# Infrared Vaults

### Introduction

The Infrared Strategy is one of Raga Finance's automated yield optimization solutions that compounds returns from liquidity provision. This document explains how our simulation system models potential earnings when using this strategy, providing transparency into our methodology and helping users make informed decisions about capital allocation.

### Strategy Overview

The Infrared Strategy employs an automated compounding approach that maximizes returns from liquidity provision through a systematic process:

1. **Initial Liquidity Provision**: Your tokens are swapped and used to provide liquidity to selected pools (e.g., wBERA/iBGT).
2. **LP Staking**: The received LP tokens are automatically staked in Infrared reward vaults.
3. **Reward Collection**: iBGT rewards are claimed and staked in dedicated iBGT vaults.
4. **Additional Rewards**: wBERA and HONEY rewards are regularly harvested.
5. **Optimal Swaps**: Assets are exchanged when necessary to maintain optimal ratios.
6. **Re-liquidity Provision**: Newly acquired assets are used to provide additional liquidity.
7. **Continuous Compounding**: This process repeats every 10 minutes, creating a compound growth effect.

### Current Strategies

Raga has implemented following strategies for the Mainnet:

1. **Stable coin strategy(HONEY/BYUSD):** User's assets are converted to underlying lp token on BEX pool and supplied to infrared staking vault
2. **Infrared vault(wBERA/iBGT):** User's assets are converted to underlying lp token on Kodiak pool and supplied to infrared staking vault


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