Bifrost Logo

Trending

Earn Long-Term Rewards with the Bifrost vToken Reward-Share Program!
Earn Long-Term Rewards with the Bifrost vToken Reward-Share Program!
Bifrost is a dedicated modular Liquid Staking L1 secured by Polkadot. Since its establishment, the Total Value Locked (TVL) has exceeded $100 million, with over $3 million in staking rewards distributed. This success is attributed to our partner’s and community member’s support and trust. To benefit community members and partners promoting the Bifrost protocol and to expand collaboration channels for vToken minting, Bifrost has launched the vToken Reward-Share Program. Let’s take a closer look at the details of this program. What is the vToken Reward-Share Program As an LST protocol, Bifrost provides liquid staking services for multiple chains. The protocol routinely collects a reward fee (commission) from all token staking rewards as protocol income. The reward fee is deposited into the protocol treasury, where it serves as a risk reserve fund or is used for other ecosystem purposes. The vToken Reward-Share Program is a collaborative incentive program where partners can apply through Bifrost OpenGov to become collaboration channels. Collaboration channels receive exclusive vToken minting links and a share of the reward fees collected when users mint vTokens through their links. It is important to emphasize that this reward sharing is continuous. As long as users continue to mint vTokens through a channel’s exclusive link without redeeming, they will continue to receive a share of the reward fees. This will persist until a channel opts out of the vToken Reward-Share Program or is removed from the collaboration channel list through voting in OpenGov. For collaboration channels, this represents a sustainable reward stream. Application Criteria Community operators, projects, and Key Opinion Leaders (KOLs) who are interested in integrating the vToken minting portal into their products, or those who wish to promote vToken minting and have a specific user base and influence, are welcome to apply to the vToken Reward-Share program. Bifrost aims to integrate more vToken minting channels, enhancing user access and convenience to our liquid staking services. These channels can include wallets, DEXs, games, NFT trading platforms, other Web3 applications, and even some Web2 platforms. This integration may involve directly displaying the vToken minting portal or integrating it into other services. For example, some platforms may support users purchasing vToken using Fiat. In this instance, the backend process may involve using Fiat to purchase and mint the original token as vToken. Rewards Estimation In the vToken Reward-Share program, each partner channel can receive a portion of Bifrost’s reward fee based on its contribution and channel reward rate. For example: Bifrost has a TVL of 10,000,000 DOT. Channel A helps mint 2,000,000 DOT into vDOT (20% of the total TVL of vDOT) with an annual DOT staking yield of 12% and a Bifrost protocol reward fee (commission) of 10%. The calculations would be: Annual reward fee of Bifrost = 10,000,000 * 12% * 10% = 120,000 DOT Reward fee generated by Channel A = 2,000,000 DOT * 12% * 10% = 24,000 DOT If channel A has a reward rate of 40%, then Channel A’s annual rewards = 24,000 DOT * 40% = 9,600 DOT Rewards are roughly distributed once every 24 hours, and channel partners can claim them on-chain. How to Apply To join the vToken Reward-Share Program, there are two steps: First, submit your proposal in the discussion section of the Bifrost forum. The proposal should clearly illustrate your scope of collaboration, introduce yourself, and state your target commission rate and value proposition to Bifrost. Depending on the level of collaboration, your proposal will be reviewed by the Bifrost community or Bifrost Fellowship. If approved, it will proceed to the OpenGov proposal stage. Next, submit a proposal on Bifrost OpenGov. Provide necessary information such as your project or community name, along with a brief description of yourself and your community. Finally, publish it on-chain for voting. Once the on-chain proposal is approved, you will officially become a collaboration channel and receive your exclusive vToken minting link. Please refer to our vToken Reward Share Program documentation for detailed operational steps. Data Query For data on the staking yield rates, visit the Staking Rewards page. For information on the reward fee for vTokens, check out our documentation on Protocol fees. We provide a dedicated Analysis page for querying data related to the vToken Reward-Share Program. On this page, all reward records for collaborating channels are publicly available, and you can also view the reward statistics for each type of vToken. Above, we have introduced the vToken Reward-Share program launched by Bifrost, and we welcome all kinds of channel partners to join this program. Through the vToken Reward-Share program, we aim to promote the development of Bifrost by expanding vToken minting and enabling more users to experience our omni-chain liquid staking services, enhancing capital efficiency. At the same time, we also hope that we can provide a direct monetization path for some communities and products through revenue sharing. While LST protocols have a transparent business model, there are other DeFi protocols, communities, and products that have traffic but lack suitable and direct monetization pathways. Joining the vToken Reward-Share program is a feasible way to create direct and sustainable sources of income. The prosperity of the blockchain ecosystem depends on the mutual promotion and cooperation of various projects within the ecosystem. Each project is like a link in the ecosystem, closely interconnected, working together to drive the development of the entire industry. Bifrost hopes to collaborate with more and more partners to build a symbiotic system in the crypto space through profit sharing.
