Announcements

公告

## Development

### Runtime Version 12000

- Integration with the general Ledger app
- Enabled support for DOT reserve from AssetHub, allowing acceptance of AssetHub foreign Assets
- Enabled transactions on EVM addresses
- Fixed the issue where vtokenVoing.remove vote was not successful in certain cases
- Optimized cross-chain fee handling for Assethub
- Adjusted OpenGov whitelistcaller track parameters for faster proposal approval
- Upgraded Polkadot dependencies

### Omni LS Version 1.0.5

- Added insufficient liquidity warning for vMANTA on Manta Pacific
- Integrated with OKX wallet
- Launched vASTR on Moonbeam

## Products

On July 2024, Bifrost's total value locked (TVL) reached **$80,813,585**, and the total minted amount of vDOT was **8,166,105**.

Among them, vMANTA performed remarkably well, with total minted amount exceeding **6,631,049** and total value locked surpassing $6.58M, representing a monthly growth of 52%.

- The Bifrost-Polkadot [Collator Rivals](https://x.com/Bifrost/status/1816785748923940961) started. This event aims to incentivize validators to participate in the Bifrost Collator test, laying the foundation for the subsequent migration from Bifrost-Kusama to Bifrost-Polkadot. You can find the [Collator setup and configuration guide](https://docs.bifrost.io/builders/parachain-collator/requirement) here.
- The Bifrost SLPx protocol [omni.ls](http://omni.ls/) now supports connection to the OKX Web3 Wallet. This allows OKX Web3 Wallet users to use Ledger for one-click access to multi-chain vToken minting.
- The final round of $BNCS farming incentives has been executed through [Referendum #27](https://bifrost.subsquare.io/referenda/27). This farming includes dual-token incentives with $BNC and $DOT, with the incentive period lasting for six months.
- The staking data platform **Staking Rewards** has fully integrated Bifrost vTokens. Users can visit the [Bifrost page](https://www.stakingrewards.com/provider/bifrost-finance) to view various vToken data or participate directly in staking. Bifrost has been officially verified by Staking Rewards.

![stakingrewards.png](https://cdn.bifrost.io/cms/stakingrewards_37960131af.png)

## Marketing

On July 5, Bifrost invited all Sub-Fellowship applicants to [complete their identity setup](https://twitter.com/0xBifrostCN/status/1809169098582143099) on Bifrost-Polkadot, make adjustments based on the subgroup details provided, and engage in further discussions on governance-related issues.

On July 11, Bifrost Council member Tyrone attended [Polkadot Decoded 2024](https://twitter.com/Polkadot/status/1811433904089317651) and delivered a speech titled "How Cross-Chain Liquid Staking is Revolutionizing the DeFi Industry." He discussed how Bifrost leverages cross-chain components like XCM, SnowBridge, and HyperBridge to attract multi-chain liquidity and shared Bifrost's long-term roadmap and strategic advantages in cross-chain liquid staking.

On July 17, Bifrost released a preview of the [BNC 2.0 tokenomics](https://x.com/Bifrost/status/1813514031178936566). The new token economic framework will include mechanisms to enhance the utility and value of $BNC, promote long-term holders, and ensure fair revenue distribution. The shift to a revenue-sharing economic model marks a significant step for Bifrost towards a broader DeFi ecosystem.

On July 26, to achieve decentralized operation and block collection on the Bifrost Polkadot chain, Bifrost launch the [Collator module on the Bifrost Polkadot chain](https://bifrost.io/zh-CN/blog/article-14), guiding Collators on the Bifrost Kusama chain to migrate. An incentive of 8,000 BNC tokens will be provided for the public test.

large_july monthly report.png

medium_july monthly report.png

small_july monthly report.png

thumbnail_july monthly report.png

july monthly report.png

Bifrost Monthly Report | July 2024

Bifrost 是早期获得 Polkadot 插槽的平行链项目之一。2022 年 5 月，Bifrost 成功赢得 Polkadot 插槽竞拍，并成为 Polkadot 平行链，平稳运行超过一年半。距离租期结束仅剩半年，为了续租插槽，我们已开启新一轮的众贷。

# 质押 1 DOT，得 8 BNC

本轮竞拍欢迎所有 Bifrost 的新老支持者参与，每投票 1 DOT，将给支持者奖励 8 BNC。

- 软顶：30,000 DOT

竞拍筹集的 DOT 超过软顶后，后续再有参与众贷的 DOT 将不再有 BNC 奖励。

- 硬顶：300,000 DOT

竞拍筹集的 DOT 触及硬顶后，停止众贷。

# 如何参与

Bifrost vCrowdloan [入口](https://bifrost.app/vcrowdloan?network=polkadot)

Polkadot [官方入口](https://polkadot.js.org/apps/?rpc=wss%3A%2F%2Frpc.polkadot.io#/parachains/crowdloan)

点击此处查看[参与教程](https://polkadot.network/features/crowdloans/#participate)

推荐大家通过 Bifrost vCrowdloan 入口进入参与，这样你将在质押 DOT 后获得流动性凭证 vsDOT 和 vsBond，它们可以在二级市场中交易，或者参与流动性挖矿获利。

# 操作指南

- 打开 vCrowdloan 页面 https://bifrost.app/vcrowdloan
![0_kFU28a8g1AP3-9uO.webp](https://cdn.bifrost.finance/cms/0_k_FU_28a8g1_AP_3_9u_O_537ae975dc.webp)

- 点击 Bifrost 后对应的 Contribute，输入想要质押的 DOT 数量
![0_DWjAAS27CTkcSvYX.webp](https://cdn.bifrost.finance/cms/0_D_Wj_AAS_27_C_Tkc_Sv_YX_f34ee5ef0b.webp)

- 点击 Confirm 完成链上交易并验证

# 奖励发放

参与众贷获得的 BNC 奖励将通过一年的时间线性解锁，解锁后的 BNC，用户可以在 bifrost.dapp 里点击 unlock 提取。

![0_2ldFjutjLvkYbHwb.webp](https://cdn.bifrost.finance/cms/0_2ld_Fjutj_Lvk_Yb_Hwb_8f11212705.webp)

# 关于众贷

众贷（Crowdloan）是 Polkadot 开创的一种区块空间竞租方式。平行链项目方通过质押 DOT 来租用 Polkadot 链上的区块空间（体现为“插槽”），这些 DOT 可以通过众筹的方式向社区租借，即为“众贷”。尽管 Gavin 已经提出了更加灵活的区块空间买卖方式 — — Polkadot 2.0。但在其上线之前，Polkadot 依旧还会沿用插槽拍卖的方式。

助力 Bifrost Polkadot 插槽续拍，质押 1 DOT 获得 8 BNC

[Bifrost](https://bifrost.finance/) is a dedicated Liquid Staking middle layer built on Substrate, powered by Polkadot, providing non-custodial decentralized cross-chain liquid tokens for staked assets.

Presently, Bifrost holds a combined Total Value Locked (TVL) of $90 Million across multiple chains and introduces innovative solutions such as:

- **SLPx**: Enables cross-chain automated minting, redemption, and utilization of liquidity, primarily focused on the Bifrost chain.
- **vTokens Support for Governance**: The first liquid staking assets within the Polkadot and Kusama ecosystems, enabling governance functionalities on their parent chains.

In May 2022, Bifrost secured its Polkadot slot auction and successfully onboarded as a Polkadot parachain, operating seamlessly for over a year and a half. 

With just six months left in the current parachain lease period, we have launched a new round of crowdloans to secure **Parachain Auction #61**.

#### New Parachain Auction Details

**Contribute 1 DOT ~> Get 8 $BNC**

This auction round extends an open invitation to all Bifrost and Polkadot supporters: For every 1 DOT contributed to the crowdloan, participants will receive 8 BNC, **UNTIL SOFT-CAP (30K DOT) IS REACHED!**

#### How to join

- Log on to [Bifrost’s vCrowdloan page](https://bifrost.app/vcrowdloan?network=polkadot) and scroll down to find the Bifrost Crowdloan Section.
- Click on “Contribute”.
- Choose the amount of DOT to allocate.
- Hit the Confirmation button.

![Crowdloan Page 1.png](https://cdn.bifrost.finance/cms/Crowdloan_Page_1_ab8702559c.png)

#### Caps

**The Soft Cap is 30,000 DOT**.

This means that only the first 30,000 DOT contributed will be eligible for BNC rewards in this crowdloan. Upon surpassing this threshold, any additional DOT contributed won’t qualify for BNC rewards.

**The Hard Cap is 300,000 DOT**.

Once the allocated DOT hit the Hard Cap, the crowdloan will end.

#### How to contribute

Users can contribute to the Bifrost Crowdloan through different means. These include:

- [Bifrost vCrowdloan](https://bifrost.app/vcrowdloan?network=polkadot) is the first option is the recommended one, as it helps to preserve liquidity for the duration of the crowdloan. After contributing DOT, users receive the vsTokens, which can be traded on the secondary market or used for liquidity mining to earn profits.
- [Polkadot JS](https://polkadot.js.org/apps/?rpc=wss%3A%2F%2Frpc.polkadot.io#/parachains/crowdloan) will directly lock users’ DOT on-chain for 98 weeks.
- Desktop wallets such as [Talisman](https://www.talisman.xyz/) and [Subwallet](https://www.subwallet.app/) allow users to contribute directly to the crowdloan.
- Mobile wallets such as [Nova Wallet](https://novawallet.io/) also allow access to the crowdloan tab, from the Nova Wallet App.

#### Rewards Distribution

The BNC rewards for participating in the crowdloan will be unlocked linearly over a year.

Users can access the vested BNC by clicking “unlock vesting” on the [Dapp](https://bifrost.app/).

![Crowdloan Page 2.png](https://cdn.bifrost.finance/cms/Crowdloan_Page_2_86b5421fa1.png)

#### About Polkadot Crowdloans

Crowdloan is a block space leasing mechanism introduced by Polkadot.

Parachain projects lease block space on Polkadot, represented as slots, by locking up DOT. These DOT can be crowdloaned from the community through crowdloans with rewards for users guaranteed by the project.

Gavin Wood has proposed a more flexible block space trading method called Polkadot 2.0. Until its implementation, Polkadot will continue to use the slot auction system.

Polkadot Crowdloan - Bifrost Parachain’s Slot Renewal

#### What is Omni LS? ####

[Omni LS DApp](https://omni.ls/) 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](https://astar.network/), [Moonbeam](https://apps.moonbeam.network/moonbeam), [Moonriver](https://moonbeam.network/networks/moonriver/) and [Polkadot](https://polkadot.network/) relay chain, as well as on [Ethereum](https://ethereum.org/en/).

#### 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:

1. Transfer DOT from Moonbeam to Bifrost through cross-chain transfer
2. Stake DOT on the Bifrost chain to obtain vDOT
3. Transfer vDOT back to Moonbeam through cross-chain transfer
4. 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:

1. In the Omni LS DApp, directly convert DOT on Moonbeam into vDOT.
2. 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](https://docs.bifrost.finance/builders/liquid-staking-x-slpx) developed by Bifrost, which has undergone an audit by Common Prefix.

The Audit Report can be found [HERE](https://www.commonprefix.com/clients/bifrost).

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**

![Screenshot 2024-03-27 alle 10.04.33.png](https://cdn.bifrost.finance/cms/Screenshot_2024_03_27_alle_10_04_33_a47ff66828.png)

To connect your wallet, click on the “**Connect Wallet**” button located in the top right corner.

**Remote Minting**
1. Click on the “Stake” tab
2. Select the asset you want to remotely mint into its respective LST “vToken”
3. Go to the minting page
4. Enter the desired quantity
5. Click on “mint”

The vToken will be minted on the original chain where the asset is located.

![Screenshot 2024-03-27 alle 10.05.05.png](https://cdn.bifrost.finance/cms/Screenshot_2024_03_27_alle_10_05_05_8982680d7c.png)

**Remote Redemption**
1. Click on the “Unstake” tab
2. Select the asset you want to redeem
3. Go to the redemption page
4. Enter the quantity of the asset
5. 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.

Bifrost Presents Omni LS DApp - The Easy And Secure Way To Access Liquid Staking From Any Chain

# 技术开发

Bifrost v0.10.0

- BNC 2.0 部分相关 Pallet 上线
- Polkadot 1.6 依赖升级
- XCM 衍生地址规则升级
- 移除 bounty&tips pallet

Dapp 1.9.0

- Swap pool 增加隐藏流动性较小的池子功能
- 增加用户地址赎回数量限制展示&公开队列展示

Omni LS 1.0.4

-  在 Manta Pacific 上支持 vMANTA 铸造

# 产品进展

本月 Bifrost 总锁仓量（TVL）达到 114,915,405 美元，vDOT 总铸造量 (TVS) 为**9,139,611** 枚; 

其中，vMANTA 表现亮眼，总铸造量（TVS）突破 **3,825,436** 枚, 总锁仓量 (TVL) 超 $6.9M，单月增长 386%；

- 本月，Bifrost 发布 Fellowship Program 具体细则，旨在开放 Fellowship 成员申请，扩大 OpenGov 治理的去中心化。通过引入多赛道从业人员加入 Fellowship，Bifrost 民主公投将得到多方面的专业建议，以支持协议的长线发展。了解更多详情：[Fellowship 文档](https://docs.bifrost.finance/governance/bifrost-fellowship)
- Bifrost 正在推动 vGLMR、vFIL、vMANTA 资产在 Astar 网络的注册，以丰富 [omni.ls](http://omni.ls) 中各种 vToken 可支持的网络。[提案讨论](https://forum.astar.network/t/register-bifrost-liquid-staking-tokens-lsts-vglmr-vfil-vmanta-on-astar/6810) 正在进行中。
- Bifrost 已完成与 Polkadot 多签工具 Mimir 的对接。用户可前往 [Mimir App](https://t.co/yfq7L3k4dJ)，创建多签账户后选择 Bifrost 网络并使用您的多签地址完成任意操作。阅读使用教程：[激活多签钱包，享受高达 234% 的年化收益](https://medium.com/@0xBifrostCN/bifrost-app-%E9%9B%86%E6%88%90-%E6%BF%80%E6%B4%BB%E5%A4%9A%E7%AD%BE%E9%92%B1%E5%8C%85-%E4%BA%AB%E5%8F%97%E9%AB%98%E8%BE%BE-234-%E7%9A%84%E5%B9%B4%E5%8C%96%E6%94%B6%E7%9B%8A-8000027d7c9a)。

# 市场运营

5 月 16 日，Bifrost 在 Airlyft 平台开启了为期一周的[使用多签钱包铸造 vDOT 活动](
https://twitter.com/Bifrost/status/1791015824058183986)，完成指定任务的用户有机会瓜分价值 400 美元的 BNC 代币奖励。

5 月 18 日，Bifrost 团队出席了位于[意大利南部最大的加密货币活动](https://twitter.com/Bifrost/status/1791801133159076074)，与活动嘉宾以及现场观众分享了在 Polkadot 生态中参与流动性质押的最佳方式。

此外，Bifrost 加入了 [Manta Surf up](
https://twitter.com/Bifrost/status/1792903332480086281) 活动，将在 Manta Pacific 生态中为 vMANTA 提供更多应用场景，为用户提供更多的选择和价值。

5 月 29 日，Bifrost Council 成员 Tyrone 受邀参加由 Odaily 组织的推特 space 活动，与其他项目方嘉宾分享了如何在 Manta  Pacific 上铸造 vMANTA 及 vMANTA 的更多使用场景。

月报丨Bifrost 总 TVL 突破 $110,000,000

# Development

**Bifrost v0.10.0**

- Launched BNC 2.0 related Pallet
- Upgraded Polkadot 1.6 dependency
- Upgraded XCM derived address rules
- Removed bounty & tips pallet

**Dapp 1.9.0**

- Added feature to hide swap pools with low liquidity
- Added user address redemption limit display & public queue display

**Omni LS 1.0.4**

- Supported vMANTA minting on Manta Pacific

# Products

In May 2024, the total TVL for Bifrost reached $114,915,405, marking a modest progress over the last month.

- The total vDOT minted (TVS) this month was 9,139,611.
- The TVS of $vMANTA exceeded 3,825,436, with the total locked value (TVL) surpassing $6.9M, reflecting a monthly growth of 386%.

**Governance Update**

- Bifrost announced specific details of the Fellowship Program, aiming to open applications for Fellowship members and expand the decentralization of OpenGov governance. By introducing multi-track professionals into the Fellowship, Bifrost referendums will receive multifaceted professional advice to support the long-term development of the protocol. Read the [full document here](https://docs.bifrost.finance/governance/bifrost-fellowship).

**vToken Usecases**

- Bifrost is promoting the registration of vGLMR, vFIL, and vMANTA assets on the Astar network to enrich the supported networks of various vTokens in [omni.ls](http://omni.ls/). [Proposal discussions](https://forum.astar.network/t/register-bifrost-liquid-staking-tokens-lsts-vglmr-vfil-vmanta-on-astar/6810) are currently underway.

**Wallet Integration**

- Bifrost has completed integration with Polkadot's multi-signature wallet, Mimir. Users can visit the Mimir App, create a multi-signature account, select the Bifrost network, and perform any operation using their multi-signature address. Follow the tutorial [here](https://x.com/Mimir_global/status/1790638245727883470).

# Marketing

**Campaigns and Events**

- [Bifrost launched a week-long event on the Airlyft platform](https://twitter.com/Bifrost/status/1791015824058183986) to promote using multi-signature wallets to mint vDOT. Users who complete the specific tasks will have a chance to share a reward of 400 $BNC.
- The Bifrost team attended [the largest cryptocurrency event in southern Italy](https://twitter.com/Bifrost/status/1791801133159076074), sharing with the audience the best ways of liquid staking in the Polkadot ecosystem.
- Bifrost Council member Tyrone was invited to participate in a Twitter Space event organized by Odaily, sharing how to mint vMANTA on Manta Pacific and discussing more use cases for vMANTA.

**Partnership**

- Bifrost joined the [Manta Surf's Up event](https://twitter.com/Bifrost/status/1792903332480086281), providing more use cases for vMANTA within the Manta Pacific ecosystem, offering users more choices to capture value.

Monthly Report | Surf’s up is Going on, Bifrost TVL breaks $110,000,000

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.

![image (3).jpg](https://cdn.bifrost.finance/cms/image_3_c79b4c2d89.jpg)

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](https://bifrost.subsquare.io/discussions) 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](https://docs.bifrost.finance/partners/vtoken-reward-share-program) for detailed operational steps.

## Data Query

- For data on the staking yield rates, visit the [Staking Rewards page](https://www.stakingrewards.com/assets/proof-of-stake).
- For information on the reward fee for vTokens, check out our documentation on [Protocol fees](https://docs.bifrost.finance/tokenomics/treasury#staking-liquid-protocol-fee).
- We provide a dedicated [Analysis page](https://ref.bifrost.app/) 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.   

![rewardsharing.png](https://cdn.bifrost.finance/cms/rewardsharing_2138fe09b1.png)

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.

Earn Long-Term Rewards with the Bifrost vToken Reward-Share Program!

Bifrost 是基于 Polkadot 构建的流动性质押协议，自成立以来 TVL 已经突破 1 亿美金，**累计发放质押奖励超过 300 万美金**，这离不开各个社区成员和合作伙伴的支持和信任。

为了让推广 Bifrost 协议的社区成员和合作伙伴能从 Bifrost 协议中受益，也为了扩展更多渠道合作方，扩大 vToken 的铸造，Bifrost 推出了 **vToken 渠道分佣计划**。让我们来关注下该计划的细节。

## 什么是 vToken 渠道分佣计划

作为 LST 协议，Bifrost 为多条链提供流动性质押服务，协议会定期从所有代币的质押收益中收取 Reward Fee（手续费）作为协议收入转入协议财库当中，作为风险储备金或者生态的其他用途使用。

**vToken 渠道分佣计划是 Bifrost 推出的一个合作激励项目**。合作伙伴可以通过在 Bifrost OpenGov 中申请，加入该计划，成为合作渠道。合作渠道将获得一个专属的 vToken 铸造链接。当用户通过该链接铸造 vToken 时，**合作渠道将获得分账**。

![image (3).jpg](https://cdn.bifrost.finance/cms/image_3_c79b4c2d89.jpg)

需要强调的是，这种分账不是一次性的，而是持续不断的，只要用户通过你的专属链接铸造 vToken，并且始终没有赎回，你就会一直获得收益分账，除非你退出 vToken 渠道分佣计划，或者在 OpenGov 的提案投票中被移除出合作渠道列表。

对于合作渠道而言，**这是一个可持续的收入来源**。

## 准入资格

无论你是社区运营者、项目方、还是 KOL，只要有兴趣在你的产品中集成 vToken 的铸造入口，或者只是推广 vToken 的铸造，并具备一定的用户基础和影响力，您都可以申请加入 vToken 渠道分佣计划。

申请的批准在 Bifrost OpenGov 中通过治理投票进行。

Bifrost 希望  vToken 的铸造渠道被整合到更多的地方，让用户能够更好的触达。这些渠道包括钱包、DEX、游戏、NFT 交易平台等 Web3 应用，甚至还包括一些 Web2 平台。

这种集成，可以是直接展示 vToken 的铸造入口，也可以是整合到其他服务里，例如一些平台可以支持用户使用 Fiat Currency 购买 vToken，但后端的处理是将 Fiat Currency 用于购买原 Token，并铸造为 vToken。

## 收益预估

在 vToken 渠道分佣计划中，每个合作渠道可以根据其贡献量和渠道分佣率获取 Bifrost 协议 Reward Fee 的一部分。

以 vDOT 为例，假设通过渠道 A，有 2,000,000 DOT 被铸造为了 vDOT（占 vDOT 总 TVL 大约 20%），此时 DOT 的质押年收益率为 12%，Bifrost 协议佣金给 10%，那么 Bifrost 一年可以从这些铸造中获得的 Reward Fee 是：

>2,000,000 DOT *12%*10%=24,000 DOT

假设渠道 A 的分佣率为 40%，那么就意味着渠道 A 一年可以获得：

>24,000 DOT * 40% = 9,600 DOT

佣金大概按照每 24 小时分配一次，渠道方在链上自行领取。

## 如何申请

申请加入 vToken 渠道分佣计划，需要完成以下两个步骤：

- 社区讨论
- OpenGov 申请提案这两个步骤

首先，在 Bifrost 论坛的 [Discussion](https://bifrost.subsquare.io/discussions) 版块提交您的提案。根据合作的深度，您的提案将由 Bifrost 社区或 Bifrost Fellowship 进行审核。审核通过的提案，就会进入 OpenGov 提案阶段。然后就是提交 Bifrost OpenGov 提案，在这里你需要填写必要信息:您的项目或社区名称，简介，并发到链上，进行链上投票。

当链上提案通过之后，您将正式成为合作渠道，并获得你的专属 vToken 铸造链接。

具体操作步骤，可以参考 [vToken 渠道分佣文档](https://docs.bifrost.finance/partners/vtoken-reward-share-program)

## 数据查询
- 各公链的 Staking 收益率可以在 [Staking Rewards](https://www.stakingrewards.com/assets/proof-of-stake) 上查询

- vToken 的 Reward Fee 可以在 [Bifrost 流动性质押协议费用](https://docs.bifrost.finance/tokenomics/treasury#staking-liquid-protocol-fee)中查询

vToken 渠道分佣计划的相关数据，我们提供了专门的 [Analysis 页面](https://ref.bifrost.app/)用于查询，在该页面，所有合作渠道的佣金获得记录都公开可查，也可以看到每种 vToken 的分佣统计数据。

![rewardsharing.png](https://cdn.bifrost.finance/cms/rewardsharing_2138fe09b1.png)

## 小结

这就是 Bifrost vToken 渠道分佣计划，**我们欢迎各类渠道方加入该计划**。

通过 vToken 渠道分佣计划，我们不仅希望促进 Bifrost 协议的发展，扩大 vToken 铸造，让更多用户能够体验到 Bifrost 提供的全链流动性质押服务，提高资金效率。同时也希望通过收益分佣，为一些社区和产品，提供一条直接的变现途径。LST 协议是 DeFi 协议中一类有明确商业模式的协议，但一些其他 DeFi协议，以及更多类型的社区和产品，拥有流量，但苦于没有合适的商业化途径，那么加入 vToken 分佣计划，就是一条可行的途径，**可以创造直接的、可持续的收益来源**。

区块链生态的繁荣离不开该生态各个项目的相互促进与合作。每一个项目都像生态系统中的一环，紧密相连，共同推动整个行业的发展。Biforst 希望与越来越多的合作方一道，通过利益分享，**构建加密领域的共生系统**。

加入 Bifrost 渠道分佣计划，获得长期稳定收益

## Technological Developments

### Bifrost v0.9.64

- Fixed the problems of vMOVR caused by the XCM encoding adjustments of Moonriver staking functions
- Restricted user deposits before farming pools start
- Optimized vFil staking functions in SLP module

### Bifrost v0.9.65

- Removed foreign asset from Bifrost Asset types
- Upgraded dependencies of srtool-actions、ssh-agent、smallvec、env_logger

### Bifrost v0.9.66

- Implemented transfer_to and transfer_back function for vBNC in SLP module

- Added some more checks and restrictions in vBNC functions of SLP module

## Product
- Bifrost Kusama and Bifrost Polkadot completed the opening of HRMP channels with Moonriver and Moonbeam respectively, and registered BNC and GLMR as cross-chain assets. Users can use bifrost.app to experience asset crossing and other operations.

- Bifrost launched the first batch of parachain liquidity derivatives vMOVR and vGLMR. Based on the Bifrost ⇔ Moonriver, Bifrost ⇔ Moonbeam HRMP channels, users can use the Bifrost Dapp to transfer MOVR and GLMR to Bifrost and mint vMOVR and vGLMR liquidity derivatives while participating in mining, and the compound income they can obtain will be higher than the original chain staking income. vMOVR minting entrance: https://bifrost.app/vstaking/vMOVR
vGLMR minting entrance: https://bifrost.app/vstaking/vGLMR

- In November, Bifrost TVL totaled $54,132,207. Among them, the vKSM minted amounted to 237,050 KSM, and the vDOT minted amount exceeded 140,000 DOT.

- Encrypt wallet multi-chain plug-in integrated wallet has supported Bifrost Kusama and Bifrost Polkadot. Users can easily complete Token recharge, transfer, purchase, history query or jump to Bifrost Dapp and other functions in the wallet.

- Bifrost developers are conducting research and building XCM-based vToken cross-chain interoperability use cases. vMOVR, vGLMR, vKSM, vDOT, etc. are expected to realize the functions of remote calls initiated from the contract side, including cross-chain minting, redemption, exchange, and liquidation Wait. This use case is expected to be deployed between December 2022 and January 2023.

## Operations

- On November 1st, in conjunction with the third round of Kusama Crowdloan unlocking, Bifrost opened the vsToken redemption channel for contributors to the previous SALP support projects Picasso, Bitcountry and Quartz. Participating users can redeem the combination of vsKSM & vsBond for KSM, and then Participate in vKSM minting to enjoy staking + farming benefits.

- From November 2nd to November 8th, Bifrost launched three LP farming pools, BNC-USDT, vDOT-DOT, vsDOT-vDOT. The three farming pools are long-term farming pools. Users can switch to the Polkadot network in bifrost.app and participate after adding liquidity.

- On November 16, Bifrost Kusama and Integritee announced the opening of the HRMP channel between the two parties, and TEER token can enter the Bifrost Kusama network.

- On November 21, after opening the HRMP channel with Moonbeam, Bifrost can transfer BNC to Moonbeam to become xcBNC, and GLMR can transfer to Bifrost Polkadot and mint it as vGLMR derivative assets. Currently, there are 134,142 and 1,517 GLMR and MOVR staked through Bifrost liquidity respectively.

- On November 23, Bifrost participated in the Polkadot Community Call. Tyrone introduced the use cases of Bifrost and Moonbeam through XCM and some new developments in technology development.

- On November 28th, Bifrost admin Thomas and growth manager Christian arrived in Lisbon to participate in the Polkadot Sub0 conference. On behalf of Bifrost, they better discussed XCM v3, OpenGov, Polkadot Fellowship and explored more possibilities of Polkadot with the participants.


Bifrost November Monthly Report

# Technological Developments

## Bifrost v0.9.59

- Remove transactional macro from runtime
- Remove sudo pallet from Bifrost-polkadot runtime, meanwhile add council members to take over the chain governance
- add docker-image to release.yml

## Bifrost v0.9.60
Fix a bug caused by removing transactional macro in the last release

## Bifrost v0.9.62

- Upgraded vesting runtime pallet to add new functionalities
- Added vFIL agent to SLP pallet to support FIL token staking
- Added Zenlink Stable AMM pallet to Bifrost-kusama runtime
- Refined integration tests, and updated benchmarking code for Asset Registry pallet

## Dapp 1.5.0

- Updated Dashboard cards to display more useful information
- Added vToken yield analysis panel (revenue composition is clearer and real-time tracking of vToken yield performance)
- Optimize vETH wallet connection logic
- vToken minting & redemption supports bidirectional input (more convenient operation)
- vToken price curve table display optimization
- Farming card display logic optimization

## Dapp 1.5.1

- Updated vETH earnings display

# Product

- The Bifrost Dapp v1.5.0 version has been updated, and the visualization function of the existing front-end interface has been optimized on a large scale, which is convenient for users to quickly and efficiently understand the information of each section and complete the operation accurately.
- vETH has updated the latest staking APY, adding MEV and GAS rewards based on the original ETH Staking reward column, which can be viewed at https://bifrost.app/vstaking/vETH.
- The Leager wallet has completed the integration of Bifrost Dapp, and users can now use the developer mode to configure and connect the Leager wallet on bifrost.app. Configuration documentation: https://developers.ledger.com/docs/live-app/developer-mode/

# Operations

- On October 12, Bifrost published an article ETH Staking to Unleash Liquid Staking Potential, and the potential of liquid staking is unlimited. From PoS and Staking to merger and liquid staking, it can be said that the smooth development of liquid staking will become the driving force for the development of Ethereum under the PoS mechanism, effectively improving the The security and flexibility of the network, deepening the degree of decentralization, enriching ecological application scenarios, and opening up more new business models.
- On October 18th, Ledger has supported Bifrost in development mode, the final adjustment is still in progress, welcome to report any bugs to us.
- On October 25th, MEXC and Gate.io have supported the BNC deposit and withdrawal function of the Bifrost Polkadot parachain network. Users can complete the transfer of BNC between the Bifrost Kusama parachain and the Bifrost Polkadot parachain through MEXC and Gate operations.
- On October 25th, Coinbase Cloud will support Bifrost in achieving its cross-chain liquidity goals with its professional decentralized solution. Coinbase Cloud will provide high returns and stable Polkadot validators to support liquid DOT-vDOT.
- On October 26th, we announced the latest progress of Back to Asgard NFT, and our creative partner SFY handed us Odin, Thor and Loki appearances and equipment shows. In the future we plan to integrate RMRK Pallet on the mainnet to make NFTs on the Bifrost network liquid. This integration will also allow NFTs to be combined with DeFi gameplay.
- On October 28th, Bifrost completed the Dashboard update of Bifrost App this week, the vToken function, the vETH wallet connection logic and the Farming card sorting and filtering logic, etc. Welcome to experience it!

Bifrost October Monthly Report

2022 has been a long and difficult year for the crypto industry. 2020’s DeFi Summer, 2021’s NFT hit, and a market that was riding high came to a screeching halt in 2022. The discussion has moved from All in to sharing bear market hedging guidelines. There is no doubt that winter has arrived in the crypto industry.

In bear markets, developers shift their focus from expanding and capitalizing on the market to the fundamentals of project building. Historically, these times have spurred a solid foundation for projects — like Bifrost’s in 2019 — that prove successful despite tough conditions.

It’s been three years since Bifrost was founded, and we continue to plow ahead. 2022 has seen us progress in the following crucial areas.

- Auctioned Polkadot slots and migrated SALP/SLP main functions to Bifrost-Polkadot parachains.
- The SALP protocol is maturing and tending towards self-service operation.
- The SLP protocol is officially launched and has been extended to support 6 types of vToken.
- Newly established HRMP cross-chain channels with 13 parachains to realize asset interoperability.
- Bifrost Network Collator is online, realizing decentralized block collection.
- Bifrost Dapp Release 2.0
- The first behavioral incentive system on the Bifrost chain, Rainbow Boost, has been launched and has completed four rounds of practice.
- Established cooperation and integration relationships with more partners including node merchants, wallet merchants, and ecological projects.
- Promote user education through nearly 50 online and offline promotional activities.
- NFT Back to Asgard has completed Viking character and equipment design work.

## Polkadot Slots

Bifrost’s Kusama parachain slot has ended the first lease period , and immediately opened the second lease period;

With the (following our crowdloan launch) voting 403,008 DOT for Bifrost, on April 30, 2022, Bifrost won the 18th Polkadot slot. On September 14, the Bifrost-Polkadot parachain was officially launched.

After sufficient testing and verification, the SLP and SALP businesses have entered a relatively mature stage, and we migrated the main logic of the business from the Kusama parachain to the Polkadot parachain.

## SLPs and vTokens

In September, with the implementation of The Merge, the income of ETH nodes became diversified. In October, the revenue model of vETH was updated synchronously. Based on the original verification rewards, GAS revenue and MEV revenue have been added.

Following vETH, in 2022, SLP will successively launch 5 staking derivatives including vKSM, vDOT, vMOVR, vGLMR, and vBNC. SLP is providing Liquid Staking services for more and more PoS chains.

Current mint volume data.
![1_TSZfC-Jl56Ff176_1EoNfQ.webp](https://cdn.bifrost.finance/cms/1_TS_Zf_C_Jl56_Ff176_1_Eo_Nf_Q_5b83af263a.webp)

In terms of the governance of the SLP protocol, we began to implement a more intelligent validator election scheme this year. Previously, we elected entrusted validators through parliamentary voting. The new scheme has been further optimized based on the original scheme:

We divide the entrusted node seats into two parts, namely Validator White List (VWL) and Validator Boost List (VBL). The former will be generated according to a set of clear node selection rules, and the latter will be generated through the active application of nodes and community voting Approval occurs. The SLP protocol will only entrust the assets pledged by the user to the nodes in these two Lists.

We plan to launch a governance voting track dedicated to node elections — Validator Election Track (VET) in conjunction with Polkadot OpenGov. Both VWL and VBL need to pass the VET voting process before they can officially take effect. VET is a referendum process, which means that the power that originally belonged to the parliament now belongs to the Bifrost community as a whole.

## SALP

The SALP protocol also ushered in a major upgrade in 2022. First, the SALP protocol was migrated to the Bifrost-Polkadot parachain shortly after Bifrost bid for the Polkadot parachain slot. This means that SALP can start supporting auctions for Polkadot parachain projects.

Secondly, in SALP 2.0, we have added the Convert function of vsToken and vsBond, so that the two can be converted into each other in two directions. Compared with vsBond pending order transactions, users can now achieve fast vsBond conversion through SALP’s protocol pricing.

Third, with the SALP maturity and slot auctions’ normalization, we have started the self-service docking process of SALP parachains. Parachains can self-initiate proposals, apply for access to SALP services, and increase the odds of winning the auction. In 2022, SALP supported 9 Kusama parachains and 7 Polkadot parachains to win slots. They are:

![SALP 2022.png](https://cdn.bifrost.finance/cms/SALP_2022_21e7949475.png)

## XCM

XCM-based communication is the basis for the realization of Bifrost cross-chain staking derivatives, an integral part of the SLP protocol, and a guarantee for the broader circulation of derivatives created by the SLP/SALP protocol. Therefore, Bifrost has been working hard to promote opening HRMP channels between Bifrost parachains and more parachains. HRMP is a test version of XCMP, which will be replaced by XCMP later.

Bifrost has established HRMP channels with 4 Polkadot parachains and 9 Kusama parachains to support a two-way cross-span of assets.

![HRMP Channel Summary 2022.png](https://cdn.bifrost.finance/cms/HRMP_Channel_Summary_2022_b115c7e0b1.png)

## Bifrost Parachain Collator Decentralization
On March 22, Bifrost officially launched the Collator module on the main network and started BNC Staking to realize the decentralization of block collection. The operation cycle of the Collator is 600 blocks, and each round takes about 2 hours. The round is settled once, and the effective time of any operation to increase or release the pledge is calculated according to the round.

In the initial stage of the mainnet Collator launch, Bifrost will open 16 active Collator quotas. As the on-chain network runs stably, Bifrost will gradually release the active Collator quota up to a maximum of 64.

BNC has no inflation mechanism, and Collator rewards are reserved in advance. According to the economic model design, 5% of the total circulation of BNC is used for Collator incentive construction. The total incentive for the first year is 800,000 BNC.

## Bifrost Dapp

After the upgrade of Bifrost Dapp, the interface has a new look. The dashboard page layout has been adjusted to display the user’s personalized data intuitively. The Farming page display has also been optimized, and the classification and display of information are clearer. The interface of the new version of Dapp is more refreshing, the experience is more natural, and the operation is smoother.

![1_rFAnzIKUsLHHFzg8cV2CXg.webp](https://cdn.bifrost.finance/cms/1_r_F_Anz_IK_Us_LHH_Fzg8c_V2_C_Xg_3587128dc0.webp)

## Rainbow Boost

The Rainbow Boost, officially launched in May 2022, is a system that marks, points, and motivates addresses on the Bifrost chain. During the open window period of Rainbow Boost, participants receive Raindrop points and Back to Asgard NFT rewards by completing specific behaviors, like a customer loyalty program of Bifrost.

