Recently, Infrared has partnered with Pendle, where users can interact with Infrared's liquid tokens (mainly iBGT and iBERA) through the Pendle platform to earn Infrared points. Specifically, it includes PT/YT trading and providing liquidity. Some users are not quite clear about the specific meaning, here is a brief introduction. For beginners, there is a lot of background involved, and understanding it requires breaking down a lot of content. Firstly, PT in Pendle refers to the principal token, which represents the principal and is returned upon maturity. YT is a revenue token that represents income and can be claimed in real-time. That is to say, through the Pendle protocol, users are supported to split the revenue assets (iBGT and iBERA) on Infrared into PT (principal tokenization) and YT (revenue tokenization). After the PT principal token expires, the initial assets (iBGT, iBera) can be redeemed. The YT yield token represents the future returns of the assets during a specific period, where iBGT can receive BGT rewards and iBera can receive Bera staking returns (BGT rewards+Bera calculated transaction fees, etc.). That is to say, Infrared's collaboration with Pendle mainly utilizes the revenue splitting mechanism of the Pendle protocol. So, as an Infrared user, what motivation do you have to play with such splitting operations. If you are a user who is new to Infrared (familiar users can skip it), you can first have a brief understanding of Infrared (@ InfraredFinance). Infrared is a DeFi infrastructure protocol on Berachain that aims to lower the threshold for users to enter the Bera ecosystem. The core mechanism of Berachain (@ berachain) is based on PoL (Proof of Liquidity)+Three Token Model (BERA, BGT, HONEY), while Infrared is designed around Berachain's PoL mechanism and token mechanism. To participate in the Bera network, such as providing liquidity to Berachain's whitelist DeFi protocol, pledging liquidity, obtaining higher reward returns, participating in governance, etc., these can be made easier through Infrared participation. In a sense, Infrared can be understood as Lido in the Ethereum ecosystem, which is lowering the threshold for users to participate in asset staking and providing liquidity for asset staking protocols. It is currently the core infrastructure of the Berachain ecosystem, with over 60% of BGT pledged through it, and the overall TVL currently exceeds $500 million. However, there are also differences between it and Lido, mainly due to different specific consensus mechanisms, token models, governance mechanisms, etc. (not to mention for now, otherwise we can write another long article). Simply put, users can participate in PoL consensus by pledging Bera (Berachain native token) through Infrared; Or obtain BGT (governance token, non transferable) by providing liquidity. By staking or LP operations on Infrared, two types of tokens are generated: iBera and iBGT tokens, which are anchored 1:1 with Bera and BGT respectively. Why do users have to use protocols like infrared instead of directly operating on their own? The main reason is that Berachain's PoL operation process is too complex for ordinary users, such as providing liquidity to whitelist DeFi protocols, pledging LP tokens to the vault, and managing BGT distribution. By using Infrared, users only need to deposit Bera and LP token assets to participate in PoL, without the need for further operations. Infrared will handle the remaining operations. In addition to lowering the operational threshold, Infrared can also unlock liquidity (similar to lido). iBGT and iBERA are equivalent to releasing the liquidity locked by BERA staking, and also solve the liquidity problem of BGT tokens as non transferable governance tokens. Why do Infrared users have the motivation to play on Pendle? The following reasons are: One is to seek profits based on market changes or individual needs. IBERA and iBGT can be split into PT (Principal Token) and YT (Yield Token), and users can trade YT or PT on the pending platform. Based on their own judgment of the market situation, they can either lock in fixed returns, hedge risks, or amplify exposure. For example, users can monetize YT transactions in advance without waiting for the pledge to expire. This is attractive to some Infrared users as they can sell in advance to earn profits, while buying users often benefit from selling at discounted prices. Of course, ultimately, the changes in the value of iBERA and iBGT themselves are crucial. Secondly, there is an opportunity to receive additional rewards. Infrared has launched a point reward mechanism on Pendle. For example, users who interact with iBGT and iBERA on Pendle (providing LP, trading, holding YT, etc.) can earn points, which may be used for future airdrops (this is only a prediction, and the final announcement is subject to official announcement). Finally, tokenizing the profits of iBGT and iBERA will enhance their liquidity, which is beneficial for the Infrared protocol and the Berachain ecosystem itself. So, why do users on Pendle have the motivation to participate in infrared asset interactions on Pendle? The following reasons are: There are opportunities for high returns. The pool on Pendle provides APR with high returns, which is attractive to Pendle users. Secondly, there are additional point rewards. Users on Pendle who hold YT assets of iBGT and iBERA have the opportunity to receive a 2x point bonus. For Pendle veterans, they can earn high returns by going long on YT or by buying PT to lock in profits; You can also earn transaction fees and Infrared point rewards by providing liquidity in the Pendle AMM pool. Finally, unless you are an experienced DeFi expert, if you are a novice, you should know that behind any high returns, there is also high risk, and how to evaluate the risk is always an important prerequisite. Therefore, participating in DeFi requires not only seeing high returns, but also understanding the risks involved in advance and evaluating market changes in order to develop strategies that suit one's risk control and return preferences.