Announcements
2024 / 06 / 13 10:15
Unlocking the Potential - Chapter 1: A Deep Dive into Bifrost App Chain Liquid Staking Strategy
Unlocking the Potential - Chapter 1: A Deep Dive into Bifrost App Chain Liquid Staking Strategy
On April 13, 2023, Ethereum smoothly activated the Shanghai upgrade and opened the staking withdrawal feature, clearing the last hurdle for the thriving narrative of Liquid Staking and Liquid Staking Tokens (LST). Over the past year, whether it’s the rapid increase in TVL (Total Value Locked) of LST protocols or the newfound prosperity of Liquid Staking Finance (LSTFi) with restaking and its liquid re-staked tokens (LRT), it seems to foreshadow a resurgence reminiscent of the DeFi Summer of 2021. Looking back on the crypto industry in 2024, many may refer to it as the “Year of Staking.” However, the industry’s attention seems to be predominantly focused on LST protocols on Ethereum, with little attention paid to LST on other chains. This is not surprising, given Ethereum’s market capitalization and the far-reaching prosperity of DeFi, which far surpasses that of other new public chains, providing more possibilities for developing and evolving LST protocols and innovative money legos that can be built on top of this primitive. If we broaden our view to include a wider range of PoS public chains, we will discover that some significant innovations bring fresh insights to the LST industry. Today, we want to introduce a LST protocol that originated from Polkadot. Bifrost is a dedicated modular Liquid Staking L1 secured by Polkadot and built with the Polkadot SDK. Over the past six months, Bifrost’s TVL has grown fourfold, firmly establishing its position as the leading LST project within the Polkadot ecosystem. Bifrost has made many notable innovations in the LST space, and its use of dedicative cross-chain architecture may provide significant competitive advantages in the future omni-chain landscape. Meanwhile, Bifrost continues to expand its support for more chains, providing liquid staking services to its ecosystem and beyond. This article will provide a detailed introduction to Bifrost, offering insights into the architecture of Bifrost - Core advantages of the SLP protocol, SLPx protocol, and its LSTs “vTokens.” Staking Liquidity Protocol (SLP) and vToken vToken is an LST asset created by Bifrost, short for Voucher Token. Bifrost currently supports 9 chains and has launched 9 types of vTokens, as shown in the image below: Among them, vDOT, vKSM, vGLMR, vMOVR, vBNC, and vASTAR are all LST assets in the Polkadot ecosystem, with Bifrost’s vToken enjoying an absolute dominant market share in the Polkadot ecosystem. The module used by Bifrost to support vTokens is known as Staking Liquidity Provider (SLP). Bifrost has deployed the SLP module on Ethereum, Bifrost Polkadot, and Bifrost Kusama. The SLP module manifests as smart contracts on Ethereum to support the minting of vETH, while on Bifrost Polkadot and Bifrost Kusama, it takes the form of a runtime. Bifrost Kusama is the parachain of Polkadot’s pioneer network, Kusama, supporting the minting of vKSM, vBNC, and vMOVR. On the other hand, Bifrost Polkadot functions as the parachain of Polkadot, facilitating the minting of vDOT, vGLMR, vASTR, vFIL, and vMANTA. As cross-chain bridge infrastructure matures, Bifrost will consolidate all vToken minting and management on the Bifrost Polkadot parachain in the future. The operation of the SLP module is straightforward: users deposit the original tokens into accounts managed by the SLP module. The SLP module then creates voucher/receipt certificates, or vTokens, for users and stakes the original tokens to the network. SLPx is an extension module developed based on SLP, serving as a developer toolkit that enables the minting of vTokens on any chain. We aim to make it easier for more DeFi applications to integrate vTokens. For developers of DeFi applications on any chain, integrating SLPx requires only a few simple lines of code. After integration, developers can use remote calls to access the minting, redemption, and exchange services of vTokens on the Bifrost Polkadot chain… Redemption of vTokens Typically, when a user initiates the redemption of vTokens, the SLP module needs to request the corresponding amount of original tokens for unstaking and, after the unbonding period ends, return these original tokens to the user. Unlike the unlock waiting periods of PoS chains, such as 28 days for Polkadot and 7 days for Kusama, Ethereum does not have a fixed unlock waiting period; it depends on the amount of ETH waiting to be unlocked in the queue. The unlock waiting period is a protective measure implemented by PoS chains to prevent long-range attacks. Like most LST protocols, Bifrost’s vTokens support users in achieving quick redemption through swapping. Bifrost provides a Stable Pool for vToken/Token pairs, adopting a Stable curve similar to Curve Finance to reduce the price impact caused by exchanging. However, swapping inevitably results in slippage. Bifrost also offers another option for quick redemption. When a user initiates redemption, Bifrost first matches with minting orders in the current queue on a peer-to-peer basis. If the match is successful, the user’s redemption will bypass the unlock waiting period and be cashed out immediately. The Yield of vToken Although Bifrost charges a 10% commission from the staking yield of vTokens, the yield of vTokens is often higher than that of competitors. This is because the yield of vTokens is diversified. In addition to the basic staking yield, Bifrost also shares the MEV (Miner Extractable Value) earnings of nodes with users. Periodic mint drop events enable vToken holders to receive BNC rewards. As a neutral protocol layer, Bifrost ensures that users receive all other rights from the original tokens. For example, vDOT users enjoy the same governance rights in OpenGov as those holding DOT, as well as entitlements from PINK and VARCH airdrops. Bifrost strives to minimize any opportunity costs for vToken holders. Moreover, Bifrost aims to enrich the use cases of vTokens, allowing users to access more diverse earnings and higher compounded yields in DeFi through vTokens. This aspect is crucial, and we will elaborate on it in the following sections. The Reward Distribution of vToken Looking at the development history of LST protocols, we observe that the dividend distribution method has evolved through three stages, from manual claiming to Rebasing, and Reward-bearing. Despite being an established LST protocol launched in 2019, Bifrost was among the first to recognize the superiority of Reward-Bearing. While most competitors used the Claim or Rebasing mechanism, Bifrost had already adopted the Reward-bearing mechanism. The concept of Reward-bearing refers to accumulating staking rewards into the redemption rights of vTokens, thereby causing the exchange rate between vTokens and the original tokens to increase continuously. This approach eliminates the need for a fixed 1:1 exchange ratio between vTokens and the original tokens. Instead, it reflects the accumulation of staking rewards through changes in the exchange rate. For example, suppose you initially staked 1 DOT and minted 1 vDOT. Due to the accumulation of staking rewards, this 1 vDOT might be redeemable for 1.2 DOT by the end of the period. This is what Reward-Bearing entails. The greatest advantage of Reward-Bearing is that it enables DeFi protocols to better handle and integrate vTokens, allowing their application utilization. If you wish to delve deeper into this concept, please refer to Bifrost’s research on LST dividend distribution methods. This is the first article in our series of articles. Look out for our next article, which analyses the current LST market.