![1_UYOM5dy9IPby2A6zQSYizA.webp](https://cdn.bifrost.finance/cms/1_UYOM_5dy9_I_Pby2_A6z_QS_Yiz_A_cd59ca2d56.webp)

From May to September, we launched four rounds of Rainbow Boost activities, with more than 10,000 participants cumulatively, and completed the casting of vKSM, equivalent to 138,014 KSM, and vDOT, equivalent to 147,477 DOT.

## Cooperation
Safe, high-yield nodes are the goal of our close cooperation. On August 20, Bifrost agreed with Blockdaemon, a high-quality node provider. Blockdaemon is the first Kusama node of SLP after the release of vKSM. On September 7, after the release of vDOT, Bifrost established a long-term partnership with Coinbase Cloud, another high-quality node provider. Establishing cooperation, Coinbase Cloud provides high-quality node services for SLP and facilitates deep liquidity for DOT-vDOT.

Web3.0 wallets are the entrance for most users to participate in Web3.0 services. In 2022, we established cooperation with TokenPocket, MathWallet, NovaWallet, Talisman, Subwallet, and Enkrypt, and they have integrated SLP into their products, to provide users with liquid staking services.

Zenlink is an old partner of Bifrost. Zenlink launched the first Substrate Hybrid AMM Pallet this year, which provides stablecoin trading curves for Substrate assets. Bifrost has integrated Zenlink’s related Pallet to support vToken: Token’s Swap function.

## Activity
Community Call is held every month to inform community partners about the progress of Bifrost and explain related functions. In 2022, we held 10 Community Calls;

Bifrost also participated in 40+ online events such as salons, AMAs, Meetups, and open mics. Among them are the Twitter Space organized by Polkadot ecological partners Zenlink, RMRK, Moonbeam, Subwallet, DFG, and Pendulum, as well as various special discussions held by media partners such as Polkaworld, PolkaWarriors, Polkahaus, and Longhash.

Despite the traveling inconveniences due to the epidemic, the Bifrost team attended various offline gatherings as the main guests, including Token2049, Polkadot Decoded, Polkadot Sub0, DotSama Prague, Berlin Blockchain Week, etc., with footprints in Singapore, Berlin, Prague, Hangzhou, and Lisbon.

![Bifrost Offline Events.png](https://cdn.bifrost.finance/cms/Bifrost_Offline_Events_0a904e0363.png)

## 2023 plan

Overall, in 2022, we have largely accomplished our expected goals:

- As a Kusama/Polkadot parachain, Bifrost has been running stably for a long time, and its stability has withstood the test of time;
- The SALP/SLP protocol has laid a solid foundation and entered the stage of business expansion and cross-chain expansion;
- From the launch of Collator to the upgrade of governance, the governance of the Bifrost chain itself is becoming increasingly decentralized;
- There are more ecological partners establishing cooperation and integration relationships with Bifrost, and Bifrost is being woven into a large DeFi network and becoming an indispensable part of the network;
- We have gradually matured in terms of event promotion and user education, and some successful experiences are becoming normal operations.

Continuing the achievements of 2022, we still have a lot to do in 2023:

## SLP

### Upgrade vETH

First, the current vETH income is automatically distributed to the holder’s address. In the next stage, we will update the vETH contract and settle the vETH income through the minting price increase model, which is consistent with other vTokens. Second, if Ethereum enables the unstake of ETH, we will simultaneously enable the redemption function of vETH.

Third, vETH is an ERC20 native asset. Since there is no trust-minimized bridge between Ethereum and Polkadot, we have never realized the dual-chain asset attribute of vETH. In 2023, we will use a trust-minimized bridge like Snowfork to bridge ERC20 vETH to the Bifrost chain and become Substrate’s native asset.

### Launch new vToken types

In 2023, we plan to launch six new vToken types: vFIL, vPHA/vKHA, vASTAR/vSDN, and vATOM. In addition, we also plan to develop the Liquid Staking service of Ethereum Layer 2.

### Enable System Staking

System Staking refers to using assets in the Bifrost sovereign account to participate in Staking. We plan to start System Staking and subsidize its income to vToken holders to further increase the comprehensive rate of return of vToken.

### Support vToken holders to participate in the governance of the original chain

The current SLP version has a problem. When users cast Tokens into vTokens, they virtually lose the governance rights carried by the original Tokens. In 2023, we will establish a governance middle layer to support vToken holders to vote on various governance proposals of the original PoS chain. The SLP protocol will mirror the sovereign original locked token, allowing governance participation.

### Building a money market for vTokens

We will build a native vToken mortgage and lending market on the Bifrost chain, further increasing the usage scenarios and capital efficiency of vToken.

## Cross-chain bridging

- We will use the Substrate Common Bridge to connect the Bifrost-Kusama parachain and the Bifrost-Polkadot parachain.
- We will develop a liquidity call interface to support applications on other chains, and call the liquidity of vToken on Bifrost through XCM for collateral liquidation to facilitate the integration of SLP on lending agreements on other chains.
- Bifrost will integrate snowfork and open the Bifrost-Ethereum bridge
- We plan to integrate a trust-minimized third-party cross-chain bridge and open the Bifrost-Cosmos bridge.

## Governance

We will integrate Polkadot’s OpenGov Pallet and open the VET governance track to support the election of validators.

We will update Bifrost’s governance model, and BNC holders may need to pledge BNC to obtain veBNC to participate in governance.

## Others
We will integrate RMRK, support native NFT functions, and officially release the Back to Asgard series of NFTs. The NFTs will be distributed on the Singular NFT platform.

The Bifrost team has updated the 2023 Roadmap plan. Please visit [Notion](https://www.notion.so/bifrost-finance/7df6abf2acb54b398df75230e157c7da?v=02ecfe941c5242c3b5f8c77654512b80) for more detailed quarterly plans to inquire.

## Final Thoughts

In this fast-moving time scale, we are working hard to leave deep footprints. In 2023, we will still insist on doing everything well to welcome the new year’s transformation. We’re humbled by the continued dedication and enthusiasm of our Bifrost community. 2022 was an impressive year, filled with growth and achievements, thanks to our loyal supporters! As we press forward into 2023 full of optimism, positivity, and ambition remain at the forefront in order for us to reach unprecedented heights.

Bifrost Annual Report | Recapping 2022 & Looking Ahead to 2023

## ETH Shanghai Upgrade

Since its launch in 2015, the Ethereum blockchain has implemented several major upgrades as follows: Byzantium (2017), Constantinople (2019), St. Petersburg (2019), Istanbul (2019), Berlin (2021) and London (2021).
Each upgrade covers an important event in the history of the evolution of Ethereum and the upcoming “Shanghai Upgrade” is no exception.

The Shanghai Upgrade is the last milestone in the Ethereum transition from PoW to PoS, which will open up the unstake feature of ETH. Previously, in December 2020, Ethereum released its Beacon Chain, which opened the Stake function of ETH and entered the era of dual-track system of PoS and PoW. In September 2022, Ethereum completed The Merge, which transformed it into PoS chain and ended algorithmic mining. However, the unstake function will not be officially opened until the Shanghai upgrade is completed.

![1_eoe9VhkKdoa9wI1S2x5L-A.webp](https://cdn.bifrost.finance/cms/1_eoe9_Vhk_Kdoa9w_I1_S2x5_L_A_0a90f6dc81.webp)

According to the official Ethereum network data, the number of PoS verifiers in the Ethereum network has exceeded 510,000, and the total number of stakings exceeds 16.4 Million ETH! All these ETH are now “locked” in the Ethereum network, waiting for the Shanghai upgrade to open unstake before they can be withdrawn. As a result, the Shanghai Upgrade has become a highly anticipated event in the Ethereum ecosystem.

In October 2022, in preparation for the Shanghai Upgrade, Ethereum developers launched a test network codenamed “Shandong” to find bugs and potential problems. On February 7, 2023, Ethereum launched the Shanghai upgrade on the testnet codenamed “ZheJiang” and successfully simulated the unstake process. Next, the development team completed the Sepolia testnet upgrade (February 28) and the Goerli testnet upgrade (March 14).

According to the latest news released by the official Ethereum, the Ethereum mainnet will be officially upgraded at block height 6209536 (22:27 pm GMT on April 12). At that time, the unstake function on the mainnet will be officially opened.
## 
Impact of Shanghai Upgrade

Some may think that the upgrade to open unstake in Shanghai will cause a sell-off in ETH. But in fact, according to the recent price performance of ETH, most investors have the opposite expectation. There are two reasons for this: Firstly, after the unstake is opened, there is a limit to the number of unstakes per day, which is not a big impact compared to the daily trading volume of ETH; secondly, the enthusiasm of ETH holders to participate in staking will increase significantly. Staking ratios for mainstream PoS chains are generally between 40% and 70%, while the staking ratio for ETH is currently only about 16%, leaving plenty of room for growth.

Based on the expectation of a huge new wave of stakings, staking-related services such as Liquid Staking, have gained the attention of investors, and considering Ethereum can count on dozens of liquid staking protocols, this narrative has growth.

Liquid Staking protocols issue a voucher token, a sort of receipt passes, for those users who want to participate in Stake keeping their liquidity, which can be freely circulated, traded at any time, repackaged or involved in more interest-bearing activities. In this way, Liquid Staking allows users to earn Staking rewards without locking up their liquidity, thereby increasing the efficiency of their capital.

## About vETH

Bifrost is a protocol that has been in the Liquid Staking game since 2019. At the time of Ethereum’s beacon chain release, Bifrost went live with vETH 1.0 related contracts and released an liquid staking token: vETH. vETH’s minted volume is currently 20,094, ranking steadily in the top 10 of all types of ETH liquid staking token.

vETH is run on the Bifrost Staking Liquidity Protocol (SLP) contract, which allows users to lock in ETH for vETH minting at any time without any basic knowledge or technical ability regarding verifying nodes.

vETH is one of the assets in the Bifrost vToken collection. Bifrost is a parachain to Polkadot, and by using the bridge between Ethereum and Polkadot, vETH can easily move between Polkadot and Polkadot as a native asset in both the EVM environment on Ethereum and the Substrate environment of the Bifrost chain. vETH holders can take full advantage of the interest-bearing opportunities in both and gain greater returns.

## About vETH2.0

With the implementation of the Shanghai upgrade, the vETH contract will be upgraded simultaneously, vETH2.0 will be launched, and the unstake function will be enabled. vETH holders will be able to redeem the originally staked ETH with interest. Different from vETH 1.0, the vETH 2.0 contract is an upgradeable contract, which means that it will add more features through upgrades in the future to help vETH achieve higher security, decentralization and more practicality.

As soon as the vETH 2.0 contract will go live, the vETH payout will change. Previously, vETH payouts were distributed in the form of Rebase, with payouts made in the form of vETH to the vETH holder’s account and required a manual Claim by these users.

This format was not effective to integrate vETH with major DeFi applications, as a Token that requires a manual Claim is a non-standard Token for DeFi protocols. With the deployment of the vETH 2.0 contract, gains will be paid out via exchange rate escalation, eliminating the need for vETH holders to manually Claim. vETH’s Staking gain will be automatically reflected in the ETH’s local price.

TIt is expected that vETH 2.0 will add a fast redemption feature. With this feature, user-initiated unstake requests are matched with new stake requests in the system to shorten the unstake waiting period. This feature is one of the basic features of the vToken family of tokens. (Of course, users can also swap vETH back to ETH at any time via the vETH/ETH liquidity pool, at a possible discount, which was also possible with the previous version of vETH 1.0).

vETH 2.0 will also plan to incorporate DVT (Distributed Validator Technology) for more robust node risk control and a higher degree of automation.

To learn more about vETH 2.0: https://wiki.bifrost.finance/staking-liquidity-protocol-slp/veth

## vETH 2.0 Go Live Steps

The vETH2.0 contract will be tested on the Zhejiang testnet, the Sepolia testnet, and the Goerli testnet, and a code audit will be started at the same time. After the testing and code audit are completed, we expect to officially launch the vETH2.0 contract on the mainnet at 12:00 on April 6, 2023. The vETH2.0 go-live timeline is as follows:

- At 12:00 on March 31 (UTC+8), the claim function of vETH 1.0 has been disabled. After that, the reward were released through the vETH 2.0 increase. The first increase in the vETH 2.0 exchange rate is within 24 hours of the successful upgrade of ETH Shanghai (the reward will be issued in one go through the first exchange rate increase during the period from 12:00 on March 31 to the successful upgrade of Shanghai)

- April 6 18:00 (UTC+8), vETH2.0 contract will be officially online, users will be able to swap their vETH1.0 1:1 for vETH2.0.
The swap portal will be open for a long time.

- At 18:00 on April 10th (UTC +8) vETH/ETH Farming will be launched on bifrost.app, and LP staked to the Bifrost protocol will be rewarded with xcBNC (the EVM version of BNC)

- April 13, 6:27 (UTC+8): After the Shanghai upgrade is completed, Bifrost will open vETH 2.0 redemption after the ETH mainnet is running stably. The specific time will be announced.

Related Links:

- Token address of vETH 2.0: https://etherscan.io/token/0x4bc3263eb5bb2ef7ad9ab6fb68be80e43b43801f
- Token address of vETH 1.0: https://etherscan.io/token/0xc3d088842dcf02c13699f936bb83dfbbc6f721ab
- vETH 2.0 audit report: https://github.com/bifrost-finance/bifrost-vETH-2.0/tree/main/audit
- vETH 2.0 open source code: https://github.com/bifrost-finance/bifrost-vETH-2.0

## About xcBNC

BNC is a native asset of the Bifrost chain and cannot be used directly in the EVM ecosystem: it needs a cross-chain wrapped version of BNC - xcBNC. XC cross-chain allows users to cross-chain BNC from the Bifrost chain to the Moonriver chain, and after cross-chaining, BNC is automatically converted to xcBNC. xcBNC can then be cross-chained to other EVM chains, including Ethereum, via Multi-chain.

Token address of xcBNC: https://etherscan.io/token/0x1fd097b75679a2896c007da75f4c74598a46bb7e

## Conclusion

Bifrost is keeping pace with the Shanghai Upgrade, step by step, testing, auditing, going live with vETH contracts and turning on liquidity incentives. The new vETH2.0 will be more secure, scalable and composable. Although the migration from vETH1.0 to vETH2.0 is non-mandatory and not time-limited, we strongly recommend that you complete the migration as soon as possible because

- vETH2.0/ETH will become the main official liquidity pool and will be more liquid;
- participation in liquidity Farming of vETH2.0/ETH will be rewarded with xcBNC;

vETH2.0 is an EVM and Substrate dual environment asset that can easily move between the EVM ecosystem and the Polkadot ecosystem, enjoying interest-generating opportunities on both sides.
We will release detailed operation guidelines for replacing vETH2.0 and participating in vETH/ETH liquidity farming later, so please stay tuned.

Bifrost Announces The Official Launch of vETH 2.0, Supporting The ETH Mainnet Shanghai Upgrade

# 技术开发
## Bifrost v0.9.94
- 新增 SLPX SDK 在 Moonbeam 上动态添加 vToken 的支持功能
- 升级依赖至 Polkadot v1.3.0
- 新增对 vASTR DappStaking v3 版本的支持
- 恢复损坏的 referenda 数据
- 上线 Channel Commission 模块

## Dapp 1.8.8
上线 Loop Stake
优化 vToken 历史曲线，新增时间范围切换

## Omni LS 1.0.3
支持 vASTR zkEVM 网络

## Bifrost 官网 1.3.2
升级 News 板块为 blog

# 产品进展
- 流动性衍生品方面，vDOT 单月铸造净增长 1,511,049 枚，总铸造量 (TVS) 超 8,027,910 枚，单月增长 18.82%; vASTR TVS 突破 23,499,361 枚, 总锁仓量超 (TVL) $3.3M；本月 Bifrost 总 TVL：$142,845,351。
- 3月13日，Bifrost 发布首个 vToken 杠杆质押类产品 Loop Stake，旨在帮助用户一键完成以 vToken 为抵押品的循环质押，实现多倍的 Staking 收益。目前，Loop Stake 中已累积近 90,000 DOT 流动性供杠杆质押使用，最大可实现平均高于 DOT 质押 5% 的 APY。[LoopStake 入口](https://x.com/MantaNetwork/status/1759876622201839996?s=20)
- Interlay 社区用户正在探索将 BNC 加入 Lend Market 的用例，目前该[提案](https://interlay.subsquare.io/democracy/proposals/101)正在投票阶段。若提案通过，BNC 将被纳入 Interlay 借贷市场，作为抵押物亦或者抵押其它资产借出 BNC。
- Bifrost 正在对 Polkadot 社区 Meme 项目 Pink 以及 DED 进行空投的统计与计算。具体分发时间及细节请进入 Bifrost 官方社群，并持续关注 PINK 及 DED 的官方公告。

# 市场运营
- 3 月 13 日，Polkadot 开发者大会在曼谷开幕，Bifrost Product Manager Tyrone 在 Polkadotsub0 的会议上发表了[关于 Bifrost SLPx 潜力的演讲](https://twitter.com/0xBifrostCN/status/1767806698910351857)，并分享了最新上线的功能杠杆质押 Loop Stake。
- 3 月 20 日，[PINK 赛车联赛](https://twitter.com/0xBifrostCN/status/1770393345652937014)结束，吸引了数百名参赛选手的参与，并选出了 33 名获奖者，瓜分由 Bifrost 提供的 10,000 枚 GLMR 的专属奖池。
- 3 月 21 日，[vDOTisDED 活动](https://twitter.com/0xBifrostCN/status/1770788067676221612)圆满落幕，超过 11,000 名用户访问了 Airlyft 上的活动页面，其中近 3,000 个地址成功完成了任务。
- 3 月 22 日，Bifrost vDOT 持有者将收到 [PINK 空投代币](https://twitter.com/0xBifrostCN/status/1771118834998804945)，本次空投活动是针对在 Bifrost、HydraDX、Interlay、Moonbeam 以及 Astar 网络上持有 vDOT 福利之一。
- 3 月 28 日，Bifrost 上线 [Website Blog](https://bifrost.finance/blog)，未来将发布 Bifrost 的最新公告、行业趋势、研究教育和产品介绍等内容，满足用户第一时间对 Bifrost 消息的需求。

月报丨vDOT 总铸造量 (TVS) 超 8,027,910 枚

## 技术开发

### Dapp 1.9.0

- 右下角新增帮助中心，可以快速定位到 Docs 教程，或者 Discord help 频道
- vToken unsatke 页面增加用户地址赎回数量限制展示&公开队列展示

- 新增 vToken 计算器，用户可以手动输入投资量和持有时间来快速查看相关收益
- vToken Governance 卡片优化，用户可以更直观地看到更多关于公投和自己投票的信息
- 添加流动性界面添加 Stable swap 添加流动性的特点介绍避免用户疑惑
- 优化 Assethub 资产跨入前对用户地址手续费的检查
- Collator 赎回状态展示优化，成功赎回更明显地展示
- Loopstake 部分解释文案优化

### Bifrost 官网 1.3.3

- SEO 优化

### Runtime 11000

- 增加对 Currency Metadatas 进行修改的方法
- 增加直接查询 vToken 汇率的 RPC
- 新增 BNC 回购功能
- Zenlink 手续费接收地址调整为可自定义
- SLPx pallet 适配新版 Commission channel
- Polkadot SDK 1.7.0 升级
- 去除 SLP refund 逻辑
- 修复 vToken Voting 在调用 unlock() 后用户锁定金额异常的问题

## 产品进展

本月 Bifrost 总锁仓量（TVL）达到 87,404,549 美元，vDOT 总铸造量 (TVS) 为 **9,164,677** 枚;

其中，vASTR 表现亮眼，总铸造量（TVS）突破 **24,687,994** 枚, 总锁仓量超 (TVL) $1.71M，单月增长 8%；

- 本月，[vToken Reward-Share Program](https://docs.bifrost.io/partners/vtoken-reward-share-program) 正式启动。申请者可通过链上公投加入到该项目中，其目标旨在帮助 Bifrost 与各生态社区、协议、开发者建立长期的战略合作伙伴关系，共享协议收入，增加 vToken 的资产规模。

- Hydration Summer Liquidity Campaign 已开启，vDOT 作为 Omnipool 中 TVL 排名前三的资产，在此次激励活动中享有同时获得 vDOT 与 HDX 的机会。同时，BNC 也即将加入其中作为第三种激励 Token。为 vDOT [提供流动性](https://app.hydration.net/liquidity/all-pools?id=15)并参与 Farming，获得可观收益。

![farming.png](https://cdn.bifrost.finance/cms/farming_e60cea2bb8.png)

- Dapp 更新：多链 vToken 持有地址数量已纳入 Stakers 的数据统计范围。

![dapp.png](https://cdn.bifrost.finance/cms/dapp_36464ef934.png)

## 市场运营

6 月 3 日，Bifrost 社区联合 AIweb3 以及其他波卡生态项目方社区共同举办了[端午节特别活动](https://x.com/aiweb3dao/status/1797390427693400141)，参与用户可以瓜分近 1000 U 等值代币奖励。

6 月 6 日，Bifrost Business Strategy 负责人 Thibault 出席了由OpenGuild 和 Polkadot 举办的「[Polkadot Connect - Explore DeFi & Ecosystem Liquidity](https://twitter.com/openguildwtf/status/1800159648827556106)」线下活动，并对 Polkadot 中的流动性质押，投资挑战及偏见和 Appchain 用例进行了小组讨论与演讲。

6 月 8 日，Bifrost 联合创始人 Lurpis 空降越南「[GM Vietnam 2024](https://twitter.com/Bifrost/status/1799339756301553804)」活动现场，与来自全球的 Web3 人探讨加密行业的最新动态以及寻找市场增长与未来的发展机遇。并在 Polkadot 展台与参会嘉宾互动。

6 月 13 日，Bifrost 正式推出了 [vToken 渠道分佣计划](https://twitter.com/Bifrost/status/1801206048046608797)，获得长期稳定的收益。Bifrost 希望与越来越多的合作方一道，通过利益分享，构建加密领域的共生系统。

6 月 29 日，Bifrost 全球社区经理 Thomas RIVIERE 受邀出席 Substrate Saturday 举办的「[去中心化之声计划：如何影响 Polkadot 和 Kusama 的未来发展？](https://twitter.com/i/spaces/1mrxmyMXQEgxy)」主题活动，与其他嘉宾分享他们在参与 DV 计划中的经验和治理见解。

月报｜vASTR 总铸造量（TVS）突破 24,600,000 枚

## Development

### Official Website Enhancements

- **Help Center:** Added a Help Center on the official website for quick access to tutorials and the Discord channel.
- **vToken Unstake Page:** Now displays the redemption limit and shows the public queue.
- **vToken Calculator:** Introduced a calculator where users can manually input their investment amount and holding period to quickly view potential earnings.
- **Governance Card Optimization:** Enhanced the vToken Governance card, allowing users to see more information about referendums and their votes more intuitively.
- **Stable Swap Liquidity:** Added an introduction to the Stable swap liquidity feature in the liquidity interface to prevent user confusion.
- **Assethub Fee Check:** Improved the verification of fees before transferring assets into Assethub.
- **Collator Redemption Status:** Enhanced the display of Collator redemption status, making successful redemptions more evident.
- **Loopstake Explanations:** Improved explanatory texts in Loopstake page.

### Bifrost Website Version 1.3.3

- Search Engine Optimization

### Runtime Version 11000

- **Modification:** Added methods to modify `currencyMetadatas`.
- **vToken Exchange Rate RPC:** Added RPC for directly querying vToken exchange rates.
- **BNC Buyback:** Introduced BNC buyback functionality.
- **Customizable Address for Receiving Zenlink Fee:** Users can set the address to receive Zenlink fee.
- **SLPx Pallet:** The SLPx pallet supported new Commission channel.
- **SDK Update:** Upgraded to Polkadot SDK 1.7.0.
- **SLP Refund Logic Removal:** Removed the SLP refund logic.
- **vToken Voting Fix:** Fixed the issue where users' locked amounts were abnormal after calling `unlock()` in vToken Voting.

## Products

On June 2024, Bifrost's total value locked (TVL) reached $87,404,549, and the total minted amount (TVS) of vDOT was **9,164,677**.

Among them, vASTR performed remarkably well, with a total minted amount (TVS) exceeding **24,687,994** and a total value locked (TVL) of over $1.71 million, representing an 8% growth for the month.

- [vToken Reward-Share Program](https://docs.bifrost.io/partners/vtoken-reward-share-program) officially launched and applicants can join the program through on-chain voting. This program aims to help Bifrost establish long-term strategic partnerships with various ecosystem communities, protocols, and developers, share protocol revenue, and increase the asset scale of vTokens.
- The Hydration Summer Liquidity Campaign has started. As one of the Top3 assets in TVL in the Omnipool, vDOT enjoys the opportunity to earn both vDOT and HDX in this incentive campaign. Additionally, BNC will soon join as the third incentive token. [Provide liquidity for vDOT](https://app.hydration.net/liquidity/all-pools?id=15) and participate in Farming.
![farming.png](https://cdn.bifrost.finance/cms/farming_e60cea2bb8.png)
- **Dapp Update**: The number of multi-chain vToken holding addresses has now been included in the Stakers data statistics.
![dapp.png](https://cdn.bifrost.finance/cms/dapp_36464ef934.png)

## Marketing

**Online Campaigns**

On June 3rd, the Bifrost community, in collaboration with AIweb3 and other Polkadot ecosystem communities, hosted a special [Dragon Boat Festival](https://x.com/aiweb3dao/status/1797390427693400141) event. Participants had the opportunity to share in token rewards worth nearly 1000 USD.

**IRL Events**

On June 6th, Thibault, the Head of Business Strategy at Bifrost, attended the “[Polkadot Connect - Explore DeFi & Ecosystem Liquidity](https://twitter.com/openguildwtf/status/1800159648827556106)” IRL event hosted by OpenGuild and Polkadot. He participated in a panel discussion and gave a speech on topics including liquidity staking in Polkadot, investment strategy, and Appchain use cases.

On June 8th, Lurpis, the Co-Founder of Bifrost, made a surprise appearance at the "[GM Vietnam 2024](https://twitter.com/Bifrost/status/1799339756301553804)". He discussed the latest trends in the crypto industry and explored market growth and future development opportunities with Web3 enthusiasts from around the world. Additionally, he interacted with attendees at the Polkadot booth.

**New Program**

On June 13th, Bifrost officially launched the [vToken Channel Reward-Share Program](https://twitter.com/Bifrost/status/1801206048046608797), offering partners the opportunity to earn long-term, stable income. Bifrost aims to build a symbiotic system in the crypto space through profit sharing and collaboration with an increasing number of partners.

**Twitter Space**

On June 29th, Thomas RIVIERE, the Global Community Manager of Bifrost, was invited to attend the "[How the Decentralized Voices Initiative can shape the future of Polkadot and Kusama?](https://twitter.com/i/spaces/1mrxmyMXQEgxy)" event organized by Substrate Saturday. He shared his experiences and governance insights gained from participating in the DV program alongside other guests.

Bifrost Monthly Report | June 2024

## TL;DR

在 Bifrost 经济模型 2.0 提案中， Bifrost 计划使用协议利润的 100% 用于回购 BNC，并将其中 90% 分配至 bbBNC 持有者，剩余 10% 将被销毁。

2024 年下半年，Bifrost Team 的核心任务是完成 Bifrost 2.0 的上线，在这次大版本更新中，Bifrost 将上线全新的经济模型，完成 Bifrost Kusama 与 Bifrost Polkadot 平行链的跨链和合并，实现 Bifrost Polkadot Collator 的去中心化，兼容 EVM 生态并打通 Ethereum 及 L2 跨链，并推出 BNC 2.0 启动 Campaign。

在加密领域，有观点认为：Token 是比区块链技术本身更伟大的发明。这句话或许只是一句哗众取宠的爆论，但确实在提醒我们，Token 经济的设计对于加密协议的成功至关重要。

Bifrost 经济模型 2.0 提案已在社区发布，提案中，最核心的变化便是 bbBNC (Buy Back BNC) 的推出。 bbBNC 将可以通过锁定 vBNC 获得，享有协议治理权的同时，可以直接分享 Bifrost 协议的收益。

## Bifrost 经济模型 2.0 提案内容

[本提案](https://bifrost.subsquare.io/posts/77)提议将 Bifrost 协议利润的 100% 用于回购 BNC，并将其中 90% 分配至 bbBNC 持有者，剩余 10% 将被销毁，bbBNC 全称 Buy Back BNC，是 BNC 的一种锁仓票据，用于分享协议收益。

_*协议利润 = 协议收入 - 协议运营成本_

![Market Material BNC 2.0 framework.png](https://cdn.bifrost.io/cms/Market_Material_BNC_2_0_framework_28f0ef955d.png)

## 如何获取 bbBNC

用户通过质押 BNC 获取 vBNC，再锁定 vBNC 来获取 bbBNC，锁定的 vBNC 数量越多，锁定时间越长，获得的 bbBNC 数量越多。该机制与 Curve 协议的 veCRV 获得机制类似。

在 Bifrost 以往的运营活动中，获得 Raindrops 积分的用户，可以使用 Raindrops 积分兑换 bbBNC，这部分 bbBNC 并非直接 Mint 产生，而是从 Bifrost 协议财库中支出。

bbBNC 不可转账，到期之后可以赎回锁仓的 vBNC，如果在未到期前赎回，会产生一定的 Slash，Slash 将全部计入协议收入，并参与 BNC 回购、销毁和 bbBNC 激励。

![profit.png](https://cdn.bifrost.io/cms/profit_c808cbfc5c.png)

## 持有 bbBNC 有哪些权益

- **收益分配权**：bbBNC 持有者能够参与协议收益的分配。具体比例根据 bbBNC 的持有量和锁仓时间决定。持有量越大、锁仓时间越长，分配的比例越高。

- **Staking 收益**：由于 bbBNC 是由 vBNC 锁定所得，所以 bbBNC 会集成 vBNC 携带的 Staking 收益；

- **治理权**： vBNC 继承了 BNC 的治理权，而bbBNC 会继承 vBNC 的治理权，bbBNC Holders 可以参与 Bifrost 协议的治理投票；

- **Farming 增益**：bbBNC 持有者参与 **vToken Farming** 可以获得一定的**激励加成**。

## Bifrost 协议收入来源

Bifrost 作为领先的全链流动性质押协议，拥有多项协议收入，包括：

1. **vToken 佣金**：在提供流动性质押服务时，协议会从质押收益中收取一定佣金作为协议收入转入协议财库当中，这是目前 Bifrost 协议收入的主要部分；
2. **System Staking 收入**：Bifrost 系统账户中的资产质押产生的收入；
3. **链上手续费**：Bifrost Parachain 作为一条独立的 App Chain，用户在 Bifrost 链上进行交易时需要支付交易手续费，也就是 Gas 费；
4. **vToken 交易手续费**：Bifrost 为 vToken 建立专属的 LST 稳定交易池（LST Stable Swap），用户使用该池兑换 vToken，支付的手续费，大部分给到 LP 之外，也会有一部分分享给 bbBNC Holders；
5. **扩展应用收入**：Bifrost 还将围绕流动性质押，推出各种扩展应用服务，包括 LST 杠杆质押（Loop Stake），用户使用这些服务都会给 Bifrost 协议带来收入，从而给 bbBNC Holders 带来收益；
6. **bbBNC 提前赎回 Slash**：bbBNC 如果在未到期前赎回，会产生一定的 Slash，Slash 将全部计入协议收入。

## bbBNC 对 Bifrost 协议的意义

在当前的 Bifrost 经济模型中，协议的主要收入是进入财库，并直接用于业务拓展（vToken 铸造激励、流动性激励、渠道激励等），这种模式在推动 Bifrost 业务增长上发挥了一定作用，但未使 BNC 持有者直接获益，而在 Bifrost 经济模型 2.0 提案中假设有 40% 的 Staking BNC 被转化为 bbBNC，按照当前 Bifrost 协议的收入规模与 BNC 的价格，持有 bbBNC 的年化收益可以达到 100%以上。

更高的 BNC 价值捕获为 Bifrost 带来更高的市值，从而推动更多的 LST 应用场景，更多的应用场景会促进 vToken 的综合收益率提升（Staking 收益率+ vToken Restaking 收益率），从而带来更多的 vToken 铸造。更多的 vToken 铸造意味着更多的协议收入，这将提升 bbBNC 持有者的收益，从而进一步为 BNC 捕获更多价值，**形成一个正向的增长飞轮**，而 bbBNC 就是这个增涨飞轮的引擎，促使代币持有者与 Bifrost 协议利益高度统一起来，更大动力为共建 Bifrost 协议做出贡献。

![BNC20-3.png](https://cdn.bifrost.io/cms/BNC_20_3_6d192eb6f6.png)

## 路线图

目前 Bifrost 2.0 升级已正式启动，以下是正在进行中的路线图，您可以加入 [Bifrost Dsicord](https://discord.com/invite/bifrost) 社区获取最新进展，或在 gov-discussions 频道中参与 Bifrost 经济模型 2.0 的提案讨论。

![BNC 2.0 Roadmap (4).png](https://cdn.bifrost.io/cms/BNC_2_0_Roadmap_4_cef5ffcd80.png)

## 小结

DeFi 协议是在加密市场中少数已经完成了 PMF 验证的赛道，不少 DeFi 协议都有着稳定的盈利能力。但一直以来，DeFi 协议代币往往都是单纯的治理代币，持有者都无法分享到这些盈利。

DeFi 协议代币本就该具备更完整的权利，而非仅仅是治理权。我们的判断是，随着社区的觉醒、市场注意力从金融虚无主义到价值投资的回归、以及监管政策的清晰化，DeFi 协议向代币持有者分享收益必将成为趋势。

无论是 Uniswap 宣布向 UNI 持有者分享收益，还是 Bifrost 在新经济模型中推出 bbBNC，都是对这种趋势的呼应。

Bifrost 协议于 2019 年创建，经过市场周期的锤炼，产品和运营战略都日趋成熟，已具备稳定的业务和持续的创收能力。在此基础上，由于 Bifrost 在链抽象领域的率先布局，Bifrost 拥有巨大的增长潜力，随着更多的资金进入，协议的价值与收益也将不断增加。

bbBNC 的推出，将让 Bifrost 正式迈向**社区共治、社区共享，具备强健生命力的去中心化协议**。

Bifrost 经济模型 2.0 提案，提议协议利润的 100% 用于 BNC 回购和销毁

## TL;DR

In the Bifrost Tokenomics 2.0 proposal, Bifrost plans to use 100% of protocol profits for BNC buybacks, with 90% allocated to bbBNC holders and the remaining 10% to be burned.

## Highlights

In the second half of 2024, the core mission of the Bifrost Team is to launch Bifrost 2.0. This major update includes several key initiatives:

- Bifrost will launch its new tokenomics.
- Complete the cross-chain integration and merging of Bifrost Kusama and Bifrost Polkadot parachains into one.
- Achieve decentralization of the Bifrost Polkadot Collator set.
- Ensure compatibility with the EVM ecosystem and establish cross-chain connectivity with Ethereum and its L2.
- Launch the BNC 2.0 launch campaign.

In the field of cryptocurrency, there is a viewpoint that suggests: Tokens are a greater invention than blockchain technology itself. This statement may sound sensational, but it serves as a reminder that tokenomics design is crucial for the success of crypto protocols and broadly for businesses.

[The Bifrost Tokenomics 2.0 proposal](https://bifrost.subsquare.io/posts/77) has been released in the community, and the most significant change in the proposal is the introduction of bbBNC (Buy Back BNC). **bbBNC**, is obtainable by obtaining Bifrost liquid staking token “vBNC” and locking it. Holders of bbBNC receive staking rewards accrued in vBNC, enjoy protocol governance rights, and **directly share Bifrost protocol Profits**.

## Bifrost Tokenomics 2.0 Proposal

This proposal suggests using 100% of the profits from the Bifrost protocol for the **buyback of BNC**, with 90% allocated to bbBNC holders and the **remaining 10% to be burned**. bbBNC, short for Buy Back BNC, is a type of escrow token used for sharing the protocol's profit.

_*Protocol Profits = Protocol Revenue - Operation Cost_

![Overview of bbBNC Functions and Benefits](https://cdn.bifrost.io/cms/Market_Material_BNC_2_0_framework_28f0ef955d.png)

## How to obtain bbBNC

Users can obtain bbBNC by liquid staking BNC to acquire vBNC and then locking this vBNC to receive bbBNC. **The amount of bbBNC a user gets depends on the quantity of vBNC locked and the duration of the locking period**. For example, the longer a user locks vBNC, the more bbBNC they receive. This mechanism mirrors the veCRV mechanism in the Curve protocol.

In past community activities and Bifrost campaigns, participants earned Raindrops points. After the launch of Bifrost 2.0, these points can be exchanged for bbBNC. These bbBNC will not be minted directly but disbursed from the Bifrost treasury.

**bbBNC is non-transferable** and can be redeemed for locked vBNC upon maturity. However, bbBNC can be redeemed before maturity, but users may face slash for redeeming earlier than the set date. Slash will be fully counted as protocol revenue and will participate in BNC buybacks, burns, and bbBNC incentives.

![profit.png](https://cdn.bifrost.io/cms/profit_c808cbfc5c.png)

### Benefits of Holding bbBNC

Holding bbBNC entitles you to the following benefits:

- **Profit Distribution**: bbBNC holders will share protocol profits. The distribution proportion depends on the amount of bbBNC held and the length of the locking period. The larger the holding and the longer the lock-up period, the higher the share of the profit distribution.
- **Staking Rewards**: bbBNC, obtained by locking vBNC, integrates the staking rewards from liquid staking BNC.
- **Governance Rights**: bbBNC inherits the governance rights of BNC, allowing holders to participate in the governance of the Bifrost protocol.
- **Boosted farming**: bbBNC holders can receive additional incentives when participating in vToken farming.

