Announcements

In March, Bifrost continued to push forward both protocol-level upgrades and product innovation. Runtime 23003 was successfully deployed, introducing optimizations to LoopStake logic and bringing SLPv2 live on Kusama. Runtime 24000 entered the testing phase with a series of structural improvements, including a streamlined SLP protocol, removal of legacy staking logic for vMOVR, vGLMR, and vASTR, the addition of cross-chain price feed logic in SLPv2, enhanced safety constraints for vToken exchange rate changes, and further optimizations across SLPx cross-chain fee handling and bbBNC lock and redemption mechanisms, alongside fixes for potential LP token calculation issues and overflow risks, as well as updates to minimum Collator requirements on Bifrost-Polkadot. On the product side, Bifrost Dapp 1.12.0 has been released with multiple UX improvements, including a redesigned DVT Voting interface, dynamic vETH redemption timing, automatic network switching on cross-chain pages, improved node status visibility, better handling of fee loading timeouts, vToken unstaking countdown display, and refinements to the homepage stats module, while Dapp 1.12.1 remains in testing with ongoing development focused on upcoming vDOT campaign integrations. Bifrost’s Total Value Locked (TVL) reached $24,640,000 this month. A key highlight was the launch of the SLPx Skill, the first staking skill designed for the Agent Economy, integrating with AI tools such as Claude, ChatGPT, and OpenClaw to enable users to autonomously stake and unstake ETH across chains, query APY and TVL across all vTokens, and maintain full control of private keys locally. At the same time, the dApp introduced a new feature allowing users to compare Mint and Swap routes when minting vDOT, automatically highlighting the more efficient option, which you can explore in detail here. Beyond core product development, the Bifrost team also introduced DOT Pixel, a fully on-chain pixel art game built on Polkadot Hub, where a 1000×1000 canvas represents one million pixels, each placement is an on-chain transaction, and the final buyer wins the prize pool, offering a creative exploration of on-chain interaction design as part of the Polkadot 2026 Hackathon. Meanwhile, the DeFi Singularity campaign continues to expand, with Bifrost providing ongoing vDOT liquidity incentives across Ethereum, Base, Arbitrum, and BNB Chain via Uniswap. On the ecosystem front, Bifrost Founder Lurpis joined a PolkaWorld livestream on March 24 to discuss Polkadot’s evolving economic model, covering staking strategy optimization under new DOT supply rules, the intersection of AI and liquid staking, and the future of cross-chain liquidity through DeFi Singularity, with the full session available here. On March 25, Bifrost was selected for Astar Network dApp Staking Period 007, continuing to advance liquid staking adoption within the Astar ecosystem through vASTR, which enables users to maintain staking exposure while unlocking liquidity and improving capital efficiency across DeFi use cases. In addition, on March 27, Bifrost partnered with Faroo to launch a Pharos whitelist campaign, allowing users holding vDOT, vETH, or vBNC to participate, with SLPx serving as the underlying infrastructure to unlock composable liquidity for staked assets, as detailed here. To close out the month, on March 31, Bifrost DevRel Lead Tyrone joined the Polkadot March Roundtable alongside participants from Harbour Industrial Capital and Kylix Finance to discuss key developments including the DOT ETF narrative, DAP rollout, and inflation adjustments, providing insights into the broader direction of the Polkadot ecosystem, with the replay available here.