Research
2024 / 06 / 07 10:00
Bifrost launches LoopStake - Supercharge Staking Rewards through Leverage Staking
Bifrost launches LoopStake - Supercharge Staking Rewards through Leverage Staking
Liquid staking tokens (LSTs) have been present since the inception of the Proof of Stake (PoS) consensus mechanism. Since the Shanghai upgrade on Ethereum, LSTs have gained significant prominence, now representing the largest category within DeFi, with assets under management surpassing $60 billion. Across various DeFi protocols, ETH LSTs are rapidly replacing ETH as a more versatile collateral option. This shift is attributed to Ethereum LSTs offering the market a yield-bearing asset. Consequently, many composability plays have emerged with LSTs as the foundational component for strategies and products - Leverage Staking serving as a prime example. What is Leverage Staking Leverage staking is a strategy that allows users to utilize LSTs on lending protocols to amplify the staking yield earned from these tokens. Users stake their assets to obtain an LST, use the LST as collateral on a lending protocol to borrow the staked assets, and obtain the LST again with the borrowed asset. For instance, by collateralizing ETH to borrow stETH in AAVE, the over-collateralisation rate stands at approximately 107%. This means that for every 1 ETH collateralized, users can borrow up to about 0.93 ETH worth of stETH. In contrast, if users were to collateralize ETH to borrow USDT, the over-collateralisation rate could be as high as 130%. In this scenario, for every 1 ETH collateralized, users may only be able to borrow up to approximately 0.77 ETH worth of USDT. This is because ETH/ETH-LST exhibits a strong price correlation. ETH-LST accumulates staking rewards, showing a one-way upward trend in ETH-based prices. Leverage Staking is typically achieved through a manual looping process. For example, if you are a user with 1 ETH: You can mint 1 ETH LST (assuming a minting rate of 1:1) Then, on a lending protocol, you collateralize 1 ETH-LST to borrow 0.93 ETH Next, you can mint the 0.93 ETH back into 0.93 ETH-LST You can repeat this loop many times, boosting your yield. This, however, becomes unprofitable when the borrowing rate exceeds the staking yield. As described above, the efficiency of manually conducting iterative staking operations is very low, and multiple transactions consume a lot of gas. Therefore, specialized leveraged staking management tools have emerged in the DeFi space, allowing users to complete leveraged staking within one single click. Bifrost introduces LoopStake The one-click leverage staking service tailored for the Polkadot ecosystem. As a leading LST protocol in the Polkadot ecosystem, Bifrost’s LoopStake offers users a streamlined one-click leverage staking service designed explicitly for assets within the Polkadot ecosystem. Manual leverage staking is possible, but it requires users to perform frequent manual operations and to transfer assets between parachains especially if the lending pool and LST protocol are not on the same parachain. Users can access the LoopStake interface through bifrost.app and enjoy the seamless leverage staking experience with just one click. The initial phase of the product launch will support leverage staking for assets such as DOT and KSM, and we will gradually expand to include more parachain assets. Explore LoopStake directly on Bifrost dApp! LoopStake will allow users to set and manage leveraged ratios according to their risk preferences and leverage stake their assets with just one click. Behind the scenes, Bifrost directly creates leverage for users through flash loans, eliminating the need for iterative borrowing and reducing the number of transactions, resulting in lower gas costs. Loop Stake features include a Leverage Up to 4x: LoopStake supports setting a maximum leverage ratio of 4x. With this feature, users can earn staking rewards on 4 times their initial deposits. Basic users can simply liquid stake their DOT - obtaining vDOT - with an exchange rate of 0.73! According to the current incentive parameters of the Polkadot network, the annualized yield is approximately 22%, allowing you to earn +0.2 DOT a year per each single DOT staked. If you are not satisfied with this yield, you can use leveraged staking! Assuming you use 4x leverage, 1 DOT can be amplified to 4 DOT. LoopStake allows this by borrowing 3 DOT through a flash loan and then staking the 4 DOT to mint 2.92 vDOT. After minting, vDOT will be placed in the collateral pool. You will earn staking rewards from the 2.92 vDOT while paying interest on the borrowed 3 DOT. The final net yield is the actual yield you can receive! Assuming a constant borrowing interest rate of 10%, the interest for borrowing 3 DOT over a year is 0.3 DOT. Initially, 2.92 vDOT can be redeemed for 4 DOT, and at the end of the year, it can be redeemed for 4.72 DOT (an increase due to accumulated staking rewards), resulting in a profit of 0.72 DOT. Comparatively, leveraging amplifies earnings by providing a significant increase compared to the 0.20 DOT earned without leveraging. Aggregate Cross-chain Liquidity Leverage staking requires access to the liquidity of lending pools. Bifrost strives to aggregate cross-chain liquidity in the Polkadot ecosystem to provide leverage-staking users with the best borrowing rates. Leveraging Polkadot’s XCM messages and Bifrost’s Omni module, Bifrost’s LoopStake in the future will be able to access liquidity from lending pools on any other parachain. However, considering that the increase in leverage staking volume is a process, in the initial stage of launching Loop Stake, we have opted to create a lending pool on Bifrost to provide lending liquidity, with plans to expand gradually. Risks of Leverage Staking Leverage staking involves amplifying risks to amplify returns. Thus, users should be cautious when opting into the product. Users will be exposed to more risks if they set a high leverage ratio. Although the vToken/Token price ratio is quite stable and shows a one-way upward trend, in certain extreme circumstances, this price anchor may be impacted: Oracle Issues: Oracle price feeds may contain errors or be maliciously manipulated. Slash Risk: Malicious behavior by nodes or network failures may lead to slashing, resulting in decreased staking assets and a drop in vToken prices. Market Manipulation: Price fluctuations of vToken/Token may occur through large-scale buying and selling activities aimed at market manipulation. Code Risk: There may be code vulnerabilities in the leverage staking or SLP module. To protect its users from these risks, Bifrost has implemented a series of measures to mitigate the issues highlighted above: Diversified Oracle Sources: Bifrost obtains price feeds from 4 different Oracle service providers, and any outliers from individual oracles are excluded. Slash Protection: Bifrost has implemented a systematic slash protection strategy, as detailed in the article “How Bifrost provides an insurance mechanism for vToken holders against the Slash risk.” Stable Market-making System: The liquidity pool for vToken/Token utilizes a Stable Curve automated market-maker curve specifically designed for vToken, adjusting with the exchange rate of vToken/Token. Compared to traditional AMM market maker curves, its advantages lie in extremely low trading slippage costs and relatively stable exchange rate maintenance. Additionally, in the event of large transactions, MEV Bots will swiftly intervene to mitigate their impact on prices. Bifrost will operate a group of MEV bots, and any third party can also run arbitrage bots. For more details, please refer to Bifrost LST Stable Swap. Stringent Auditing Procedures: Loop Stake code has undergone an audit by a reputable auditing firm, Oak Security, and the audit report can be found HERE. Nevertheless, we recommends that users fully understand the potential risks and set leverage ratios according to risk tolerance and profiles. Conclusion In DeFi, the emerging trend called Farming as a Service is becoming popular. DeFi protocols will provide a single source of income and offer users a range of combined yield strategies, allowing users to access multiple sources of income with a single click. This model will simplify user operations, provide users with higher capital efficiency, and offer more flexible choices. Staking is just the beginning, and in the future, Bifrost will introduce more combined yield strategies to expand the choices available to vToken holders further. Just as LoopStake allows for remote access to multi-chain lending pools, our combined yield strategies will not be limited to single-chain strategies but can fully leverage the entire DeFi ecosystem to create cross-chain combined strategies. Bifrost’s research and exploration in chain abstraction and full-chain architecture have already provided sufficient support for us to achieve this.