## Sources of Bifrost Protocol Revenue

As a leading cross-chain liquid staking protocol, Bifrost generates multiple streams of protocol revenue, including:

1. **vToken Commission**: The protocol earns a commission from staking rewards through its liquid staking services, which are then transferred to the protocol treasury. This is a significant part of Bifrost's revenue.
2. **System Staking**: This is generated by staking assets within the Bifrost system account.
3. **Tx Fee**: As an independent app chain, Bifrost charges gas fees for transactions on the Bifrost chain. A percentage of these fees is allocated to the Bifrost treasury.
4. **vToken Swap Fees**: Bifrost establishes liquidity pools for vTokens. Users pay fees when using these pools to swap vTokens. Most of these swap fees go to liquidity providers (LPs), and a portion will be shared with bbBNC holders.
5. **Expanded Application Revenue**: Bifrost will also launch various extension application services centered around liquid staking, including LST leverage staking (Loop Stake). Users utilizing these services will generate revenue for the Bifrost protocol, thereby providing returns for bbBNC holders.
6. **bbBNC Early Redemption Slash**: If bbBNC is redeemed before maturity, a certain slash will be incurred, and the slash will be fully allocated to protocol revenue.

## The Significance of bbBNC for the Bifrost Protocol

In the current Bifrost Tokenomics, the main revenue of the protocol enters the treasury and is directly used for business expansion (such as vToken minting incentives, liquidity incentives, channel incentives, etc.). This model has played a role in promoting Bifrost's business growth, but it has not provided direct benefits to BNC holders. In the Bifrost Tokenomics 2.0 proposal, it is assumed that 40% of staking BNC be converted into bbBNC. Based on the current revenue scale of the Bifrost protocol and the price of BNC, the annualized yield for holding bbBNC could exceed 100%.

Higher BNC value capture leads to a higher market capitalization for Bifrost, which in turn drives more LST application scenarios. More application scenarios will promote an increase in the comprehensive yield of vTokens (staking yield + vToken restaking yield), resulting in more vToken minting. More vToken minting means more protocol revenue, which will enhance the returns for bbBNC holders, further capturing more value for BNC and forming a positive growth flywheel. bbBNC serves as the engine of this growth flywheel, aligning the interests of token holders closely with those of the Bifrost protocol and providing greater motivation to contribute to the co-development of the Bifrost protocol.

![BNC20-3.png](https://cdn.bifrost.io/cms/BNC_20_3_6d192eb6f6.png)

## Bifrost 2.0 Roadmap

The Bifrost 2.0 upgrade has officially launched. Below is the ongoing roadmap. You can join [Bifrost Discord community](discord.bifrost.io) to get the latest updates or participate in the proposal discussions on the Bifrost Tokenomics 2.0 in the gov-discussions channel.

![BNC 2.0 Roadmap (4).png](https://cdn.bifrost.io/cms/BNC_2_0_Roadmap_4_cef5ffcd80.png)

## Summary

DeFi protocols are among the few crypto market sectors that have successfully achieved Product-Market Fit (PMF), with many demonstrating stable profitability. However, DeFi protocol tokens have primarily served as governance tokens, giving holders no share of the revenues generated.

These tokens should **represent total equity, not just governance rights**. We believe that as the community becomes more aware, the market shifts from financial nihilism to value investing, and regulatory policies become more explicit, sharing profits with token holders will become the norm for DeFi protocols.

Examples like Uniswap announcing revenue sharing with UNI holders and Bifrost introducing bbBNC in its new economic model are responses to this trend.

Founded in 2019, Bifrost has **matured through two market cycles**, refining its product and operational strategies to achieve stable business and revenue generation capabilities. With its pioneering efforts in chain abstraction, Bifrost has enormous growth potential. As more capital flows into the ecosystem, the protocol's value and revenue will continue to rise.

The launch of bbBNC will officially lead Bifrost towards community governance and community sharing, establishing a robust and resilient protocol.

Bifrost Tokenomics 2.0 Proposal: Allocating 100% of Protocol Profits for BNC Buybacks, with 10% Dedicated to Burn

## 技术开发

### runtime 12000

- 适配支持通用 Ledger app
- 支持来自AssetHub DOT储备，允许接受AssetHub foreign Assets类型
- 支持 EVM 地址交易
- 修复 vtokenVoing.remove vote 部分情况下不成功的问题
- Assethub 跨链手续费处理优化
- 调整 OpenGov whitelistcaller 轨道参数，现在可以更快地通过提案
- Polkadot 依赖升级

### Omni LS 1.0.5

- vMANTA on Pacific 增加铸造流动性不足提示
- 支持 OKX wallet
- Moonbeam 上上线 vASTR

## 产品进展

本月 Bifrost 总锁仓量（TVL）达到 **80,813,585** 美元，vDOT 总铸造量 (TVS) 为 8,166,105 枚;

其中，vMANTA 表现亮眼，总铸造量（TVS）突破 **6,631,049** 枚, 总锁仓量超 (TVL) $6.58M，单月增长 52%；

- 本月，Bifrost-Polkadot [Collator Rivals](https://x.com/Bifrost/status/1816785748923940961) 正式开启，该活动旨在激励节点运行者参与 Bifrost Collator 测试，为后续 Bifrost-Kusama 向 Bifrost-Polkadot 的迁移打下基础。你可以在此[查询 Collator 运行方法及配置](https://docs.bifrost.io/builders/parachain-collator/requirement)。
- Bifrost SLPx 集成协议 [omni.ls](http://omni.ls) 已支持连接 OKX Web3 Wallet，该适配允许 OKX Web3 Wallet 用户使用 Leager 一键访问多链 vToken 的铸造。
- $ BNCS 最后一轮 Farming 激励已通过[#27号公投](https://bifrost.subsquare.io/referenda/27)执行，此 Farming 包含 BNC 与 DOT 的双币激励，激励周期将持续 6 个月。
- Staking 数据平台 Staking Rewards 已全面集成 Bifrost vToken。用户可通过访问 [Bifrost 专属页面](https://www.stakingrewards.com/provider/bifrost-finance) 查询各项 vToken 数据或直接参与质押。Bifrost 已通过 Staking Rewards 官方验证。

![stakingrewards.png](https://cdn.bifrost.io/cms/stakingrewards_37960131af.png)

## 市场运营

7 月 5 日，Bifrost 诚邀各位 Sub-Fellowship 的申请者在 Bifrost-Polkadot 上[完成身份设置](https://twitter.com/0xBifrostCN/status/1809169098582143099)，根据我们提供的子小组详细信息进行一些调整，并与大家再次深入讨论与治理相关的问题。

7 月 11 日，Bifrost Council 成员 Tyrone 出席了 [Polkadot Decoded 2024](https://twitter.com/Polkadot/status/1811433904089317651) 活动，并将发表主题为「全链流动性质押如何革新 DeFi 行业」的演讲。了解 Bifrost 如何利用 XCM、SnowBridge 和 HyperBridge 等跨链组件吸引多链流动性并分享了 Bifrost 全链流动性质押的长期路线图和战略优势。

7 月 17 日，Bifrost 发布了 [BNC 2.0 代币经济学](
https://x.com/Bifrost/status/1815386444372103523
)的预告，新的代币经济框架将包括增强 $BNC 效用和价值、促进长期持有者和收入公平分配的新机制。转向收入共享经济模型标志着 Bifrost 向更广泛 DeFi 生态系统迈出了重要一步。

7 月 26 日，为了实现 Bifrost Polkadot 链的去中心化的运行与区块收集，我们即将要进行在 [Bifrost Polkadot 链上启动 Collator 模块](https://bifrost.io/zh-CN/blog/article-14)，引导 BIfrost Kusama 链上的 Collators 迁移。并提供 8,000 枚 BNC 代币，用于激励公测活动。

月报｜参与 Bifrost Polkadot Collator 测试活动，瓜分 8,000 BNC 奖励

## Development

### Runtime 0.13.0

- Optimized the flexible logic under the EVM environment.
- Aligned the algorithm for converting Substrate-derived addresses in the EVM with Assethub's future strategy.
- Added destruction logic to the BNC buyback module.
- The feeShare module now includes cumulative revenue logic.
- Updated the target address for bbBNC redemption penalty fees.
- Automated optimization of the bbBNC reward methodology.
- Added vBNC conversion functionality on Bifrost-kusama.
- Restructured the SLP vASTR functionality.
- Enabled vBNC participation in governance.

### Dapp 1.9.1

- Supported Ledger hardware wallets.
- Added related tips under Ledger hardware wallets.
- Discontinued the Collator testnet.

## Products

This month, Bifrost's Total Value Locked (TVL) reached **$68,992,701**, and the total minted amount of vDOT(TVS) was **8,459,301**, an increase of **293,196** from the previous month;

Among these, vMANTA stood out, with a total minted amount surpassing **9,353,157**, and a TVL exceeding $6.54M, marking a monthly growth of **29.1%**;

- Bifrost has [proposed adjusting the vDOT Commission Rate to 10%](https://x.com/Bifrost/status/1827194165157097836) in anticipation of the upcoming Bifrost Tokenomics 2.0 upgrade. This aims to accumulate more protocol revenue, expand vDOT integration across multiple blockchains, and ultimately guide value back to bbBNC holders. 
- Bifrost initiated the [BNC Tokenomics 2.0 proposal](https://bifrost.subsquare.io/posts/77), designed to discuss with the community the feasibility of capturing value around vToken. Revenue from various parts of the protocol will flow into bbBNC, creating a complementary economic flywheel effect between BNC and vToken. 
- The [BNC incentive proposal](https://x.com/Bifrost/status/1825593648550961253) has been approved, allowing users to earn BNC Farming rewards by providing liquidity to vASTR through Hydration.
- Bifrost Dapp now fully supports Ledger, enabling users to connect the Ledger App via Bifrost Dapp, Talisman, NovaWallet, Subwallet and experience all of Bifrost's assets and interactions. Learn the tutorial [here](https://x.com/Bifrost/status/1824023246074962320). 

![产品图片.png](https://cdn.bifrost.io/cms/_809ed21c4f.png)

## Marketing

In August, Bifrost was dynamically involved in numerous significant global events and conferences, promoting and expanding the reach of Bifrost 2.0. Below are the highlights from this month's primary activities:

### Events

- [ABS 2024 Roundtable Conference](https://x.com/aba_summit/status/1819976575892574243): On August 7, the Bifrost team participated in the ABS 2024 Roundtable Conference in Taipei, Taiwan, focusing on the latest blockchain technologies and trends. 
- [Polkaworld AMA](https://x.com/polkaworld_pro/status/1823963088749781346): On August 15, Bifrost showcased methods for acquiring and holding $bbBNC and detailed the roadmap for Bifrost 2.0 during a Polkaworld live stream. 
- ETH Shenzhen Event: On August 17 and 18, Bifrost engaged in "Explore Restaking: Past and Future" roundtable discussions and hosted an [offline meetup with the Pudgy Penguin Chinese Community](https://x.com/Bifrost/status/1825151694520324161) to strengthen community ties. 
- [Confest Asia 2024](https://x.com/Bifrost/status/1826898951125045356): On August 23, Bifrost's Growth Lead traveled to Indonesia for a roundtable on "Web3 Power Plays: Interoperable Alliances," exploring collaborative strategies in the Web3 ecosystem.
- [Jinse Finance Space](https://x.com/JinseFinance/status/1826822125745045921): On August 23, Bifrost Co-Founder Lurpis participated in "Funds, Technology, Summit... Polkadot Ready to Shine Again," a Jinse Finance event discussing upcoming opportunities in the Polkadot ecosystem. 
- [Polkadot Insider AMA](https://x.com/PolkadotInsider/status/1828371951867568597) - On August 28, an insightful AMA session was held with Polkadot Insider, focusing on the evolving token economics, vToken rewards, and the strategic blueprint for Bifrost 2.0. 

![企鹅.jpeg](https://cdn.bifrost.io/cms/_921a695cfc.jpeg)

### Campaigns

- [bbBNC Emoji](https://x.com/Bifrost/status/1823359524314739064 ) and [Meme Contest](https://x.com/Bifrost/status/1824748081549905978): Celebrating the launch of Bifrost 2.0, we launched an Emoji and meme contest on the X platform, offering significant BNC rewards and attracting over 300 entries. 
- [Collator Rivals Phase II](https://x.com/Bifrost/status/1823637422082810153): From August 8 to 16, sixteen active Collators competed, sharing 5200 $BNC. This event supported Bifrost's strategic transition from Kusama to Polkadot. 

Bifrost Monthly Report | August 2024

## 技术开发

### Runtime 0.13.0

- 优化 EVM 环境下的 flexible 逻辑
- EVM 转化 Substrate 衍生地址算法对齐 Assethub 未来的算法
- BNC 回购模块增加销毁逻辑
- FeeShare 模块增加累计收益逻辑
- bbBNC 赎回惩罚费用目标地址更新
- bbBNC 奖励方法逻辑自动化优化
- 在 Bifrost-Kusama 新增 vBNC convert 功能
- SLP vASTR 功能重构
- 支持 vBNC 参与治理

### Dapp 1.9.1

- 支持 Ledger 通用 App
- 增加 Ledger 下的相关 Tips
- 下线 Collator 测试网

## 产品进展

本月 Bifrost 总锁仓量（TVL）达到 68,992,701 美元，vDOT 总铸造量 (TVS) 为 8,459,301 枚，较上月增长 **293,196** 枚;


其中，vMANTA 表现亮眼，总铸造量（TVS）突破 **9,353,157** 枚, 总锁仓量超 (TVL) $6.54M，单月增长 29.1%；

- Bifrost 发布调整 [vDOT Commission Rate 至 10% 的提案](https://x.com/Bifrost/status/1827194165157097836)，为迎接即将升级的 Bifrost Tokenomics 2.0 积累更多协议收入，拓宽 vDOT 在多链部署的集成，最终将价值回归引导至 bbBNC 持有人。
- 本月，Bifrost 发起 BNC Tokenomics 2.0 提案，该提案旨在与社区讨论围绕 vToken 进行价值捕获的可行性。其中，协议的各部分收入都将流入 bbBNC，实现 BNC 与 vToken 之间互补的经济飞轮效应。
- [BNC 激励提案已通过](https://x.com/Bifrost/status/1825593648550961253
- )，用户可通过 Hydration 为 vASTR 提供流动性获取 BNC Farming 奖励。
- Bifrost Dapp 现已全面支持 Ledger，用户可在 Bifrost Dapp, Talisman, NovaWallet, Subwallet 连接 Ledger App 体验 Bifrost 全部的资产与交互。查看详细教程：[Bifrost Ledger 教程](https://x.com/Bifrost/status/1824023246074962320)。

![产品图片.png](https://cdn.bifrost.io/cms/_809ed21c4f.png)

## 市场运营

8 月份，Bifrost 在全球范围内积极参与了多项重要活动和会议，进一步推动了 Bifrost 2.0 的推广和布局。以下是本月的主要活动亮点：

- 8 月 7 日，Bifrost 团队出席了在中国台北举行的 [ABS 2024 圆桌会议](https://x.com/aba_summit/status/1819976575892574243)。这次会议聚焦于区块链技术的最新发展和行业趋势。
- 8 月 15 日，Bifrost 在 [Polkaworld 直播间](https://x.com/polkaworld_pro/status/1823963088749781346)分享了获取和持有 $bbBNC 的方法及 Bifrost 2.0 的详细路线图。
- 8 月 17 日和 18 日，Bifrost 参与了「Explore Restaking: Past and Future」的圆桌讨论，并与胖企鹅中文社区联合举办了一场[线下老友会](https://x.com/0xBifrostCN/status/1825163348595642629)，增强了与社区成员的互动和联系。
- 8 月 23 日，Bifrost Co-Founder Lurpis 参与了金色财经举办的直播活动[「资金、技术、峰会...波卡准备再次伟大」](https://x.com/JinseFinance/status/1826822125745045921)，这是 Decoded Asia 2024 的预热活动，讨论了波卡生态即将迎来的新机遇。
- 8 月 23 日，Bifrost Growth Lead 前往印度尼西亚，参加了以[「Web3 Power Plays: Interoperable Alliances」](https://x.com/Bifrost/status/1826801655284908135) 为主题的圆桌讨论，进一步探讨了 Web3 生态中的合作策略。
- 8 月 28 日，与 [Polkadot Insider 共同举办了 AMA 会议](https://x.com/PolkadotInsider/status/1828371951867568597)，重点讨论了新的代币经济学、vToken 奖励分享计划以及 Bifrost 2.0 的发展蓝图。
- 为庆祝 Bifrost 2.0 的启动，我们在 X 平台上举办了 bbBNC 的 [Emoji 创作大赛](https://x.com/Bifrost/status/1823359524314739064)和[迷因创作大赛](https://x.com/Bifrost/status/1824748081549905978)，并设置了丰厚的 BNC 奖励，吸引了 300 多份投稿。
- 从 8 月 8 日至 16 日，[Collator Rivals 第二阶段活动](https://x.com/0xBifrostCN/status/1821517201104638109)圆满结束。共有 16 位活跃的 Collator 参与了此次活动，瓜分了 5200 $BNC。此活动为 Bifrost 的主要业务从 Kusama 迁移到 Polkadot 奠定了坚实基础。

月报｜BNC Tokenomics 2.0 提案发布，将协议利润的 100% 用于 BNC 回购和销毁

Although the Liquid Staking Tokens (LST) sector has gained attention after the Shapella Upgrade, the product offered within this category is not new. Staking-related services have been offered since the beginning of the Proof of Stake (PoS) consensus mechanism.

Liquid staking is the service that provides the most significant benefit to stakers, lowering the staking threshold, fixed by projects, and enhancing the capital efficiency of users. At the same time, LSTs are important underlying assets in DeFi, creating the possibility of multiple returns, contributing to the birth of a brand new category: LSTFi.

# How has Bifrost evolved?

Bifrost started working on this sector back in 2019 and is now providing LST services up to 9 public chains. Among those, Bifrost provides vETH, the ETH Liquid Staking Token.

vETH was launched on its version 1.0 in 2020. After completing the Shapella Upgrade, the vETH contract was upgraded to version 2.0, enabling features such as the withdraw of Staked ETH.

# What are the advantages of vETH？

Compared to other types of ETH Liquid Staking Tokens, vETH has three significant advantages:

- Competitive yields 
- High security
- Dual ecosystem

Let explain those, below:

## Competitive Yields of vETH

Most of the existing ETH LST yields are set around 4%.

vETH offers a very competitive yield, hovering around 6.9%!

This happens because Bifrost distributes the MEV revenue of the nodes to vETH holders in addition to the primary staking revenue.

In addition to the base yield, vETH offers a higher overlay yield as vETH holders can provide liquidity to the vETH/WETH pool on Balancer and earn trading fees from all trades made on the vETH/WETH pool. Users can stake vETH/ETH BPT to Aura Finance and earn AURA and BAL incentives.

![1_Tag_XOF2E368M85ovrUg3w.webp](https://cdn.bifrost.finance/cms/1_Tag_XOF_2_E368_M85ovr_Ug3w_b08dc377e5.webp)

The yield from the vETH /WETH pool fee is about 1.0%, while the AURA and BAL incentives obtained by staking BPT yields 12.6%. Adding these and the base yield of 6.9% means users could end up with a combined yield of over 9%!

In addition to Aura Finance, Bifrost is also working to include vETH or BPT-vETH/WETH in more LSTFi protocols to give users more flexible interest-bearing options.

## High Security of vETH

vETH adopts an entirely decentralized and non-custodial solution. Every single ETH users entrust Bifrost is delegated to nodes through on-chain contracts and pledged to the Ethereum Network. They are controlled by the contract code and third parties are not able to modify the entrusted node.

As with the PoS consensus, staked ETH may be slashed due to the misbehavior of the validators. We spread the ETH as much as possible to hedge the risk of staked ETH being slashed.

Bifrost also score the credit of the validators and select those with high credit to enter the validator White List (VWL). Currently, there are 130 validators commissioned by vETH. In addition, Bifrost has a complete and proper buffer, stop-loss, and even a compensation mechanism in case of slash events.

## Dual Ecosystem of vETH

Bifrost is a parachain in the Polkadot ecosystem, and vETH has both the ERC20 and Substrate formats. With the cross-chain bridge, Bifrost allows vETH to travel freely between the Polkadot and the Ethereum ecosystems and be available for the potential growth opportunities they bring. At the same time, thanks to the XCM, vETH can circulate easily on all Substrate-based chains and thoroughly combine with the protocols on each parachain, providing almost endless opportunities.

Currently, Bifrost is one of the most successful LST protocols in the Polkadot ecosystem, hence why we are confident vETH has the opportunity to become the most widely circulating ETH LST in the Polkadot eco.

The dream would be to even surpass the circulation of ETH token itself, within the Polkadot ecosystem, becoming the “improved ETH” available inside the network and carrying its interest-bearing properties.

This is a unique advantage of Bifrost in the actual LST Scenario.

With vETH as a medium, Bifrost will stimulate the development of LSTFi in the Polkadot ecosystem. EVM and Substrate ecosystem developers, on the other hand, can integrate vETH as a base asset into their products.

# Conclusion

Bifrost has been build and secured by Polkadot for a very long time and the initial hope of going beyond single-chain LST and becoming an omni-chain LST protocol thanks to the XCM integration, is finally a possibility.

Bifrost brings an asset such as vETH to the Polkadot ecosystem and LSTFi applications that can fully stimulate the Polkadot ecosystem. We expects vETH being valued more than just an integrated token on Ethereum. Our vision demands vETH to be the underlying asset in the omni-chain DeFi.

We encourage developers to develop full-chain LSTFi applications based on vToken and provide incentives by inviting everyone to build together.

The 2023 Polkadot Eco Summer Hackathon is in full swing and on top of those hackathons already announced, Bifrost is working to launch new LST challenges and hackathons over the rest of the year.

Join us on X, Discord, and Telegram. Do not miss a single news or update!

Unique vETH Applications: Unlocking Polkadot LSTFi Potential

# 什么是杠杆质押？

尽管 LST 在 PoS 共识机制诞生伊始便已存在，但让 LST 受到加密行业大规模关注的事件是以太坊的上海升级。ETH 的 LST 给加密市场提供了某种接近固定收益产品的资产，类似于美元的债券。在各种 DeFi 协议中，ETH LST 正在取代 ETH，成为更通用的基础资产。与此同时，加密行业中产生了各种基于 LST 的可组合性玩法 — 杠杆质押便是其中非常典型的一种。

杠杆质押是一种将 LST 协议与借贷协议组合起来的玩法。以 ETH 为例，在杠杆质押过程中，通常会用到借贷协议中的 ETH/ETH LST 流动性，因为它不需要太大的超额抵押率。在 AAVE 中，抵押 ETH 借出 stETH，超额抵押率仅需 107.5% 左右（抵押 1 ETH，最多借出约 0.93 ETH 价值的 stETH），而如果你要质押 ETH，借出 USDT，超额抵押率可能高达 130%（抵押 1 ETH，最多只能借出约 0.77 ETH 价值的 USDT）。

这是因为，ETH/ETH LST 具有较强的价格相关性，而且 ETH LST 中会积累 Staking 收益，还会呈现 ETH 本位价格的单向上涨。

杠杆质押可以通过手动循环质押来实现：

- 比如你有 1 ETH
- 你铸造 1 ETH LST （假设铸造汇率为 1:1）
- 然后你在借贷协议中，抵押 1 ETH LST 借出 0.93 ETH
- 紧接着，你可以将 0.93 ETH 再次铸造为 0.93 ETH LST

以此类推，你可以循环很多次，放大你的收益率，直到借贷利率超过质押收益率，这种行为就不再有利可图。

但是上述这种手动进行循环质押的操作效率非常低，而且会多笔的操作还会消耗很多 Gas，因此 DeFi 领域也出现了专门的杠杆质押管理工具，允许用户一键完成杠杆质押。

&emsp;

# Bifrost 推出 vToken 杠杆质押产品 Loop Stake

波卡生态的用户，同样希望通过杠杆质押放大收益率。如果通过手动操作来实现，用户除了需要手动频繁操作之外，还可能需要在平行链间来回跨越资产（如果借贷池与 LST 协议不在一条平行链上）。

作为波卡生态领先的 LST 协议，Bifrost 推出了 Loop Stake，这是一款针对波卡生态资产的杠杆质押工具。用户可以通过 Bifrost.dapp 进入 vToken 管理界面，感受一键进行杠杆质押的丝滑体验。产品上线初期，Loop Stake 支持杠杆质押的资产有 DOT、KSM，将逐步扩展更多平行链资产。

点击 [Bifrost Loop Stake](https://bifrost.app/vstaking/vDOT?tab=loopstake)

Loop Stake 将允许用户根据自己的风险偏好，设定和管理杠杆率，并且一键完成杠杆质押，在背后，Loop Stake 通过闪电贷来直接为用户创建杠杆，无需循环借贷，减少了交易笔数，Gas 消耗更加低廉。

Loop Stake 有以下特性：

&emsp;

## 最高 4 倍杠杆

Loop Stake 支持设置最高 4 倍的杠杆率。

如果你不使用杠杆：

1 DOT 可以质押为 0.73 vDOT（当前汇率1:0.73），按照波卡网络当前的激励参数，年化收益率约为 18%，一年你可以获得 0.18 DOT 的收益。

如果不满足于这样的收益率，你可以使用 Loop Stake：

假设你使用 4 倍杠杆，1 DOT 可以放大为 4 DOT（通过闪电贷借入 3 DOT），然后 4 DOT 质押铸造为 2.92 vDOT（铸造完成后，vDOT 会放入抵押池，闪电贷就会转化为真正的抵押借贷）。你会获得 2.92 vDOT 带来的质押收益，同时你会支付借出 3 DOT 的借贷利息。最终的净收益率，就是你能实际获得的收益率。
![0_OnxkBEbrJ3cC_MEy.webp](https://cdn.bifrost.finance/cms/0_Onxk_B_Ebr_J3c_C_M_Ey_722dc559d1.webp)

我们假设借贷利率为 10%，且保持不变。3 DOT 一年的借贷利息为 0.3 DOT，2.92 vDOT 期初可赎回 4 DOT，期末可赎回约 4.72 DOT，收益为 0.72 DOT，0.72 DOT-0.3 DOT = 0.42 DOT，这就是你的净收益。相比不使用杠杆的 0.18 DOT 质押收益, 你的收益被放大为了原来的 2.33 倍。

&emsp;

## 聚合全链借贷池流动性

杠杆质押需要用到借贷池的流动性，因此 Loop Stake 对生态保持开放，力求聚合波卡生态的全链流动性，为用户提供最优的借贷利率。借助波卡的 XCM 消息和 Bifrost 的 Omni 模块，Loop Stake 可以远程调用任何其他平行链上借贷池流动性，例如我们可以远程使用 Interlay Lend 和 Hydradx Omnipool 中的 DOT/vDOT 借贷池。

但考虑到杠杆质押的业务量上升是一个过程，在 Loop Stake 产品上线初期，我们采取的方案是在 Bifrost 本地创建一个借贷池提供借贷流动性，后续会逐渐扩展。

&emsp;

# 杠杆质押的风险
杠杆质押是以放大风险为代价去放大收益的。如果你设置了较高的杠杆率，你将承受更多的风险。尽管 vToken/Token 的价格比是比较稳定，且呈现单向上升趋势，但某些极端情况下，也可能会使这种锚定受到冲击。

- 预言机问题：预言机报价可能发生错误或者被恶意操纵；
- Slash 风险：节点作恶或者网络故障可能导致 Slash，从而造成 Staking 资产减少，vToken 价格下降；
- 市场操纵：通过大批量的买卖行为，操纵 vToken/Token 的价格产生波动；
- 代码风险：杠杆质押模块或者 SLP 模块可能存在代码漏洞。

这些情况都有可能导致 vToken 的价格异常下行，造成您质押的本金被清算平仓，您设置的杠杆率越高，抵御这种风险的能力就越差。

我们实行一系列措施来规避上述问题：

- 多元化预言机：我们从 4 家预言机服务商获取报价，个别预言机的异常值会被排除掉。
- Slash 保护：Bifrost 采取系统的 Slash 保护策略，详见《面对 Slash 风险， Bifrost 如何为 vToken 持有者提供保险机制》。
- vToken/Token 的流动性池采用的是专门为 vToken 设计的 Stable Curve 自动化做市曲线，随 vToken/Token 的汇率变动。相比传统 AMM 做市曲线，其优点在于极低的交易滑点损耗与保持兑换率之间的相对稳定。此外，在发生大额交易时，MEV Bot 会迅速出动，抹平其对价格造成的影响。Bifrost 官方将运行一组 MEV 机器人，任何第三方也可以运行套利机器人。更多详情请参考[《Bifrost LST Stable Swap》](https://docs.bifrost.finance/quick-start-and-tutorials/lst-stable-swap)

- 严格审计：Loop Stake 代码已经经过了知名审计公司 Oak Security 的审计，[点击查看](https://github.com/oak-security/audit-reports/blob/main/Bifrost/2024-03-11%20Audit%20Report%20-%20Bifrost%20Finance%20Leveraged%20Staking%20v1.0.pdf)。

尽管如此，我们还是建议用户充分了解潜在风险，根据自己的风险承受能力合理设置杠杆率，切勿一味追求 Yield Maximization。

&emsp;

# 小结
在 DeFi 领域，我们看到一个明确的发展趋势，就是 “Farming as a service” 会流行起来。在这个趋势下，DeFi 协议将不只是提供单一的收益来源，而是为用户提供一系列组合收益策略，使得用户有多种方案可以一键获得多重收益。这种模式将简化用户的操作，也为用户提供了更高的资本效率和更灵活的选择。Loop Stake 是一个开始，后续，Bifrost 将推出更多组合收益策略产品，进一步拓展 vToken 持有者的选择范围。

就像 Loop Stake 允许远程调用多链借贷池，我们的组合收益策略将不会局限于单链策略，而是可以充分利用全链 DeFi 生态，创建跨链组合策略。Bifrost 在链抽象和全链架构领域的研究和探索，已经可以充分支持我们做到这一点。

Bifrost 推出新产品 Loop Stake，实现多倍 Staking 收益率

# 什么是 SLPx

Bifrost 链上用于处理 vToken 铸造和赎回的模块被称为 SLP，而想要通过 SLP 铸造和赎回 vToken，用户必须把资产先转入 Bifrost 链，这带来了用户体验上的问题。

**SLPx 是近期我们在 SLP 的基础上，开发的一个扩展模块，该模块将允许用户在远程链上调用 SLP 的功能，而不必将资产转入 Bifrost 链。**

具体来说，SLPx 将允许你

- 在远程链上铸造 vToken
- 在远程链上赎回 vToken
- 在远程链上进行 vToken/Token 的 Swap，但背后使用的是 Bifrost 链上的流动性

你将可以直接把 Moonbeam/Moonriver/Astar 链的 DOT 铸造为 vDOT，原始资产和目标资产都在 Moonbeam/Moonriver/Astar 上，**你将感觉到所有事情就像在 Moonbeam/Moonriver/Astar 本地链上完成**，而对背后的跨链交互过程完全无感。同样，你可以在 Moonbeam/Moonriver/Astar 链上直接将 vDOT 赎回为 DOT。

远程铸造和远程赎回为远程链上的用户操作提供了便利，而远程 Swap，除了给远程用户提供便利，还有更加深远的意义，那就是“统一流动性”

你可以在 Moonbeam/Moonriver/Astar 上进行 vDOT/DOT 之间的兑换，**背后的流动性由 Bifrost 链上的池子支撑**。这样一来，Bifrost 不需要把 vDOT/DOT 的流动性分割到不同链上，就可以让用户在不同链上进行 vDOT/DOT 的兑换，来自所有链的 vDOT/DOT 兑换都共享同一个池子的深度，这将带来更小的 Price Impact 和更好的交易体验。

与此同时，**如果远程链上的借贷协议使用 vDOT 作为抵押品，涉及到清算环节时，就可以直接调用 Bifrost 上的统一流动性池，以完成清算**。倘若在远程链上建流动池以执行清算，很有可能因为深度不足而让清算过程产生更高的折损率。

&emsp;

# SLPx 的意义

对用户而言，**vToken 的铸造、赎回、Swap 变的更简单了，可以在 Moonbeam/Moonriver/Astar 直接完成，而省去了繁冗的跨链操作步骤。**此外，统一流动性的特点也会给用户带来更好的 Swap 体验。

对于 Moonbeam/Moonriver/Astar 上的应用程序而言，可以通过集成 SLPx，给自身用户带来更多重的收益，比如借贷协议可以把用户抵押的 DOT 远程转化为 vDOT，用户则不需要额外操作就可以获取多一份的 Staking 收益，此其一。

其二，统一流动性则会给借贷协议的清算带来更小的折算率。

其三，只需要集成 SLPx，就可以远程铸造、赎回、Swap 所有类型的 vToken，而无需一一适配不同类型的 vToken。

对于 Moonbeam/Moonriver/Astar 的生态建设来说，**SLPx 可以为其引入来自不同链的 LST 资产，而远程服务的方式，可以让用户不离开链的情况下，享受来自其他链的全链服务。

对于 Bifrost 而言，SLPx 所实现的远程调用功能，是 vToken 迈向 Onmi-LST 的重要里程碑。**

&emsp;

# 如何实现？

SLPx 分为两个部分，一个部分是 Bifrost 链上的 local pallet，另一部分是远程链上部署的 remote pallet/contract。

以 Moonbeam 为例，当 Moonbeam 上的用户想要把 DOT 铸造为 vDOT，实际上 DOT 先会被发送到 Bifrost 链上，被铸造为 vDOT 之后，再被发送回 Moonbeam。在此过程中，用户需要和 remote contract 交互，远程调用 local pallet 完成相关操作。整个操作包含三个步骤：

① 将 DOT 发送到 Bifrost
② 将 DOT 铸造为 vDOT
③ 将 vDOT 发送回 Moonbeam

**但这三个步骤只需要用户发起一次交互（支付一次费用），即可全部自动完成。**远程赎回和远程 Swap 的逻辑也是如此。

该流程之所以能够实现，是因为 SLPx 使用了最新的 XCM V3 作为跨链指令格式。XCM V3 规定了 XCM V2 所不具备的指令格式，其中很重要的一类指令就是”多跳执行。

源链可以发送一个 XCM V2 消息给目标链，并在其中定义目标链如何执行它，但 XCM V2 中没有相关指令能够支持目标链以发起一个新 XCM 消息的方式执行该消息。

但 XCM V3 中增加了该类型的指令，源链可以发送一个 XCM-001 消息给目标链，并让目标链做一系列执行之后，发起一个新的 XCM-002 消息给任意第三条链（第三条链也可以是源链自身）。简单来说，就是 XCM V3 允许一个 XCM 消息指挥另一条链发起另一个 XCM 消息。

不仅如此，XCM-002 消息抵达第三条链之后，根据消息指令，还可以继续发起新的 XCM-003 消息，这就是多跳传递，这个多跳链条理论上是可以无限的。只要源链上用户支付了足够多的费用，消息就可以完成多跳执行，直到其逻辑终止。

在 SLPx 的远程铸造用例中，实际上就是用户在 Moonbeam/Moonriver/Astar 上销毁 DOT 后，调用 remote contract，向 local pallet 发出了包含以下指令的 XCM 消息：

① 在 Bifrost 铸造  DOT（Burn-Mint 逻辑传递资产）
② 在 Bifrost 链上将 DOT 铸造为 vDOT
③ 在 Bifrost 链上锁定 vDOT
④ 向 remote contract 发出 XCM 指令，令其在 Moonbeam/Moonriver/Astar 上铸造 vDOT（Lock-Mint 逻辑传递资产）

从第④步，我们可以清晰的看到，一个 XCM 指令在指挥目标链上的 Pallet 发起另一个 XCM 指令。

&emsp;

# SLPx 实施进度

目前我们已经在 Moonbeam、Moonriver、Astar 上部署了 SLPx 的 remote pallet/contract，后续我们会陆续在 Interlay、Filecoin、Ethereum、HydraDX 上部署。

remote pallet/contract 已经完成代码审计，[审计报告](https://www.commonprefix.com/projects/bifrost)

此外，基于 SLPx 扩展模块开发的 Omni LS Dapp，用户将可以体验远程铸造、远程赎回、远程 Swap 这一系列功能。

Omni LST Dapp：https://omni.ls

&emsp;

# 小结

总之，SLPx 是 Bifrost 实现全链 LST 愿景的技术方法。部署 SLPx 远程模块的链将可以远程调用 Bifrost 链上的 SLP 模块，实现远程铸造、赎回 vToken。**这种全新的交互方式，给用户带来了便利，也给远程链的开发者提供了便捷的跨链集成路径。**


SLPx Pallet 实现 vToken 远程铸造，全链 LST 迈出重要一步

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.

&emsp;

# 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.

&emsp;

# 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!**](https://bifrost.app/vstaking/vDOT?tab=loopstake)

![Loopstake is Now.png](https://cdn.bifrost.finance/cms/Loopstake_is_Now_3978412ff6.png)

**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!_

![Loopstake Strategy.png](https://cdn.bifrost.finance/cms/Loopstake_Strategy_2c87e87e8e.png)

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.

&emsp;

# 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.

&emsp;

# 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](https://docs.bifrost.finance/quick-start-and-tutorials/lst-stable-swap).
- **Stringent Auditing Procedures**: Loop Stake code has undergone an audit by a reputable auditing firm, [Oak Security](https://www.oaksecurity.io/), and the audit report can be found [HERE](https://github.com/oak-security/audit-reports/blob/main/Bifrost/2024-03-11%20Audit%20Report%20-%20Bifrost%20Finance%20Leveraged%20Staking%20v1.0.pdf).