Tech Development Runtime 23001 (Upgraded) Optimized Hyperbridge cross-chain timeout configuration Runtime 23002 (Upgraded) Implemented security upgrades via Polkadot SDK update Runtime 23003 (In Testing) Improved Loop Stake logic SLPv2 deployed on Kusama Runtime 24000 (In Development) Streamlined SLP protocol Sunset of vMOVR and vGLMR Added cross-chain price feed logic to SLPv2 Rebuilt safety constraints around vToken exchange rate changes Optimized SLPx cross-chain fee reading logic SLPx 2.0 adds RSP support Added lock-duration validation for additional bbBNC locking Updated bbBNC early redemption penalty curve Fixed potential LP token type calculation issue in Swap Resolved potential overflow issue Updated minimum Collator requirement on Bifrost-Polkadot Bifrost Dapp 1.12.0 (In Development) bbBNC UI enhancements DVT Voting page redesign Dynamic redemption time for vETH Auto network switching on cross-chain page Current node indicator in node settings Timeout handling for fee loading vToken unstaking countdown display Minor adjustments to homepage stats module Product Updates Bifrost’s Total Value Locked (TVL) reached $38,099,435 in February. vBNC Highlights Total vBNC Minted (TVS): 21,296,338 Monthly growth: 5% Runtime Governance & Infrastructure Improvements During February, the Bifrost Polkadot parachain executed multiple runtime upgrades (Referenda #177 and #179), focusing on code refactoring, performance optimization, and improved compatibility with the latest Polkadot SDK. A governance proposal #178 introduced technical adjustments for vETH Excess Reserve Handling, optimizing liquidity management and improving capital efficiency. vDOT Delegation Voting The vDOT Delegation Voting feature is now live. Users can participate in Polkadot OpenGov directly through vDOT and delegate voting power to a chosen address — enabling deeper governance participation without sacrificing staking yield. DeFi Singularity The DeFi Singularity campaign continues across Ethereum, Base, Arbitrum, and BSC. Bifrost provides ongoing vDOT liquidity incentives via Uniswap to expand cross-chain yield opportunities. Participation portal: https://defisingularity.com/explore Marketing & Community Bifrost Discord Points System is live The Bifrost Discord points system is now live, rewarding authentic participation and long-term contribution. Users can earn points through tasks, engagement, and on-chain asset binding to unlock tiered roles and redeem rewards including merchandise, WUD NFTs, and BNC. RWA & Real Yield Roundtable On February 5, Bifrost DevRel Lead Tyrone joined Pharos for the online roundtable “Composing Real Yield”, discussing sustainable RWA-backed yield models, how real-world cash flows are converted into on-chain products, and the next phase of DeFi–RWA integration. https://x.com/pharos_network/status/2018980373510992039 Lunar New Year Campaign From February 11–17, Bifrost hosted the BNC Lunar New Year Drop, distributing 30,000 BNC through daily on-chain airdrops and coordinated X + Discord giveaways. The campaign boosted ecosystem engagement and on-chain activity during the holiday season.

In 2025, the crypto industry did not arrive at an easy answer. While ETFs continued to channel institutional capital into the market, the year was equally defined by heightened volatility, closer regulatory scrutiny, and an unprecedented demand for sustainability. Liquid staking has moved beyond being a yield tool—it has evolved into an infrastructure layer that connects multi-chain liquidity, governance, and DeFi returns. If one word were to define Bifrost’s 2025, it would be “DELIVERY” We delivered on the promise of the new tokenomics “bbBNC”, aligning the interests of the community and the protocol more closely than ever before. We delivered on our yield layer vision, extending vToken accessibility to Ethereum and its Layer2 networks. And we delivered on our commitment to long-term product iteration, closing the year with the release of vETH 3.0—establishing the technical foundation for the next phase of growth. What follows is a review of Bifrost’s key milestones and achievements throughout the year. Key Insights Buyback & Profit Sharing Mode on: 100% of protocol profits are allocated to BNC buybacks, with 90% distributed to bbBNC holders, marking Bifrost’s transition into a phase of real profitability and yield sharing vToken minting expanded across the board: vDOT, vBNC, vASTR, and vMANTA all achieved multi-fold growth in staked volume Infrastructure takes shape: multiple cross-chain solutions integrated, enabling vTokens to natively enter heterogeneous ecosystems such as Ethereum, Base, Arbitrum, and BNB Chain Product stack completes a generational upgrade: the launch of vETH 3.0 and SLPx 2.0 solidifies Bifrost’s long-term direction as the staking yield layer. Performance Overview Numbers tell the most honest story. In 2025, Bifrost generated over $8.07 million in total protocol revenue, with gross profit reaching $1.2 million. This marked a clear transition into a more mature phase, driven by sustainable protocol profitability. On-chain activity remained strong