Products
2024 / 03 / 13 11:00
The 2nd DOT Crowdloan Unlock is coming… as is the Polkadot Unlock Harvest 2.0
The 2nd DOT Crowdloan Unlock is coming… as is the Polkadot Unlock Harvest 2.0
Last October, Bifrost launched the Polkadot Unlock Harvest. The event, coinciding with the first phase of Polkadot crowdloans expiring, lasted for +40 days, and collected a total of 1,700 addresses who staked over 1.8 Million DOT, sharing a Reward Pool of 500,000 BNC. On January 16th, the 2nd batch of Polkadot’s crowdloans will end! With over 26 million DOT set to unlock, the Polkadot Unlock Harvest is returning in a new version, promising a Reward Pool of +150,000 BNC for those users who will Liquid Stake DOT - Mint vDOT - on Bifrost! The event, spanning over a month, will be divided into two distinct phases geared towards providing users with different opportunities to earn tokens and rewards. vsToken Farming Starting Date: January 3rd, 8AM UTC Ending Date: January 15th, 8AM UTC Reward: 7,358 BNC Participants who supported the first crowdloans for Efinity, Composable, Centrifuge, Interlay, Nodle, and HydraDX through Bifrost’s SALP had the chance to farm their vsDOT and vsBond, to earn rewards. Upon pool maturity, the staked vsDOT and vsBond will automatically be converted into vDOT and participate in the Polkadot Unlock Harvest 2.0 event, without even requiring user intervention. For more details on the vsToken farms and their specific yield, visit HERE. Polkadot Unlock Harvest 2.0 As the second round of Polkadot crowdloans expire, the Polkadot Unlock Harvest 2.0 campaign will go LIVE. Users can Liquid Stake their unlocked DOT for vDOT and participate in liquidity mining, earning Raindrop Points, and sharing BNC incentives. Additionally, users can invite and refer friends to participate in liquidity mining, and both parties will receive additional BNC rewards. Starting Date: January 16th, 7AM (UTC) Ending Date: February 20th, 10AM (UTC) Campaign: Here Reward: 150,000 BNC Participants can earn from: Raindrops Pool Rewards Participants who liquid stake their DOT on Bifrost - minting vDOT - will receive corresponding Raindrop Points, in addition to the basic DOT staking rewards and also enjoy additional rewards from the Raindrops pool. The more Raindrop points users accumulate in the lesser amount of time, the higher their rewards from the Raindrops pool will be. Rewards from the Raindrops pool can be viewed on the Staking Page of the Bifrost dApp, with a pool size being approximately 120,000 BNC. Friend Invitation Rewards During the event, users who invite friends to Liquid Stake DOT, can share a special Reward Pool of 6,000 BNC Extra. The more friends are invited, the greater the share of the reward for the inviter will be. Friend Staking Rewards Participants who successfully invite friends - who successfully mint vDOT - can share a friend-staking reward pool of 24,000 BNC Extra. The more vDOT tokens are minted by the invited friends, the greater the reward for the inviter. Friend staking rewards will be distributed proportionally, based on the ranking of the total vDOT minted by friends. Note: Users’ Staking Rewards will be valid, only if the invited mints vDOT. The minimum amount an invited user should mint is 0.5 DOT. Each address can only be invited once. The friend invitation rewards will be distributed based on the ranking of the number of friends successfully invited by the inviter. Proportions of this rewards will be based on the number of friends invited. How to Get Raindrops DOT Liquid Staking: For every 1 vDOT Minted, a minimum of 300 Raindrops can be obtained. During the DOT staking boost period, a maximum Raindrop boost bonus of 55% can be applied. Friend Invitation: When staking DOT, if the inviter’s address is provided (each address can only be successfully invited once), the invited person can receive 1000 Raindrops as a one-time reward. How to use Boost to Get more Raindrops? After successfully inviting a friend, users can receive a 10% Raindrops Boost bonus when Staking DOT. By joining the Bifrost Discord Server and binding your address using the bot command, users can receive an additional 10% Raindrops Boost bonus when staking. If users have participated in the first round of Polkadot crowdloans for Efinity, Composable, Centrifuge, Interlay, Nodle, and HydraDX, they can receive a Raindrops Boost bonus, varying from 5% to 25%, based on the amount of DOT locked. If you have participated in the vsToken Farming Event, you can receive an additional 10% Raindrops Boost bonus when staking. Reward Settlement The rewards for vsToken Farming & Polkadot Unlock Harvest will be displayed on the campaign page. Rewards will be settled uniformly after the end of the campaign and distributed linearly over three months (with weekly distributions). Please set your reminders and stay tuned to the Bifrost community updates at all times. Don’t miss the first event of the Year!