![Audited OAK.png](https://cdn.bifrost.finance/cms/Audited_OAK_e7126f816f.png)

Nevertheless, we recommends that users fully understand the potential risks and set leverage ratios according to risk tolerance and profiles.

&emsp;

# 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.

Bifrost launches LoopStake - Supercharge Staking Rewards through Leverage Staking

#### What is SLPx? ####

SLP is the module used for processing vToken minting and redemption on the [Bifrost](https://bifrost.app/) 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](https://apps.moonbeam.network/moonbeam/xcm), [Moonriver](https://moonbeam.network/networks/moonriver/) and [Astar](https://astar.network/), 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:
1. Mint DOT in Bifrost (Burn-Mint logic transfer asset)
2. Mint DOT to vDOT on the Bifrost chain
3. Lock vDOT on the Bifrost chain
4. 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](https://www.commonprefix.com/projects/bifrost/).

In addition, we have developed the front-end application for [Omni LS dApp](https://omni.ls/). 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.

SLPx Pallet - A Further Step Into The Omnichain Liquid Staking

11 月 21 日，Bifrost 支持了 $MOVR/$GLMR 的流动性质押，开启了 vMOVR 和 vGLMR 的铸造。这是 Bifrost 继 vETH、vDOT、vKSM 之后，开启的又一组新的 vToken 系列。

MOVR/GLMR 分别是 Moonriver 和 Moonbeam 的工作通证，Moonriver 是 Moonbeam 的金丝雀网络，二者分别是 Kusama 和 Polkadot 的平行链。vMOVR/vGLMR 是 Bifrost 推出的第一组基于 XCMP (当前版本为 HRMP) 实现的 vToken 实例。此前的 vDOT/vKSM 是基于 VMP 实现的。

**XCMP**（Cross-Chain Message Passing）是 Polkadot 上的跨链消息传输协议，用于平行链/平行线程之间的跨链通讯。 **VMP** 则是用于平行链/平行线程与中继链之间的跨链通讯。 **XCM** 是波卡制定的一个通用跨链消息格式， XCM 不仅可以用于平行链之间的通讯，还可以用于任意两条 Substrate 链之间的通讯，因此基于 XCM 的通讯是个更广泛的概念。

# vMOVR/vGLMR 的铸造 & 赎回

Bifrost 将如何用 XCMP 支持 vMOVR/vGLMR 的铸造和赎回呢，接下来我们以 vMOVR 为例进行说明。

如这篇文章所述，所有的 vToken 都是 Bifrost 链上的原生资产，也默认会被发行在 Bifrost 链，这样策略会为跨链集成提供更多的便利。

我们先罗列所需组件：

- Bifrost 链 : 这里指 Bifrost Kusama Parachain。(Bifrost 还有一条 Bifrost Polkadot Parachain)
- Moonriver 链 ：Moonbeam 的金丝雀网络，Kusama 的平行链。
- Bifrost Sovereign Address : Bifrost 链上有一个 Bifrost 的主权账户，可以通过部署 runtime 来控制，事实上，每条平行链/线程都有自身的主权账户。
- Bifrost Sovereign Address on Moonriver ：每个平行链/平行线程在中继链上以及其他平行链/平行线程上都有自己的主权账户，该地址受主权链的代码控制。因此，Bifrost 并不需要在 Moonriver 创建一个托管地址，而是可以用 Moonriver 上的 Bifrost 主权地址来执行质押和解除质押。
- SLP Module ：这是 Bifrost 链上的一个 runtime ，负责发出一系列和 vToken 铸造/赎回有关的指令。
- XCMP：我们通过它传输 XCM 指令。

## vMOVR 铸造流程：

1. 用户 A 将 MOVR 跨链转入 Bifrost 链；
2. 用户调用 SLP Module ，将 MOVR 锁入 Bifrost 主权账户；
3. SLP Module 按照当前汇率为用户 A 铸造 vMOVR；
4. SLP Module 将 Bifrost Sovereign Address 中的 MOVR 跨链转入 Bifrost Sovereign Address on Moonriver，并发出 XCM 指令，执行质押。

## vMOVR 赎回流程：

1. 用户 A 调用 SLP Module，将 vMOVR 发送到销毁地址；
2. SLP Module 向 Bifrost Address on Moonriver 发出 XCM 指令，按照当前汇率，解除质押对应数量的 MOVR，并跨入 Bifrost Address（由于解除质押有一个解锁期，该步骤不会立即完成）；
3. Bifrost Address 将这些 MOVR 返回给用户 A 。

## 闪电赎回：

用户如果希望立即获得 MOVR ,不想等待解锁期，也可以选择闪电赎回，闪电赎回的实质是 swap，因此需要向流动性提供者支付一部分费用。

由于 Bifrost Kusama Parchain 和 Moonriver 都是 Kusama 平行链，所以二者之间可以直接使用 XCMP 通讯， vMOVR / vGLMR 的铸造和赎回过程中的跨链通讯用的都是 XCMP 。我们知道， XCMP 是波卡平行链间的原生通讯桥梁，使用 XCMP 不会像使用其他第三方跨链桥一样，引入新的安全风险，也就是说，**vMOVR/vGLMR 的安全性是波卡中继链级别的**。

# XCMP 是如何工作的

要理解 XCMP 的工作原理，首先要了解几个核心概念：

## Channel

两条平行链如果需要通讯，需要首先建立 Channel 。Channel 是单向的，两条平行链（A 和 B）之间如果想要双向通讯，就需要建立两条通道（A → B Channel， B → A Channel）。

## Egress 和 Ingress

当平行链 A 与平行链 B 建立 A → B Channel 时，平行链 A 上会被创建一个平行链 B 的 egress（出口队列），而平行链 B 上会被创建一个平行链 A 的 ingress（入口队列）。

## MR（Message Root）

XCMP 采用了消息树的结构，所有的待发消息作为叶子节点构成一个默克尔树，树的根值被称为 MR（Massage Root），每有一个新的消息作为叶子节点插入，都会产生一个新的 MR 。因此每一个 Egress 里除了存储待发消息队列的原文之外，还需要维护一个 MR 队列（Message Queue Hash Chain）。

我们来看下 XCMP 中的消息生命周期：（以  A → B Channel 为例）

1. Chain A 上用户通过源链上的应用程序发起跨链请求，想要将消息 M 送到 Chain B 。该消息会被放入 Chain A 上为 Chain B 专设的出口队列（我们简写为：Egress A → B）。该消息将被包含进最新的 MR 中。
2.  Chain A 的收集者在打包当前区块的时候，会将最新的 MR 放入区块头。当区块被中继链分配给 Chain A 的验证者验证后，会被提交到中继链，并被中继链的区块包含。此时，我们认为该 MR 被中继链验证了。
3.  Chain B 的收集者会不断轮询所有其他链上为 Chain B 建立的出口队列，这里就包括 Egress A → B，Chain B 的收集者将 Egress A → B 中的消息原文及 MR 队列放入自己对应的入口队列：Ingress A → B 。（* 有另一种说法，该过程不是收集者完成，而是验证者完成的，这点的设计在 XCMP 中还没有完全确定，但谁来完成并非 XCMP 设计的关键点，因为这项任务是无信任的，谁来完成都可以）。
4.  Chain B 的验证人从中继链获取 Channel A → B 的最新被中继链验证的 MR 。
5.  Chain B 用该 MR 来判断 Ingress A → B 哪些消息已经被包含到中继链中，然后更新这些消息的状态为已验证。
6.  已验证的消息就可以被目标应用程序执行了。

我们为了表达方便，只描述一个 Channel 的消息流，事实上 XCMP 在处理跨链消息的时候，所有的 Channel 是同时处理的。中继链会维护一个 CST 表格（Channel State table），用于存储所有 Channel 的 MR 。

# XCMP 的特点

我们发现，XCMP 的设计非常精巧，它让平行链/线程 之间的跨链消息能够快速、有效、安全、廉价的进行。

**快速**：从发送链打包好区块，被验证后提交给中继链，并在中继链被最终确定，这个时间很短，对于用户而言几乎是感觉不到延迟的。

**有序**：通过 Egress 和 Ingress，使得一个 Channel 内的所有消息遵循一个严格的队列结构，有明确的先后顺序（不同 Channel 的消息之间则没有时序属性。）消息在被目标链执行之前，始终存在于 Egress，直到在被目标链执行之后，才能从 Egress 删除。这将确保消息不会被遗漏。

**安全**：所有的跨链消息都经过了中继链的验证。

**廉价**：尽管消息必须经过中继链的验证，但通过消息树的机制，让中继链只验证 MR ，而不直接验证消息原文，消息原文的传递直接通过发送链和接收链本身完成，不通过中继链。这样最大程度避免了占用中继链的资源，从而使得跨链消息传递的成本控制在较低的水平。

跨链消息传递是跨链互操作的基础，无论是跨链的资产传输、跨链功能调用、跨链计算，其基础都是跨链消息传输。因此，**XCMP 为众多的平行链提供了互操作性**。

Bifrost 作为最早立足波卡生态的 DeFi 项目之一，对波卡的多链架构有着坚实的信仰，这来源于我们对多链互操作性的认知。以太坊的 Rollup 虽然可以在继承以太坊安全性的基础上，扩展出更多的应用运行空间，但 Rollup 之间缺乏互操作性。

Cosmos 虽然也是多链架构，并且通过 IBC 可以实现很好的互操作性，但 Cosmos 的各个 Zone 的安全性是各自为政的，各个 Zone 之间存在一个授信问题，每个 Zone 都要自己去选择相信哪些 Zone ，而不相信哪些 Zone ，尽管 Cosmos 2.0 增加了向 Hub 租用安全性的选项，但这仍然不能确保所有租用安全性的 Zone 的安全性处于同一水平。而波卡的多链架构的第一特性就是共享安全性，各平行链的安全级别与中继链一致，可以无条件互相信任，在此之上， **XCMP 所提供的互操作性的安全级别，也是与中继链一致的**。

# 基于 XCM 的通讯

Gavin 曾在一次演讲中提到，XCMP 只是波卡跨链解决方案的一半，另一半是 XCM 。XCM 是波卡制定的一个消息格式标准。在 XCMP 中，所有的跨链请求都会格式化为 XCM ，然后才能进入 Egress 。XCM 上可以包含一组指令，目标应用程序收到 XCM 消息之后将执行该指令。

**XCM 不止是 XCMP 通讯的标准格式，也是所有 Substrate 链之间跨链通讯的标准格式**，Gavin 还希望，XCM 未来能通行于更多的异构跨链场景。因此，基于 XCM 的通讯将是一个比 XCMP 更广泛的概念，它能够扩展到所有的 Substrate 链，从而构建其一个泛 Substrate 生态。它甚至有希望击穿 Substrate 生态，连接包括 EVM 生态在内的更多异构生态。

# 小结

在众多的 Web3 应用类型中，或许有些类型的应用，诸如游戏、社交对互操作性的要求不高，但 DeFi 应用一定是对互操作性要求最高的类型。可以说，互操作性是 DeFi 应用的根基。Bifrost 作为 DeFi 应用当然也需要互操作性，我们需要 vToken 能够更广泛的流通，被更多的 DeFi 应用集成，与更多的 DeFi 应用互动。

**由 XCMP 连接的平行链生态，将是一个具有无缝互操作性且无需考虑跨链授信问题的多练系统**。我们相信 Bifrost 及 vToken 能被该系统充分赋能。此外，基于 XCM 的通讯能够把我们带到更广阔的天地。vMOVR/vGLMR 是我们启航的地方，终点是星辰大海。

以 vMOVR/vGLMR 为例，读懂基于 XCM 的跨链通信

Bifrost 开发的 SLP 协议是一个流动性质押协议，用户将想要质押的 Token 发送给 SLP 协议，由 SLP 协议执行质押，并为用户铸造流动性衍生品 vToken 。用户质押的 Token 将被 SLP 委托给节点，进而参与到 PoS 网络的共识维护工作当中， Bifrost 自身不运营节点。为了保证 vToken 的 Fungible 属性，**SLP 协议会代替用户行使选择节点的权力**。

此前，我们通过议会投票来选举委托节点，日后，我们将逐步启用新的委托节点选举方案。新方案在原方案基础上做了进一步的优化：

其一：我们将委托节点的席位划分为两部分，分别是 Validator Whilte List（VWL）和 Validator Boost List（VBL），前者将依据一套明确的节点评选规则产生，后者则通过节点的主动申请，社区投票审批产生。SLP 协议只会将用户质押的资产委托给这两个 List 当中的节点。

其二：我们计划结合波卡 OpenGov 推出专用于节点选举的治理投票轨道—Validator Election Track（VET）。VWL 和 VBL 都需要通过 VET 的投票流程才可正式生效。 VET 是一个公投流程，这意味着原本属于议会的权力现在归于 Bifrost 社区全体。

# Validator White List

进入到 VWL 的节点，我们根据一套评分规则来为节点打分，评分达到门槛之上的节点无需主动申请，会自动获得 VWL 资格。

影响评分的主要因素包括：

15. **节点去中心化**：我们尽可能使我们的票权的在地理位置和司法辖区上的分布相对均衡；
16. **节点信誉及安全风险**：包括节点的链下主体信息、节点存续时间、节点的掉线次数和时长等指标；
17. **安全风险**：节点历史上的 Slash 的次数及严重程度都会列入考量；
18. **节点杠杆率**：我们在分配票权时，我们会考量节点的自抵押量，避免节点有过高的杠杆率（指该节点来自委托的抵押在总抵押中的占比）；
19. **收益率**：包括节点的历史收益表现以及为委托人提供的 Staking 收益分佣比例。

**VWL 不是固定不变的，我们会根据评分情况的变化动态调整该名单**。评分排名降低至末位的节点会被清退，评分排名提升超过末位的节点会被选入。

对节点的评分是链下完成的，根据评分所拟定的 Validator White List 名单需要通过 VET 公投才会在链上正式生效，Validator White List 名单的修改也需要 VET 公投确认。

# Validator Boost List

VBL 是为提供附加价值的节点专设的席位名额。节点可以通过 VET 提案的形式， 主动向 Bifrost 社区提出申请。公投通过后，节点可正式进入 VBL 名单。我们期待 VBL 节点为 SLP 协议或是 vToken 持有者提供附加价值，以促进协议的长期发展。例如：

- 为 vToken /Token 交易对提供流动性
- 提供曝光引流机会，或者促进用户的教育和引导，增加 vToken 的铸造
- 促进 vToken 在 DeFi 应用中的集成
- 为 vToken 持有者提供其他形式的福利

相比 VWL，**VBL 节点的名额会更加稀缺，优先级也会高于 VWL 节点**，VBL 节点会更加稳定的获得 SLP 的票权委托。VBL 节点的默认期限是 6 个月，过期之后会自动失去 VBL 资格，如需再次获取 VBL 资格，需要重新发起公投。

需要注意的是，尽管 VWL 和 VBL 的首个单词都是“Validator”，但实际上，在不同的 PoS 链中，节点的角色可能有所不同。例如，对于 Polkadot/Kusama 中继链或其他 Layer1 区块链来说，节点是 Validator（验证者），对于平行链而言，节点是 Collator（收集者），对于 Rollup 类的 Layer 2 而言，节点也可能是 Sequencer（排序者），但它们的共同特点是都需要质押。

# VBL 的申请步骤

## Step 1  提案草案

节点运营商在 Bifrost Discussion（ https://bifrost.subsquare.io/discussions），发布 VBL 入选提案草案，表明自身能提供的附加价值，以及希望获得的委托数量和委托时长。[参考草案](https://bifrost.subsquare.io/post/1)

## Step 2  发起公投提案

在帖子相关的讨论和反馈情况较好的情况下，节点运营商可以发起公投提案。[了解如何发起公投提案](https://wiki.bifrost.finance/learn/guides/governance/submit-a-referendum-proposal)

## Step 3 提案公投

根据 VET 的治理流程，开启投票后会有 7 天的投票期和 2 天的执行期。如果公投通过表示合作建立，如果公投未通过则合作暂时搁浅。

## Step 4 提案执行

如果提案通过，节点会被自动加入 VBL 。VET 的执行代表会根据提案内容持续推进相关提案内容的执行工作。

## Step 5 定期 Review

执行代表会定期检查整个提案执行过程中的的情况，以及节点在收益和性能方面的表现。如果期间发现问题会与节点商沟通，并推进问题的解决。如提案无法继续执行， SLP 委员会可通过 VET 发起公投终止相关节点的 VBL 资格。

# 小结

总体来看, Bifrost 遵循以下原则来制定节点选举的规则：

68. 维护 PoS 原链的安全
69. 维护/扩大 vToken 持有者的利益
70. 促进 SLP 协议的长期发展

为了维护 PoS 链的安全，我们会均衡的委托给尽可能多的节点，且这些节点在地理分布和司法辖区分布上尽可能多元化；为了维护 vToken 持有者的利益，我们在制定 VWL 评分量表时，会综合考量节点的收益率和节点的安全信用；为了捕获优质的发展机会，促进 SLP 协议的长期发展，我们设置了 VBL，预留了一部分委托节点名额给到能提供附加价值的节点。

由于流动性质押模式的独有优势，随着 SLP 协议的持续发展，会有更多的持币人愿意成为 Staker， PoS 节点商的整体市场会被做大。我们希望广大的节点商，能够积极参与、共同开拓，一起发掘 Staking Finance 当中的未开发价值，同时收获流动性质押的票权委托红利。

# VET Townhall 社区分享

![Bifrost Discord Townhall.png](https://cdn.bifrost.finance/cms/Bifrost_Discord_Townhall_0b129f6f09.png)

北京时间 12 月 23 日 22 点，我们将在 [Discord 社区 Townhall 语音频道](https://discord.gg/sQerqje5Aa) 举办一场 Bifrost 多链验证人选举机制。该分享将由 Bifrost council member Tyrone 详细介绍 VET 如何为用户选择 Validators 节点以及 VWL 白名单节点评分等内容。

继 Tyrone 介绍后，我们也欢迎来自社区用户和 Valiadtor 的开放式提问，更好地帮助了解 VET、VWL、VBL。

VET - Bifrost 基于 Polkadot 治理 2.0 的多链验证人选举机制

# Bifrost Cross-Chain Cooperation

In May 2022, Polkadot officially launched XCMP, “Cross-Chain Message Passing”. As one of Polkadot’s cross-chain messaging protocols, XCMP regulates the way of cross-chain messaging between parachains of the same relay chain. Since the launch of XCM in May, cross-chain channels have been opened between multiple parachains in just a few months. Bifrost continues to launch innovative staking derivatives, provide effective liquidity solutions, and provide cross-chain liquidity staking services for multiple chains by using cross consensus message (XCM). At present, HRMP cross-chain channels have been opened with multiple networks. The specific cooperation is as follows:

On February 18, 2022, the cross-chain channel between Bifrost and Statemine was opened, and the user asset use scenario was expanded. After opening the two-way HRMP channel with Statemint, the user can transfer the USDT on statemint to each parachain. Bifrost users will get more diverse asset types, lower threshold of use and easier stable currency transfer.

On April 14, 2022, Bifrost’s BNC Token can be used as xcBNC on Moonriver through XCM integration. Users can conduct transactions such as asset withdrawal, purchase and storage. The use of derivative assets will extend to Moonriver, enjoying more liquidity and investment options.

On June 6, 2022, the two-way HRMP channel between Phala asset cross-chain route Subbridge and Bifrost was officially opened. Users can transfer BNC (Bifrost Token) and ZLK（Zenlink Network Token）from Bifrost to Khala through Subbridge, and also support the reverse transfer of relevant assets.

On August 6, 2022, Bifrost realized cross-chain connection with Crab Parachain. Crab can be invested and used in Bifrost, and BNC will also enter the Crab ecology for more use scenarios.

In addition to the opening of the above cross-chain channels, Bifrost has also completed cross-chain cooperation with Calamari, Khala, Karura, etc. through Bifrost, users can transfer cross-chain assets through multiple parachains, reducing the use cost and threshold, and greatly increasing the investment scenario and portfolio.

![6.jpeg](https://cdn.bifrost.finance/cms/6_af78b3a891.jpeg)

# Cross-chain transfer operation

After realizing cross-chain cooperation with many parachains, the opening of cross-chain channels enables users to directly carry out cross-chain transfer of assets. On Bifrost Dapp, we can directly transfer $KSM assets to different networks through cross-chain transfer and other functions. The specific operation is as follows:

1. Go to the Bifrost APP and select the “Wallet” tab. Scroll down to select the Token you want to cross-chain, select cross-chain and click Cross in/out. (Example of cross-chain KSM to Karura)

![7.png](https://cdn.bifrost.finance/cms/7_6b768063fe.png)

2. Enter the amount you want to cross-chain and select Karura network

![8.png](https://cdn.bifrost.finance/cms/8_aacc723c09.png)

3. Select the account to which you want to send the Token from the drop-down list. Don’t worry if you see the address is Bifrost visual format. Your Token will still be sent to the Karura address on the Karura parachain of your selected account. Click confirm when the address selection is complete.

![10.png](https://cdn.bifrost.finance/cms/10_d675ecdad1.png)

4. View the details of this cross-chain transfer transaction and click confirm.

![11.png](https://cdn.bifrost.finance/cms/11_9034e4c608.png)

5. Cross chain transfer succeeded! You have transferred KSM from Bifrost to Karura. Your balance on each chain will be updated.

# Transfer Operation

Cross chain transfer asset and asset transfer from the exchange or other wallet address to Bifrost Dapp are different transfer operations. After we understand that cross chain transfer is to transfer the same asset to different parachains, let’s take a look at the specific transfer operations.

# How to send KSM from CEX to Kusama relay chain?

- When in doubt, please consult the exchange you are using first
- Most CEX require users to provide the Kusama address (on the Kusama network) where they want to send KSM Tokens.
- Kusama address always begins with a capital letter. Example address: Cb2QccEAM38pjwmcHHTTuTukUobTHwhakKH4kBo4k8Vur8o
- After successful withdrawal, users will be able to view the balance through Polkadot App — Kusama address.

#  How to send a Token to another Bifrost Wallet

- Use bifrost.app — the “transfer” function in wallet
- Enter the Bifrost address and confirm the transaction.

![12.png](https://cdn.bifrost.finance/cms/12_43d093dea6.png)

It is important to note that direct trading between Bifrost and other exchanges should not be attempted. This feature is not currently supported and will result in the loss of Tokens.

After successfully sending Token from CEX to Bifrost, we can then follow the first cross-chain transfer tutorial to quickly transfer assets across parachains by cross in and out across chains.

# Difference between cross-chain transfer and transfer

Cross chain transfer refers to the transfer of assets from one chain to another. Under the many cross chain cooperation of Bifrost, users can directly cross assets to different parachains.

There are generally two ways to realize cross chain assets. From the technical point of view, the two parachains connecting cross chain channels trust the original assets on the cross chain bridge. At the same time, the source chain obtains the asset transactions of the target chain through the Oracle machine and maps them to the target chain in a ratio of 1:1. This is the direct cross chain transfer of assets.

Another method is to apply swap through cross chain aggregation, and build a cross chain transaction pool by aggregating the liquidity of assets on different chains, so that users can complete the exchange of assets on different chains in the transaction pool. As mentioned above, Phala asset cross chain routing Subbridge officially opens the two-way HRMP channel with Bifrost. Users can transfer BNC (Bifrost Token) and ZLK (Zenlink Network Token) from Bifrost to Khala through Subbridge, and also support reverse transfer of relevant assets.

Transfer refers to transferring assets on a chain from one address to another. For example, through the sending function in the wallet, the KSM assets on a chain are sent from address a to address B, or sent to the address of the exchange for subsequent transactions. Specific examples include transferring KSM to others, receiving KSM, or transferring KSM to wallet after purchasing KSM at the exchange.

Therefore, cross chain transfer refers to the transfer of the same asset on different chains, while transfer refers to the transfer of the same asset on a chain at different addresses. Investors in the Bifrost community, when transferring assets across the chain, please pay attention to the difference from the transfer operation.

# Cross chain interworking between Bifrost Kusama and Bifrost Polkadot

On 12 August, Bifrost Kusama, the Polkadot eco cross-chain derivatives protocol, launched a proposal to transfer BNC to the Bifrost Polkadot cross-chain, which is the common native token of the Bifrost Kusama parachain and the Bifrost Polkadot parachain. According to Bifrost’s latest roadmap, Bifrost assets will be interoperated between the two parachains via the Bifrost Kusama and Bifrost Polkadot cross-chain bridges. BNC is now transferred from the Bifrost Kusama parachain to the Bifrost Polkadot parachain by way of a pre-cross-chain transfer.

Bifrost has now completed the first cross-chain transfers between BNC Kusama and Polkadot parachains, and the Bifrost Dapp already supports the Polkadot network, i.e. users can switch between the Bifrost Kusama or Bifrost Polkadot networks via the Bifrost Dapp in the top right corner. This will be followed by the Kusama <> Polkadot cross-chain bridge to enable asset interoperability between the two parachains, which will provide users with more convenient asset management and transfers, and more investment and income opportunities.

![13.png](https://cdn.bifrost.finance/cms/13_1878a45c40.png)

According to the on-chain data, the Bifrost Polkadot Crowdloan reward was issued on 25 August. In accordance with the Bifrost Crowdloan rules, BNC unlocks are calculated from the 8th week of block release on the Bifrost Polkadot parachain (block height 403,200) and are released linearly in blocks over 96 weeks. Investors who have participated in the Bifrost Polkadot Crowdloan can switch to the Bifrost Polkadot network to follow the release of rewards and effectively enjoy the benefits of the Crowdloan.

What’s The Difference Between Cross-Chain And Transfer on Bifrost Dapp?

Bifrost is moving towards a multi-chain validator election system based on OpenGOV that better aligns with the blockchain ethos. Liquid Staking will need to become more modular and decentralized in its approach to supporting decentralization network-wide.

That’s our goal, working away from centralized monopolies. We have optimized a new scheme to retain many aspects of the original process; however, we are abandoning the council voting system.

Considering the changes, we held a town hall AMA event to discuss the new governance elements in the latest Validator Election Track (VET)/Validator Boost List (VBL) Collators update.

The recap of the engaging discussion during the AMA can be followed here.
To recap the full Town Hall meeting, please click here.

## The Q&A Session

1.❓What tools can the community use to understand the performance of validators on Bifrost? Is there are public dashboard to help the community understand validator selection - VBL?

💡 The Bifrost team does not yet produce related services to monitor the collator performance. For performance, please refer to the relevant data here. Check the scoring form provided by the Bifrost community to know about VWL-related choices.

2.❓vBNC - Could you add a column for on-chain names of collators and enable comments in the spreadsheet? The setting is on the sharing option at the top right of the page.

💡 Great suggestion! We turned on the comment feature on a spreadsheet. We also plan to include the collator’s certified name in the next rating update.

3.❓How will Bifrost adjust the performance and methodology of the scoring mechanism? How will validators - collators and the community receive communication on this? What is the transparency of this model?

💡 Firstly, the current scoring standards are open and transparent, and the core team of Bifrost will have a self-driving force to continuously improve the scoring model to make it more accurate and reasonable. At the same time, we welcome any discussions and suggestions from the community on the scoring system and let us work together to improve the entire system.

4.❓Suggestion - consider batching chains with a distinct mechanism, given that the Staking mechanism differs for different chains (KSM/DOT vs. MOVR/GLMR).

💡 Good advice! That’s exactly how we planned it. We have only completed and released the first version of vBNC scoring, while other vToken scoring mechanisms are still under planning and development. Subsequent scoring mechanisms for different vTokens will be independent scoring standards most suitable for the corresponding PoS mechanism.

5.❓Kindly provide more details on the validator-collator selection process and when the system will remove them from VBL or the whitelist.

💡 About VBL: VBL currently has a fixed term of 6 months. After six months, the node will be kicked out of the VBL, counting from the joined governance referendum. If you want to rejoin the VBL, you need a new application. For nodes that perform poorly over the period, the community can initiate a removal process, kicking out the node from the VBL. The removed node will still retain its VWL identity. Nodes in VBL are automatically granted and enforced to maintain VWL status).

💡 About VWL: We know that, except for the nodes in VBL, the scoring system selects other nodes. VWL will receive regular updates to ensure the SLP system’s healthy operation. The specific update cycle may be based on the characteristics of different vTokens within one week- between 2 months. We won’t completely refactor the entire VWL list with the latest ratings every update. Correspondingly, we will have an updated scale parameter.

For example: if the update ratio parameter is 20%, then every time we update VWL, we will kick out the last 20% of the score in VWL based on the latest score. Then we’ll select a corresponding number of nodes with the highest score from external nodes to supplement VWL. Doing so will ensure a suitable and automatically optimized rhythm and stabilize VWL. The scoring table of the next vBNC update will reflect the details.

6.❓What about exiting? Most collators are interested in knowing what it takes to get kicked out or receive less Delegation. How would the process look like for collators-validator leaving?

💡 We introduced the exit mechanism earlier. Here is the main supplement to the staking processing mechanism for the remaining nodes after exit: When vToken receives a Redeem request, the system will choose which node to redeem how many tokens from which node in the following order:

- Collator that is no longer in VWL (unbond all of this part first)
- Collators not in the Delegation Set in VWL (unbond all of this part first)
- The Collators in the Delegation Set are listed in descending order of Total future bonds, with priority given to those with more unbonds.

One conclusion we can draw from this logic is that the remaining Staking Tokens on nodes that have withdrawn from VBL or not in VWL will be gradually redeemed with the Mint/Redeem of vToken and tend to be fully redeemed back. The Redeem amount within a period determines the processing speed. </aside>

7.❓What events can trigger a collator-validator risk assessment?

💡Except for VBL, most other operations are automatically executed by fixed rules. At a specific moment, based on the system rules at that time, SLP will have a relatively clear conclusion on the selection of nodes and on-chain operations. The Bifrost team and the community discuss and improve the rules. It is also helpful to read the responses to the previous questions to understand the process.

8.❓What are the clear advantages of joining the VBL if I’m already in a network’s active set?

💡As a a Collator, when you join the VBL, even if you are already in an active state, you can properly reduce your votes to improve the utilization rate of funds. The VBL will automatically host and try to maintain the active state of the collator. Simultaneously, the Collator that joined VBL will also have a clear mark on the Bifrost Dapp, which will be more obvious to Bifrost users (the relevant UI has not yet been officially launched).

💡As a Validator, voting is balanced between not falling out of active state and maximizing staking rewards. My own vote can get the highest staking rewards

## Conclusion

The VET/VBL update is crucial for Validator election governance in the Bifrost ecosystem. With an improved validator selection model and a more decentralized system, Bifrost is abandoning any traces of centralization.

We’re grateful for all the Town Hall attendees and the engagement we experienced. Stay tuned for the next AMA!

VET/VBL Collator Discussion: Questions & Feedbacks Answered!

## What is a vToken?

A vToken is a staking wrapped asset, provided by [Bifrost](https://bifrost.finance/), that maintains security in PoS networks by requiring validators to stake assets like in Kusama’s network, which requires validators to stake KSMs. Another vToken definition is a transferable redemption certificate provided by [Bifrost’s SLP](https://bifrost.app). Although yields are present in PoS Staking, the staked assets are locked and inaccessible for a period (7 days for KSM and 28 days for DOT), thus exposing the user to the risk of price fluctuations in the secondary market.

Bifrost’s SLP protocol provides a liquid staking service. When staking on the PoS network through the SLP protocol, users receive a wrapped asset called vToken. Thus, vTokens are essentially transferable redemption certificates provided by Bifrost’s SLP.

The SLP protocol issues a tradable passbook, or vToken, which is like a fixed deposit in a bank.

## How secure is vToken and are there any risks?

vToken employs a decentralized escrow mechanism, eliminating the risk of human control. vTokens represent staked assets held in Bifrost’s system account, which are not subject to third-party control or manipulation by the Bifrost team. Authority lies solely with the BNC holder and governance resolutions established by the code deployed on the Bifrost chain.

As a parachain, the Polkadot/Kusama relay chain bolsters Bifrost’s security, making the likelihood of a Bifrost chain reorganization negligible. As such, vToken holders can confidently retain their tokens, which always represent the original token and are redeemable at any time.

## How do I get vToken?

There are two methods to obtain vToken: Mint and Swap. To illustrate, let’s consider vKSM. You can mint KSM to vKSM, where the system utilizes your KSM for staking and generates vKSM based on the current exchange rate. The exchange rate is a fixed value at a given time, irrespective of the number of mints made. Over time, it will increase as Staking gains accumulate.

Alternatively, you can exchange KSM for vKSM, backed by an AMM pool. The exchange ratio is impacted by the number of tokens exchanged, leading to a price shift.

The choice between Mint and Swap depends on the specific situation. To obtain the maximum amount of vTokens, consider which method is more cost-effective. You can input the number of tokens via the front-end, and the system will estimate the vToken amount. The difference is negligible due to arbitrageurs. However, if you intend to deal with a considerable amount of assets, Mint is preferred over Swap. A substantial token number could cause a significant price impact, resulting in fewer vTokens.

## What can vToken be used for?

vToken is an interest-bearing asset that is equivalent to holding Staking Token. With vToken, users earn passive income without any active operation. Unlike Staking Token, vToken can be easily transferred or sold, allowing users to accumulate earnings without worrying about the liquidity risk of locking up their positions.

Furthermore, vToken combined with a Token to provide liquidity to the AMM pool of vToken/Token, generating transaction fee income through liquid farming. vToken holders can engage in farming and LP Farming activities to improve their yields. Bifrost is also developing more vToken usage scenarios to improve the asset’s performance.

## Are there any risks involved in participating in the various farming activities within the Bifrost DApp?

Bifrost’s system is fully decentralized and managed through code, mitigating human risk. Our system account hosts a variety of farming programs that allow users to provide farming assets. The asset security, including the Staking assets corresponding to vToken, depends on the Polkadot/Kusama relay chain and is not controlled by any third party, including the Bifrost team. While participating in LP farming carries a risk of impermanent loss, other farming options, such as single-asset farming, have no risk from a coin-based perspective.

## Is there any risk in providing liquidity for vToken/Token?

Although there’s a risk of impermanent loss, the transaction fee income benefits outweigh the disadvantages.

Here’s the description of impermanent loss:

When you provide liquidity for an A/B pair, you provide two assets, A and B, in a certain ratio, assuming a total value of p. However, the price of A/B fluctuates, and when fluctuations occur, the total value of liquidity (A and B assets) you can get back is q. q is always less than p, and p-q is the impermanent loss!

When the price does not fluctuate, p = q, there’s no impermanent loss.

If we assume that the price of A/B, despite fluctuations, always returns to its initial price upon liquidity provision, then this loss is temporary and non-permanent, hence impermanent loss. For most asset trading pairs, this assumption is not reliable.

To minimize the risk of impermanent losses, many smart LPs provide liquidity to stablecoin trading pairs (e.g., USDC/DAI) as they have low volatility and stable return.

While vToken/Token is not a stablecoin trading pair, both assets have low volatility, and their prices revert to the minting rate. Although the minting rate rises as Staking yields accumulate, this move is slow, and the gains from transaction fees can fully cover the impermanent losses from the rate move.

Providing liquidity for vToken/Token will earn LP Token, and the Bifrost farming area will launch LP Farming activities from time to time; pledging LPs can earn additional income.

## Why does the vToken/Token minting rate keep going up?

This is how vToken payout revenue works. As the minting exchange rate rises, the redeemable vTokens in your possession will continue to increase.

Consider KSM:

In the initial state of SLP deployment, the minting exchange rate of vKSM/KSM is 1:1, i.e. 1 KSM mints 1 vKSM, but this 1 KSM continues gaining after participating in staking, and the yield will become 1.01 KSM after staking. Your 1 vKSM can redeem 1.01 KSM, and the extra 0.01 is the Staking gain.

Since the vKSM/KSM exchange rate has changed,‌ another user minting vKSM can only mint ~ 0.99 vKSM for 1 KSM, so it’s fair to every minting or redeeming user.

Newcomers’ Guide to vTokens | Q&A with Bifrost

# Polkadot’s NPoS Consensus Mechanism

On May 1, Solana officials tweeted out another crash of its mainnet Beta. Judging from the 6 crashes in January 2022, public chains under the PoH mechanism still need more time to conquer the market. Among the many consensus mechanisms in today’s blockchain, PoW and PoS consensus mechanisms are still mainstream. The PoS public chain occupies most of the market due to its advantages of shorter consensus time and lowers user threshold than PoW. Polkadot is a very typical and highly recognized PoS public chain among them.

Specifically, Polkadot adopts the NPoS consensus mechanism, “Nominated Proof of Stake”, a consensus mechanism different from PoW workload proof and PoS proof of stake. The blockchain network under the NPoS consensus mechanism relies on validators to run full nodes and participate in consensus to maintain the security and stability of the entire network. Ensure the stability and security of the public chain by setting the roles of nominators and validators. At the same time, it also draws on the proportional representation system proposed by Swedish mathematicians to make the network sufficiently decentralized.

Nominated Proof of Stake (NPoS) avoids the horse-trust effect and oligopoly brought by Proof of Stake (PoS). A suitable incentive mechanism makes nominators choose more trustworthy nodes, which maintains the security of the whole network to gain more revenue. The proportional representation system distributes the total votes of nominators to each node as evenly as possible. The final result is the decentralization of the Polkadot network and its high-security performance.