throughout the year. Total transactions exceeded 634,000, with nearly 39,000 active addresses. The Bifrost dApp recorded more than 1.16 million cumulative page views and close to 39,000 unique users, indicating the emergence of a stable and recurring user base. Community growth also stayed healthy. By year-end, total community membership reached 138,000, with over 27,000 vToken-holding addresses and more than 130,000 BNC holders. Despite increased market volatility in the second half of the year, minting volumes across multiple vTokens continued to grow significantly—reflecting improved liquidity retention and stronger product stickiness across the protocol. bbBNC: Sharing with Holders This represents the most important narrative shift for Bifrost in 2025. Historically, many DeFi governance tokens have struggled with a fundamental problem: beyond voting rights, holders had little exposure to the economic upside of protocol growth. bbBNC was designed to break this pattern. Built on an enhanced veToken model, bbBNC directs 100% of protocol profits toward BNC buybacks, with 90% distributed directly to bbBNC holders. Market response exceeded expectations. BNC locked rapidly surpassed 16 million tokens, accounting for over 20% of total supply. By year-end, the protocol had cumulatively repurchased more than 1.72 million BNC, of which 172,000 BNC were permanently burned. We believe that only when protocol success is meaningfully aligned with community interests can a truly durable ecosystem be built. vTokens: Broad-Based Growth Across the Stack In 2025, multiple vTokens under the Bifrost umbrella achieved substantial growth, reaffirming sustained demand for liquid staking across multi-chain environments. vDOT remained the core growth engine. Minted supply increased from approximately 7 million at the beginning of the year to 18 million by year-end—representing over 157% growth, with peak issuance surpassing 24 million. vDOT continues to lead the Polkadot ecosystem as its most liquid staking asset. vBNC growth was closely tied to the launch of the bbBNC economic model. As more users opted to lock BNC for protocol revenue participation, demand for vBNC rose in parallel, with minted supply approaching 20 million by year-end. vASTR maintained steady momentum, doubling from 50 million to 100 million over the course of the year. Continued expansion within the Astar ecosystem provided a solid demand foundation. vMANTA experienced breakout growth following the release of vMANTA 2.0. Minted supply rose from 8 million to 22 million, an increase of nearly 175%. Instant minting and improved cross-chain UX were the primary drivers behind this acceleration. vETH 3.0: The First Native ETH LST on Multichains On December 18, Bifrost officially launched vETH 3.0—its most significant step into the Ethereum ecosystem to date. With over $100 billion staked, Ethereum represents the largest value pool in DeFi. vETH 3.0 rethinks liquidity architecture from the ground up, delivering on the vision of “one LST, natively usable everywhere.” Users can mint vETH directly on Ethereum mainnet, Base, Arbitrum, Optimism, and Bifrost-Polkadot, without complex bridging workflows. vETH 3.0 marks Bifrost’s formal entry into the competition for omnichain LST infrastructure. Next, Bifrost will support direct conversions from stETH and rETH into vETH, enabling seamless migration for existing LST holders. Deeper integration with Hydration is also underway, leveraging Omnipool and gigaETH strategies to unlock broader DeFi use cases for vETH holders. Reward Share Program (RSP) The vToken Reward Share Program has become a key driver of Bifrost’s TVL growth. Its premise is simple: partners who help grow Bifrost should continue to share in the protocol’s success. In 2025, the number of RSP partners expanded to 15, collectively driving over $1.8 million in effective TVL. Subscan and WUD emerged as standout contributors. Bifrost’s growth does not rely solely on internal marketing spend. Through ecosystem-level collaboration, partners become both co-builders and beneficiaries of long-term value creation. Liquid Wave: The Power of Community Participation In 2025, Bifrost successfully completed the Liquid Wave airdrop campaign, the largest community incentive initiative in the protocol’s history. The campaign page recorded over 100,000 visits, with 37,131 addresses participating. TVL driven through the campaign exceeded $3.17 million, and more than 135 million WAVE points were distributed. Liquid Wave represented a deep engagement experiment with the community. Through a points-based system and phased tasks, users were introduced to the value of vTokens, experienced the convenience of liquid staking firsthand, and became long-term participants in the Bifrost ecosystem. Security First For a liquid staking protocol managing tens of millions of dollars in assets, security is paramount. In 2025, Bifrost completed several critical upgrades across its technical and security stack. At the protocol level, the Runtime 20000/21000 upgrade series significantly improved performance and stability. AssetHub migration support