity and value reflects an enormous demand and untapped potential for the Berachain network.

iBGT and Infrared: A High-Yield Combination

Infrared, a liquidity staking protocol that runs on Berachain, is the pulse of the iBGT ecosystem. When you stake iBGT Infrared, you unlock rewards that are generated by the underlying BGT. These rewards are issued as HONEY, Berachain’s native stablecoin that is pegged to the US dollar. This mechanism provides users with a shield to ultimately enjoy the high yields of BGT. Meanwhile, it protects against market volatility by ensuring stablecoin payouts.

In addition, iBGT serves as a wrapped token. Users accumulate it by engaging with the process of creating liquidity pools inside of Berachain. This fungibility allows the token to be easily exchanged between others and used across the entire Berachain ecosystem, greatly increasing its utility and its appeal. Another unique characteristic of the iBGT ecosystem is the distribution of rewards. An astonishing 9% of iBGT’s total value locked (TVL) is paid out in HONEY, but an incredible 236% is paid out in WBERA.

You’ll be able to collect an additional 1.04% in transaction fees with an unrealized 127.91% annualized rate of return in HONEY. This additional layer of transaction fees plus high-yield rewards now makes it very attractive for users to choose to engage within the iBGT ecosystem.

Berachain's Pledged TVL and Lending Opportunities

Berachain’s total promised TVL has increased to over $340 million, demonstrating the growing confidence and investment in the platform. The 4.8% annualized rate for the total overall pledged TVL is less ambitious than iBGT. Still, it’s a testament to developer engagement and commitment to the Berachain network that the figure is that high.

Lending opportunities on Berachain additionally add to the ecosystems allure. In return, the lender’s annualized return on Berachain is 18.97%, making it an attractive lending rate for those interested in lending their assets.

Additionally, users can use the platform in a multitude of ways to increase their return on investment. Users are able to borrow HONEY at the platform’s annualized interest rate of 6.64%. They can then re-deposit it back at an annualized rate of 9.62% to pocket the difference. These kinds of arbitrage opportunities in turn bring more liquidity and users to the platform.

Native Tokens and Liquidity Pool Performance

Berachain is designed to use three native tokens, each serving a unique purpose within the ecosystem. HONEY, as explained above, acts as a stablecoin inside the project, which provides price stability, lowers risk and enhances utility. It leads to a very large iBERA-BERA pool transaction fee income at 1.41%, but a relatively small HONEY income at 44.76%.

The effective yearly rate of return on Berachain’s liquidity pool is only 1.4% to 2.26% annualized. Half of this annualized return is paid out as iBGT. This flexible framework serves to boost consumer engagement with liquidity provision and continues to foster the growth of the iBGT ecosystem.