With DeFi Summer kicking off in 2020, the DeFi circuit has surged, quickly sweeping through a host of public chains like Ethereum and capturing many users and projects with high returns. With the introduction of ETH 2.0, the conflict between Staking and DeFi is hard to ignore. The high yield has attracted more and more users from Staking to DeFi, and one of the most direct impacts on the PoS public chain is security and stability.


# Staking Derivatives

Staking derivatives are created to release the liquidity of staked Token by providing Token liquidity so that the Token can continue to circulate in the market. Thus, the PoS chain needs enough Staking assets for security and stability and meets the asset liquidity required by users who want to participate in high-yield DeFi projects. It ideally provides a two-pronged approach. The timing, the technology it brings, and the innovation in the application have left the industry and users in awe.

As one of the first term projects to receive a Web3 Foundation Grant and join the Substrate Builders Program, Bifrost’s original parachain bidding for derivatives has attracted significant attention in the Staking Derivatives track of the Polkadot ecosystem. Since its launch on October 21, 2021, Kusama Parachain has minted $137M in derivatives, provided $11.04M in liquidity, held 81,297 addresses on the chain, and completed 333,921 signed transactions. The upcoming SLP protocol is the best solution for releasing liquidity based on the experience of many users and technical practice.


# The optimal solution for releasing liquidity: SLP protocol

SLP is Bifrost’s Staking Liquidity Protocol, which provides high yield liquidity for the Staked Token. SLP protocol aims to solve the liquidity problem of many staked Token, maximize the utilization of Staking assets in PoS blockchain, release liquidity, bring higher rewards to users, bring more vitality to the ecosystem, and provide more resources stable and sufficient Staking assets for PoS public chain. Through the SLP protocol, Bifrost hopes to activate 80% of the PoS blockchain’s capital utilization, enhance consensus security, and promote the activity of Staking governance Token.

![6.gif](https://cdn.bifrost.finance/cms/6_45066d2e15.gif)

Bifrost is more focused on Token liquidity and reward than other PoS liquidity solutions. The trading platform directly shelves the vToken series of Token. It is worth mentioning that the SLP protocol has been officially launched on May 5th, starting from KSM staking and gradually advancing to more PoS Token staking.


# SLP Step 1: vKSM

As a parachain, Kusama, in line with Polkadot, adopts NPoS (Nominated Proof-of-Stake) consensus mechanism, which means any user holding KSM can choose to participate in the security verification Kusama network as a validator and nominator. The user’s staked KSM will be locked during the process to ensure the network’s security, so the staked Token is locked for network voting governance and cannot be transferred. Users are also unable to exit Staking immediately. They need a period of unbundling to gain total liquidity of unstaked assets, reducing liquidity and preventing full use of asset values, predominantly native Tokens.

The SLP protocol allows users to swap their KSM for vKSM. vKSM are KSM bonds generated through the SLP protocol, as understood from the perspective of centralized financial product bonds. vKSM are a combination of automatic staking principal and future staking rewards and can be redeemed using vKSM. As each user stakes for a different period, the accumulated automatic staking reward per KSM varies. vKSM is designed to be a Fungible Token that can be split to meet the needs of multiple users better.


# vKSM Core Benefits

## Liquid Staking

The product allows users to stake KSM for liquid vToken, (vKSM). vKSM will continue to receive automatic staking rewards and can continue to be used in Bifrost and Kusama-based DeFi for additional rewards. In short, vKSM can be used as a KSM for all trading actions.

## Capture automatic KSM staking rewards without scenario limitations

The system will give a real-time swap rate when the user stakes/redeems through the SLP protocol. SLP will issue automatic staking rewards to vKSM by adjusting the price of vKSM / KSM upwards. vKSM Rate = Staking Total KSM / vKSM Total Issuance. This Rate is the basis for many operations in the system. It will be executed automatically by the SLP Runtime module under the protocol with a high level of confidence and reliability.

## Floating redemption period, vKSM redemption ≤ 7 days

While Kusama’s original chain Staking has a fixed 7-day redemption period, Bifrost SLP helps users realize the possibility of early vKSM redemption by matching the real-time vKSM minting quantity with the redemption quantity at the protocol layer in the form of a queue. In short, when the real-time vKSM minting volume is greater than the current redemption volume, the redemption request will be executed immediately. At the same time, the redemption process is flexible, as vTokens can be immediately canceled at any point in the redemption process to regain vKSM without incurring any fees. It helps to avoid the loss of liquidity during the redemption process, maximizes liquidity, and gives the user maximum control.

## Higher Staking Yield, Node Intelligence Screening

According to the Sequential Phragmén Method of node staking volume in Polkadot, when a single nominator stakes to multiple nodes, the KSM staking volume will be automatically calculated and allocated by the algorithm, resulting in the ideal yield for the user and not reach the expectation. The SLP protocol operates with more than 10 verified nodes through governance (subsequently increasing with the overall staking volume). It also adds multiple filters such as the number of nominees, commission ratio, and history of blocks out to maximize the return of this verifier portfolio while ensuring that none of the nodes have experienced forfeitures. Automatic screening rules will be added to the protocol in the future.


# Why SLP

The PoS public chain represented by Polkadot has developed significantly in recent years. The ecology has become more and more prosperous, and the multiple tracks and multiple ways to play have attracted more and more users to join. It also means that the Staking derivatives track will continue its development advantages and meet more and more users’ advantages. The SLP protocol will also continue developing, optimizing, and iterating on the track.

From the user’s perspective, the yield of SLP is very impressive. Bifrost will provide additional incentives to users, especially during the initial launch period. The SLP, which went live yesterday, is waiting for investors to Ape in and enjoy the early bonuses. At the same time, the liquidity incentive will support users to continue to participate and enjoy the benefits, and the system will operate with a high subsidy.

Under the premise of high yield, the diverse available scenarios also bring more reward possibilities. Not only Kusama mentioned above, but vToken also has rich interoperability and combined application scenarios between major parachains. At the same time, it cooperates intensely with smart contracts and parachains to open up interoperability with EVM/WASM, and vToken will appear in more mature and prosperous ecosystems.

SLP’s highly liquid vKSM meets the low staking threshold and allows users to start KSM staking and still have complete control of their assets. It can also liquidate in the market with vKSM and continue to participate in DeFi. Its income opportunities are increased, yield is improved, and lock-up risk is greatly reduced.

At the same time, the SLP protocol can be combined with the DeFi track lending to create the “Staking Leverage”, which will bring more revenue possibilities to users. The cross-chain feature of Polkadot also supports vKSM to operate in DApps of other parachains. It means that it can not only focus on the DeFi stack, but also keep up with the trend of the circle and invest in other potential projects.

As the liquidity release solution launched by Bifrost after several years of leading in the Staking derivatives track, SLP protocol has a mature technical foundation and sufficient product practice. It aims to build a Polkadot ecology to solve the pain points of Staking under the PoS mechanism, bringing users a better experience, higher return, and complete liquidity freedom. It is a successful exploration of liquidity solutions and the best choice for users and public chains.

# What is Bifrost

Bifrost is a Web3 derivatives protocol that provides decentralized cross-chain liquidity for staked assets. Leveraging the cross-consensus message (XCM) can provide cross-chain liquid staking services for multiple chains.

Bifrost’s mission is to provide standardized cross-chain interest-bearing derivatives for Polkadot relay chains, parachains, and heterogeneous chains bridged with Polkadot. Furthermore, by aggregating over 80% of PoS consensus chains’ staking liquidity through cross-chain derivatives, our protocol lowers users’ staking threshold, increases the multichain staking ratio, and improves the application of the ecosystem interest base by creating a three-way positive cycle for the StakeFi ecosystem by empowering users, multi-chains, and ecosystem applications.

Bifrost has raised over USD 2M from top-tier venture capital firms by NGC, SNZ, DFG, CMS, and other institutions. In addition to being an early receiver of a Web3 Foundation Grant, Bifrost is also a member of the Substrate Builders Program and the Web3 Bootcamp.



Bifrost Staking Liquidity Protocol Goes Live, supports KSM staking liquidity

Moonbeam, the fully Ethereum-compatible smart contract platform on Polkadot, has announced the availability of the Bifrost native token, BNC, on Moonriver. BNC can now be used as xcBNC (an XC-20 representation of BNC) across the Moonriver ecosystem. This cross-chain channel and the listing of the xcBNC asset were each launched following a successful on-chain governance vote. The connection between these two growing parachains is made possible by XCM, cross-chain messaging, which continues to enable rich inter-parachain integrations across the broader Kusama ecosystem.

Bifrost specializes as a DeFi protocol that provides staking derivatives and liquidity to bonding assets. Within the larger PoS Network, Bifrost powers vTokens (Staking Derivatives Voucher Token), which allow users to mint PoS tokens into vTokens and obtain liquidity and staking rewards through SLP protocol at any time. In the future, the Bifrost Mainnet will migrate from Kusama to Polkadot.

The introduction of the XC-20 standard enables users to “deposit” tokens from elsewhere in the Kusama ecosystem, like Bifrost, to be used in Moonriver-based applications. Developers can create EVM-style fungible assets on Moonriver that are capable of moving from one Kusama parachain to another, or import Substrate-style assets from other parachains to be used within Moonriver-based DApps.

As the Kusama ecosystem continues to become more interconnected, users are increasingly given choice with where and how to use their Kusama-based tokens. The underlying technology that enabled the XC-20 standard is called XCM (Cross-Consensus Messaging) which is uniquely made possible by the Polkadot architecture. Other chains have to use third-party bridges to move tokens between chains, whereas XCM allows parachains in the Polkadot ecosystem to exchange messages with the same security as the underlying network. In this way, any parachain built on Polkadot or Kusama is able to communicate with other parachains connected to the Relay Chain. Learn more about XCM on the Moonbeam documentation website.

# About the Moonbeam Network
Moonbeam is an Ethereum-compatible smart contract platform on the Polkadot network that makes it easy to build natively interoperable applications. This Ethereum compatibility allows developers to deploy existing Solidity smart contracts and DApp frontends to Moonbeam with minimal changes. Like Moonriver, its sister parachain on Kusama, Moonbeam is expected to accumulate developer and user activity from the 80+ projects building DApps and protocols on the network. As a parachain on the Polkadot network, Moonbeam benefits from the shared security of the Polkadot Relay Chain and integrations with other chains that are connected to Polkadot. Learn more: https://moonbeam.network/.

# What is Bifrost
Bifrost is a **web3 derivatives protocol** that provides decentralized cross-chain liquidity for staked assets. By leveraging on the cross-consensus message (XCM) it can provide cross-chain liquid staking services for multiple chains.

Bifrost’s mission is to provide **standardized cross-chain interest-bearing derivatives** for Polkadot relay chains, parachains, and heterogeneous chains bridged with Polkadot. Furthermore, by aggregating over **80% of PoS consensus chains’ staking liquidity through cross-chain derivatives**, our protocol lowers users’ staking threshold, increases multi-chain staking ratio, and improves the ecosystems application interest base, by creating a three-way positive cycle for the **StakeFi ecosystem** by empowering users, multi-chains, and ecosystem applications.

Bifrost has raised over** USD 2M** from top-tier venture capital firms by the likes of **NGC, SNZ, DFG, CMS** and other institutions. In addition to being an early receiver of a **Web3 Foundation Grant**, Bifrost is also a member of the **Substrate Builders Program** and the **Web3 Bootcamp**.

Bifrost’s BNC Token is Available For Use on Moonriver as xcBNC Through an XCM Integration

Ajuna Network is the fastest way for developers and game studios to create **high-quality, decentralized games**. It seamlessly integrates industry-leading game engines — Unity and Unreal — with the world of blockchain-based assets.

The ultimate goal of the Ajuna project is to develop an interoperable, decentralized gaming ecosystem where virtual goods can be exchanged. This will mean that wherever an active community of willing players exists, they can continue to enjoy their favorite game, own and control virtual goods associated with it, and **trade them** in a decentralized community.

In this integration, Bifrost will work with Ajuna to simplify access to liquid derivatives of **staked DOT **for their Crowdloan users, generating novel options for users taking part in the Polkadot Crowdloan and rivalry among chains.

Bifrost’s ability to create fully decentralized liquid derivatives based on the Polkadot Parachain is its market advantage. Support for the Ajuna Crowdloan will enable Bifrost to leverage collaboration with the Ajuna community to launch the **Slot Auction Liquidity Protocol (SALP)** and boost user engagement with the Ajuna Crowdloan.

# Ajuna Crowdloan Rules

- **Crowdloan Cap**: 200,000 DOT
- **Reward**: 10 AJUN / 1 DOT
- **Reward Pool**: ~0.5% (2,400,000 / 500,000,000 AJUN)
- **Reward Bonus**: 20% (for Bajun Crowdloan Participants, same address used)
- **Vesting AJUN**: linear (daily) vesting over the lease period (96 weeks)

There is a Secret to be solved, amongst the solving contribution we share a reward of +100’000 AJUN (Tweet)

For the SALP, Bifrost combines Polkadot multi-signature with Kusama Parachain. Users will boost capital usage during the 96-week Crowdloan lock-up period and decide their risk thanks to Bifrost’s versatile Crowdloan liquidity solution.

Follow us on Social Media and stay tuned for updates!

# About Ajuna Network
Ajuna Network is a Swiss-based decentralized gaming platform bringing blockchain gaming into the mainstream by integrating GameFi functionality with the world’s leading development engines, Unreal and Unity. Built on Substrate, Ajuna leverages the full potential of the Polkadot ecosystem to provide developers with a modular toolbox to easily add fully-featured GameFi functionalities to their games. Ajuna’s ultimate goal is to create real value for both gamers and developers by providing a fully interoperable decentralized ecosystem for games and virtual goods.

Bifrost SALP Supports Ajuna Network Polkadot Crowdloan

**Successful bid on Polkadot Parachain**

On June 5, 2022, Bifrost went live with Polkadot Parachain. As announced before the auction, Bifrost participated in the 16th, 17th, 18th, and 19th auctions for the Polkadot Parachain slots and has successfully won the 18th slot with a two-year (96-week) slot lease. By generating vTokens to free up locked DOTs in Crowdloan, users participating in the Bifrost slot auction enjoy maximum liquidity.

In July 2021, Bifrost successfully bid for one of the first Kusama slots, officially deploying the SALP protocol on the chain, going live, and integrating the cross-consensus message format XCM to support the needs of subsequent projects in a decentralized manner for the first time. SALP protocol went live and integrated the cross-consensus message format XCM, supporting the demand for slot bidding for subsequent projects in a decentralized way for the first time. At the same time, it opened the HRMP channel with other parachains to open cross-chain interaction and further expand its business.

In the first two quarters of 2022, Bifrost upgraded and launched SALP 2.0, going live with Convert functionality to help users and organizations continue to participate in auctions, increase asset freedom, and unlock unlimited liquidity. In May of the same year, the SLP protocol went live, and vKSM was officially launched on the trading platform. Bifrost hopes to activate 80% of the PoS public chain’s capital utilization through the SLP protocol while enhancing consensus security and promoting the activity of Staking’s governance Token.

Bifrost will contribute to a cross-chain StakeFi ecosystem through the SLP and SALP protocols, actively bidding for Polkadot slots and contributing to more liquidity release solutions.

**Crowdloan Full Review**

The success of this auction was due to the investors who participated and contributed to the liquidity protocol created by Bifrost and the scientifically developed strategy for the entire process. Let’s review the complete process of this crowdloan auction.

![1_zJ7YbuDjy8v4znlaHzSR7g@2x.png](https://cdn.bifrost.finance/cms/1_z_J7_Ybu_Djy8v4znla_Hz_SR_7g_2x_f9a4d182e8.png)

**Reservation**

Bifrost officially opened the reservation on April 7. DOT holders could subscribe to the email address and enter the Polkadot address through the Bifrost Polkadot Crowdloan website to make a reservation in advance. About 270+ addresses were participating in the Bifrost reservation campaign. Reservations were highly rewarded with a base bonus, an early bird bonus (20% extra BNC per DOT for voting during the official auction), and a channel bonus (0.1 additional BNC per DOT for vote via SALP). The Last Winner campaign was launched during the official Polkadot Parachain auction, and the high rewards in the prize pool motivated many people.

**Bidding**

Bifrost officially opened the Polkadot Crowdloan Auction on April 22nd, with 3,600,000 BNCs (4.5% of total BNCs) expected to be offered in the Polkadot slot auction for Bifrost locked DOT addresses through multiple incentives such as base bidding and Last Winner. Based on Bifrost’s economic model, a total of 11,000,000 BNC will be reserved for Polkadot slot bidding. The remaining 7,400,000 BNC will be used for soft-cap adjustment incentives and future renewals of parachain slots.

**Highlights**

The active participation in the auction and the high amount of DOT raised well for Bifrost’s success. Among the success highlights are the following: the total DOT raised was 403,658.1592 DOT, the number of Polkadot.js participating addresses, and the number of Bifrost SALP participating addresses were 746 and 274, respectively.

The Last Winner event finally competed for 5 winning addresses, of which the total number of BNC issued reached 33459.49, with an average of 6691.898 BNC per address. It is worth mentioning that the arrival time of the 300,000 soft top is at 8:38 a.m. on April 26, 2022, only 4 days after the auction officially started.

**Liquidity Protocol**

As mentioned above, the SALP and SLP protocols have brought liquidity release solutions to users and the industry after they were launched and achieved outstanding results. After the SALP business successfully helped Bifrost win the slot, it also helped 31 ecological partners to participate in the auction, of which 22 were successful. SALP currently has a total TVL of around $27,000,000, with liquidity reaching $665,731.1073. The SLP protocol currently has a total pledged volume of 70,834.5640 KSM and a TVL as high as $5,547,600.

The SALP and SLP protocols deliver high yield and high liquidity, enriching user portfolios and reducing the risk of lock-in in the staking economy. At the same time, the liquidity farming incentive supports users to sit on their earnings and provides high subsidies for investment participation. What Bifrost is doing revitalizes the investment behavior while following the trend and development of StakeFi, and continues to innovate around slot auctions.

**Bifrost Latest Roadmap**

It has been less than a year since Bifrost won the fifth parachain slot in the Kusama Network on July 20, 2021, and less than two months since it won the 18th parachain slot in Polkadot. Bifrost has never stopped on its technological development and innovation path, and all phases of its latest roadmap have been completed, with the full roadmap and milestones successfully reached below.

**Phase 1 Launching (In progress)**

1. Go online Polkadot Parachain (2022 Q2)
- Successfully bid on the 18th slot
- Finish session key configuration, generate boot nodes, update docker images
- Connect to Polkadot and successfully produce blocks as a parachain
- Deployment of Sudo infrastructure and reservation of 1,000 BNC by Kusama parachain as parallel chain operating fee

2. Preparing Polkadot Parachain Basic Features (2022 Q2)

- Asset module transformation, cross-chain asset compatibility with Kusama parachain and Polkadot parachain
- Deployment of Council, Treasury, and other basic governance modules
- Bifrost mainnet removes Sudo and brings governance module online

3. Open up other Parachain HRMP cross-chain channels (2022 Q3)

- These include: Acala, Moonbeam, Astar, Phala, Composable, HydraDX, Interlay, Efinity, Centrifuge and Equilibrium
- Complete Bifrost Polkadot Parachain Asset Support and Interoperability

4. Bifrost Polkadot Parachain Deploys SALP, SLP Protocols (2022 Q3)

- The SALP-Lite protocol upgrade SALP 2.0 migrated from Kusama parachain to Polkadot parachain, realizing vsDOT minting full process decentralization
- SLP protocol online, support vDOT and expand other Polkadot eco-parachain derivatives
- Deploy Zenlink DEX, Farming Pool, Collator, and other business modules

**Phase 2 Cross Chain**

5. Bridge Kusama <> Polkadot cross-chain (2022 Q4)

- Enables Bifrost Kusama and Bifrost Polkadot parachains to register, cross-chain, and freely transfer assets such as BNC, KSM, DOT, vKSM, vDOT, vsKSM, vsDOT, vsBond in both directions

6. Migration of Kusama governance modules (Council, Democracy, Treasury) to Polkadot (2023 Q1)

- Enables bi-directional cross-chain interoperability between Bifrost Kusama and Bifrost Polkadot parachains, paving the way for migration of protocol and governance modules to Bifrost Polkadot parachain.

**Phase 3 Integration**

7. Cross-chain Governance of Kusama Parachain via Polkadot Parachain (2023 Q2)

- Consolidation of Bifrost Kusama Council, Treasury, Referendum, and other governance modules into the Bifrost Polkadot Parachain
- Cross-chain governance of Bifrost Kusama Parachain through cross-chain interoperability of Bifrost Polkadot Parachain

8. Kusama is not renewed and SALP and SLP protocols are taken offline (2023 Q2)

- Bifrost Polkadot parachain takes over Bifrost Kusama derivatives protocol. Users can realize the minting, redemption, and other operations of Kusama ecological derivatives such as vKSM and vsKSM through cross-chain

9. Bifrost Kusama Parachain Degenerates to Parallel Threads (2023 Q3)

- Bifrost will not continue to bid on the Kusama Parachain, and Bifrost Kusama will be degraded from a parachain to a parallel thread
- Bifrost Kusama Parallel Threads assets are secure, and users are free to transfer, redeem, or cross-chain to Bifrost Polkadot Parachain.

**What is Bifrost**

Bifrost is a web3 derivatives protocol that provides decentralized cross-chain liquidity for staked assets. By leveraging the cross-consensus message (XCM) it can supply cross-chain liquid staking services for multiple chains.

Bifrost’s mission is to provide standardized cross-chain interest-bearing derivatives for Polkadot relay chains, parachains, and heterogeneous chains bridged with Polkadot. Furthermore, by aggregating over 80% of PoS consensus chains’ staking liquidity through cross-chain derivatives, our protocol lowers users’ staking threshold, increases the multi-chain staking ratio, and improves the application of the ecosystem interest base by creating a three-way positive cycle for the StakeFi ecosystem by empowering users, multi-chains, and ecosystem applications.

Bifrost has raised over USD 2M from top-tier venture capital firms by the likes of NGC, SNZ, DFG, CMS, and other institutions. In addition to being an early receiver of a Web3 Foundation Grant, Bifrost is also a member of the Substrate Builders Program and the Web3 Bootcamp.

Bifrost Polkadot Parachain Goes Live: Roadmap, Cross-Chain Integration of Polkadot and Kusama Ecosystems

We are thrilled to announce that HRMP (XCMP-Lite) channels have been opened between Bifrost and Astar/Shiden Parachain on Polkadot/Kusama ecosystem, which represents a collaboration to start the interaction between Bifrost parachain and Astar/Shiden EVM, WASM protocol.

As the basis, Bifrost and Astar/Shiden support bi-directional transactions on their native Token BNC and ASTR/SDN. Besides, liquid staking tokens transact will promote the XCM use cases between each other’s DeFi protocol. vDOT/vKSM as one of Bifrost liquid staking derivatives, it will build the case of cross-chain derivative minting and redemption, and interact with Astar borrowing or lending protocols by achieving remote liquidation and swap. By utilizing ASTR for Dapp Staking, vASTR will potentially be another case for liquid staking.

## About Astar

Astar Network - The Future of Smart Contracts for Multi-chain.

Astar Network supports the building of dApps with EVM and WASM smart contracts and offers developers true interoperability, with cross-consensus messaging (XCM). Astar’s unique Build2Earn model empowers developers to get paid through a dApp staking mechanism for the code they write and dApps they build.

Astar’s vibrant ecosystem has become Polkadot’s leading Parachain globally, supported by all major exchanges and tier 1 VCs. Astar offers the flexibility of all Ethereum and WASM toolings for developers to start building their dApps. To accelerate growth on Polkadot and Kusama Networks, Astar SpaceLabs offers an Incubation Hub for top TVL dApps.

## About Shiden

Shiden Network - The Innovation Hub on Kusama.

Made by developers, for developers, Shiden Network is a multi-chain decentralized application layer on Kusama Network. Kusama Relay chain does not support smart contract functionality by design so it needs a smart contract layer.

This is where Shiden Network comes in. Shiden supports Ethereum Virtual Machine, WebAssembly, and Layer2 solutions from day one. The platform supports various applications like DeFi, NFTs and more.

## About Bifrost

Bifrost is a web3 derivatives protocol that provides decentralized cross-chain liquidity for staked assets. By leveraging on the cross-consensus message (XCM) it can provide cross-chain liquid staking services for multiple chains.

Bifrost’s mission is to provide standardized cross-chain interest-bearing derivatives for Polkadot relay chains, parachains, and heterogeneous chains bridged with Polkadot. Furthermore, by aggregating over 80% of PoS consensus chains’ staking liquidity through cross-chain derivatives, our protocol lowers users’ staking threshold, increases multi-chain staking ratio, and improves the ecosystems application interest base, by creating a three-way positive cycle for the StakeFi ecosystem by empowering users, multi-chains, and ecosystem applications.

Bifrost has raised over USD 2M from top-tier venture capital firms by the likes of NGC, SNZ, DFG, CMS and other institutions. In addition to being an early receiver of a Web3 Foundation Grant, Bifrost is also a member of the Substrate Builders Program and the Web3 Bootcamp.

Bifrost Opens HRMP Channels with Astar/Shiden to Support Asset Interoperability

# Introduction
Since the so-called DeFi Summer in 2020, the Decentralized Finance has overgrown. Therefore, the resulting financial products have made DeFi the primary path for the systemic growth of major public chains. Polkadot was born with its technical advantages of interoperability and cross-chain communication. It combines multiple blockchains into a unified and scalable network, aiming to solve the isolation and separation between single blockchains, raising this innovative technology to a new level.

Polkadot’s popularity is not only due to its technological innovation: From the users’ perspective, various DApps in the Polkadot ecosystem have brought excellent benefits. At the same time, its subsystem framework supports the value transfer between different blockchains. Therefore, investors can get a more consistent and convenient experience and reduce their cross-chain threshold and cost.

Since the launch of Rococo V1, Polkadot’s special parachain test-net published by one of the Polkadot co-founders at the end of 2020, DOT has increased its value. Last year, the Polkadot Parachain Slot Auction attracted many project parties and investors, which paid attention to the market dynamics and got their spot in the parachain slot auction, making significant profits. On the other hand, users felt the pain of fixed assets and limited investment behavior during the parachain slot auction lock-up period. Today, Bifrost Finance, with the latest SALP 2.0 launch, proposes a liquidity release scheme to solve the lock-up of slot auction assets, providing investors with unlimited liquidity paths.

# Slot Auction and Liquidity

![6.png](https://cdn.bifrost.finance/cms/6_be0ae91b10.png)

First, it is worth spending some time explaining a bit of context to novice readers and investors. As a typical PoS blockchain, Polkadot has set up a Staking mechanism with two purposes: network security and the bottom layer of consensus, which can ensure stability with a high mortgage rate and guarantee the user’s income.

The Polkadot Slot Auction is a project based on Polkadot characteristics, and its underlying financial layer is Staking. Polkadot consists of a Relay chain, parachains, and transfer bridge. The relay chain is the center of the Polkadot network and is responsible for the security and control of the system; Parachains connect and interact with the Relay chain through slots. Therefore, if a new Parachain wants to access the ecosystem and interact with other parachains, it must use the slot to acknowledge the business interaction. 80% of the slots in Polkadot are commercial slots, which are opened by auction.

Polkadot designed an auction method that allows the project to bid for the right to use the slots within a specific lease period, locking a certain amount of Tokens. Only after the lease term ends these tokens can be unlocked, and assets returned. It is worth mentioning that DOT participating in the mining process cannot be used on the auctions. In addition to large projects and institutional parties, retail investors can join a Crowdloan, increasing the number of DOT locked in. In this way, they will increase their chances of success. Naturally, the project will encourage users to participate with an incentive mechanism.

Whether it is a staking, farming or crowdloan auction, there is a pain point of Staking behavior: Staking assets cannot be used during the lock-up period, so users bear the opportunity cost and rely on market risk. The same is true for slot auctions. Therefore, to better address the impact of slot auctions, such as insufficient liquidity, locked assets, and reduced market behavior, Bifrost proposed SALP (Slot Auction Liquidity Protocol). It releases liquidity and brings an effective liquidity solution to users, the Polkadot ecosystem, and even the blockchain networks.

# SALP - vsToken & vsBond
SALP aims to release KSM/DOT liquidity locked in crowdloan by generating derivatives. SALP will significantly improve the fund utilization rate of crowdloan and attract more participants who have concerns about the lock-up period to support the slot auction. SALP increases the possibility of successful bidding in an auction for a project. To build a rich ecosystem, SALP can release the power of the locked-up liquidity. Therefore, KSM/DOT could gain more value based on users’ strategies and behaviors.

![8.png](https://cdn.bifrost.finance/cms/8_0ecc7d68eb.png)

Participating in a Crowdloan through SALP gives access to two derivatives: vsDOT/vsKSM (Voucher Slot Token) and vsBond (Voucher Slot Bond). vsDOT/vsKSM is the derivative token of the DOT/KSM locked in the slot auction, while vsBond is determined by the supported auction items. If users vote for Parachain A, they will get vsBond — Parachain A, and if they vote for Parachain B, they will get vsBond — Parachain B. Please note that vsBond — Parachain A and vsBond — Parachain B are qualitatively different.

Bifrost started with the Token attribute of participating in the Crowdloan, decoupled its asset attribute from its equity attribute, and designed vsToken and vsBond. In addition to the differences between homogeneous and non-homogeneous characteristics, there are differences in specific performance and use. vsToken can trade at any time or cooperate with vsBond for 1:1 redemption after the end of the parachain lease term. The vsBond can be traded through the vsBond trading market built-in in Bifrost without considering liquidity.

# SALP 2.0
Since its launch, the SALP (Slot Liquidity Protocol) has launched derivatives such as vsKSM and vsDOT, successfully participated in the Kusama Slot Auction, and has been linked to Kusama as a parachain. A total of 42 eco-partners have participated in the auction through SALP, with 6,963 active Crowdloan addresses and a TVL of $21,000,000. The amount of derivative liquidity generated by SALP has reached $508,113. These data reflect the remarkable achievements and positive role of SALP in releasing liquidity, helping project bidding, facilitating user market behavior, and reducing opportunity costs.

But as we all know: What is good can continuously be improved. So, based on many market trials and continuous optimization, SALP 2.0 will be launched with some brand-new features to help our users participate in slot auctions, improve asset freedom and release unlimited liquidity strategies.

SALP’s design of vsToken and vsBond has solved the problem of releasing the liquidity of some lock-up KSM/DOT. Nonetheless, users encountered various issues: vsKSM cannot be accepted rigidly alone, the vsBond mechanism is seriously fragmented, and some users’ transaction experience and the whole efficiency in the actual process need to be optimized.

Based on this, SALP 2.0 introduces the mechanism of mutual conversion between vsToken and vsBond. Using the system pricing mechanism, different conversion exchange rates are determined according to different redemption periods to obtain a more accurate vsBond value to realize the conversion from non-homogeneous vsBond with additional value to entirely homogeneous vsToken. It makes the circulation of vsBond smoother and meets users’ needs to release total liquidity quickly.

![9.png](https://cdn.bifrost.finance/cms/9_ef8d002a83.png)

The specific conversion rules are as follows:

- Users participating in crowdloan can convert vsBond into a certain amount of vsKSM at the system pricing exchange rate;
- Retail users can purchase vsKSM and convert vsKSM into vsBond at another system exchange rate;
- vsBond → vsKSM exchange rate is about 0.6 → 1 (Opportunity cost and Staking annualized income);
- When the exchange rate of vsBond → vsKSM is 0.6, the exchange rate of vsKSM → vsBond is 1.25 (The actual exchange rate is 1.666).

vsKSM/vsBond Convert: https://bifrost.app/swap?tab=convert

Bond Market: https://bifrost.app/bond

Not only those who participate in crowdloan but also those who want to invest in derivatives and try different ways of operating at this time can seize the opportunity from the vsToken & vsBond swap mechanism of SALP 2.0 and obtain higher returns.

For example, when the price of vsKSM is stable at 0.5 KSM, a stable rate of return can be obtained according to the lock-up time. The longer the lock-up time, the higher the annualized rate of return: When the price of vsKSM drops, the arbitrage yield of the whole period increases, and the yield of vsBond close to the redemption period increases significantly.

# The Bond Market
SALP 2.0 not only updates and optimizes the existing mechanism but also enables users already familiar with Bifrost Dapp to have a better experience and obtain higher revenue and unlimited liquidity. At the same time, it has also launched two new functions: Bond market and Current pledge, which are outstanding derivatives investment options for new users.

![10.png](https://cdn.bifrost.finance/cms/10_4f0c1fa587.png)

The Bond market is a function that automatically matches a vsToken and a vsBond to package their redemption period and yield. It has the same attributes as the traditional bond market. Of course, new users do not need to pay attention to the operating mechanism and underlying structure of slot auctions and crowdloan. They only need to know the primary financial instrument of traditional bonds: seize the favorable opportunities such as interest rate fluctuation and redemption period, improve the yield and obtain the return on investment.

# Improved liquidity of vsKSM
The launch of the liquidity staking function improves the liquidity of vsKSM, ensures the liquidity of the Bond market, and provides a more stable environment for user arbitrage. The bottom level and performance of its functions are: support users to carry out vsKSM single currency mining and obtain higher incentives while contributing to the liquidity of vsKSM. When the liquidity of vsKSM is improved, the exchange transactions of vsBond and vsKSM are increased, the number of vsBonds in the SALP 2.0 agreement is also increased, which can provide more vsBonds to the market and increase the matching of vsKSM-vsBond.

# What is Bifrost
Bifrost is a web3 derivatives protocol that provides decentralized cross-chain liquidity for staked assets. By leveraging the cross-consensus message (XCM) it can supply cross-chain liquid staking services for multiple chains.

Bifrost’s mission is to provide standardized cross-chain interest-bearing derivatives for Polkadot relay chains, parachains, and heterogeneous chains bridged with Polkadot. Furthermore, by aggregating over 80% of PoS consensus chains’ staking liquidity through cross-chain derivatives, our protocol lowers users’ staking threshold, increases the multi-chain staking ratio, and improves the application of the ecosystem interest base by creating a three-way positive cycle for the StakeFi ecosystem by empowering users, multi-chains, and ecosystem applications.

Bifrost has raised over USD 2M from top-tier venture capital firms by the likes of NGC, SNZ, DFG, CMS, and other institutions. In addition to being an early receiver of a Web3 Foundation Grant, Bifrost is also a member of the Substrate Builders Program and the Web3 Bootcamp.

Bifrost launches SALP 2.0, Unlocking Unlimited Liquidity for Slot Derivatives

## Filecoin Network

Filecoin, a peer-to-peer network that leverages the IPFS protocol, is among the leading decentralized storage solution providers. Since its mainnet launch in 2020, the network has attracted over 19.19 EiB (Petabytes) of storage space, thanks to its economic incentives and cryptographic measures that ensure the reliability of stored files over time. However, the project’s ambitions have not been fully realized: Filecoin continues to work towards achieving a “global hard disk” with more computing power.

One key strategy is to lower the entry barrier for new participants to achieve its goal. There are currently two barriers that potential Storage Providers must meet: high FIL staking cost and physical storage operating costs.

To ensure the stability of the network, all Storage Providers must stake a proportional amount of $FIL based on the computing power they provide. In the event of offline storage or data loss, Storage Providers face a Slash penalty.

Each sector packaged for storage providers requires hard drives and stake tokens. Overall, the staking cost of FIL accounts for 80% of the cost structure of storage providers, whilst the cost of physical storage operations (including hard drive purchase, depreciation, maintenance, iteration, electricity, network deployment and network fees, etc.) accounts for only 20% of the cost.

Thus, the difficulty in FIL acquisition could deter potential storage providers from entering this field or stop everyday users who hold FIL from earning more via operating their own devices.

Liquid staking solutions present possibilities for breaking down these barriers. We can overcome both hurdles with liquid staking, which is also facilitated by Filecoin’s recently launch of FVM, a Filecoin-based virtual machine environment that allows developers to deploy smart contracts directly to Filecoin.

## Liquid Staking

Liquid staking is a rapidly growing alternative to locking up a users’ tokens and contributing to the security of PoS blockchains. PoS chains require stakes from nodes in the network to maintain their security, and there is a waiting time before unstaking allows for the retrieval of staked assets. This imposes an opportunity cost on the node and the pledgee delegating to the node. Liquid staking provides stakers with increased liquidity and capital efficiency.

## Bifrost - Omnichain LSD

Bifrost, a leading permissionless cross chain liquid staking protocol for staked assets, has leveraged liquid staking to provide opportunities for multiple asset types through its SLP (Staking Liquidity Protocol) protocol. Through the protocol, Bifrost mints liquid staking derivatives (LSD), vTokens, enabling users to participate in staking without losing liquidity.

Bifrost SLP will release a new LSD asset, vFIL, which supports full-chain LSD extensions. With vFIL, Bifrost will become the liquid staking service provider for the Filecoin ecosystem and extend the base layer of Filecoin.

## vFIL Mechanism

Bifrost’s non-custodial liquid staking solution allows users to stake their FIL and receive vFIL (voucher FIL) in exchange. vFIL is one of the voucher tokens in the Bifrost vToken set, representing the liquid-staking token of staked FIL.

By using the bridge between Filecoin and Polkadot, vFIL can exist in EVM and Substrate asset formats, simplifying the operativity between the Polkadot and Filecoin FVM ecosystems. The underlying mechanism behind vFIL is run by the Bifrost SLP.

vFIL holders will also receive an ongoing share of FIL revenue, while storage providers can expand their storage capacity in this way, without focusing on staking requirements.

## Revenue Structure

The storage provider’s revenue is divided into three main components:

1. Storage revenue - The storage provider earnings for storing data for Filecoin users. After gaining storage revenue, the system locks it and unlocks it linearly over 520 days.