was completed in preparation for the Polkadot 2.0 era. Deep integration with Hyperbridge established robust cross-chain communication channels, laying the groundwork for multi-chain vToken expansion. On the security front, Bifrost partnered with Immunefi, maintaining a bug bounty program with rewards of up to $500,000. Ecosystem Collaboration Throughout 2025, Bifrost established deep partnerships across the ecosystem. DeFi Singularity was one of the year’s most impactful collaborative initiatives. Through joint incentives with Hyperbridge, the campaign successfully attracted over $4,000,000 in cross-chain TVL, extending vDOT yield opportunities from Polkadot into Ethereum, Base, and beyond. On the developer side, Bifrost partnered with OneBlock and PaperMoon to host a global hackathon with a total prize pool of $12,000. Community and Global Presence In 2025, the Bifrost team traveled to 10 cities worldwide, participating in 27 events. From Token2049 in Singapore to Korea Blockchain Week in Seoul, from Hong Kong to Buenos Aires, we remained committed to engaging with the community both online and offline—sharing vToken updates, discussing DeFi trends, and showcasing the latest liquid staking innovations. These events were not merely about visibility. They served as vital channels for listening, feedback, and iteration. Many of Bifrost’s most important product decisions originated from these face-to-face conversations. Closing Thoughts If “delivery” defines 2025, it refers not to a single outcome, but to a capability. This year, Bifrost chose to do the hard things well: turning tokenomics into real buybacks and revenue distribution, transforming omnichain ambition into verifiable cross-chain functionality, and distilling product iteration into reusable, long-term technical frameworks. We deliberately chose a path without shortcuts—stabilizing infrastructure first and grounding growth in genuine demand. These choices may not always generate the loudest headlines, but they determine whether a protocol remains resilient under pressure. In 2026, we build forward from this foundation: stronger systems, a more diverse product suite, deeper collaboration, and staking yield solutions for stablecoins, DeFi, and real-world assets. In a rapidly evolving crypto landscape, steady progress requires continuous exploration and persistent innovation. What carries us through each phase is a deep commitment to the industry—and the long-term trust of our community. The period at the end of 2025 is also the starting point of 2026. We will continue to turn every promise into the next verifiable delivery. All data in this report is current as of December 30, 2025.

Ethereum staking has become one of the most secure and reliable yield-generating strategies in crypto. As the second-largest blockchain, Ethereum’s staking market has surpassed $100 billion, making it the single largest value sink in the DeFi landscape. For ETH holders, staking not only provides sustainable yield, but also represents a direct contribution to network security and the long-term growth of the Ethereum ecosystem. However, today’s Ethereum staking market faces a structural challenge: fragmented liquidity. High gas fees on Ethereum mainnet have pushed users toward Layer 2 networks such as Arbitrum, Base, and Optimism. Yet most liquid staking protocols still require staking ETH on mainnet. This creates friction—cross-chain complexity, unnecessary time delays, and higher costs. As a result, Liquid Staking Tokens (LSTs) remain far less seamless to use across chains than native ETH itself. This is why Bifrost launches vETH 3.0. vETH 3.0: ETH Liquid Staking on Any Chain vETH 3.0 is Bifrost’s next-generation omnichain liquid staking solution for Ethereum. Rather than simple cross-chain bridging, it represents a fundamental architectural design that enables users to mint and use vETH directly on any supported network—truly delivering on the vision of “one LST, universal across all chains.” Core Features Native omnichain minting: Mint vETH directly using ETH on Ethereum mainnet, Base, Arbitrum, Optimism, and the Polkadot ecosystem—no complex cross-chain operations required Unified liquidity: Regardless of which chain you mint on, vETH represents the same underlying staked assets with fully synchronized exchange rates and yields Flexible redemption: Initiate redemption requests from multiple networks, with funds automatically routed through optimal paths How Does vETH 3.0 Enable Cross-Chain Staking? The technical implementation of vETH 3.0 is built on three parts: SLPx 2.0 SLPx 2.0 serves as the core contract layer of vETH 3.0, handling minting and redemption requests from different networks. When users initiate minting on Base or Arbitrum, the SLPx contract securely transmits ETH to the Bifrost network for unified management through decentralized cross-chain protocols such as Snowbridge and Hyperbridge, while simultaneously returning vETH to the user. The key advantage of this design: users enjoy a consistent experience on any supported chain, while the underlying cross-chain complexity is fully abstracted