Events
2024 / 01 / 15 11:00
Fundamental
vDOT - Benefits and Use Cases of Bifrost’s Flagship Liquid Staking Asset
vDOT - Benefits and Use Cases of Bifrost’s Flagship Liquid Staking Asset
With the recent expiry of the first Polkadot parachain lease periods and the unlocking of a large amount of DOT, over 3.3 Million DOT have been minted into Bifrost’s liquid staking solution for staked DOT - vDOT, with a total value reaching 18 million USD. The Polkadot Unlock Harvest campaign incentivizes users to mint vDOT with their DOT. Users receive points, Raindrops, for each vDOT minted. More specifically, users receive primary DOT staking rewards and a share of the bonus pool of 500,000 BNC - worth over $150,000. The percentage of rewards a user gets depends on the number of raindrops they have accumulated. The campaign started on October 24th and will run until November 22nd. For detailed rules, please refer to the article: “Polkadot Unlock Harvest - Rules and Rewards of the upcoming Bifrost Event”. Bifrost offers users a competitive earning APY for staked DOT through dynamic validator selection and also offers users more ways to maximize their capital efficiently with compelling use-cases throughout the Polkadot ecosystem. The sum of the basic yield of staking (Base), combined with the expected yield from the Polkadot Unlock Harvest event’s prize pool (Raindrop) and the vDOT/DOT Farming pool, results in a comprehensive annualized yield of vDOT currently exceeding 44%! Why choose vDOT? As a liquid staking token (LST) for staked DOT, vDOT has the following advantages: The first LST to retain governance rights of the original chain: vDOT supports Polkadot OpenGov and reserves the voting rights of the staked DOT. vDOT users can have their say in the governance of Polkadot as they would with DOT and obtain underlying staking yield, straight through the Bifrost interface. Instant Withdrawal: While users can redeem vDOT for DOT at any time through the Swap pool without waiting for the 28 days unlock period, the Fast Redeem feature allows users redeem their vDOT for DOT in less than 28 days via the matching queue mechanism. Yield bearing Asset: Staking rewards increase the value of vDOT relative to DOT, reflecting in the continuous growth of the redemption rate of vDOT to DOT. Users do not need to claim Staking rewards manually. Security and Decentralization: Bifrost is a decentralized, non-custodial protocol. Bifrost maintains the diversity of validator delegation through its automated and dynamic algorithm, avoiding centralization risks. Slash Protection: Bifrost protects users from slash losses through the BNC Insurance Fund. When a slash loss occurs, funds from the insurance fund are used to compensate first without affecting user earnings. Multiple Use Cases: vDOT is used in various DeFi applications, such as liquidity farming on DEXs, restaking and as a collateral asset on lending and borrowing protocols. vDOT use-cases Providing liquidity on the DOT-vDOT pair on native DEXs on the Astar network with Arthswap, and on Moonbeam network with Beamswap, and Stellaswap. Users provide liquidity and earn liquidity rewards. vDOT can be collateralized and lent out on the Interlay lending market, allowing users to implement a yield-farming strategy to achieve a higher compounded yield. However, this strategy requires risk management, as increasing the number of cycles may lead to higher liquidation risk. Alternatively, users can lend out vDOT to earn interest without engaging in additional borrowing. vDOT can be used as collateral for iBTC vaults, enabling vault operators to access staking rewards whilst securing the trustless iBTC bridge. vDOT can be used for participating in Polkadot governance. For users who stake DOT to mint vDOT, governance rights remain in their hands. This also reflects the Bifrost protocol’s neutrality in governance. Conclusion Since its development, the liquid staking sector has evolved from a competition based solely on yield rates to a dual of yield rates and ecosystem application scenarios. Due to Bifrost’s unique cross-chain architecture, vDOT holders have a flexible and secure solution providing optimal staking yield and benefit from interoperable and composable use cases across ecosystems. Finally, vDOT is the only LST allowing holders to participate in Polkadot governance while earning their staking yield. It is a compelling solution for users who face the dilemma of whether to stake, participate in DeFi, and govern. If you are holding DOT, are you still sure you don’t wanna try vDOT?