2. The participation reward for the consensus nodes of the Filecoin network.

3. Gas fees.

## Revenue Allocation

The storage provider and the vFIL holder will receive a portion of the revenue, with the storage provider earning ~60% and the vFIL holder receiving ~40% (as defined by the storage provider). The vFIL’s revenue portion shall be compounded automatically as interest and represented in an upward adjustment of the exchange rate.

Consider the following example with an accumulation return of 5%. By staking initially 1 FIL, users acquire a 5% return on their initial principal. With this system in place, the swap rate will automatically adjust upward so that each vFIL equals 1.05 FIL returns — allowing users to reap increased rewards from providing liquidity. The payout mechanism eliminates the need for users to manually claim and compound their earnings, providing a hassle-free experience for vFIL holders.

If another user were to stake 1 FIL at this time, they would only receive ~0.9524 vFIL, which would be fair to any user casting or redeeming at any point in time.

## vFIL Benefits

There are various advantages for users staking FIL and minting vFIL on Bifrost:

- Exposure to FIL native staking rewards whilst holding vFIL and having liquidity: vFIL’s price attribute will mimic FIL; therefore, vFIL will fluctuate with the rise and fall of FIL, however, vFIL’s price will rise relative to FIL because of the accumulation of staking income.

- Automatic compounding of staking rewards: without any operation, the rewards will be automatically re-commissioned and compounded.

- Access to liquidity with Flexible trading: vFIL is tradable at any time in the secondary market, holding vFIL users will not have any liquidity risk.

- Advance earnings: Although storage revenue takes 520 days to unlock linearly, the price of vFIL reflects unissued earnings in advance, with a discount rate.

- Fast Redemption: Users can redeem their underlying FIL with rewards whilst vFIL is destroyed by the protocol. The system places redemption requests in a queue and matches them with new mint requests to facilitate fast processing. This approach may still require a certain waiting period for the user initiating the redemption. However, If the user wishes to redeem immediately, they can swap through the liquidity pool of vFIL/FIL on Bifrost.

- vFIL will have various LSD & #DeFi benefits, including trading, lending, and borrowing within Bifrost.
Finally, whilst users can earn staking rewards on their staked FIL, they will have the flexibility in participating in DeFi scenarios with vFIL within native Polkadot Substrate, EVM and Filecoin ecosystems.

## What vFIL means for the Filecoin network

vFIL adds the following advantages, besides the FIL holder and Storage Providers benefits:

- As the capital threshold for storage providers decreases, more storage providers will join the network, boosting the overall computing power of the Filecoin network.

- vFIL will facilitate increased FIL staking in the network, improving the consensus security of the Filecoin network.

- We’ll write the delegation algorithm to skew delegation towards storage providers in regions with less arithmetic power to improve the balance of Filecoin’s arithmetic power in the geographic distribution and promote the arithmetic democracy of Filecoin.

## vFIL Launch Details
 
vFIL is issued based on the Bifrost SLP protocol and it will be implemented in two phases:

**Phase One - The Multi-Signature Phase**

We’ll deploy vFIL using a multi-signature account on Filecoin and an off-chain EVM. The user will transfer FIL to the multi-signature address on the Filecoin chain, and the off-chain EVM will notify the SLP module on the Bifrost chain to mint vFIL for the user, with the amount minted depending on the current swap rate.

The multi-signature address will delegate the FIL to the storage provider, encapsulate the sector, and start generating revenue. During the multi-signature phase, the vFIL will liquid staking a hard top. Upon reaching the hard top, staking vFILs becomes impossible.

**Phase Two - The FVM Phase**

FVM is a virtual machine environment based on the Filecoin network. FVM went live on the Filecoin network on March 14, allowing developers to deploy smart contracts on the Filecoin network directly based on FVM. vFIL will enter the second phase after we complete the development of the corresponding contracts, in which we’ll achieve full decentralization of vFIL based on FVM contracts. At that point, we’ll remove the vFIL minting hard top.

vFIL will obtain the investment opportunities of Filecoin and storage arithmetic to Polkadot and the broader chain-wide ecosystem. As an interest-bearing asset, vFIL will be a better underlying asset in the DeFi world, and vFIL holders will potentially reap multiple benefits in multi-chain DeFi.

Bifrost is launching vFIL, One of The First Liquid Staking Solutions for the Filecoin Network

## What is Bifrost Fellowship

Referencing the [Polkadot Technical Fellowship](https://wiki.polkadot.network/docs/learn-polkadot-technical-fellowship), 

> Fellowship is a self-governing body of experts and developers of Polkadot, Kusama, and Parachain protocols. It operates on-chain through [fellowship referenda](https://bifrost.subsquare.io/fellowship) and off-chain through the [community discussion](https://bifrost.subsquare.io/discussions) repository
> 

The Bifrost Fellowship aims to foster the long-term development and growth of the Bifrost Protocol by considering its long-term roadmap from various perspectives. This might include discussions, research, and implementation from diverse standpoints. For instance:

- Efficient use of treasury, screening of effective supporting/integration schemes, strategic channelling of liquidity incentives, etc.
- Strategic vToken deployment plans to discover broader ecosystem integrations and development.
- How to increase brand awareness, organization, and planning of marketing and community activities.
- Discussion and research on new technology releases, how to combine with Bifrost and integration, etc.
- Guide the community to participate in OpenGov and improve the activity of governance.

The fellowship will include members with a diverse range of expertise and experience. This includes developers with technical skills, founders and builders of other DeFi and Web3 protocols, blockchain researchers, professional infrastructure and node operators, community and opinion leaders, ecosystem contributors, and partners.

These individuals will form various sub-fellowships, each divided according to their specific expertise, experience, and skill set. Each sub-fellowship will have its own mandate, role, and responsibilities, and will consist of expert members.

## What is Bifrost Sub-fellowship

Each sub-fellowship will be responsible for its specific field and will be tasked to initiate proposals, manage its sub-fellowship, onboard members, and initiate discussions of proposals related to its expert field. For each sub-fellowship, a leader will be nominated who will represent the sub-fellowship to lead reviews and discussions. The Sub-fellowships will be detailed in the following context.

### Treasury Fellowship

![treasury fellowship.png](https://cdn.bifrost.finance/cms/treasury_fellowship_456374da76.png)

This is primarily composed of the Bifrost Foundation, with a clear focus on treasury-related proposals and strategic management of treasury funds.

**Criteria of Applicants**

The following are the basic requirements to apply for membership in the Treasury Fellowship.

- An understanding of the DeFi market sector, broader DeFi primitives, and their respective business models.
- Knowledge of Bifrost’s economics and business model.
- Track record in participation in treasury-related proposals and functions.
- A product-oriented mindset skilled in various Web3 products, capable of independently evaluating product quality and Product-Market Fit (PMF).

**Exisiting Members**

![treasury.jpg](https://cdn.bifrost.finance/cms/treasury_201073a8c7.jpg)

Find them in the Bifrost Discord channel: [Treasury Fellowship](https://discord.gg/jmfHwYEt)

### Tech Fellowship

![techfellowship.png](https://cdn.bifrost.finance/cms/techfellowship_5f9920038a.png)

It is mainly composed of developers and members with technical backgrounds. The Tech fellowship is focused on releasing updates related to Substrate and runtime, discussing the latest technological developments related to Polkadot, managing the fellowship and onboarding of members, and participating in the discussion of topics such as hackathons and proposals for product delivery and integration.

**Criteria of Applicants**

The following are the basic requirements to apply for membership in the Tech Fellowship (any 2 of the following are sufficient).

- Track-record in Rust development
- Familiarity with Bifrost Pallets and Polkadot tech.
- Familiarity with Bifrost and the ability to construct transaction-encoded data for various XCM, pallets, and method calls.
- The RP has been submitted to Bifrost multiple times and has been successfully merged.

**Existing Members**

![tech.jpg](https://cdn.bifrost.finance/cms/tech_910dca6cac.jpg)

Find them in the Bifrost Discord channel: [Tech Fellowship](https://discord.gg/jmfHwYEt)

### Strategy Fellowship

![strategyfelloship.png](https://cdn.bifrost.finance/cms/strategyfelloship_8fe0a71fb7.png)

They mainly comprise business partners, product managers, advisers, protocol founders, and ecosystem contributors. Its objective is to develop and implement initiatives to drive growth and expansion across the ecosystem and beyond. The fellowship's main tasks are topics and proposals related to product roadmaps, the development and growth of the Bifrost protocol and its business expansion across ecosystems, and the Strategy fellowship's management and onboarding of its members.

**Criteria of Applicants**

The following are the basic requirements to apply for membership in the Strategy Fellowship (any 2 of the following are sufficient).

- Previous leadership roles and experience or similar responsibilities with DeFi protocols and Polkadot.
- Onchain track record demonstrating active participation in the governance of DeFi protocols. This includes discussions on functional product upgrades, growth, and business go-to-market initiatives and strategies.
- A deep understanding of the DeFi sector, market structure, and trends within the ecosystem and beyond.
- Familiarity with the operational logic of Bifrost Staking Liquidity Protocol (SLP), its vTokens, and a broader understanding of the various LST landscapes and ecosystems.

**Existing Members**
![strategy.jpg](https://cdn.bifrost.finance/cms/strategy_dc337ac527.jpg)

<br>

Find them in the Bifrost Discord channel: [Strategy Fellowship](https://discord.gg/jmfHwYEt)

### Community Fellowship

![community fellowship.png](https://cdn.bifrost.finance/cms/community_fellowship_5987768c7a.png)

This group mainly comprises members involved in marketing operations, community leaders, and head ambassadors. It focuses on discussing community proposals, structuring events, and collaborating with other communities.

**Criteria of Applicants**

The following are the basic requirements to apply for membership in the Community Fellowship (any two of the following are sufficient).

- Track record in Bifrost, Polkadot, and broader Web3 Communities
- Experience in organizing community initiatives, such as online/offline events
- Ability to initiate discussions and build constructive proposals on other chains/dapps to broaden the use of vTokens and spread the Bifrost brand (reaching DAOs for Treasury diversification and more)
- Having solid educational or infographic/designer/video skills that could help to produce a series of content to explain DeFi narratives and the specificities of the Bifrost protocol.

**Existing Members**
![community.jpg](https://cdn.bifrost.finance/cms/community_7ce5729cd4.jpg)

Find them in the Discord channel: [Community Fellowship](https://discord.gg/jmfHwYEt)

### Infra Fellowship

![infrafellowship.png](https://cdn.bifrost.finance/cms/infrafellowship_9359c4ae55.png)

They predominantly include infrastructure providers, node & validator operators, Validator Boost List (VBL) members, and technical operations and maintenance members. Members are primarily focused on discussing VBL application proposals and initiatives around optimizing existing Bifrost infra and validator/collators programs, managing the fellowship, and onboarding members in the Infra Fellowship.

**Criteria of Applicants**

The following are the basic requirements to apply for membership in the Infra Fellowship (any 2 of the following are sufficient).

- Familiar with Bifrost VET and VBL.
- Experience in server operation and maintenance.
- Existing Bifrost collator runner.

**Existing Members**

![infra.jpg](https://cdn.bifrost.finance/cms/infra_7837c3f9d3.jpg)

Find them in the Discord channel: [Infra Fellowship](https://discord.gg/jmfHwYEt)

### Application for Fellowship Membership

Anyone (including individuals or entities) interested in participating as a candidate in the Bifrost Fellowship program is encouraged to inform the community of their plans to run on the [discussion forum](https://bifrost.subsquare.io/discussions) by following the steps below:

- **Phase 1: Self-introduction - At any time**

    - Background of your motivation for Fellowship membership application.
    - **Clarify which sub-fellowship you are applying to join.**
    - As a member of a particular sub-fellowship, state how you will add value, help Bifrost grow, and identify the aspects Bifrost needs to improve.
    - What is your individual/entity background and experience, and why should the community and fellowship members vote for you? (Provide your governance experience with on-chain or off-chain proof.)
    
- **Phase 2: Discussion and evaluation by community & Fellowship**
    
  - During this phase, the corresponding sub-fellowship leader will comment and lead the evaluation and engagement process. This phase normally takes 7-14 days and includes time for the Fellowship to discuss internally and conclude. Following this, the Candidate can decide whether or not to post the formal proposal on-chain in the next phase.
    
- **Phase 3: Initiate on-chain proposal-dynamic voting time**
    
  - After considering the Fellowship’s suggestion in the previous phase, candidates can ask the Fellowship or can self-post their proposal on-chain, and initiate an on-chain referendum.
  
## Fellowship Referenda

The fellowship's governance model has multiple tracks, each with its own approval and support parameters, where votes are weighted according to their ranks.

Members of the Fellowship can vote on any given proposal, and the aggregated vote of all members (weighted by their rank) constitutes the Fellowship's collective vote.

> Most Bifrost Fellowship Referenda Origin are [Runtime function extrinsic](https://www.notion.so/aeb7d71d48f641e8bd1015fa5555a602?pvs=21). Hence, most referenda are initiated by Strategy Fellowship and Tech Fellowship, and other fellowship members are led to vote on them. 

The list of current and historic fellowship referenda can be viewed on [Subsquare](https://bifrost.subsquare.io/fellowship).

### Rank Updates[](https://wiki.polkadot.network/docs/learn-polkadot-technical-fellowship#rank-updates)

Fellowship members can request an update on their ranks at any time, and **each year, they can be updated by one rank**.

1. Any fellowship member up to rank 4 can be promoted to the next rank through a fellowship referendum that can be voted by the members who are ranked two or higher. For instance, the fellowship [referenda 64](https://collectives.subsquare.io/fellowship/referenda/64), which promotes a member from rank 1 to rank 2, can only be voted by members whose ranks are greater than or equal to 3.
2. Promotion of the Polkadot Fellowship members from rank 5 needs to be done through an OpenGov referendum. For more information, check the rank updates section on the [fellowship dashboard](https://bifrost.subsquare.io/fellowship/members).

## Whitelisting

Polkadot OpenGov allows the Technical Fellowship to authorize an origin known as "Whitelisted-Caller" to execute with Root-level privileges for calls approved by the Fellowship (**currently, only level-three fellows and above can vote for whitelist calls**). Note that the fellowship cannot unanimously change the network parameters, conduct rescues, or move assets. The whitelisted proposals still have to go through the whole life cycle of an OpenGov referendum and can only be enacted when the referendum passes successfully.

The whitelisting process starts as a fellowship referendum with an embedded XCM call from the collectives system chain to the Polkadot relay chain. For instance, the [Bifrost Fellowship referenda #14](https://bifrost.subsquare.io/fellowship/referenda/52) was used to **whitelist** the [Bifrost OpenGov referenda #14](https://bifrost.subsquare.io/referenda/14).

## Sub-Fellowship Salary

The Salary structure will be announced in Q4 2024.

The Bifrost Fellowship: Insights Into the Roles and Responsibilities of Sub-fellowships

## Fellowship 概念介绍

根据 [Polkadot Technical Fellowship](https://wiki.polkadot.network/docs/learn-polkadot-technical-fellowship) 的定义：

> Fellowship 是由 Polkadot、Kusama 和 Parachain 协议的专家和开发者组成的自治机构。它通过 [Felowship 公投](https://bifrost.subsquare.io/fellowship)实现链上运作，并通过[社区讨论仓库](https://bifrost.subsquare.io/discussions)在链下运作。

Bifrost Fellowship 旨在通过从多个角度，以长期路线图为基准来促进 Bifrost 协议的长期发展和增长。这可能包括从不同类别下的讨论、研究和行动。例如：

- 高效利用国库资金，筛选有效的支持/集成方案，战略性引导流动性激励等。
- 战略性 vToken 部署计划，以发现更广泛的生态系统集成和发展。
- 如何提高品牌知名度，组织和策划营销和社区活动。
- 讨论和研究新技术发布，如何与 Bifrost 结合和集成等。
- 引导社区参与 OpenGov，提高治理活动。

该小组将由拥有多样化专业知识和经验的成员组成，包括具有技术能力的开发人员、其他 DeFi 和 Web3 协议的创始人和建设者、区块链研究人员、专业基础设施和节点运营商、社区和意见领袖、生态系统贡献者和合作伙伴。

这些成员将组成各个小组，每个小组将根据其特定的专业知识、经验和技能进行划分。每个小组将有其自己的任务、角色和职责，并由专家成员组成。

## 什么是 Sub-fellowship

每个小组将负责其特定领域，并负责发起提案、管理其小组、吸纳成员，并发起与其专业领域相关的提案讨论。每个小组将提名一名领导者，代表该小组统筹审查和讨论。关于各个小组的详细内容将在下文进行阐述。

### 国库 Fellowship

![treasury fellowship.png](https://cdn.bifrost.finance/cms/treasury_fellowship_456374da76.png)

该小组主要由 Bifrost 基金会组成，专注于与财政相关的提案和财政资金的战略管理。

**申请要求**

以下是申请加入国库小组的基本要求。

- 了解 DeFi 市场、DeFi 原理及的商业模式。
- 熟悉 Bifrost 的经济学和商业模式。
- 具有参与财政相关提案和职能的经验。
- 具有产品导向思维，精通各种 Web3 产品，能够独立评估产品质量和产品市场契合度（PMF）。

**当前成员**

![treasury.jpg](https://cdn.bifrost.finance/cms/treasury_201073a8c7.jpg)

可以在 Bifrost Discord [国库小组](https://discord.gg/jmfHwYEt)频道和成员们进行交流。

### 技术 Fellowship

![techfellowship.png](https://cdn.bifrost.finance/cms/techfellowship_5f9920038a.png)

主要由开发人员和具有技术背景的成员组成。技术小组专注于发布与 Substrate 和 Runtime 相关的更新，讨论与 Polkadot 相关的最新技术发展，管理小组和新成员的入驻，并参与黑客松、产品交付和集成提案等话题的讨论。

**申请要求**

以下是申请加入技术小组的基本要求（满足以下任意两项要求即可）：

- 具有 Rust 开发经验
- 熟悉 Bifrost Pallets 和 Polkadot 技术
- 熟悉 Bifrost，并能够为各种 XCM、pallets 和方法调用构建交易编码数据
- 多次向 Bifrost 提交 RP，并成功合并

**当前成员**

![tech.jpg](https://cdn.bifrost.finance/cms/tech_910dca6cac.jpg)

可以在 Bifrost Discord [技术小组](https://discord.gg/jmfHwYEt)频道和成员们进行交流。

### 战略 Fellowship

![strategyfelloship.png](https://cdn.bifrost.finance/cms/strategyfelloship_8fe0a71fb7.png)

该小组主要由业务合作伙伴、产品经理、顾问、协议创始人和生态系统贡献者组成，目标是制定和实施推动生态系统及外部增长和扩展的计划。该小组的主要任务是与产品路线图、Bifrost 协议的发展和增长以及其在生态系统中的业务扩展相关的主题和提案，以及战略小组的管理和新成员的入驻。主要由业务合作伙伴、产品经理、顾问、协议创始人和生态系统贡献者组成。其目标是制定和实施推动生态系统及其以外增长和扩展的计划。该小组的主要任务是负责产品路线图、Bifrost 协议的发展和增长以及其在生态系统中的业务扩展相关的主题和提案，以及战略小组的管理和新成员的入驻。

**申请要求**

以下是申请加入战略小组的基本要求（满足以下任意两项即可）：

- 主导过 DeFi 协议和 Polkadot 相关项目，具备丰富的经验或担任过类似的职责
- 链上积极参与 DeFi 协议的治理，包括功能产品升级、增长和业务上市计划及策略的讨论
- 深入了解 DeFi 领域、市场结构以及生态系统内外的趋势
- 熟悉 Bifrost 质押流动性协议（SLP）及其 vTokens 的操作逻辑，并广泛了解 LST 领域和生态系统的内容

**现有成员**

![strategy.jpg](https://cdn.bifrost.finance/cms/strategy_dc337ac527.jpg)

可以在 Bifrost Discord [战略小组](https://discord.gg/jmfHwYEt)频道和成员们进行交流。

### 社区 Fellowship

![community fellowship.png](https://cdn.bifrost.finance/cms/community_fellowship_5987768c7a.png)

该小组主要由参与营销运营的成员、社区领袖和首席大使组成。专注于讨论社区提案、管理小组以及吸纳新成员。

**申请要求**

以下是申请加入社区小组的基本要求（满足以下任意两项即可）：

- 在 Bifrost、Polkadot 和更广泛的 Web3 社区中有运营经验
- 具有组织社区活动（如线上/线下活动）的经验
- 能够在其他区块链或者 dapp 上发起讨论和建设性提案，以扩大 vTokens 的使用范围并传播 Bifrost 品牌（如建立 DAO 以实现国库多样化等）
- 具备扎实的科普创作技能，能够制作信息图、视频，帮助制作一系列内容（专业视频、学院、常见问题解答），科普 DeFi 相关概念和 Bifrost 协议的具体细节

**现有成员**

![community.jpg](https://cdn.bifrost.finance/cms/community_7ce5729cd4.jpg)

可以在 Bifrost Discord [社区小组](https://discord.gg/jmfHwYEt)频道和成员们进行交流。

### 基础设施 Fellowship

![infrafellowship.png](https://cdn.bifrost.finance/cms/infrafellowship_9359c4ae55.png)

该小组主要由基础设施提供商、节点和验证器运营商、验证器提升名单（VBL）成员以及技术运维成员。成员主要专注于讨论 VBL 申请提案和优化现有 Bifrost 基础设施及验证器、Collator 程序的计划，管理小组以及吸纳新成员。

**申请标准**

以下是申请加入基础设施小组的基本要求（满足以下任意两项即可）：

- 熟悉 Bifrost VET 和 VBL
- 具有服务器操作和维护经验
- 现有的 Bifrost Collator 运行者

**现有成员**

![infra.jpg](https://cdn.bifrost.finance/cms/infra_7837c3f9d3.jpg)

可以在 Bifrost Discord [基础设施小组](https://discord.gg/jmfHwYEt)频道和成员们进行交流。

### 申请成为 Fellowship 成员

任何想要参与 Bifrost Fellowship 计划的候选人（包括个人或实体），都可以通过以下步骤在[讨论论坛](https://bifrost.subsquare.io/discussions)阐述其参选计划：

- **第一阶段：自我介绍**
    - 为什么想要申请成为 Fellowship 成员
    - **明确您申请加入的子小组。**
    - 作为特定子小组的成员，说明您将如何增加价值、帮助 Bifrost 成长，并指出 Bifrost 需要改进的方面。
    - 您个人或者您的企业的经历介绍，为什么社区和小组成员应该投票支持您？需要提供链上或链下的治理经验证明。
    
- **第二阶段：社区和小组的讨论和评估**
    
    在此阶段，对应的子小组领导将发表评论并领导评估和参与过程。此阶段通常需要 7-14 天时间，包括小组内部讨论和确定最终结果的时间。之后，候选人可以决定是否在下一阶段将正式提案发布到链上。
    
- **第三阶段：发起链上提案 - 动态投票时间**
    
    在考虑了上一阶段小组的建议后，候选人可以要求小组或自行将提案发布到链上，并发起链上公投。
    
    ## **小组公投**
    
    小组的治理模型有多个轨道，每个轨道都有自己的批准和支持参数，投票按其等级加权。
    
    Fellowship 的成员可以对任何给定的提案进行投票，所有成员的加权投票（根据其等级加权）构成了 Fellowship 的集体投票。
    💡 大多数 Bifrost Fellowship 公投来源于[Runtime 功能外部交易](https://www.notion.so/aeb7d71d48f641e8bd1015fa5555a602?pvs=21)。因此，大多数公投是由战略小组和技术小组发起的，其他小组成员则参与投票。
    
    当前和历史的 Fellowship 公投列表可以在 [Subsquare](https://bifrost.subsquare.io/fellowship) 上查看。
    
    ### 等级更新
    
    Fellowship 成员可以随时请求更新他们的等级，并且**每年可以更新一个等级**。
    
    1. 任何等级达到 4 级以下的成员都可以通过 Fellowship 公投晋升到下一个等级，该公投可以由等级为 2 级或以上的成员投票。例如，Fellowship [公投 #64](https://collectives.subsquare.io/fellowship/referenda/64)，将一名成员从 1 级晋升到 2 级，只能由等级大于或等于 3 级的成员投票。
    2. Polkadot Fellowship 成员从 5 级晋升需要通过 OpenGov 公投完成。有关更多信息，请查看 [Fellowship 概览](https://bifrost.subsquare.io/fellowship/members)上的等级更新部分。
    
    ## 白名单
    
    Polkadot OpenGov 允许技术小组授权获得“白名单调用者”，以 Root 级别的权限执行由小组批准的调用（**目前，只有三级及以上成员可以对白名单调用进行投票**）。请注意，小组不能更改网络参数、进行救援或移动资产。白名单提案仍需经历 OpenGov 公投的整个生命周期，并且只有在公投成功通过时才能生效。
    
    白名单开始于小组公投，其中包含从集体系统链到 Polkadot 中继链的嵌入 XCM 调用。例如，[Bifrost 小组公投#14](https://bifrost.subsquare.io/fellowship/referenda/52) 用于**白名单** [Bifrost OpenGov 公投#14](https://bifrost.subsquare.io/referenda/14)。
    
    ## 子小组薪资
    
    薪资结构将在 2024 年第四季度公布。


Bifrost Fellowship | 详解 Sub-Fellowship 的组成和职责

In the [Bifrost Tokenomics 2.0 proposal](https://bifrost.subsquare.io/posts/77), Bifrost plans to use 100% of protocol profits for BNC buybacks, with 90% allocated to bbBNC holders and the remaining 10% to be burned. The release of this proposal has sparked considerable interest among community members, who have raised numerous questions. In response, we have organized a FAQ document to comprehensively address these inquiries from the community.

_Note: Bifrost Tokenomics 2.0 is currently still in the proposal discussion, and all contents do not represent the final official version that will be launched._

### What is bbBNC?

bbBNC is an escrow token. Users can obtain bbBNC by liquid staking BNC to acquire vBNC and then locking this vBNC to receive bbBNC. **The amount of bbBNC a user gets depends on the quantity of vBNC locked and the duration of the locking period**.

### Why the bbBNC mechanism designed to be so complex?

The shortcomings of airdrop mechanisms stem largely from their lack of requirements for significant participant contributions or long-term commitments, leading to mere token distributions. This often results in participation driven by personal gain, with individuals quick to sell their rewards, highlighting the fundamental flaws of airdrops.

The bbBNC mechanism includes multiple layers to specifically reward users who are actively engaged. By introducing a lock-up period dimension, it incentivizes users to hold their investments over the long term, enhancing their returns through a leveraged rewards system and fostering the sustainable growth of the entire ecosystem.

### Why does the bbBNC mechanism include a locking period?

Community members primarily express two concerns:

The escrow mechanism and locked token reward strategy may not effectively reduce selling pressure. While locking vBNC postpones immediate sell-offs, it could lead to a psychological shift among users, potentially triggering even more intense selling if users fear others might sell first.

Are only bbBNC holders eligible for profit sharing, or could a variety of choices be offered? If rewards were diversified, users might be more amenable to long-term commitments.

bbBNC, similar to other escrow tokens, integrates enhanced rights and benefits. Simply locking tokens does not address the issue of selling pressure; instead, genuine confidence in the protocol by users is the critical pillar of tokenomics development. Thus, sharing protocol revenues with bbBNC holders through Bifrost's liquidity staking is the essential foundation for building market value.

**bbBNC = Governance + Staking Yields + Protocol Profit Sharing + Burning Mechanism**

This design philosophy is intended to fulfill the community’s diverse needs more comprehensively, considering user psychology and market dynamics. Establishing a lock-up period aims to bolster the token's value by leveraging rewards for long-term holders, thereby fostering deeper and more enduring engagement with the protocol rather than short-term trading.

### What are the rewards for bbBNC holders?

bbBNC holders can get vBNC as rewards.

### How to calculate early redemption fees rewards of bbBNC ?

We are planning to launch a "Protocol Profits" page on Bifrost dApp, allowing users to monitor protocol profits

Additionally, the data can be tracked through the on-chain address of the Bifrost Treasury.

The formula for calculating the early unlock of bbBNC is available in the proposal:
https://bifrost.subsquare.io/posts/77

Redemption Fee = {(Remaining locked blocks + 2,628,000) / 10,512,000 (4-year block height)}^2

The vBNC that users can get by unlocking in advance = Locked vBNC * (1 - Redemption Fee)

### Why bbBNC is non-transferrable?

bbBNC is purposefully designed as a Pallet on the Bifrost blockchain, serving primarily to keep records of locked BNC addresses, which inherently restricts its transferability.

However, in special cases such as switching wallets or if an account is compromised (e.g., by a hacking incident), there arises a necessity to move tokens. We are actively exploring potential solutions to accommodate such needs.

### How are bbBNC Rewards Calculated?

bbBNC holders periodically receive rewards from the vePallet module. These rewards come from various sources in the Bifrost ecosystem, such as transaction fees, SST revenue, swap fees, and commissions from vToken transactions.

The rewards are issued monthly. The division of these rewards is based on the proportion of bbBNC shares that each user holds at the time of reward distribution, enabling them to claim a corresponding share of the total rewards pool.

### Which liquidity pools (LP pools) support bbBNC boosting?

As of now, only the vBNC-vDOT liquidity pool supports bbBNC boosting. We are considering extending this support to additional LP pools in the future.

### Are the fees from early redemptions of bbBNC shared with its holders?

Yes, fees collected from early redemptions are distributed to bbBNC holders.

### Where can track the protocol profits?

We are preparing to launch a "Protocol Profits" page on our dapp, which will enable users to monitor the income generated by the protocol.

In addition, this information can be tracked through the on-chain address of the Bifrost Treasury.

### Will bbBNC impact the liquidity of BNC on decentralized and centralized exchanges?

Following the opening of the Polkadot-Kusama bridge to other tokens, vBNC will be integrated into the omnipool.

The rollout of bbBNC is not anticipated to drastically alter the market liquidity of BNC, as many BNC are already locked in staking (either as Collators or vBNC). It remains to be seen whether these stakers will opt to convert their vBNC into bbBNC.

### What effects does the burning mechanism of bbBNC bring?

The total quantity of BNC is fixed and does not undergo inflation. The greater the protocol's earnings, the more BNC will be destroyed. The burning mechanism aims to create a deflationary effect by steadily decreasing the total token supply, which could enhance the value of the remaining tokens.

### How can the BTA issue be addressed?

We are exploring the possibility of converting BTA into Raindrop points through a whitelist approach. Alternatively, we might delay the BTA conversion until next year to align with emerging trends in the NFT market.

### What Can The Collators Benefit from bbBNC?

bbBNC is indirectly connected to Collators since it is created using vBNC, which involves staking BNC with Collators. This relationship ensures that the interests of Collators are considered in the bbBNC ecosystem.

bbBNC Community FAQ - A Deep Dive into Bifrost Tokenomics 2.0

在 Bifrost 经济模型 2.0 提案中， Bifrost 计划使用协议利润的 100% 用于回购 BNC，并将其中 90% 分配至 bbBNC 持有者，剩余 10% 将被销毁。提案发出后，社区成员非常关注，并提出了一些问题，我们整理了一份 FAQ，详细回答社区的疑惑。

_* 新经济模型目前仍处于提案讨论阶段，所有内容均不代表最终正式上线的版本。_

### 什么是 bbBNC

bbBNC 是一种锁仓票据，用户通过质押 BNC 获取 vBNC，再锁定 vBNC 来获取 bbBNC，锁定的 vBNC 数量越多，锁定时间越长，获得的 bbBNC 数量越多。

### bbBNC 机制为什么设计得这么复杂？

普通的空投机制存在许多不足之处，因为空投往往不要求参与者有实质性的贡献或长期承诺，而是简单地分发代币，这不可避免地促使人们出于利益而参与，一旦获得奖励便迅速抛售，这种现象说明了空投机制本身的漏洞。

bbBNC 的机制则包含了多个维度，目的是为了奖励真正积极参与的用户。因此，我们引入了锁仓时长这个维度，奖励那些愿意长期持有的用户。这种方法不仅能够激励用户长期持有，还通过提供奖励的杠杆效应，增强了持有者的回报，从而支持了整个生态系统的健康发展。

### bbBNC 机制为什么设置锁定期？

社区用户主要有以下两点疑惑：

- Escrow 机制和锁定代币奖励策略可能并没有真正减轻抛售压力。尽管锁定 vBNC 可以将抛售压力推迟，但这种方法会导致用户心理的变化，可能导致更加激烈的抛售行为，因为用户会担心其他人先行抛售。
- 是否只有 bbBNC 持有者才能分享利润，是否可以为用户提供多样化的选择？如果奖励是多种形式的，用户可能更容易接受长期锁定。

bbBNC 与其他 escrow 代币类似，并且融入了更多权益。单纯的代币锁定无法解决抛压的问题，但用户对协议的信心才是真正支撑经济发展的核心。因此，**Bifrost 流动性质押与 bbBNC 持有人共享协议收入才是奠定市值的根本**。

**bbBNC = 治理 + 质押收益 + 分享协议收入 + 燃烧机制**

这样的设计理念，旨在更全面地满足社区的多样化需求，同时考虑到用户心理和市场动态。设立锁定期旨在通过为长期持有者提供奖励杠杆来增强持有代币的价值，从而鼓励与协议的更持久的参与，而不是短期投机。

### 持有 bbBNC 会获得什么奖励？

持有 bbBNC，会获得 vBNC 作为奖励。

### 提前解锁的赎回费和 bbBNC 奖励的计算公式？

我们计划在 dapp 上线一个「协议利润」的页面，用户将能够跟踪协议收入。

此外，也可以通过 Bifrost Treasury 的链上地址进行监控。

bbBNC 提前解锁的计算公式可以在提案里找到: [Bifrost Tokenomics 2.0 (bbBNC) Proposal](https://bifrost.subsquare.io/posts/77)

赎回费用 = {(剩余锁定区块数 + 2,628,000) / 10,512,000 (四年的区块高度)}^2

用户通过提前解锁可以获得的 vBNC = 锁定的 vBNC * (1 - 赎回费)

### 为什么 bbBNC 是不可转移的？

bbBNC 实际上被设计为 Bifrost 链上 Pallet 针对锁定 BNC 地址的信息记录，因此 bbBNC 无法进行转账等操作。

在更换钱包或账户受到损害（例如，被黑客攻击）等特殊情况下，需要进行代币转移。我们目前正在讨论针对这类需求的解决方案。

### bbBNC 奖励是如何计算的

bbBNC 持有者会定期从 vePallet 模块接收奖励。这些奖励来源于 Bifrost 生态的各种收入，如交易手续费、SST 收入、Swap fee 和 vToken 佣金。

每一个月进行一次奖励发放结算。基于用户在结算时的 bbBNC share 值来瓜分奖池中的所有奖励。

### 支持 bbBNC boosting 的 LP 池子有哪些？

目前只有 vBNC-vDOT 池子支持 bbBNC 增益，之后会考虑拓展到其他 LP 池子。

### 提前赎回 bbBNC 的手续费会分享给 bbBNC 持有人吗？

是的，提前赎回的费用将分享给 bbBNC 持有者。

### 在哪里可以查看到协议利润的数据？

我们计划在 dapp 上线一个「协议利润」的页面，用户将能够跟踪协议收入。

此外，也可以通过 Bifrost Treasury 的链上地址进行监控。

### bbBNC 会影响 BNC 在 DEX/CEX 平台上的流动性吗？

在 Polkadot - Kusama 桥对其他代币开放后，vBNC 将被加入 omnipool。

bbBNC 的引入不会对 BNC 市场流动性产生特别大的影响。因为目前已经有许多 BNC 处于质押状态（Collator 或者 vBNC）。这些质押者也许会将 vBNC 转换成 bbBNC，时间会给出答案的。

### bbBNC 的燃烧机制会带来什么影响？

BNC 的总量是固定的，没有通胀机制。协议的收入越多，BNC 的销毁数量也越多。燃烧机制的目的就是通货紧缩，逐渐减少代币总供应量，从而可能增加剩余代币的价值。

### 如何解决 BTA 转换的问题？

我们正在考虑将 BTA 白名单转换成 Raindrop 积分。或者，将 BTA 推迟到明年，等待新的 NFT 市场热点。

### Collators 能否从 bbBNC 机制中受益？

bbBNC 通过 vBNC 铸造，而铸造 vBNC 所使用的 BNC 将被质押给 Collators，所以 bbBNC 与 Collators 是间接相关的。

bbBNC 社区 FAQ - 深入探索 Bifrost 经济模型 2.0

## Development

### Runtime 0.14.0 (In Progress)

- Full Pallet review and optimization
- vTokenVoting now supports vBNC for governance participation

### Dapp 1.9.2

- Supports full on-chain functionality for EVM addresses
- Enables cross-chain bridging of ETH between Assethub and Bifrost
- Introduces email alerts for user subscriptions
- Optimizes the global Unstaking queue display
- Improves the display of completed Farming cards

## Products

This month, Bifrost's total value locked (TVL) reached **$77,447,366**, while the total minted vDOT (TVS) hit **8,532,102**, an increase of 72,801 tokens compared to last month.

Among them, vASTR stood out with outstanding performance, reaching a total minted supply (TVS) of **34,205,384** tokens and a total value locked (TVL) exceeding $2.41M, reflecting a month-on-month growth of 28.06%.