away. ERC-4626 vETH 3.0 adheres to the ERC-4626 Standard—the unified interface specification for yield-bearing assets in the Ethereum ecosystem. ERC-4626 defines standardized methods for deposits, withdrawals, and share calculations, enabling vETH to integrate seamlessly with any DeFi protocol that supports this standard. This means lending protocols can directly accept vETH as collateral, while DEXs and aggregators can automatically recognize vETH’s yield-bearing properties and incorporate it into more sophisticated strategy compositions. Decentralized Validator Services The security of staked assets depends on validator quality. vETH 3.0 utilizes SSV Network (Secret Shared Validator) as its underlying validator infrastructure. SSV works by splitting validator keys into multiple shares distributed across independently operated nodes—a leading Distributed Validator Technology (DVT) solution in the Ethereum ecosystem. Currently, SSV Network secures over 4 million ETH (approximately $18 billion) and is trusted by industry giants including Kraken and Lido, making it a battle-tested and proven solution. How to Participate in vETH 3.0 Staking and Farming Minting vETH takes just a few minutes: Visit Omni.ls Connect your wallet and select a supported network (Ethereum, Base, Optimism, or Arbitrum) Ensure you have sufficient ETH for staking and gas fees Enter the amount of ETH to stake (minimum 0.001 ETH) Click “Stake” and confirm the transaction Base staking APY: ~3.5% vETH Farming Incentives To coincide with the launch of vETH 3.0, a one-month incentive program will be live soon on the Bifrost–Polkadot chain. By depositing vETH into the single-asset farming pool, users can earn vDOT rewards. vDOT rewards accrue in real time and can be claimed at any time. What’s Next for vETH Ethereum staking should not be constrained by network boundaries. vETH 3.0 represents the next evolution in liquid staking—a decentralized, omnichain ETH staking solution. The launch of vETH 3.0 is just the beginning. Looking ahead, Bifrost will enable direct conversion of stETH and rETH to vETH, providing existing LST holders with a seamless migration path. Additionally, deeper integration with Hydration is underway, with plans to unlock more DeFi opportunities for vETH holders through Omnipool and gigaETH strategies.

Tech Runtime 20000 (Upgraded) Enabled vDOT cross-chain transfers between AssetHub and Bifrost vTokenVoting now supports vote delegation—users can delegate vToken voting rights to other addresses Optimized vToken exchange rate calculation model by decoupling it from total issuance, improving compatibility with various cross-chain bridge types SLPx now supports AssetHub PoC Fixed the issue where the vDOT XCM oracle failed to feed price data to Hydration Runtime 21000 (In Development) Full audit and adaptation of Runtime for AssetHub Migration Upgraded Polkadot SDK to version 2503 Adapted bbBNC for compatibility with the vToken interest rate model Adapted SLP cross-chain functionality for AssetHub Migration Adapted Hyperbridge cross-chain logic for AssetHub Migration Omni LS 1.0.9 SLPx 2.0 is now supported for three vTokens across 4 networks Dapp 1.9.4 (Hot Update) Enabled cross-chain transfers between vDOT and AssetHub Product This month, Bifrost’s Total Value Locked (TVL) reached $98,333,113. Among them, vDOT performed exceptionally well, with a total minted supply (TVS) exceeding 19,174,767, and TVL surpassing $77M, reflecting a monthly growth of 21.62%. The DeFi Singularity Campaign Phase 1 is now live, with incentives deployed to the vDOT/ETH pair on Base, Ethereum mainnet, Arbitrum, and BSC. Users can join the Merkl rewards program simply by adding liquidity on Uniswap. vBNC is now available on Bifrost’s leveraged staking market – Loopstake, supporting up to 4x leverage. Current utilization is 34.23%, with APY boosted up to 13.60%. You can try vBNC loop stake here: https://app.bifrost.io/vstaking/vBNC?tab=loopstake SLPx has been successfully integrated with Hyperbridge. vASTR, vGLMR, and vBNC can now be minted directly on Layer 2 networks. vDOT integration is coming soon. Marketing Bifrost released a new workshop video, exploring how to build LST Hooks on Uniswap v4. This session offered an in-depth look at how Uniswap’s Hooks architecture enables a flexible, developer-centric playground. Bifrost’s Community Manager, Thomas, traveled to Berlin to attend the three-day Web3 Summit, which brought together Web3 builders, researchers, and key Polkadot ecosystem contributors from around the world. Bifrost officially launched a bug bounty program on Immunefi, focusing on critical protocol-level vulnerabilities. Rewards for valid exploits go up to $500,000. Target issues include unauthorized vToken minting, consensus-level attacks, governance bypasses, and more—aimed at identifying systemic risks through community-driven efforts. Bifrost kicked off its Vietnam Week by hosting “DeFi Connect in Vietnam” in Hanoi. The event brought together DeFi OGs, developers, and ecosystem partners to share Alpha, forge new connections, and explore visions for the future of cross-chain liquidity.

