Original source: Bifrost Finance
Bifrost is a Web3 infrastructure that provides cross-chain liquidity for Staking, and provides decentralized and cross-chain Liquid Staking services for multiple chains through the cross-consensus communication protocol (XCM). Total minted since the launch of the Kusama parachain on October 21, 2021$137Mderivatives, the liquidity provided is$11.04M, the address held on the chain81,297of completed333,921A signed transaction.
An overview of the 2022 Roadmap announced by Bifrost, which is only a small step since the Bifrost parachain was launched less than half a year ago.Create a cross-chain StakeFi ecosystem and capture value from itsecondary title
Staking Liquidity Protocol
Revenue competition under PoS consensus
Staking Liquidity Protocol, referred to as SLP, is a Staking derivative protocol provided by Bifrost for Proof of stake consensus chains such as Polkadot ecology, Cosmos ecology and other bridging heterogeneous chains. The protocol will use the cross-consensus message communication format XCM broadcast to make cross-chain Stake interoperability calls to cast fully decentralized Staking derivatives.
secondary title
Indispensable middle layer
Bifrost SLP solves the conflict between the underlying consensus and ecological application income by providing an intermediate layer of interest-bearing derivatives. Ecological applications that support the SLP protocol can provide users with their own business income while providing users with Staking income guarantees to improve overall income Base. Users can indirectly participate in Staking pledges by casting derivatives, lowering the threshold for users to participate in Staking, while the PoS consensus chain will obtain a higher pledge ratio and improve the consensus security of the network.
Bifrost SLP is built based on the XCM cross-consensus communication format, and has the ability to communicate with various parallel chains, contracts, and public chains. While realizing the decentralized casting of derivatives, it is also easier to build the application scenario of the derivatives. The casting process of derivatives will be aggregated in the Bifrost parallel chain through cross-chain interoperability, rather than scattered in different contracts in multiple chains, and its liquidity will be aggregated to provide more competitive depth and slippage.
secondary title
Slot Auction Liquidity Protocol
Slot decision and opportunity cost
Slot Auction Liquidity Protocol, referred to as SALP, is an agreement that Bifrost provides derivatives for Polkadot and Kusama slot auctions. At present, it has supported the successful bidding of a total of 9 Polkadot parachains and 11 Kusama parachains, minting a total of 1,774,509vsDOT and 174,667vsKSM.
Polkadot leases security cheaply to other parachain projects through slot auctions. It provides security sharing and also provides a set of cross-consensus communication protocols for parachains, which facilitates arbitrary message communication between parachains, relay chains, and external chains . In order to enjoy this service, the parachain needs to provide a two-year DOT liquidity lock as a rental fee. Due to the liquidity and the size of the cold start capital, the parallel chain often pays the interest of the locked DOT to the community users by distributing tokens.
Therefore, the slot auction forms a StakeFi economic model of Polkadot, parachains, and community users. Among them, whether the tokens paid by parachain projects bidding for slots can exceed the opportunity cost (price fluctuations, Staking income) lost by DOT lockups has become the key to whether community users can make profits through slot auctions.
secondary title
The New Game of Liquid Bonds
Community users can participate in the slot auction of designated parachain projects through SALP, and DOT that originally needs to be locked for two years can be minted into vsDOT and vsBOND with liquidity through SALP, where vsDOT is the redemption certificate for locked DOT, and vsBOND is Indicates the time when the redemption certificate starts redemption. Through the combination of vsDOT and vsBOND at maturity, DOT can be redeemed 1:1, and vsBOND will generate different discounts due to different expiration times, and this part of the discount represents the discounted income paid for liquidity providers. And this creates a vsDOT bond market, which simultaneously meets the arbitrage needs of liquidity providers and the liquidity needs of community users.
epilogue
epilogue
What is Bifrost?
What is Bifrost?
Bifrost is a Web 3.0 infrastructure that provides cross-chain liquidity for staking, and provides decentralized and cross-chain Liquid Staking services for multiple chains through the cross-chain communication protocol (XCMP).
At present, Bifrost has received millions of dollars in financing from NGC, SNZ, DFG, CMS and other institutions and the Grant of the Web3 Foundation. It is also a member of the Substrate Builders Program and Web3 Bootcamp.