- On September 26, Stellaswap launched a new round of xcDOT-xcvDOT farming incentives, with rewards coming from the Polkadot Treasury’s proposal of liquidity incentives. For participation instructions, please read [this](https://x.com/Bifrost/status/18392920409386641850).
- Bifrost analytics dashboard V2 is now live on [dune.com](https://dune.com/substrate/bifrost), covering not only vToken-related data analysis but also economic model data, such as bbBNC. Stay tuned for further updates. 
- The latest version of Subwallet now features a [one-click Swap function for Bifrost's vDOT and vASTR](https://x.com/Bifrost/status/1838300716215210136), supporting direct transactions within the wallet (Ledger-compatible). Additionally, Subwallet now supports direct minting of vDOT.

![products.png](https://cdn.bifrost.io/cms/products_7ba7c38975.png)

## Marketing

- On September 2, Bifrost participated in an [AMA event](https://x.com/Crypto_ProsCM/status/1829927135051731055) organized by the CryptoPros community. During the event, Bifrost provided detailed insights to users in the Asia-Pacific region on the operational mechanism of its liquid staking service, the unique advantages of Bifrost LST, and future plans for its new economic model.

- From September 16 to 18, Bifrost attended [Decoded Asia 2024](https://x.com/Bifrost/status/1836391284657066062
) and Token2049 in Singapore. Tyrone, Bifrost’s Head of Developer Relations, delivered a keynote speech titled "Is Restaking Just a Passing Fad? Expanding Polkadot Consensus with Bifrost Infrastructure." Additionally, Bifrost hosted a booth at the Polkadot stand, distributing a large number of high-quality exclusive merchandise to attendees.

![decoded 2024.png](https://cdn.bifrost.io/cms/decoded_2024_cb18e42aad.png)

On September 26, Bifrost's Head of Developer Relations participated in the first session of the Polkadot Vietnam Hackathon seminar. The seminar focused on how to build DeFi applications based on Bifrost's liquid staking tokens (LST). During the event, he delved into the technical implementation of Bifrost LST and engaged in Q&A interactions with the attendees.

![hackthon.jpeg](https://cdn.bifrost.io/cms/hackthon_88259b53fa.jpeg)

On September 28, the "Polkadot & Friends" event, co-hosted by Bifrost, was successfully held in Hong Kong. Bifrost gave a keynote presentation during the event. The event aimed to explore the emerging opportunities brought by Polkadot 2.0 and the future prospects of TON ecosystem integration.

Bifrost Monthly Report | September 2024

## 技术开发

### Runtime 0.14.0（开发中）

- Full Pallet Review & 优化
- vTokenVoting 支持 vBNC 参与治理

### Dapp 1.9.2

- 支持 EVM 地址进行完整链上操作
- 支持 ETH 在 Assethub 与 Bifrost 之间的互跨
- 新增用户订阅邮箱提示
- 优化全局 Unstaking 队列展示
- 优化已结束的 Farming 卡片展示

## 产品进展

本月 Bifrost 总锁仓量（TVL）达到 77,447,366 美元，vDOT 总铸造量 (TVS) 为 8,532,102 枚，较上月增长 72,801 枚;

其中，vASTR 表现亮眼，总铸造量（TVS）突破 34,205,384 枚, 总锁仓量超 (TVL) $2.41M，单月增长 28.06%；

9 月 26 日，Stellaswap 开启新一轮 xcDOT-xcvDOT 池子的 Farming 激励。此轮激励来源于 Polkadot Treasury 的流动性激励提案申请，在[这里](https://x.com/Bifrost/status/1839292040938664185)查看完整教程。

Bifrost 全量数据面板 V2 现已上线 [dune.com](https://dune.com/substrate/bifrost), 其中不仅涵盖了 vToken 相关的数据分析，还将纳入 bbBNC 等经济模型相关数据，敬请期待。

Subwallet 在最新版本中新增了 Bifrost [vDOT 和 vASTR 的一键 Swap 功能](https://x.com/Bifrost/status/1838300716215210136)，支持在钱包内直接操作（兼容 Ledger）。此外，Subwallet 现已支持 vDOT 的直接铸造。

![products.png](https://cdn.bifrost.io/cms/products_7ba7c38975.png)

## 市场运营

9 月份，Bifrost 积极参与了亚洲地区最大的区块链行业活动，旨在进一步推广其流动性质押解决方案，增强品牌知名度，并与加密社区进行深入互动。以下是本月的主要活动亮点：

9 月 2 日，Bifrost 参与了 CryptoPros 社区举办的 [AMA 活动](https://x.com/Crypto_ProsCM/status/1829927135051731055)。在活动中，Bifrost 向亚太地区用户详细介绍了其流动性质押业务的运作原理、Bifrost LST 的独特优势，以及未来新经济模型的规划。

9 月 16 日至 18 日，Bifrost 赴新加坡参加 [Decoded Asia 2024 和 Token2049](
https://x.com/Bifrost/status/1836012217973510359) 活动。Bifrost Dev Rel Lead Tyrone 发表了题为「再质押是否只是昙花一现？借助 Bifrost 基础设施扩展波卡共识」的主题演讲。此外，Bifrost 在 Polkadot 展台设立了展位，并向与会者派发了大量精美的周边礼品。

![decoded 2024.png](https://cdn.bifrost.io/cms/decoded_2024_cb18e42aad.png)

9 月 26 日，Bifrost Dev Rel Lead 参加了 [Polkadot 越南黑客马拉松研讨会](https://x.com/Bifrost/status/1838926685288472975)首期活动。本次研讨会聚焦于如何构建基于 Bifrost 流动性质押代币（LST）的 DeFi 应用。会上，他深入解析了 Bifrost LST 的技术实现原理，并与参会者进行了互动问答。

![hackthon.jpeg](https://cdn.bifrost.io/cms/hackthon_88259b53fa.jpeg)

9 月 28 日，Bifrost 联合主办的[Polkadot & Friends 活动](
https://x.com/Bifrost/status/1838907564270174620)在香港成功举行。Bifrost 在活动中发表了主题演讲。此次活动旨在探讨 Polkadot 2.0 带来的新机遇，以及 TON 生态系统集成的未来发展前景。

月报｜Bifrost 全量数据面板 V2 已上线，随时查看 vToken 铸造情况

## 技术开发

### Runtime 0.14.0 （已上线）

- Full Pallet Review & 优化

### Runtime 0.15.0（开发中）

- 在 Bifrost-Polkadot 网络上线 parachain staking 模块
- 在 Bifrost-Polkadot 上增加对 vBNC 的支持
- vBNC 迁移准备工作
- vTokenVoting 支持 vBNC 参与治理
- bbBNC 相关功能模块优化

### Omni LS 1.0.6

- 支持 vGLMR 在 Astar (Substrate) 网络的铸造与赎回

## 产品进展

本月 Bifrost 总锁仓量（TVL）达到 **63,418,180** 美元，vDOT 总铸造量 (TVS) 为 **8,289,523** 枚;

其中，vASTR 表现亮眼，总铸造量（TVS）突破 **36,910,978** 枚, 总锁仓量超 (TVL) $2.05M，单月增长 7.3%；

- 本月，Bifrost 上线 Tokenomics 2.0 系列活动页面：[wave.bifrost.io](https://wave.bifrost.io/). 目前正处于预约阶段，用户可连接钱包完成预约，获取 WAVE 积分。

- [Bifrost Dapp](http://app.bifrost.io) 新增多种 Token（$BNC、$DOT、$GLMR、$ASTR、$MANTA 、 $ETH 以及相对应的 LST）支付 Bifrost 链上的交易手续费。 

![oct1.jpeg](https://cdn.bifrost.io/cms/oct1_3c740b2193.jpeg)

- [Omni.ls](http://Omni.ls) 新增 vGLMR 在 Astar 网络的铸造。

- Bifrost 向 Kusama Treasury 发起[新一轮 50,000 KSM 借款提案](https://kusama.subsquare.io/referenda/465)，公投正在进行中。

- [Bifrost Dapp 1.9.2 版本更新](https://x.com/Bifrost/status/1848303343988305999)，包括全面兼容 EVM 地址；ETH 在 Bifrost 与 AssetHub 之间的双向跨链；vToken 赎回队列展示优化；Farming 卡片的结束状态展示优化。

## 运营活动

10 月 17 日，Bifrost 联合主办了[胖企鹅中文社区线下 Meetup 活动](https://x.com/Bifrost/status/1847306892458279078)，超过 100 位社区成员齐聚上海。Bifrost Co-founder Lurpis 发表了主题演讲，和 NFT 爱好者们进行了一次面对面交流。

![Oct2.png](https://cdn.bifrost.io/cms/Oct2_4ea0d271ac.png)

10 月 23 日，Bifrost Co-founder Lurpis 参与了由 RealMoonlightShow 主办的[币安直播活动](https://x.com/RealMoonLabs/status/1848626625555910798)。本次活动的主题为「探索未来：深入了解 Bifrost 的流动性质押和创新代币经济学」。

![Oct3.jpeg](https://cdn.bifrost.io/cms/Oct3_63916f2741.jpeg)

10 月 23 日，[Bifrost Liquid Wave 活动](https://bifrost.io/zh-CN/blog/article-26)正式开启预约，目前预约人数已经超过 4700。Liquid Wave 是 Bifrost 为了顺利推出新经济模型而设计的一些列积分活动，共分为三个阶段。通过参与活动，可以获得积分凭证 WAVE，WAVE 可以瓜分 BNC 奖池，也可以兑换为 bbBNC，享受 Bifrost 协议的收益分成。

![wave6.jpeg](https://cdn.bifrost.io/cms/wave6_d88bcd6e74.jpeg)

10 月 24 日，Bifrost Dev Rel Lead 参与了由 MetaBlockchain 举办的 [AMA 活动](https://x.com/Metablockchain0/status/1848575586987610593)。本次活动向新社区成员介绍了 Bifrost 产品功能、治理机制和正在进行的积分活动，获得了广泛关注。

10 月 29 日，Bifrost 出席了[香港金融科技周](
https://x.com/0xBifrostCN/status/1851588189565419780)线下会议，Thibault Perréard 参与了「Layer 1 & Layer2：持续探索数字资产创新」圆桌讨论，探讨了未来几年可能出现的新技术和新服务、数字资产行业在可扩展性方面的进展以及如何满足机构参与者的需求。

![Oct5.jpeg](https://cdn.bifrost.io/cms/Oct5_7781313c24.jpeg)

10 月 30 日，Bifrost 做客 CryptoChallengers 社区，进行了一场[文字 AMA 对话](
https://x.com/0xBifrostCN/status/1851588189565419780)。本次活动向新社区成员介绍了即将推出的新经济模型和 Liquid Wave 积分活动的详情。

月报｜Bifrost Liquid Wave 活动开启，预约人数已突破 4700！

## Development

### Runtime 0.14.0 (Done)

- Full Pallet review and optimization

### Runtime 0.15.0 (In Development)

- Deployment of the parachain staking module on Bifrost-Polkadot
- Introducing vBNC on Bifrost-Polkadot
- Preparatory work for vBNC migration
- vTokenVoting now supports vBNC for governance participation
- bbBNC functional optimization

### Omni LS 1.0.6

- Supports minting and redeeming of vGLMR on the Astar (Substrate) network

## Products

In October, Bifrost's total value locked (TVL) reached **$63,418,180**, while the total minted supply of vDOT (TVS) amounted to **8,289,523**.

Among them, vASTR showed outstanding performance, with its total minted supply (TVS) surpassing **36,910,978** and a total value locked (TVL) exceeding $2.05M, reflecting a monthly growth of 7.3%.

- This month, Bifrost launched the Tokenomics 2.0 event series page: [wave.bifrost.io](https://wave.bifrost.io/). Currently in the reservation phase, users can connect their wallets to complete registration and earn WAVE points. 
- The [Bifrost Dapp](http://app.bifrost.io/) now supports using more tokens, including $BNC, $DOT, $GLMR, $ASTR, $MANTA, $ETH, and their LSTs, for Bifrost on-chain gas fees.

![oct1.jpeg](https://cdn.bifrost.io/cms/oct1_3c740b2193.jpeg)

- [Omni.ls](http://omni.ls/) has added minting of vGLMR on the Astar network. 
- Bifrost has submitted a new [loan proposal](https://kusama.subsquare.io/referenda/465) of 50,000 KSM to the Kusama Treasury, and the referendum is under discussion.
- [Bifrost Dapp version 1.9.2 update](https://x.com/Bifrost/status/1848303343988305999) includes full support for EVM addresses, support for ETH cross-chain between Bifrost and Asset Hub, display optimization of the overall vToken redemption queue and display optimization of completed Farming cards.

## Marketing

On October 17, Bifrost co-hosted a [meetup](https://x.com/Bifrost/status/1847306892458279078) for the Chinese community of Pudgy Penguins, where over 100 community members gathered in Shanghai. Bifrost Co-founder Lurpis delivered a keynote speech and engaged in a face-to-face exchange with NFT enthusiasts.

![Oct2.png](https://cdn.bifrost.io/cms/Oct2_4ea0d271ac.png)

On October 23, Bifrost Co-founder Lurpis participated in a [Binance live-stream](https://x.com/RealMoonLabs/status/1848626625555910798) event hosted by RealMoonlightShow. The event was themed "Exploring the Future: In-Depth Insights into Bifrost’s Liquid Staking and Innovative Tokenomics."

![Oct3.jpeg](https://cdn.bifrost.io/cms/Oct3_63916f2741.jpeg)

On October 23, [Bifrost’s Liquid Wave](https://bifrost.io/blog/bifrost-liquid-wave-campaign-is-live-reserve-your-spot-now) event officially opened for reservations, with over 4,700 participants signing up. Liquid Wave is a series of points-based activities designed to facilitate the launch of Bifrost’s new economic model. It consists of three phases, through which participants can earn WAVE points. These points can be redeemed for a share of the BNC reward pool or converted into bbBNC to enjoy revenue-sharing benefits from the Bifrost protocol.

On October 24, Bifrost’s Dev Rel Lead joined an [AMA event organized by MetaBlockchain](https://x.com/Metablockchain0/status/1848575586987610593). The event introduced new community members to Bifrost’s product features, governance mechanisms, and ongoing points activities, drawing considerable interest.

On October 29, Bifrost participated in the [Hong Kong Fintech Week](https://x.com/0xBifrostCN/status/1851588189565419780), where Thibault Perréard took part in the "Layer 1 & Layer 2: Continuing the Exploration of Digital Asset Innovation" panel discussion. The discussion explored potential new technologies and services in the coming years, advancements in scalability for the digital asset sector, and strategies to meet the needs of institutional participants.

![Oct5.jpeg](https://cdn.bifrost.io/cms/Oct5_7781313c24.jpeg)

On October 30, Bifrost joined the CryptoChallengers community for a [text-based AMA session](https://x.com/0xBifrostCN/status/1851588189565419780). The event introduced new community members to Bifrost's upcoming economic model and the details of the Liquid Wave points activities.

Bifrost Monthly Report | October 2024

Products

产品

# Omni LS Dapp 是什么

Omni LS Dapp 是 Bifrost 开发的一个支持远程铸造和赎回 vToken 的前端应用。该前端应用实际上调用的是部署在链上的 SLPx 模块，该模块由 Bifrost 链的的 local pallet 和远程链上的 remote pallet 组成，我们已经在《SLPx Pallet 实现 vToken 远程铸造，全链 LST 迈出重要一步》一文中有所介绍。

目前 Omni LS Dapp 支持在 Moonbeam、Moonriver、Astar 和 Ethereum 上进行远程铸造和赎回。

&emsp;

# Omni LS Dapp 解决什么问题？

vToken 是 Bifrost 创建的 LST 资产。Bifrost 目前支持 vDOT、vKSM、vGLMR、vMOVR、vBNC、vFIL、vETH。其中，除了 vETH、vFIL 之外，其他的 vToken，都需要用户先把对应资产转入 Bifrost 链才能铸造，这带来了用户体验上的问题。

假设 Moonbeam 上有一个借贷类应用，支持以 vDOT 作为抵押资产。这对用户而言，是一件好事，相比抵押 DOT，抵押 vDOT 可以让用户多一重 Staking 收益。但以目前的流程，如果用户在 Moonbeam 上只有 DOT 的话，用户将需要操作以下几个步骤：

① 把 DOT 跨链转入 Bifrost
② 在 Bifrost 链上质押 DOT 获得 vDOT
③ 将 vDOT 跨链转回 Moonbeam
④ 在 Moonbeam 上抵押 vDOT，借出想要的资产

用户需要操作四步，签名四次。

而通过 Omni LS Dapp，可以缩短到两步：
① 在 Omni LS Dapp 中，直接将 Moonbeam 上的 DOT 铸造为 vDOT
② 在 Moonbeam 上抵押 vDOT，借出想要的资产

除了远程铸造，Omni LS Dapp 同样支持远程赎回和远程兑换：

- 远程赎回：在其他链上将 vToken 直接赎回为原 Token，而不必转入 Bifrost 链上操作；
- 远程兑换：在其他链上将 vToken 兑换为原 Token，或者把原 Token 兑换为 vToken，而不必讲资产转入 Bifrost 链上操作，但背后使用的是 Bifrost 链上的流动性。远程兑换功能将在未来的版本迭代中开放。

总之，Omni LS Dapp 让用户可以直接一键在远程链上进行 vToken 的铸造和赎回而**不必在多个 Dapp 和多条链之间反复切换才能完成操作**。

&emsp;

# Omni LS Dapp 安全吗？

Omni LS Dapp 的后端使用的是 Bifrost 开发的 SLPx 模块，该模块的代码已经通过审计。审计报告查看[此处](https://www.commonprefix.com/projects/bifrost )

目前，Omni LS Dapp 仅支持波卡平行链的远程操作，**远程操作背后的跨链消息传递的安全性是由波卡中继链保证的。作为一个共享安全性的多链系统，波卡平行链间的通讯具有很高的安全性。**

Omni LS Dapp 在需要支持异构链远程操作时，需要跨链桥基础设施的支持。

&emsp;

# Omni LS Dapp 操作指南

1. 点击访问 Omni LS Dapp 主页：https://omni.ls

![9bb8e8a278971c6095621f0e3929eab8.jpg](https://cdn.bifrost.finance/cms/9bb8e8a278971c6095621f0e3929eab8_806787c94d.jpg)
点击右上角 Connect Wallet 连接钱包。

2. 远程铸造
左侧点击 Stake 选项卡，选择要远程铸造的资产，进入铸造页面，输入数量，点击 mint 完成流动性质押。

![ef53899dab500ce295b443cbe5e93889.jpg](https://cdn.bifrost.finance/cms/ef53899dab500ce295b443cbe5e93889_30d8a6c0b2.jpg)

3. 远程赎回
点击 Unstake 选项卡，选择要远程赎回的资产，进入赎回页面，输入数量，点击 redeem 即可完成赎回操作。

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# Omni LS Dapp 的未来发展

其实波卡的架构天然赋予了应用程序全链化的可能性，但很长时间，这种可能性都没有被发掘出来，**很多应用程序仍然只是选择某条平行链进行部署，即便做多链部署，也只是在不同链上复刻而言，本质上还是单链 Dapp。**

全链 Dapp 是什么样子，业内少有探索，我们认为，全链 Dapp 从用户角度讲，就是用户在任意链上都可以访问的应用，更进一步，用户无需在意自己在哪条链上，在任何链上都可以像访问本地 Dapp 一样去使用。

多链部署一定程度上也能达到同样的效果，但部署在多链上的合约不能相通，会导致生成资产的格式不统一、流动性割裂的问题。

我们认为，**Omni LS Dapp 提供的远程访问功能，是全链 Dapp 的正解**。但从另外一个角度讲，Omni LS Dapp 只是一个示例 Dapp，我们更希望的是集成 vToken 的应用程序可以将 Omni LS Dapp 的功能内置进去，达到深度集成。

例如，用户在 Moonbeam 使用某个借贷 Dapp 抵押 DOT 的时候，系统自动将 DOT 转化为 vDOT，相当于四个步骤合并为一个步骤。更进一步，vToken 的存在也可以完全让用户感知不到，用户感知到的仅仅是自己的资产多了一份收益。

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# 小结

以上，我们为大家介绍了 Bifrost 开发的前端界面—Omni LS Dapp，通过该界面，用户可以实现远程铸造、赎回 vToken，相比原有的流程，Omni LS Dapp 简化了用户体验，让用户在远程链上就像使用本地 Dapp 一样使用 Bifrost 链提供的服务。


**Omni LS Dapp 是基于 SLPx 开发的一个示例性应用，我们希望看到的是更多的第三方应用程序采用类似的方式，对 vToken 进行深度集成。**


Omni LS Dapp 使用指南

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](https://bifrost.app/vstaking/vDOT), with a total value reaching 18 million USD.

![vDOT Overview.png](https://cdn.bifrost.finance/cms/v_DOT_Overview_fe16a77bb3.png)

The **Polkadot Unlock Harvest** campaign incentivizes users to mint vDOT with their DOT. Users receive points, [Raindrops](https://bifrost.app/dashboard/boost), 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](https://medium.com/@bifrost-finance/polkadot-unlock-harvest-rules-and-rewards-of-the-upcoming-bifrost-event-5c0304dcbfe8)”.

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.

![vDOT Staking APY.png](https://cdn.bifrost.finance/cms/v_DOT_Staking_APY_778f1fe8fe.png)

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](https://polkadot.network/features/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](https://bifrost.app/vstaking/vDOT?tab=governance).
- **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](https://docs.bifrost.finance/builders/liquid-staking-slp/vdot) 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](https://app.arthswap.org/#/farms), and on **Moonbeam network** with [Beamswap](https://app.beamswap.io/farm), and [Stellaswap](https://app.stellaswap.com/pulsar). Users provide liquidity and earn liquidity rewards.
- vDOT can be collateralized and lent out on the [Interlay lending market](https://app.interlay.io/lending), 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?_

vDOT - Benefits and Use Cases of Bifrost’s Flagship Liquid Staking Asset

以太坊上海升级前后的一段时间以来，LST 赛道成为叙事热潮，老玩家们抢夺铸造量和流动性的同时，也不断有新玩家入场，纷纷想在这个上限可能是千亿美元的市场中分一杯羹。然而，大多数 LST 协议从产品层面其实大同小异，没有什么根本性的创新，竞争的手段也主要以补贴与空投为主。

在这样的背景下，也有社区伙伴不断问我们：Bifrost 和其他 LST 协议相比，有什么不同？具备什么样的优势？Bifrost 将占据什么样的生态位，又或者将采取什么样的竞争策略？

对此，我们的回答是：Bifrost 是首个全链 LST 应用，**从架构层面和单链 LST 应用就有本质不同。这种架构赋予了 Bifrost 更好的易集成性和更高的流动性利用率。**

# 什么是全链

一直以来，“全链”始终是个迷之词汇，它似乎和“多链”、“跨链”不同，但又鲜有人说清楚到底有什么不同。

首先全链并非字面意思“全部的链”，目前并没有某个应用跑在全部的链上，也没有跨链桥基础设施能够兼容全部的链。**全链更多指的是一种应用架构范式：开发者构建应用时，将全链互操作作为前提，把应用在不同链上的部分，作为一个整体去设计，而不是简单的把单链应用程序复刻到多链上去跑。**

# 为什么说 Bifrost 是全链 LST 协议？

Bifrost 用来支持 vToken 铸造和赎回的模块被称为 SLP (Staking Liquidity Protocol)，通过 SLP，Bifrost 已经支持了 9 条链上的 LST 资产发行，但 Bifrost 并不是通过在 9 条链上部署 SLP 模块来实现这一点。

SLP 模块仅部署于 Bifrost 链，其他链上的 vToken 的铸造和赎回，全部通过跨链的方式，远程调用 Bifrost 链上的 SLP 模块来完成。当然，要实现这一点，其他链上需要部署一个支持发起远程调用的辅助模块。

![fe5287e792a7c395830d5e766ddc5178.png](https://cdn.bifrost.finance/cms/fe5287e792a7c395830d5e766ddc5178_7e022f1191.png)

# 全链 LST 的优势

全链架构有诸多好处，包括：

- 其他需要集成 Bifrost 的应用仅需要和“总店”交互，而无需和所有“分店”分别交互，降低了跨链集成的复杂度。

- 如果“总店”的逻辑中涉及到资产流动性的使用，那么可以将流动性统一部署在“总店”所在链，以避免流动性的分散。

Lido、Rocket Pool 、Frax Finance 等 LST 协议，也支持在多条链上铸造 LST，但采用的是多链部署的方式，因此不能称之为全链应用。多链部署的本质是将完全相同的功能，在不同的链上复刻，没有跨链互操作的部分。**相比全链架构，多链部署存在不易集成和流动性割裂的问题。**

# 易集成性

我们在《相比 Lido，为什么 Bifrost 对跨链集成更加友好？》一文中曾有论述。在多链部署的情况下，每条链上的 LST 格式不一、标准各异，如果其他链上的应用应用程序需要集成，需要一一分别集成，而 Bifrost 作为全链 LST 协议，所有的 vToken 都是 Bifrost 链上的原生格式，其他链上的应用可以一次性集成所有 vToken。直观来说，如果你想要通过 Lido 集成 n 个 LST 资产，你需要做出 n 份努力（与 n 条链对接），如果通过 Bifrost，你只需要做 1 份努力（与 Bifrost 链对接）。

# 统一流动性

跨链应用集成不仅是 Token 的集成，还涉及到流动性的集成。在多链部署的情况下，每种 LST 的主要流动性都默认建立在其原生链上，不同 LST 的流动性割裂在不同的链上，而且这些流动性无法跨链调用。在 Bifrost 中，所有 vToken 的官方流动性池都部署在 Bifrost 链上，支持跨链调用，用户可以在其他链上兑换 vToken/Token，但背后使用 Bifrost 链上的流动性。

如果某条链上的借贷协议集成 vToken 作为抵押资产之一，在需要清算时，也可以远程使用 Bifrost 链上的流动性，而无需在其本地链再建流动性池。

**流动性统一在同一个地方，可以最大程度提高流动性深度。**

# 可扩展性

由于全链架构中，应用的主要部分仅部署在一条链上，其他链上仅需一个轻量级的远程调用程序，所以整体的代码相比多链部署更加简洁，**代码简洁意味着合约出现漏洞的概率更低，安全性更高**；另外，每新增支持一条链，仅需在新增链上部署一个简单的模块，而无需对协议主体进行多链适配，**因此可扩展性更强**。

# XCM 的赋能

Bifrost 之所以选择构建为一条波卡平行链，是因为 XCM 能够为 Bifrost 的全链互操作提供最大程度的赋能。

XCM 是一套跨链交互的指令规范和语言标准，它不仅适用于波卡生态，也适用于异构链之间的跨链消息传递。Bifrost 的全链架构中，不同链上的模块需要进行通讯，这些通讯全部采用 XCM 消息格式。

需要注意的是，使用 XCM 消息格式是一种选择，不同链上的应用程序可以采用任何商定的格式标准进行通讯。但 XCM 会是一种更通用、更普适的选择，如果应用间都默认采用 XCM 作为跨链通讯的语言，那么将节约很多的商务对接的成本，解锁更深层次的跨链互操作性。

# 小结

我们认为，当前 LSD 协议之间的竞争不只是基础收益率层面的竞争，而是可组合性的竞争，被更多协议集成的 LSD 资产将让持有者拥有更多的使用场景选项和更高的叠加收益率。在未来的多链时代，可组合性既包括同链可组合性，也包括跨链可组合性，而全链架构无疑可以带来更卓越的跨链可组合性。

对于 LSD 协议，乃至所有的 DeFi 协议，全链化是必然的发展方向。Bifrost 作为全链 LSD 协议的开拓者，无疑走在了范式迭代的前沿。

在众多 LST 协议中，Bifrost 为何独树一帜

我们在上篇中讲到了 OpenGov  取消了 Gov 1.0 中的理事会和技术委员会，将公投作为唯一的决策权力主体。所有的公投提案被划分在不同的轨道，这些轨道拥有不同的参数，用来处理不同“危险度”的提案。此外，OpenGov 中的公投提案流程更加细化，**一个提案将经历准备期、决策期、确认期、执行期四个阶段。**

除了上述改进之外，OpenGov 的创新还包括对危险提案的干预流程、更灵活的委托机制和 Fellowship。

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# 危险提案的干预

为了保证治理过程是安全的，防止恶意提案被通过。OpenGov 除了设置准备期之外，还设置了对危险提案的干预流程。

我们看到 Polkadot 治理轨道中，有两个特殊的轨道，分别是 Referendum Canceller 和 Referendum Killer。这两个轨道需要质押较多的 DOT，且轨道容量几乎不设限。这两个轨道是用于取消其他提案的，不同之处是 Referendum Canceller 仅仅取消提案，而 Referendum Killer 会在取消提案的同时罚没提案发起者的押金。可以说， Referendum Killer 是对恶意提案者的一个有效威慑。

**一旦有提案进入 Referendum Canceller 和 Referendum Killer 的流程，该提案无论出于何种状态（即便在执行期），都将立即暂停其流程。**

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# 分轨道委托

OpenGov 继承了 Gov 1.0 的信念投票机制。在该机制下投票效用不止与投票的治理通证数量有关，还与治理通证的质押时长有关。质押时长越长，代表“信念”越强，能获得的投票效用加成会越高。

![f3dcf074baf7840fb9badd29ad98035b.jpg](https://cdn.bifrost.finance/cms/f3dcf074baf7840fb9badd29ad98035b_ecfdb3ec81.jpg)

在治理实践中，往往很多治理 Token 持有者没有足够的时间来参与治理决策，而且很多治理 Token 持有者没有足够的能力和背景信息做出明智的决策，因此委托机制是必要的。Gov 1.0 允许用户将他们的治理 Token 委托给其他人代为行使治理权力，当然，用户也可以随时撤回委托或者更改委托对象。**OpenGov 则进一步细化了该规则，用户可以针对不同的轨道将同一份投票权委托给不同的人。**

这样做的好处是可以让不同议题的专家，能够充分发挥其专业性。例如我可以将财库类决策的投票权委托给一个运营专家，而将技术类决策的投票权委托给另一个技术专家。

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# Fellowship

Fellowship 是一个自治的专家团体，可以理解为是一个更加去中心化的技术委员会。尽管 Fellowship 的初始成员将来自技术委员会，但与技术委员会不同的是，Fellowship 旨在囊括更广泛的、数以万计的成员。波卡将通过一定的激励机制，鼓励他们对波卡生态的发展和优化持续做出贡献。此外，**Fellowship 并不是一个严格意义上的治理主体，也不直接拥有治理权力上的任何特权。**

只有一个特殊的轨道，也就是 Whitelist Caller 会和 Fellowship 有所关联。Whitelist Caller 的定位类似于 Gov 1.0 中的 Fast Track，用于执行一些紧急的漏洞修复。该轨道的准备期和确定期都比较短，投票通过的两个阈值衰减较快，阈值曲线较为陡峭。只是，处于该轨道的提案被通过，进入执行期之后，需要 Fellowship 进行二次投票确认才能正式执行。

Fellowship 有自己的治理界面，该界面可以用来针对 Fellowship 成员的招募、清退、等级变更等事务进行治理。新成员的加入需要由以为现有成员推荐，并经过内部投票确认。Fellowship 的成员有各自的等级，等级由成员对波卡生态的贡献决定，等级将决定内部投票时的权重。具体细则可参考官方发布的[文档](https://github.com/polkadot-fellows/manifesto/blob/5e01eef15eded63f1db9be808b0f7c11bb9f4a12/manifesto.pdf)。

公投中的 Fellowship admin 轨道也可以对 Fellowship 的事务进行管理，其权限高于 Fellowship 内部的自治决策。

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# 小结

总之，从 Gov 1.0 迭代到 OpenGov ，波卡的治理过程在兼顾安全的前提下，提升了治理效率和治理灵活度，同时实现了高水平的去中心化。总体来看：

- 在权利分布方面，OpenGov 中，治理通证的持有者完全掌握了治理权力，不再有其他的治理权力主体。
- 在决策效率方面，OpenGov 通过开设多个轨道，以满足不同类型提案的不同流程设置和容量设置，这些轨道可以同时进行，决策效率大幅提升。
- 在治理安全方面，Gov 1.0 更多依赖理事会作为唯一的防火墙，OpenGov 则依赖机制上的巧妙设计。

![WX20240325-141211@2x.png](https://cdn.bifrost.finance/cms/WX_20240325_141211_2x_915b22bde4.png)


Bifrost 作为波卡生态的一员，也将采取和波卡同构的治理机制。**目前 Bifrost 采用的是 OpenGov 1.0，将在不久之后过渡到 OpenGov。**


OpenGov：迈向完全去中心化的治理（下篇）

Governance 1.0 是波卡的第一代开放治理模型，我们已经在《[OpenGov 链上治理模块的基础介绍](https://mp.weixin.qq.com/s/V2Szh20Oz-JOQpw03rDVFg)》一文中有所介绍。Governance 1.0 的核心特征是采用三院制的结构。

- 理事会（Council）负责对财务类提案进行批准，同时拥有发起外部提案（External Proposal ）的特权；
- 技术委员会的权力是可以将外部提案移入快读轨道 (Fast Track)，缩短其投票周期，该机制主要应用场景式处理技术故障、修复关键漏洞。
- 公投（Refrenda）则是针对公共提案（Public Proposal），适用于大多数非紧急事务的决策，任何治理通证的持有者都可以发起公共提案。治理通证持有者通过信念投票机制来对公共提案进行投票。同一时间，只有一个公共提案可以处于投票阶段。

在项目发展前期阶段，三院制可以很好的协调团队与社区之间的治理权力，而且可以最大限度保证治理决策的安全与灵活。但**随着项目的成熟，社区必然要求项目治理更加去中心化。OpenGov 就是波卡顺应这种诉求的产物。**

相比 Governance 1.0，OpenGov 带来的最显著的变化是**取消了理事会和技术委员会，所有的决策全部通过公投来处理**。**与此同时，增设了更多的治理轨道（Track），完善了治理流程和委托机制，并创建了 Fellowship （专家团）。
**
本文将为大家系统的介绍一下 OpenGov 的框架和结构。

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# 治理流程

在 OpenGov 中，一个提案从开始到终结共分为以下几个步骤：

## 准备期（Prepare Period）
提案被发起后进入准备期，这个阶段发起者需要放入押金，如果准备期结束时没有放入押金，提案自动失效。该阶段开始后，用户立即可以开始参与投票，**但这个阶段，无论投票达到什么样的阈值，提案都不会被结束。**（防止大户在其他人来不及留意的情况下，迅速通过提案）


## 决策期（Decision Period）
该阶段，用户始终可以参与投票，投票达到阈值之后，进入确认期。投票阈值分为两个，分别是相对多数阈值和绝对多数阈值，也就是说，一个提案必须同时满足相对多数门槛和绝对多数门槛，才可以进入确认期。需要注意的是，**这两个阈值是动态变化的，它是两条曲线，决策期越接近结束，阈值往往越小。其中，相对多数的阈值不会小于 50%**

![e0caeea7a90bb6a549faf658e227e66f.jpg](https://cdn.bifrost.finance/cms/e0caeea7a90bb6a549faf658e227e66f_d76b88422c.jpg)

如果直到决策期结束，提案都没有满足阈值要求，该提案视为被拒绝。

## 确认期（Confirm Period）

在决策期满足阈值条件的提案会进入确认期，进入确认期后，用户依旧可以投票。在确认期内，该提案始终需要保持满足阈值条件，确认期一结束，提案就会正式被通过，进入执行期。**如果在确认期内，用户继续投票导致提案不再满足阈值条件，该提案将退回决策期。再次进入确认期的提案，其确认期重新计时。**

## 执行期（Enact Period）

提案通过之后，会进入执行期，执行期结束后，该提案正式在链上生效。提案发起者可以自定义执行期，但不能小于提案所在轨道设定的最小执行期。

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# 治理轨道

OpenGov 中，公投（Referenda）是唯一的权力机构，为了提升公投决策的效率，有更多的轨道用来处理提案，不同的轨道有不同的参数。

以 Polkadot 为例，Polkadot 设置了 26 个不同的轨道，如下图（截止2023.8.9）。

![41dd29fc2671ed82b81377a6fa25b42e.jpg](https://cdn.bifrost.finance/cms/41dd29fc2671ed82b81377a6fa25b42e_4ae3b005f4.jpg)

其中，轨道容量是指该提案轨道可以同时进行的最大提案数，押金是指提案发起者需要抵押的资金，押金的存在可以防止提案者提交垃圾提案。准备期、决策期、确认期、最小执行期则是该轨道的提案各个阶段的期限。**除此之外，每个轨道的两个阈值曲线也是不同的。**

这些不同的提案轨道，有的权限大，有的权限小，涉及的提案的危险程度不同，越危险的提案往往对系统越大的影响或者涉及越大金额的财库支出。**我们发现权限较大的轨道容量更小，准备期、确认期、最小执行期更长，且需要的押金越大。**

Small Tipper、Big Tipper、Small Spender、Medium Spender、Big Spender、Treasure 这几个轨道都可以用来发起从财库拨款的提案，但他们所能支付的单笔金额上限是不同的，对应的各项参数也不同。例如，权限最小的 Small Tipper 轨道可支持一次性从财库支付最多 250 DOT，该轨道的准备期、确认期、最小执行期分别只有 1 min、10mins、1min，提案押金仅为 1 DOT，权限最大的 Treasure 轨道可支持一次性从财库支付最多 10,000,000 DOT，其准备期、确认期、最小执行期则高达2hrs、3hrs、1day，提案抵押金高达 1000 DOT。此外，二者的轨道容量也差别很大， Small Tipper 的轨道容量为 200 个，Treasure 的轨道容量只有 10 个。

非财库类提案也是如此，权限最大的 root 轨道，支持对链上代码进行任意修改的提案，对系统影响程度重大，因此轨道容量只有 1，抵押高度 100K DOT，其准备期、确认期和最小执行期都较长。其他仅对某个细分领域进行管理，对系统影响程度较小的轨道则拥有更宽松的参数。

通过这样的设计，OpenGov 既可以做到敏捷的处理非危险提案的同时，也可以谨慎的处理危险提案。

我们还发现，有些轨道可以处理一些特殊类型的提案，例如  Referendum Canceller 和 Referendum Killer 可以用来取消垃圾提案或者恶意提案，Whitelist Caller 则可以用来处理紧急提案，Fellowship admin 可以用来管理 Fellowship 相关事务，我们将在下篇展开陈述。


OpenGov：迈向完全去中心化的治理（上篇）

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](https://bifrost.finance/)’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.