In the DeFi world, even the smallest vulnerability can trigger millions in losses. Just recently, Hydration awarded a $500,000 whitehat bounty for the discovery of a critical flaw that, if left unpatched, could have resulted in over $22 million in potential damage — a timely fix that safeguarded both the protocol and user funds. At Bifrost, we understand that security is the sword of Damocles hanging over every DeFi protocol, and that whitehats are the indispensable guardians of this decentralized world. That’s why we’re launching a new bounty program — offering up to $500,000 for anyone who can find a protocol-level flaw before it’s too late. If you can find a vulnerability that allows someone to illegitimately increase the supply of any vToken (e.g., vDOT, vMANTA, vBNC, etc.) without staking or collateral input — you could earn up to $500,000 in a single payout. This is part of our Immunefi bug bounty, designed to uncover the deepest, most dangerous risks in the Bifrost protocol — before malicious actors do. Why It Matters vTokens like vDOT and vBNC represent real, staked capital. Their minting is tightly controlled through validator participation, staking queues, and reward distribution. This bounty program focused on: Protocol-level exploits Severe Fund or governance manipulation unauthorized vToken minting Reward Highlights Protocol Vulnerabilities (Blockchain/DLT) Severity Reward (Up to) Description 🟥 Critical $500,000 Unauthorized vToken minting (vDOT, vKSM, etc.), chain halt, or permanent fund freeze 🟧 High $25,000 Chain splits, RPC crashes, mempool abuse 🟨 Medium $10,000 Node shutdowns, resource exhaustion 🟩 Low $1,000 Fee miscalculations, partial disruption Website / Application Vulnerabilities (Front-end) Severity Reward (Up to) Description 🟥 Critical $5,000 Wallet exploit, unauthorized withdrawals, full server access 🟧 High $2,000 Subdomain takeover, HTML injection, private info leaks 🟨 Medium $1,000 Redirects, non-sensitive user manipulation 🟩 Low $500 Broken links, minor UI abuse Please check the full scope on Immunefi How to Participate: Review the code Identify an exploit path that leads to unbacked vToken inflation Submit a full report, including reproduction steps and impact assessment via Immunefi If verified, receive the reward Terms Only the first valid submission is eligible for the bounty Must be previously unknown and exploitable Bifrost reserves the right to validate findings with internal and external audit partners Code is law — until it’s not. And in a world where billions move across trustless bridges, where staking powers ecosystems, and where a single vulnerability can unravel everything, we’re not leaving anything to chance. That’s why we’re offering up to $500,000 for a single critical discovery, and inviting the smartest minds in Web3 to test the very foundations of our protocol before the wrong person ever gets the chance.