Education
2023 / 11 / 15 11:00
SLPx Pallet - A further step into the Omnichain Liquid Staking
SLPx Pallet - A further step into the Omnichain Liquid Staking
What is SLPx? SLP is the module used for processing vToken minting and redemption on the Bifrost chain. To mint and redeem vToken through SLP, users must first transfer their assets to the Bifrost chain, creating user experience issues. SLPx is a recently developed extension pallet to SLP by Bifrost that will allow users to call SLP’s functionality on a remote chain without crossing assets into the Bifrost chain. Specifically, SLPx will allow users to: Mint vTokens on a remote chain Redeem vToken on the remote chain Swap vToken/Token on a remote chain using liquidity from the Bifrost chain behind the scenes. You can use DOT directly to mint vDOT on Moonbeam, Moonriver and Astar, and both the original and target assets are on these chains. The whole process appears to be done respectively on the Moonbeam, Moonriver, or Astar local chain, and users are not bothered by the cross-chain interaction processes behind it. Likewise, you can redeem vDOT for DOT directly on the target chains. Remote minting and redemption provide convenience for user operations on remote chains. In addition to providing convenience, the token swaps enabled on remote chains offer a new meaning to “unified liquidity”. You can exchange vDOT/DOT on Moonbeam, Moonriver or Astar using the vDOT/DOT liquidity pool on the Bifrost chain. In this way, Bifrost does not need to divide the liquidity of vDOT/DOT into different chains. All chains’ vDOT/DOT exchanges share the same pool depth, leading to a more negligible price impact and a better trading experience. At the same time, if a lending protocol on any supported remote chains uses vDOT as collateral, it can directly call on the unified liquidity pool on Bifrost to complete a liquidation when it occurs. If a liquidity pool is built on a remote chain to perform liquidation, the liquidation process will likely have a higher discount rate due to insufficient depth. The Importance of SLPx For users, the minting, redemption, and swapping of vTokens have been simplified, as they can now be directly performed on Moonbeam, Moonriver and Astar without cumbersome cross-chain operations. The unified liquidity feature will also provide users with a better swapping experience. For applications on these parachains, integrating SLPx can bring additional features to their users. For example, lending protocols can remotely convert users’ collateralized DOT into vDOT, allowing users to earn staking rewards without additional steps. Furthermore, the unified liquidity will lower liquidation discounts for lending protocols. Lastly, by integrating SLPx, applications can remotely mint, redeem, and swap all types of vTokens without the need for individual adaptations for different vToken types. For the ecosystem development of Moonbeam and Astar, SLPx introduces LSD assets from different chains. The remote service capability allows users to enjoy full-chain services from other chains without leaving the native chain. For Bifrost, the remote-call feature implemented by SLPx is a significant milestone toward achieving Omni-LSD Vision. Technical Implementations SLPx is divided into two parts: the Local pallet on the Bifrost chain and the Remote pallet deployed on the remote chain (if the remote chain is an EVM chain like Moonbeam, it should be called a remote contract). For example, when a user on Moonbeam utilizes SLPx to mint DOT into vDOT, the DOT is sent to Bifrost first, minted into vDOT, and then returned to Moonbeam. During this process, the user must interact with the remote contract and remotely call the local pallet to complete related operations. The whole procedure consists of three steps: Send DOT to Bifrost Mint DOT into vDOT Send vDOT back to Moonbeam However, these three steps only require the user to initiate an interaction (pay once). After starting an interaction, all other processes are completed automatically. The same is true for the logic of remote redemption and remote swap. This process is possible because SLPx uses XCM V3 as the cross-chain instruction format. XCM V3 specifies the instruction format that XCM V2 does not have, with one of the essential types of instructions being multi-hop executions. The source chain can send an XCM V2 message to the target chain and define how the target chain executes it. No instructions in XCM V2 allow the target chain to execute the message by initiating a new XCM message. However, with the addition of this type of instruction in XCM V3, the source chain can send an XCM-001 message to the target chain, have the target chain do a series of executions, and then initiate a new XCM-002 message to any third chain (which is equivalent to an acknowledgment message if the third chain is the source chain itself). In short, XCM V3 allows an XCM message to command another chain to initiate a second XCM message. After the XCM-002 message reaches the third chain, according to the message instruction, it can continue to initiate a new XCM-003 message. This is the multi-hop transmission, and this multi-hop chain can theoretically be infinite. As long as the user on the source chain pays enough fees, the message can complete multi-hop execution until its logic terminates. In the remote minting use case of SLPx, after the user destroys the DOT on Moonbeam/Moonriver/Astar, calls the remote contract and an XCM message is sent containing the following instructions to the local pallet: Mint DOT in Bifrost (Burn-Mint logic transfer asset) Mint DOT to vDOT on the Bifrost chain Lock vDOT on the Bifrost chain Send an XCM command to the remote contract to mint vDOT (Lock-Mint logic transfer asset) on Moonbeam, Moonriver and Astar SLPx Implementation Progress We have deployed the SLPx remote pallet/contract on Moonbeam, Moonriver, Astar, and Ethereum. We will continue to deploy it on Manta, Astar zkEVM, Filecoin, and many more in the future. The remote pallet/contract has completed code auditing. The Audit Report can be found HERE. In addition, we have developed the front-end application for Omni LS dApp. Users can experience a range of functionalities such as remote minting, remote redemption, and remote swapping through the Omni LS dApp on these chains. Conclusion SLPx serves as Bifrost’s technical solution to achieve its Omni-LSD vision. Chains that deploy the SLPx remote module will be able to interact with the SLP module on Bifrost, enabling remote minting and redemption of vTokens. This ground-breaking interaction method brings convenience to users and provides a simple cross-chain integration path for developers on remote chains.
Products
2023 / 10 / 12 10:00
Chain Abstraction - The Path to a New Omnichain Web3 Architecture
Chain Abstraction - The Path to a New Omnichain Web3 Architecture
Web3 has evolved into a multi-chain ecosystem, comprising hundreds of L1 blockchains, along with various Layer2 solutions, subnets, parallel chains, and application-specific chains. While this proliferation has spurred innovation and blockchain adoption, it has also led to fragmentation, with applications, assets, liquidity, and users spread across different chains. Although cross-chain bridges offer a way to migrate assets between these chains, they fall short of creating a seamless whole. The solution lies in the concept of a full-chain architecture, which holds the promise of uniting the fractured landscape of Web3. The vision for a full-chain architecture gaining industry consensus and widespread adoption is an exciting prospect. The potential benefits are substantial, with the following outcomes on the horizon: User Convenience and Capital Efficiency: In a full-chain architecture, users would no longer need to concern themselves with where an application is deployed, where their assets reside, or where liquidity is sourced. Instead, they would interact with the entire blockchain ecosystem seamlessly, accessing all applications, assets, and liquidity effortlessly. This newfound convenience would elevate capital efficiency and enhance the overall user experience. Developer Freedom and Interoperability: Developers would be liberated from the constraints of choosing a specific blockchain or deploying instances on multiple chains to retain users. Instead, they could focus on deploying their programs and liquidity in the most suitable locations, enabling users from different chains to access them. This approach would eliminate the restrictions on interoperability between applications, facilitating free integration across different blockchains. This transformative state can be aptly described as “Chain Abstraction”. Chain Abstraction In software terminology, “abstraction” involves concealing intricate details from users to present a simplified interface, reducing complexity. Just as “account abstraction” hides elements like private keys and mnemonic phrases to ensure a seamless user experience, “chain abstraction” conceals the underlying blockchain infrastructure, enabling users to interact without the need for awareness or concern. It’s akin to using applications like WeChat or Taobao without needing to know the exact location of Tencent or Alibaba’s servers. However, achieving chain abstraction as the industry standard will require concerted efforts from the entire blockchain community. This endeavor encompasses not only applications built on a full-stack architecture but also secure, high-performance cross-chain bridge protocols and gas-less account abstraction solutions. It is, in essence, a comprehensive engineering challenge. As pioneers in the Omni-LSD (Liquidity, Security, and Developer Experience) field, Bifrost’s role is pivotal. Bifrost aims to serve as a model and reference for the full-chain integration of DeFi protocols, guiding the industry toward the realization of a unified Web3 ecosystem. Conclusion In conclusion, the journey toward a full-chain architecture within Web3 represents a crucial step forward in streamlining the blockchain experience for users and developers alike. As we continue to advance in this direction, the potential for a more accessible, interconnected, and efficient blockchain ecosystem becomes increasingly tangible. The collaboration of all stakeholders in the blockchain space is essential to make this vision a reality, and with dedication and innovation, we can reshape the future of Web3.
