# Vault Synopsis

[Infrared Finance](https://infrared.finance/) is a [DeFi protocol](https://infrared.finance/docs) building the infrastructure to enhance the composibility of the novel Proof of Liquidity mechanism powering incentives on Berachain. Infrared's $iBGT is a liquid wrapped tradeable token representing a claim on the underlying soulbound native governance $BGT token emitted by Berachain for POL participation. [Berachain's $BGT](https://docs.berachain.com/developers/contracts/bgt-token) which is primarily for boosting validator rewards accounts for a 10% annual inflation rate to the yield emitted prorated and is always redeemable 1:1 for BERA.

Liquidity providers in [BEX Whitelisted Vaults](https://hub.berachain.com/pools/0xde04c469ad658163e2a5e860a03a86b52f6fa8c8000000000000000000000000/details/) who stake on [Infrared](https://infrared.finance/vaults/bex-byusd-honey) earn rewards in the form of $iBGT. By depositing into the oAC BYUSD-HONEY Vault, users are able to autocompound their LP positions without the need for manual management. This means that rewards are automatically converted into more of the underlying LP tokens growing a user's shares of the vault in the underlying principal LP tokens.


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