In a major step to boost DeFi adoption within the Polkadot ecosystem, Bifrost has secured a 1 million DOT ($4M) liquidity loan from the Polkadot Treasury. With a clear repayment structure and strong track record, this initiative marks a significant milestone in advancing Polkadot staking and reinforcing Polkadot DeFi use cases across Substrate parachains and EVM-compatible chains. Ref 1538 at a Glance Loan amount: 1,000,000 DOT Duration: 1 year Estimated interest: ~6% (~60,000 DOT via staking rewards) Repayment: Full principal + interest returned to Treasury at maturity via XCM This loan will be used to mint vDOT, a liquid staking token of DOT issued by Bifrost, and deepen liquidity in the vDOT-DOT StableSwap pool—enhancing capital efficiency and unlocking new DeFi integrations. Why This Matters for Polkadot Staking Traditional staking on Polkadot locks assets, limiting their utility across the growing DeFi landscape. vDOT, a liquid staking token, solves this by enabling: Continuous staking rewards while maintaining liquidity Use as collateral in lending protocols like Interlay Participation in governance without unbonding Composable yield strategies such as leveraged staking via LoopStake This loan effectively puts idle Treasury capital to work by staking DOT and circulating vDOT into the broader Polkadot DeFi ecosystem. Bifrost’s Proven Track Record Bifrost has previously: Repaid 50,000 KSM Treasury loans (2022 & 2023) with interest, delivering over 8,370 KSM to Kusama Repaid 542,723 DOT to Polkadot in 2024, including ~42,723 DOT in interest Secured an 18-month KSM loan extension in 2024 These successes reinforce Bifrost’s reliability in handling large-scale treasury-backed liquidity operations. Explosive Growth of vDOT vDOT adoption has doubled in just one year: March 2024: 2,820 holders Today: 5,000+ holders Deployed across multiple use cases: Yield aggregation (Hydration, Omnipool) Money Markets (Hydration, Interlay) Governance (OpenGov voting with vDOT) Collateral (Interlay’s iBTC Vault) Cross-chain integrations (Base, Arbitrum, BNB Chain, Moonbeam, Astar) Over 2.7 million vDOT have been transferred cross-chain, and Omnipool liquidity has surpassed $6M. Ecosystem Expansion: Hyperbridge, gigaDOT, and RSP Hyperbridge + Snowbridge enable vDOT to reach Ethereum, L2s, and BSC gigaDOT strategy offers composite yield from vDOT + aDOT + incentives Bifrost RSP has onboarded 13+ partners and over $4M in TVL, contributing 76,000 vDOT These initiatives collectively expand Polkadot staking utility across new chains and user segments. Transparent Fund Management & Repayment vDOT minted using 600K DOT from the loan 400K DOT + 600K DOT worth of vDOT provided to StableSwap No impermanent loss due to correlated asset pairing Full repayment (1M DOT + staking rewards) via XCM upon loan maturity All operations are publicly trackable on-chain, ensuring transparency and security. Why This Matters for Polkadot DeFi This proposal showcases how the Polkadot Treasury can: Maximize idle capital with on-chain staking rewards Empower native protocols like Bifrost to scale Strengthen DeFi infrastructure through strategic liquidity injections Build a sustainable staking economy without compromising liquidity Polkadot staking is evolving, and vDOT is at the center of this transformation. By combining staking yield with DeFi usability, Bifrost is unlocking a new chapter in Polkadot DeFi. With strong community backing and clear incentive plans, the 1M DOT Treasury loan is more than just a funding move—it’s a catalyst for long-term ecosystem growth.

Development Runtime 17000 Enabled asynchronous 6-second block production. Completely removed all modules related to Gov1. Implemented rapid unlocking in vTokenVoting after unsuccessful votes. Optimized cross-chain fee friction for SLP. Runtime 17001 Support for the latest Hyperbridge indexer. Enhanced XCM oracle logic for compatibility with Hydration. Dapp 1.9.4 Launched the second season of the vDOT Subsidy. Relaunched flexible fee mechanism for vBNC on Bifrost-Polkadot. Adapted to Bifrost’s 6-second block production. Product In March, Bifrost’s Total Value Locked (TVL) reached $60,997,877, with vDOT’s Total Value Staked (TVS) hitting 8,554,699. Notably, vMANTA performed exceptionally, with the total minted amount (TVS) surpassing 8,290,190, and its total TVL exceeding $2.36 million, showing a 8.09% month-over-month growth. Hydration joined the Bifrost Reward Sharing Program (RSP). With gigaDOT’s