# 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 [Kodiak Whitelisted Vaults](https://app.kodiak.finance/#/liquidity/pools/0x24afceb372b755f4953e738d6b38e9e4646d9f57?farm=0x199f156bba61496401dc2a009b5f69eb9a7e6f21\&chain=berachain_mainnet) who stake on [Infrared](https://infrared.finance/vaults/kodiak-ibera-ibgt) earn rewards in the form of $iBGT. By depositing into the oAC iBERA-iBGT Vault, users are able to autocompound their LP positions without the need for manual management. Rewards are automatically converted into more of the underlying LP tokens.