Education
2023 / 09 / 18 10:00
Feature
Polkadot Unlock Harvest 2.0: 2.1M DOT Liquid Staked in 30 Days
Polkadot Unlock Harvest 2.0: 2.1M DOT Liquid Staked in 30 Days
The 2nd Round of the Polkadot Unlock Harvest campaign has come to an end and we are glad to share with you the incredible results achieved. After a first round with over 1,800,000 vDOT minted on Bifrost, this time we have surpassed the previous milestone hitting an astonishing result of over 2,100,000 DOT liquid staked into vDOT on Bifrost! By the time we are writing this content, Bifrost has become the Liquid Staking protocol providing fully decentralized LST, with the highest amount of DOT staked, becoming the leader protocol of the Polkadot LST ecosystem. Outreach The event has attracted the participation of thousands users: 66,382 DOT participated in vDOT farming, ultimately converting to a minting volume of 52,187 vDOT. 1,315 addresses were invited, collectively staking 709,287 DOT and minting 557,616 vDOT. 2,954 addresses participated in minting, collectively staking 2,095,325 DOT and minting 1,647,271 vDOT. Rewards In this second round of the event, Bifrost team set up multiple reward pools and incentives to support the minting of vDOT, including: vDOT Farming Pool: vsDOT holders can stake vsDOT in advance and automatically receive vDOT after the release of the second round of crowd lending, without the need for manual operation. Participating in vsDOT Farming allows users to share the rewards from this pool. Invitation Incentive Pool: Users can invite others to mint vDOT, and the pool is divided based on the number of invites and the amount staked by each invitee. Raindrops Pool: Users minting vDOT can earn Raindrops points, and they can also earn bonus points by completing specific tasks. The pool is divided based on the points earned by each participant. As announced via Bifrost official social media pages, the addresses who joined the event and contributed to reach such an incredible goal will be rewarded with an airdrop of 124,000 BNC Tokens! These rewards will be distributed proportionally to stakers who collected Raindrop points minting vDOT, inviting friends and being part of the farming pools. The distribution will proceed linearly - on a weekly basis - following a vesting period. Results Overall, during the last two rounds of Polkadot Unlock Harvest, almost 4,000,000 DOT were staked into Bifrost, leading to an increase of vDOT minting volume and a growth percentage of 185% in less than 6 months. During the event, we have received massive support and recognition from the community of vDOT holders and users. This support and recognition stem from some extra features of vDOT, announced over the last few months: Governance Voting Retention Power: vDOT holders can participate in governance voting in OpenGov, just like they do with DOT. Airdrop Eligibility: Airdrops within the Polkadot ecosystem for DOT holders will be fully distributed to vDOT holders. Currently, vDOT holders have received eligible $PINK and $DED as airdrops. Ecosystem Interoperability and Composability: vDOT holders can not only trade it at any time but are also able to create higher compounded yields and more utility in the Polkadot DeFi ecosystem. What’s Next? The 3rd round of the Polkadot Unlock Harvest will be probably announced in April, consequent to the unlocking of the DOT contributed to the third Polkadot round of Parachains Auction, among which the contribution made by users to Bifrost itself stands out. Thanks for being part of the Liquid Staking Revolution!
Events
2024 / 02 / 27 11:00
Polkadot Crowdloan Unlock 1.0 - Data Recap
Polkadot Crowdloan Unlock 1.0 - Data Recap
With the conclusion of the first round of the Polkadot slot lease for parachains, an amount of 100,000,000 DOT was unlocked. On October 12th, Bifrost launched the Polkadot Unlock Harvest Event, which started a week earlier than the actual date of the unlock and finished on November 22nd, spanning 40 days. The event’s goal was to encourage participants to liquid-stake their DOT, which have been unlocked in the process, by minting vDOT on Bifrost. Participants could earn Raindrops points by minting vDOT and inviting others to join the event. A reward of 500,000 BNC have been put in place for this event and it is going to be shared, based on the Raindrops acquired by users. As of the event’s conclusion: 1701 addresses had minted vDOT over 2,310,000 DOT have been Minted into 1,888,416 vDOT Total Minting Volume (TVS) of 12 million USD On average, each participating address minted approximately 1,110 vDOT and received a share of 450 BNC rewards. The rewards for participants in this event will be released linearly, once a week, over the coming months. The Polkadot Unlock Harvest event significantly increased the daily minting volume of vDOT, with a growth of around 113%. More users are benefiting from compounded returns through liquidity staking with vDOT. As a liquidity staking asset, vDOT offers the flexibility of being instantly redeemed for DOT through a quick redemption feature (lightning mode) or traded at any time through liquidity pools. vDOT also provides multiple advantages for holders, including participation in yield farming, lending, and much more! It’s worth noting that performing a DOT to vDOT conversion, users do not give up their governance rights. Stakers can directly use vDOT when voting in OpenGov through the governance interface provided by Bifrost. Among DOT Liquid Staking Tokens, this feature is unique to vDOT! With the continuous growth of vDOT minted, Bifrost will continue to work on vDOT integration across different chains and explore additional use cases and applications. We will continue to build until the realization of Bifrost’s omni-chain vision. Join us today. Visit bifrost.app
Events
2023 / 12 / 05 11:00
Bifrost presents Omni LS DApp - The easy and secure way to access Liquid Staking from any chain
Bifrost presents Omni LS DApp - The easy and secure way to access Liquid Staking from any chain