upcoming launch, Hydration’s Dapp UI will integrate vDOT minting features, significantly enhancing user experience for both vDOT and gigaDOT. Bifrost successfully completed the first repayment of its Polkadot liquidity loan and initiated the second round proposal. Similar to the first round, this proposal aims to borrow 500,000 DOT over one year to bolster vDOT/DOT liquidity. Polkadot community members Alice und Bob proposed utilizing Polkadot treasury funds to inject liquidity into Bifrost and Hydration, aiming to expand use-cases for vDOT and gigaDOT. The detailed proposal can be accessed here. Marketing The Bifrost team participated in the JAM Tour in Shanghai, Hangzhou, and Shenzhen, showcasing our business development strategies leveraging Polkadot technology through thematic Pre-talk speeches. The second season of the DOT Unstaking Subsidy Program commenced. Users who unstake DOT from nomination pools or Classic Staking and restaked it as vDOT on Bifrost became eligible for subsidy incentives. The Polkadot Yappers campaign was launched, encouraging creators to produce in-depth analysis, tutorials, or creative content related to Bifrost, with outstanding contributions earning BNC rewards. Bifrost Community Manager Thomas joined the Next Block Expo and ETH Warsaw events in Poland. His presentation highlighted the Bifrost SLPx architecture and demonstrated how Bifrost and Hyperbridge are revolutionizing DeFi on ETH Layer 2 solutions. The BNC Explorers event concluded successfully, meeting its initial goal of minting 2,700,000 BNC in just 10 days, followed swiftly by achieving an additional 800,000 BNC. Driven by this event, the total minting of vBNC reached a new high of 11,800,000 tokens.

Hello Polkadot Community, We’re thrilled to announce the second round of DOT unbonding Subsidy Program. This is your chance to earn triple rewards and enjoy a compound yield of up to 33.18%: vDOT Base Staking Rewards (90d): 11.81% vDOT on Hydration Liquid Boost: 9.37% vDOT 28-Day Staking Reward Subsidy: 12% What is the Subsidy Program? The Subsidy Program is a special initiative for those who unbond DOT from nomination pools or classic staking. They are automatically eligible to receive a full 28-day staking reward subsidy when they mint vDOT on Bifrost. How the Subsidy Program Works Subsidy Period: From March 1 (UTC+0), 2025 to May 1 (UTC+0), 2025. Unbond Your DOT: If you unbond DOT from nomination pools or classic staking during the period, you qualify for the subsidy. (Note: even if you mint vDOT before June 1, 2025, you will still qualify.) Mint vDOT on Bifrost: Once your DOT is unbonded, head over to Bifrost and mint vDOT. This converts your staked DOT into liquid staking form, allowing you to farm in DeFi protocols while continuing to earn staking rewards. Receive Your Subsidy: Bifrost will fully subsidize the missed 28-day staking rewards that would otherwise be lost during unbonding. You’ll receive these rewards in DOT after the snapshot period. Bifrost reserves all rights to the final interpretation of this program. Snapshot Rules After the subsidy program ends, we will take a snapshot of the vDOT balances on DOT unbonding addresses 30 days later. Subsidy will be distributed based on the vDOT growth from the first vDOT holding snapshot on June 1 (UTC+0). The missed staking rewards accrued during the 28-day unbonding period will be distributed as a one-time payout. The subsidy will be distributed as a one-time payout following the vDOT holdings snapshot on June 1 (UTC+0), 2025. Holdings Included in the Snapshot The following vDOT holdings will be counted in the snapshot: Bifrost Network vDOT holdings vDOT in LP (Liquidity Pools) vDOT-USDT LP vDOT-DOT LP vDOT-DOT BLP vDOT-BNC LP vsDOT-vDOT LP vDOT in LoopStake vDOT in Farming Pools vDOT Single Pool LP vDOT-USDT BLP vDOT-DOT Hydration Network vDOT holdings vDOT in Omnipool vDOT in Farming vDOT in Money Market Why Join the Subsidy Program Triple Rewards: Take advantage of base vDOT staking, Hydration Liquid Boost, and a 28-day unbonding subsidy. Liquidity + Staking: Maintain liquidity with vDOT while still benefiting from staking rewards. Convenient One-Time Payout: Subsidy rewards will be settled in DOT, making it easy to access and reinvest as you wish. Welcome Unbonded DOT to Bifrost! We warmly invite everyone unbonding DOT to join Bifrost for liquid staking. Take advantage of the Subsidy Program to enhance staking strategies! Liquid stake your DOT on Bifrost today!**