What is Omni LS? Omni LS DApp is a front-end application developed by Bifrost that supports remote minting and redemption of Bifrost liquid staking tokens (LST) “vTokens”, as well as Remote Exchange and Swap of vTokens. This front-end application is powered by the SLPx Module deployed on the chain, which consists of the local pallet/smart contract of the Bifrost chain and the remote pallet/smart contract on the remote chain. Currently, Omni LS DApp supports remote minting, redemption, and exchange on the EVM Parachains such as Astar, Moonbeam, Moonriver and Polkadot relay chain, as well as on Ethereum. What problem does the Omni LS DApp solve? Bifrost’s vToken is an LST asset created by the Staking Liquidity Protocol (SLP). Currently, Bifrost supports vDOT, vKSM, vGLMR, vMOVR, vBNC, vFIL, and vETH. Except for vETH and vFIL, the other vTokens require users to transfer their corresponding assets to the Bifrost chain before these can be minted into their respective LSTs. This process poses challenges for user experience and broader adoption! Suppose there is a lending and borrowing protocol on Moonbeam that supports vDOT as collateral. This feature is beneficial for users as they can earn additional staking rewards compared to collateralizing DOT. However, with the current process, if a user only has DOT on Moonbeam, they would need to follow these following steps: Transfer DOT from Moonbeam to Bifrost through cross-chain transfer Stake DOT on the Bifrost chain to obtain vDOT Transfer vDOT back to Moonbeam through cross-chain transfer Collateralize vDOT on Moonbeam and borrow the desired asset An Easy Solution The Omni LS DApp aims to simplify this process and provide a seamless experience for users to natively mint and utilize vTokens across different chains. Instead of the user needing to operate in four steps and sign transactions four times, with the Omni LS DApp, steps can be shortened to just two: In the Omni LS DApp, directly convert DOT on Moonbeam into vDOT. Lend vDOT on the native Moonbeam lending protocol and borrow the desired assets. In addition to remote minting, the Omni LS DApp also supports remote redemption and exchange: Remote redemption: Users can directly redeem vTokens for their original tokens on other chains without the need to transfer them to the Bifrost chain. Remote exchange: Users can exchange vTokens for their original tokens, or vice versa, on other chains without the need to transfer assets to the Bifrost chain. However, the liquidity used behind the scenes is from the Bifrost chain. In summary, the Omni LS Dapp allows users to directly mint, redeem, and exchange vTokens on remote chains in just a click, without the need to switch between multiple Dapps and chains to complete these operations. Is the Omni LS DApp Secure? The backend of Omni LS DApp utilizes the SLPx Module developed by Bifrost, which has undergone an audit by Common Prefix. The Audit Report can be found HERE. Currently, Omni LS DApp only supports remote operations on Polkadot parachains. The security of cross-chain message transmission behind these remote operations is ensured by the Polkadot relay chain. As a multi-chain system that shares security, communication between Polkadot parachains has a high level of security. In the future, if Omni LS DApp needs to support remote operations on heterogeneous chains, it will require support from a cross-chain bridge infrastructure. The security of heterogeneous cross-chain bridges is still an unresolved issue, and we will exercise great caution in this regard. Omni LS DApp Operation Guide Click to visit the Omni LS DApp homepage: omni.ls To connect your wallet, click on the “Connect Wallet” button located in the top right corner. Remote Minting Click on the “Stake” tab Select the asset you want to remotely mint into its respective LST “vToken” Go to the minting page Enter the desired quantity Click on “mint” The vToken will be minted on the original chain where the asset is located. Remote Redemption Click on the “Unstake” tab Select the asset you want to redeem Go to the redemption page Enter the quantity of the asset Click on “redeem” The original token will be redeemed to the chain where the vToken is located. Remote Exchange To perform a swap, navigate to the Swap tab, select the type of asset you want to exchange, enter the desired amount, and click on the “Swap” button. Future Developments of Omni LS DApp The architecture of Polkadot naturally enables the possibility of Omni-chain applications. However, this potential has not yet been fully explored, and many applications still choose to deploy on a single parachain. Even with multi-chain deployment, it essentially replicates a single-chain Dapp on different chains. From the user’s perspective, an Omni-chain Dapp is an application that can be accessed on any chain. Users shouldn’t have to worry about which chain they are on and should be able to use it like a local native Dapp on any chain. Whilst multi-chain deployment can achieve to some extent similar effects, contracts deployed on different chains cannot communicate with each other. This leads to issues such as inconsistent asset formats and fragmented liquidity. We believe that the Omni LS DApp’s remote access feature is the solution for Omni-chain Dapps. We hope that applications integrated with vTokens can incorporate the functionality of Omni LS DApp through a series of strategic integrations. When a user on Moonbeam uses a lending Dapp to collateralize DOT, the system automatically converts DOT to vDOT, combining four steps into one. We are also about to launch corresponding incentive programs to encourage developers and DeFi applications to explore more complex and useful integrations. Conclusion We have introduced the best front-end interface ever developed by Bifrost - the new Omni LS DApp! This enables users to remotely mint, redeem, and exchange vTokens. Compared to the original process, Omni LS DApp simplifies the user experience by allowing users to utilize the services provided by the Bifrost chain on remote chains, such as local DApps. In terms of security, currently, the Omni LS DApp only supports remote access to Polkadot parachains. However, in the future, we plan to gradually support heterogeneous chains. Omni LS DApp serves as an example application developed by Bifrost. We hope to see more third-party applications adopting a similar approach to deeply integrate Bifrost vTokens and make LSTs a key primitive within DeFi.
Announcements
2023 / 10 / 19 10:00
Get the latest blog posts
We will keep you informed of the latest project progress and activities by email
Subscribe
Latest
- No more data -
Bifrost Finance © 2024Privacy Policy