Chain Abstraction - The Path to a New Omnichain Web3 Architecture

With the growth of Liquid Staking narrative, a large number of users have been exposed to this product and not everyone was immediately clear on how LST staking rewards are issued. This has led to questions about why some LST assets increase in number when held, and others do not. This happens because different LST projects issue rewards in different ways.

The three methods by which rewards are issued include:

- Claim Method
- Rebase System
- Reward-bearing tokens

This article will give a specific overview of these methods.

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# Claim Method of LST

In this case, LSTs are interest-bearing assets that continue to generate income. The most straightforward way for users to receive rewards is for them to claim their earnings manually. The staking income generated each time is placed in a pool, and users can manually claim it. The rewards will continue to accumulate until the user claims them.

In this case, LST only represents the principal. The swap-rate between LST and original assets remain 1:1. LSTs can always be redeemed for original assets at a 1:1 ratio unless a Slash occurs, which may lead to a non-anchoring.

If users need to compound the income, they must do it manually by staking and minting the LST again. This method requires users to operate and claim frequently. Every transaction to claim or compound the interest provide gas fees. The majority of LST protocols have abandoned this method of issuing rewards, based on these cons.

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# Rebase System of LST

The Rebase mechanism is widely used for issuing LST staking rewards.

Under the Rebase mechanism, the system will dynamically adjust the overall supply of tokens based on the generated pledge rewards or Slash: hence, the amount of LST held by users is adjusted in proportion to the change of the overall supply.

From users perspective, they do not need to claim or compound interest manually anymore, and the amount of LST tokens they hold keep raising. In this particular case, LST maintains a 1:1 relationship with the original asset even if a slash occurs, because the system is able to reduce the number of LST tokens issued to users through rebase.

Although rebase will change the balance of LST tokens in all addresses, the rebase process does not need to spend a lot of gas. Compared with manual claiming, the rebase mechanism improves user experience and reduces overall gas consumption while issuing staking rewards.

Currently, Lido utilizes the rebase method for issuing rewards to users.

However, the rebase method has some shortcomings. When a rebase-type token is used as the primary asset in DeFi interoperability, its circulating supply change will complicate the calculation of the DeFi yield rate. If a DeFi protocol wants to integrate rebase-type tokens, it often needs unique logic to give users a real-time update display of the number of tokens. This is a considerable obstacle to the widespread integration of rebase tokens!

In addition, the rebase mechanism makes these tokens unsuitable for listing and integration on centralized exchanges. To solve this problem, Lido issued the wrapped asset wstETH, which resulted from wrapping stETH, and converted it into a reward-bearing token.

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# Reward-Bearing Tokens of LST

Reward-bearing refers to the inclusion of yield and interest earned by LST assets. This method of reward issuance breaks the 1:1 swap-rate between LSD assets and their underlying assets, allowing the rate to change in real-time as the income increases.

The reward-bearing tokens method of issuing rewards was first seen in Compound’s cToken in the DeFi field and has been adopted by most LST protocols, including Rocket Pool, Stafi, and Bifrost.

Let’s use an example to illustrate how does it work:

At the beginning of a certain period, Alice stakes 1 ETH and get 1 vETH. Due to the income from staking, after a given time passes, her 1 vETH value is 1.05 ETH. This means that at this given time, 1 vETH can be redeemed for 1.05 ETH.

With the accumulation of staking income, the amount of ETH that one vETH can redeem continues to increase, as well as its swap-rate.
In the event of a slash, the swap-rate decreases.

Changes in the swap rate mean that both the redemption and minting rates are changing. When the current redemption rate of the protocol is that 1 vETH can redeem 1.05 ETH, only 1 vETH can be obtained by staking 1.05 ETH through the protocol.

The reward-bearing tokens model converts the staking rewards and token slashes into changes of swap-rates. With this mechanism, LST represents the sum of the principal and the income accumulated from the beginning of staking to the current point.

In DeFi, these LSTs are no different from other tokens so they can be easily integrated. Let’s see a comparison of these three reward-issuing methods:

![1_K8Bn9BwjxUfLOlBt30wqFw.webp](https://cdn.bifrost.finance/cms/1_K8_Bn9_Bwjx_Uf_L_Ol_Bt30wq_Fw_280a2a540a.webp)

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# A fourth alternative 

In addition to the reward issue methods listed above, some interest-bearing protocols separate the principal and income tokens. The LST represents the principal, and the income generated is represented by a derivative asset (with a reward-bearing issuance).

At the moment LST Protocols that rely on this method are StakeWise and FRAX. The separation of the principal and income tokens can also be achieved through third-party protocols. For example, Pendle can mint interest-earning assets into PT (Principle Token) and YT (Yield Token).

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# Conclusion

Bifrost, a Liquid Staking protocol launched in 2019, was one of the first LST projects to adopt the reward-bearing tokens method for paying rewards.

Actually, due to contract limitations on Ethereum, the Claim System was used on vETH 1.0, but after the Shapella Upgrade, it has been updated to a reward-bearing mechanism.

To enhance the ease of integration of its vTokens, Bifrost carries all LST assets in parallel chains to achieve a unified integration interface for all LST assets, in order to lower the threshold for users and allow an easier cross-chain integration.

With Polkadot’s XCM, Bifrost can finally implement the so-called OmniLST App, bringing LST assets actually available in the Polkadot ecosystem cross-chain, facilitating the development of Polkadot approach to the LSTFi.

How LST Projects Issue Staking Rewards

On November 21st, Bifrost supported the $MOVR/$GLMR liquid and cross chain staking, opening the minting of vMOVR and vGLMR, ushering in a new set of vToken series after vETH, vDOT, and vKSM.

MOVR (Moonriver) and GLMR (Moonbeam) are the native tokens of their respective protocols. Moonriver, a Kusama parachain, is the canary network of Moonbeam, a Polkadot parachain. vMOVR/vGLMR is the first set of vToken instances implemented by Bifrost based on XCMP (the current version is HRMP). The previous vDOT/vKSM was implemented based on VMP.

XCMP (Cross-Chain Message Passing) is a cross-chain message transmission protocol on Polkadot for cross-chain communication between parachains/parallel threads. VMP facilitates cross-chain communication between the parachain/parallel thread and relay chain.

XCM is a general cross-chain message format formulated by Polkadot.

XCM is not only for communication between parachains but also for communication between any two Substrate chains. Therefore, communication based on XCM is a broader concept.

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# Minting and Redemption of vMOVR/vGLMR with XCMP

We will now explain how Bifrost will support the minting and redemption of vMOVR/vGLMR with XCMP, then illustrate the process using vMOVR as an example.

As mentioned above in this article, all vTokens are native assets on the Bifrost chain and will be issued on this chain by default, to provide more convenience for cross-chain staking and integration.

Let’s start by listing the required components.

**Bifrost Chain**: This refers to the Bifrost Kusama Parachain.
(Bifrost also has a Bifrost Polkadot Parachain)

**Moonriver Chain**: The chain is the canary network of Moonbeam, the parachain of Kusama.

**Bifrost Sovereign Address**: Bifrost chains have a Bifrost sovereign account under the control of runtime deployment. Each parachain/thread has its sovereign account.

**Bifrost Sovereign Address on Moonriver**: Each parachain/parallel thread has its sovereign account on the relay chain and other parachains/parallel threads. The code of the sovereign chain controls this address. Therefore, Bifrost does not need to create a hosted address on Moonriver but can use the Bifrost sovereign address on Moonriver to perform cross chain stakings and unbonds.

**SLP Module**: This is a runtime on the Bifrost chain and is responsible for issuing instructions related to vToken casting/redemption.

**XCMP**: We transmit XCM instructions through it.

## vMOVR minting process

1. User A initiates a MOVR cross-chain transfer into the Bifrost chain.
2. User invokes the SLP Module to lock the MOVR into the Bifrost sovereign account.
3. SLP Module mints vMOVR for User A at the current rate.
4. SLP Module transfers the MOVR from Bifrost Sovereign Address across the chain to Bifrost Sovereign Address on Moonriver and issues an XCM instruction to execute the cross-chain staking.

## vMOVR redemption process

1. User A calls the SLP Module and sends the vMOVR to the destruction address.
2. SLP Module sends an XCM command to Bifrost Address on Moonriver to release the corresponding number of MOVRs staked at the current rate and cross over to Bifrost Address (this step delays to account for the unlocking period for the cross chain staking release).
3. Bifrost Address returns these MOVRs to User A.

## Lighting redemptions

Users who want immediate access to their MOVR and do not want to wait for the unlocking period opt for a flash redemption, which is essentially a swap and therefore requires a fee to compensate the liquidity provider.

As both Bifrost Kusama Parachain and Moonriver are Kusama parachains, direct XCMP communication between the two is possible. vMOVR/vGLMR uses XCMP for both minting and cross-chain communication during redemption. We know that XCMP is the native communication bridge between polka-parachains, and using XCMP does not introduce new security risks like other third-party cross-chain bridges.

The security of vMOVR/vGLMR is Polkadot Relay Chain level security.

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# How XCMP works

To understand how XCMP works, it is important to first understand a few core concepts.

If two parachains (A and B) need to communicate, they must establish a unidirectional channel. For bi-directional communication, parachains A and B must create two channels (A→B Channel & B→A Channel).

## Egress and Ingress

When parachain A creates an A→B Channel with parachain B, an egress (exit queue) establishes on parachain A and an ingress (entry queue) on parachain B.

## MR (Message Root)

XCMP uses a message tree structure, where all pending messages form a Merkle tree as leaf nodes, and the root of the tree is called MR (Massage Root), and each new message inserted as a leaf node creates a new MR.

Let’s look at the message lifecycle in XCMP:
(Take A→B Channel as an example)

1. A user on Chain A initiates a cross-chain request via an application on the source chain and wants to send a message M to Chain B. Chain A hosts the message. The message will be put into a dedicated egress queue for Chain B on Chain A (we abbreviate it as Egress A→B), with its inclusion in the latest MR.

2. The collector of Chain A will put the latest MR into the block header when packing the current block. When the verifier assigned to Chain A by the relay chain verifies the block, it will be submitted to the relay chain and contained by the relay chain blocks. At this point, we consider the relay chain to have verified the MR.

3. The collector of Chain B continuously polls the exit queues created for Chain B on all other chains, including Egress A → B. The collector of Chain B puts the original message and MR queue from Egress A → B into its own corresponding entry queue: Ingress A → B. (* There is another argument that this process is not done by the collector but by the verifier; the design of this point partially determined in XCMP, but who does it is not a crucial point in the XCMP format, as the task is trustless and anyone can do it).

4. The verifier of Chain B gets the latest MR of Channel A→B verified by the relay chain from the relay chain.

5. Chain B uses this MR to determine which messages of Ingress A→B have been included in the relay chain and then updates the status of these messages to verify.

6. The validated messages are then ready to be executed by the target application.

For ease of presentation, we describe the message flow of only one Channel. XCMP processes all Channels simultaneously when processing messages across the chain. The relay chain maintains a CST (Channel State Table) to store the MR of all Channels.

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# Features of XCMP

We have found that XCMP has a strategic design to make cross-chain messaging between parachains/threads fast, efficient, secure, and cheap.

**Fast**: the time it takes for a block packing from the sending chain, validation, submission to the relay chain, and finalized at the relay chain is so short that the delay is almost imperceivable.

**Ordered**: With Egress and Ingress, all messages within a Channel follow a strict queue structure with a clear order of precedence. (There is no timing property between messages in different Channels.) Messages remain in Egress until the target chain executes them and remain in Egress until the target chain runs them. The model captures all messages.

**Secure**: the relay chain validates all cross-chain messages.

**Inexpensive**: Although the relay chain validates all messages, the message tree mechanism allows the relay chain to validate only the MR and not the original message directly, and the original message is passed through the sending and receiving chains themselves, not through the relay chain. The process avoids taking up the resources of the relay chain to the greatest extent possible, thus keeping the cost of cross-chain messaging at a low level.

Cross-chain messaging is the basis for cross-chain interoperability, be it cross-chain asset transfer, cross-chain function invocation, cross chain staking, or cross-chain computing. As such, XCMP provides interoperability across a multitude of parachains.

Bifrost, one of the first DeFi projects based in the Polkadot ecosystem, has a solid belief in Polkadot’s multi-chain architecture, which stems from our knowledge of multi-chain interoperability. Cosmos is also a multi-chain architecture and can achieve good interoperability through IBC; however, the security of each Zone of Cosmos is fragmented, and there is a trust issue between each Zone. Zones have to choose which Zone to trust and which not to trust.

Although Cosmos 2.0 added the option to rent security from the Hub, this still does not ensure that all zones renting security are at the same security level. Conversely, the first feature of Polkadot’s multi-chain architecture is shared security. The security level of each parachain is consistent with that of a relay chain and can be trusted unconditionally, and on top of that, the level of security for interoperability provided by XCMP is also consistent with that of a relay chain.

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# XCM-based Communication

Gavin Wood mentioned in a presentation that XCMP is only half of the Polkadot cross-chain solution. The other half is XCM, a message format standard developed by Polkadot. In XCMP, all cross-chain requests are formatted as XCM before they can enter Egress, and the XCM can contain a set of instructions that the target application will execute when it receives the XCM message.

XCM is the standard format for XCMP communication and cross-chain communication between all Substrate chains. Wood hopes that XCM’s application will include more heterogeneous cross-chain scenarios. Thus, XCM-based communication will be a broader concept than XCMP, which can be extended to all Substrate chains, thus building its pan-Substrate ecosystem. It may even have the potential to break through the Substrate ecosystem and connect more heterogeneous ecosystems, including the EVM ecosystem.

# Summary

While select Web3 applications, such as games and social, may not require much interoperability, DeFi applications are the most demanding. Interoperability is the foundation of DeFi applications. Bifrost, a DeFi application, needs interoperability and its vTokens to circulate widely, be integrated with more DeFi applications, and interact with more DeFi applications.

A parachain ecosystem connected by XCMP would be a multi-practice system with seamless interoperability and no cross-chain credit considerations. We believe that such a system would empower Bifrost and vTokens. In addition, XCM-based communication can take us to even greater horizons. vMOVR/vGLMR is where we set sail and where we will end up in the stars.

How Bifrost Supports vMOVR & vGLMR, Based on XCM

# Kusama Slash Incident

On December 9, 2022, at the block height of #4543 on the Kusama network, a Slash manslaughter incident occurred. A validator broadcasted a large amount of controversial information, which blocked the network, causing numerous validators to go down.

Kusama recently experienced a unique situation with its validators, deeming 155 validators maliciously offline and slashing 21,000 KSM in the aftermath. Researchers are currently exploring the underlying motivations for this incident to ensure adequate solutions in the future.

![0_dBW3DmMVs_wuuDue.png](https://cdn.bifrost.finance/cms/0_d_BW_3_Dm_M_Vs_wuu_Due_6a529ead63.png)

Dec 9th, only nine Bifrost SLP validators faced the consequences of the Slash incident, having 711 KSM tokens from a total stake of 237,000 slashed. Details are as follows:

![0_AtxwS4J-qx9trjlj.png](https://cdn.bifrost.finance/cms/0_Atxw_S4_J_qx9trjlj_f16bc80bce.png)

The SLP protocol has automatically canceled the delegation of these validators for the first time and removed them from the VWL (Validator White List).

On December 11, the Kusama community passed a governance referendum 16, revoked these Slashes, lifted the freezing of these validators, restarted the validator election, and restored the normal state of the network. The Slash related to the SLP validators has also been revoked, and the vToken income held by users and the vToken exchange rate will not be affected.

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# Why Slashing

Slash is a tool used by the PoS protocol to punish negative behavior by validators. However, the network will experience a Slash when the validator exhibits production or signature conflicting blocks, malicious disconnection, manipulation with the client application, and other behaviors that jeopardize the security of the PoS network. The Slash extent depends on the network violation. Slash is an essential tool for preserving the PoS network’s security.

However, Slash is more of a deterrent to encourage validators to perform their duties faithfully. In the network operation, Slash rarely occurs, such as the large-scale Slash of the Kusama manslaughter incident, which is even rarer. Less, it is a black swan event.

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# SLP - Avoid and buffer Slash risk

With the possibility of loss through Slash unbearable, the Bifrost SLP protocol presents a solution for Stakers seeking risk control in their PoS staking ventures. This pool-based model offers an attractive alternative that grants greater security and peace of mind. This is because:

1. The SLP protocol as a whole bears the Slash risk, and for each vToken holder, the risk is diluted.

2. Compared with individual Stakers, the SLP protocol is a smarter Staker, and it will adopt better strategies than individual Stakers to balance the rate of return and Slash risk. The SLP protocol will make a detailed score based on the historical stability, security credit, leverage ratio, yield rate, and other indicators of the validator and select and adjust the entrusted validator set based on this score. Compared with individual Stakers, SLP will have a more comprehensive inspection of validators and the number of validators entrusted and their degree of dispersion will be higher, which can minimize and mitigate the risk of Slash.

3. SLP can swiftly modify the set of validators they entrust, enabling rapid response in the event of a slash. The Kusama incident offers an exemplary case study; the network identified nine slashed validators, and initiated their removal from the whitelist almost immediately. The reaction was faster than any individual Staker could react and make adjustments even if they noticed first-hand.

4. The SLP protocol sets up an insurance mechanism that provides users with a buffer compensation when a Slash occurs. See below for details.

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# Slash Compensation Mechanism of SLP Protocol

If a slash occurs, depending on the severity, the SLP will enable different compensation mechanisms.

1/ Each Era of a validator gives SLP settlement income (one Era in Kusama is 6 hours). If the current Era settlement income is greater than the Slash amount, the current Era’s rate of return is still positive, and the situation will not trigger compensation.

2/ If the current Era’s Slash amount exceeding the income and the current Era’s yield is negative, the scenario will trigger compensation. The SLP protocol will destroy part of the vToken in the vToken Vault to offset the impact of Slash, making the current Era rate of return 0.

3/ If the number of vTokens in the vToken Vault is not enough to completely offset the Slash impact, all the vTokens in the vToken Vault will be destroyed to reduce the Slash loss. But at this time, the current Era yield rate will still be negative, meaning the vToken redemption rate will decrease (a lower current Era, vToken/Token exchange rate).

Users have access to a dependable insurance pool by utilizing the vToken Vault. During the minting and redeeming of vTokens, the Vault receives 5% of the commission fee, meaning that over time its amount increases — which in turn leads to better security assurance for SLP protocol operations down the line.

Each vToken Vault is independent, and the vDOT Vault will not be used to compensate for the losses that should be paid by the vKSM Vault.

&emsp;

# Summary

The recent Slash turmoil on the Kusama network caused some alarmingly late-night wake-ups for validator operators and users, primarily in Europe. But with a swift Proposal cancellation implementation by leadership, there were no long-term effects to follow up from this incident — a true testament of why “No promises, Expect Chaos” is embedded into their community values! The efficient Slash situation handling granted satisfaction across the board, which numbed any possible criticism.

Bifrost’s partners noted the Slash incident and inquired about countermeasures. To engage in responsible governance, nine validators affected by this withdrawal duly pushed for re-election. These individuals had a strong chance of being chosen again due to an absence of loss from slash removal.

As a liquidity staking protocol, Bifrost SLP not only releases the liquidity of Staking assets for users, but also provides users with a complete set of solutions to avoid and share Slash risks, reduce and compensate Slash losses. It is a better strategy for users to participate in the pledge of the PoS network through SLP than to directly participate in the staking as an individual.

How Bifrost provides an insurance mechanism for vToken holders against the Slash risk

The SLP protocol developed by Bifrost is a liquid staking protocol. Users send the Token they want to stake to the SLP protocol, and the SLP protocol executes the stake and mints liquid derivatives vToken for the user. The Token pledged by the user will be entrusted to the validator by SLP, and then participate in the consensus maintenance work of the PoS network. Bifrost does not operate the validator itself. To ascertain vToken’s fungible property, the SLP protocol will replace the user to exercise the right to select validators.

Previously, delegated validators were elected through council voting. In the future, we will integrate a new delegated validator election scheme. We’ve optimized the new arrangement on the basis of the original scheme.

First, We divide the seats of entrusted validators into two parts, the Validator White List (VWL) and Validator Boost List (VBL). A set of clear validator rating selection rules will generate the former, while the active application of nodes will render the latter and the Bifrost community votes for approval. The SLP protocol will only entrust the assets staked by the user to the validators in these two Lists.

Second, We plan to launch a governance voting track dedicated to validator elections: Validator Election Track (VET) in conjunction with Polkadot OpenGov. The VWL and VBL need to pass the VET voting process before officially taking effect. VET is a referendum process, which means that the power that originally belonged to the council now belongs to the entire Bifrost community.

# Validator White List

When entering the VWL validator, we will score the validator according to the defined scoring rules. Validators with a score above the threshold will automatically obtain the VWL qualification without actively applying.

The main factors that affect the score include:

- Validator decentralization: We will make the distribution of our voting power relatively balanced in geographical location and jurisdiction;
- Validator reputation and security risk include the central information of the validator under the chain, the duration of the validator, the number and period of the validator’s disconnection, etc.;
- Security risk: Our model will consider the number and severity of Slash in the validator history;
- Validator leverage ratio: When we allocate voting rights, we will consider the self-delegate amount of the validator to avoid excessive leverage of the validator (referring to the proportion of the validator self-delegating in the total delegation);
- Yield: Including the historical income performance of the validator and the Staking income commission ratio provided to the client.

We will dynamically adjust the list according to the changes in the scoring situation if VWL is unfixed. Validators with bottom-ranking scores ranking will receive clearance, while validators whose score ranking improves beyond the bottom will be selected.

Validator scoring happens off-chain, and the Validator White List drawn up based on the scoring needs to pass the VET referendum before it officially takes effect on the chain.

The revision of the VWL needs to be confirmed by the VET referendum.

# Validator Boost List

VBL is a dedicated seat for validators that provide added value. Validators can actively apply to the Bifrost community through VET proposals. After the referendum passes, the validator can officially enter the VBL list. We expect VBL validators to provide added value to the SLP protocol or vToken holders to promote the long-term development of the protocol.

E.g:

- Provide liquidity for vToken / Token trading pairs
- Provide exposure and user promoting opportunities, or promote user education and guidance, and increase vToken minting volume.
- Facilitate the integration of vTokens in DeFi applications
- Provide other forms of benefits to vToken holders

VBL validators are a more elite group with higher priority than their VWL counterparts. As the default period for qualification is six months, VBL node holders must renew routinely to maintain their status — and doing so requires initiating a referendum each time, ensuring that only stable candidates receive the SLP vote entrustment.

Although the first word of VWL and VBL is Validator, validator roles differ in PoS chains. For example, for the Polkadot / Kusama relay chain or other Layer1 blockchains, the validator name is a Validator, and for the parachain, the validator is a Collator. For Layer 2 of the Rollup class, the validator may also be a Sequencer (sorter), but their common feature is that they all require staking.

&emsp;

# VBL Application Procedures

## Step 1: Draft Proposal

Validator operators publish a draft VBL proposal in Bifrost Discussion, indicating the added value they can provide, as well as the number and duration of delegation they hope to obtain.

Reference draft: [Kusama Subsidy Distribution: Step 1](https://bifrost.subsquare.io/post/1)

## Step 2: Launch a referendum proposal

In the case of good discussion and feedback related to the post, the validator operator can initiate a referendum proposal. Learn how to propose one referendum proposal：

## Step 3: Proposal referendum

According to the governance process of VET, there will be a 7-day voting period and a 2-day execution period after the voting is opened. If the referendum is passed, the cooperation will be established; if the referendum is not passed, the cooperation will be temporarily stranded.

## Step 4: Proposal Execution

If the proposal is passed, the validator will be automatically added to the VBL. The executive representative of VET will continue to promote the implementation of the relevant proposal content according to the content of the proposal.

## Step 5: Regular review

The executive representative will regularly check the situation throughout the proposal execution process, as well as the performance of the validators in terms of revenue and performance. If a problem is found during the period, it will communicate with the validator operator and promote the solution of the problem. If the proposal cannot continue to be implemented, the SLP committee can initiate a referendum through VET to terminate the VBL qualification of the relevant validator.

# Conclusion

In general, Bifrost follows the following principles to formulate rules for validator election.

- Maintain the security of the original PoS chain.
- Maintain/expand the interests of vToken holders.
- Promote the long-term development of the SLP protocol.

To ensure the protection of vToken holders and maintain a secure PoS chain, we will be delegating to as many validators from diverse geographic locations with varying jurisdictions. Furthermore, our VWL scoring scale considers both the return rate for validators and the security credentials of nodes to best optimize outcomes for those investing through us. To stay ahead of development opportunities that could benefit SLP protocol long-term, we’ve structured VBL with reserved quotas allocated towards added value providers brought by particular qualified validators.

Due to the unique advantages of the liquidity staking model, with the continuous development of the SLP protocol, more token holders will be willing to become Stakers, increasing the PoS validator operator market. We hope that most validator vendors can actively participate and jointly develop and explore the untapped value in Staking Finance while reaping the dividends of entrusted ticket rights for liquid staking.

# VETs’ Townhall AMA

![Bifrost Discord Townhall.png](https://cdn.bifrost.finance/cms/Bifrost_Discord_Townhall_0b129f6f09.png)

We invite you to an online sharing session about our new Validator selection mechanism. We will explain how it works, including defining its components, such as the Validator Election Track (VET), Validator White List (VWL), and Validator Boost List (VBL). Your feedback on this model, provided during this community event, is more than welcome!

We’ll cover the differences between the VET validator selection mechanism and the previous staking mechanism on Bifrost and the benefits of the SLP validator selection model provided to validators.

The community sharing date is on Friday, December 23rd, at 2pm UTC on our Townhall voice channel of Bifrost Discord.

Our team will be available to answer your questions after the session. We hope this will help you better understand VET, VWL, VBL, and our SLP validator selection mechanism.

If you’re interested in attending or have questions, join the call!

VET - Validator Election Track Based on Bifrost OpenGov for The Multichain

With the development of blockchain technology, hardware networks built on top of blockchain began to develop and spread. They provide services such as storage, bandwidth, computing, and communication in a decentralized way. In such a network, the service providers are no longer companies but freely accessible ‘nodes’ who receive profits by providing services.

Decentralized networks are better equipped to integrate long-tail and idle resources, thereby reducing costs compared to centralized service providers. Additionally, they can incentivize and coordinate a broader range of participants through a Token economy.

As important use cases of Web3, these decentralized hardware networks are exploring new production relations for us that are more adapted to the development of productivity in the information age.

&emsp;

# Storage

A decentralized network of storage services is Filecoin. Storage Providers earn FIL by providing storage space to the system, and users of storage space pay FIL for file storage services. Since the mainnet went live in 2020, Filecoin has amassed 400 PiB of storage space from tens of thousands of storage miners globally.

Besides Filecoin, there are several niche track players in the decentralized storage space, such as Arweave network, which provides perpetual storage services; Sia, which delivers file backup storage services; Storj and Crust, both providing encrypted storage services.

&emsp;

# Computing

In the computing space, systems like Golem and iExec provide general-purpose computing services in a decentralized manner, integrating numerous idle devices to create computing power at scale and provide cloud computing services to application developers. This area is known as edge computing in the industry. Public chain systems are essentially general-purpose computing platforms; however, this kind of computing is highly redundant, so the cost is high, and the way to reduce cost is “off-chain computing, on-chain verification”.

Platforms like Livepeer for decentralized video transcoding, Render for decentralized graphics rendering, and Phala for privacy computing offer domain-specific or type-specific dedicated computing services.

We expect more dedicated computing services in the future.

&emsp;

# Bandwidth

In addition to storage and computing, bandwidth is a third crucial component of the Internet infrastructure. Meson Network is the decentralized system in the bandwidth space and the data transfer foundation for the dApp ecosystem.

Instead of dealing with salespeople from centralized bandwidth organizations, users will upload or access resources in the marketplace according to the standards and protocols in the Meson Network.

&emsp;

# Telecom

In the field of telecom communications, with the development of 5G networks, the traditional top-down approach of building networks by telecom companies is no longer an advantage. Helium, the representative project of DeWi, is transforming telecom network construction, operation, and ownership structure. Helium is a globally distributed network of hotspots that provides wireless networks for mobile devices, including IoT devices. Any entity can operate mobile hotspot devices and provide hotspot services to earn HNT, and today, Helium’s nodes have deployed hundreds of thousands of hotspots worldwide. In short, a decentralized hardware network has this advantage:

- Anyone can operate the hardware, access the network, and provide the service, and access the service from the network without access restrictions.

- Using the token economy to coordinate the exchange of resources within the network stimulates global collaboration, regardless of geographic location and jurisdiction. In addition, the token economy makes the network resilient and responsive to changes in supply and demand.

- There is competition among nodes, so there is no exploitative pricing or monopoly profits, while the system rules are clear and transparent, a fundamental condition for fairness.

We can foresee that with the development of IoT, more and more types of hardware resources will be organized into networks, based on blockchain technology, to provide services in a decentralized way. The future is a “Proof of Anything” world.

&emsp;

# LST for Hardware Network is coming

In this trend, Bifrost, as a DeFi protocol, wants to combine hardware networks and finance, adding value to the ecosystem. After years of development, Bifrost is already the leading protocol in the LST (Liquid Staking Token) space, and we are opening a new branch type of LST, specifically oriented to Hardware Networks, hoping to enable hardware resources to become assets in DeFi, with more liquidity.

The decentralized hardware network has lifted the access restrictions so that hardware resources no longer belong to centralized institutions such as monopolies. However, since there is still a certain threshold in providing services at the technical and capital level, ultimately most of the benefits in the network may still be captured by big institutions and big miners.

Through LST, we will allow more people to own hardware resources, increasing the participation of decentralized networks.

&emsp;

# vFIL

We have already taken the first step towards this goal, issuing vFIL: The first liquid staking product for hardware networks based on the SLP protocol.

vFIL is equivalent to participating in the Filecoin storage pool and will automatically earn FIL rewards. vFIL can be traded at any time through the FIL/vFIL liquidity pool and can be used as the underlying asset for future interest-bearing activities in additional DeFi protocols.

vFIL will be divided into a Beta phase and a formal phase. vFIL will be implemented in the Beta phase using a multi-signature account on Filecoin and an off-chain prophecy machine, where the user transfers FIL to the multi-signature address on the Filecoin chain and the off-chain prophecy machine notifies the SLP module on the Bifrost chain to mint vFIL for the user. The multi-signature address will then delegate the FIL to the storage provider and start generating revenue. The multi-signature phase will set a minting hard top, after which the vFIL cannot be newly mint.

In the formal phase, we will implement vFIL based on the Filecoin network’s virtual machine environment or FVM. vFIL will enter the formal phase after we have completed the appropriate contract development. At that point, the vFIL minting hard top will be removed.

More technical details on vFIL can be found on:
https://wiki.bifrost.finance/staking-liquidity-protocol-slp/vfil

&emsp;

# Summary

Through the liquid staking, Bifrost becomes a real “Rainbow Bridge” between the Hardware Networks and DeFi, which on the one hand will promote a more inclusive hardware network and on the other, will bring more quality assets to the DeFi ecosystem.

LST & Hardware Networks: Bifrost Opens A New Era of Liquid Staking

随着区块链技术的发展，搭建在区块链之上的硬件网络开始出现，**服务的主体不再是公司，而是自由准入的「节点」**。他们通过各种各样的硬件设备，以去中心化的方式组成网络，提供存储、带宽、计算、通信等多样化的服务。相比中心化的服务主体，去中心化的网络能够更好的保护包括用户在内的各类参与者的利益，更好的整合长尾资源和闲置资源以降低成本，也能通过 Token 经济激励和协调更广泛的参与者。

作为 Web3 的重要用例，这些去中心化的硬件网络正在为我们探索更适应信息时代生产力发展的新型生产关系。

&emsp;

# 存储

随着区块链技术的发展，搭建在区块链之上的硬件网络开始出现，服务的主体不再是公司，而是自由准入的「节点」。他们通过各种各样的硬件设备，以去中心化的方式组成网络，提供存储、带宽、计算、通信等多样化的服务。相比中心化的服务主体，去中心化的网络能够更好的保护包括用户在内的各类参与者的利益，更好的整合长尾资源和闲置资源以降低成本，也能通过 Token 经济激励和协调更广泛的参与者。

作为 Web3 的重要用例，这些去中心化的硬件网络正在为我们探索更适应信息时代生产力发展的新型生产关系。

&emsp;

# 计算

在计算领域领域，则有 Golem、iExec 这样以去中心化的方式提供通用计算服务的网络，他们整合众多的闲置设备以形成规模化的计算能力，为应用开发者提供云计算服务。这个领域在业内被称为边缘计算。(其实公链系统本质上也是通用计算平台，只不过这种计算是高度冗余的，极度安全但不经济）。

有些平台正在提供特定于某些领域或类型的专用计算服务，例如 Livepeer 提供的去中心化视频转码服务，Render 提供的去中心化的图形渲染服务、Phala 提供的隐私计算服务。我们可以预见，未来还会有更多类型的专用计算服务。

&emsp;

# 带宽

除了存储和计算、互联网基础设施还有第三个重要组成部分，那就是带宽。

Meson Network 就是提供去中心化带宽服务的一个网络 。Meson 以低成本整合和变现长尾用户的闲置带宽，并提供一个高效的带宽市场。用户将不需要和中心化带宽机构的销售人员打交道，而是只需要按照 Meson Network 中的标准和协议上传或访问市场中的资源。

我们知道，提供视频流、在线游戏等流服务的 Web2 公司每年在 CDN（内容分发网络） 上花费巨额资金，主要是因为需要向用户高速分发大量内容。**随着 Web3 的到来，更多的用户数据正在产生，元宇宙和 GameFi 对内容和交付速度的需求有望呈指数级增长**，Meson Network 提供的高效 CDN 服务将是去中心化存储、计算和 dApp 生态系统的数据传输基础。Meson 网络目前在全球范围内聚集了超过 30,000 个节点，总带宽约为 40Tb/s，并且正在为 Matters、Mask Network、IPFS、RSS3、Arweave 等平台提供数据传输服务。

&emsp;

# 电信

在电信通讯领域，随着 5G 网络的发展，传统电信公司自上而下建设网络的方式，已经不具备优势，Helium，作为 DeWi（去中心化无线网络）的代表项目，正在变革电信网络的建设、运营和所有权结构。Helium 是一个全球分布式热点网络，可为包括物联网设备在内的移动设备提供无线网络。任何主体都可以运营移动热点设备，提供热点服务以赚取 HNT，今天，Helium 的节点们已经在全球部署了数十万个热点。

总之，去中心化的硬件源网络有这样的优势：

- 任何人都可以运营硬件，接入网络，提供服务，任何人也可以从网络中获取服务，无准入限制
- 运用 Token 经济来协调网络内的资源交换，可以激励全球范围内的协作，不受地理位置和司法辖区的限制。此外 Token 经济还使得网络面对供需关系变化时有足够的弹性和响应能力。
- 节点之间存在竞争，因此不会出现剥削定价和垄断利润，与此同时，系统的规则是清晰透明的，这是做到公平的基本条件。


我们可以预见，**随着物联网的发展，更多类型的硬件资源将被组织成网络，基于区块链技术，以去中心化的方式提供服务**。未来，是一个“Proof of Anything”的世界。

&emsp;

# LST for Hardware Network

在这样的趋势下，Bifrost 作为一个 DeFi 协议，希望将硬件网络和金融组合起来，创造新的价值。经过多年的发展，Bifrost 已经是 LST (Liquid Staking Token) 领域的领先协议，我们将开启一个新的领域 LST 分支类型 — LST for Hardware Network。通过这种方式，我们希望让硬件资源能成为 DeFi 中的资产，拥有更多的流动性。

去中心化的硬件网络已经解除了准入限制，让硬件资源不再属于垄断企业等中心化机构，但由于提供服务依旧在技术和资本层面有一定门槛，最终网络中的多数利益还是有可能被大机构、大矿商攫取。通过 LST，我们将让更多人拥有硬件资源，也让去中心化网络能够有更多的参与者。

&emsp;

# vFIL

我们已经迈出了第一步，**Bifrost 即将基于 SLP 协议，发行第一个针对硬件网络的流动性质押产品—vFIL**。用户持有 vFIL 相当于参与 Filecoin 存储算力提供，将自动获得 FIL 本位收益。收益将以汇率上调的方式体现，无需手动领取且会自动复利。vFIL 可以通过 FIL/vFIL 流动性池随时交易，未来还可以在更多的 DeFi 协议中，作为基础资产参与生息活动。

vFIL 将分为 Beta 阶段和正式阶段。Beta 阶段，我们将使用 Filecoin 上的一个多签账户和链下预言机来实施 vFIL，用户在 Filecoin 链上向多签地址转入 FIL，链下预言机将通知 Bifrost 链上的 SLP 模块为用户铸造 vFIL 。随后多签地址会将 FIL 委托给存储提供商，开始产生收益。多签阶段将会设置铸造硬顶，达到硬顶后，vFIL 将不能被新增铸造。

正式阶段，我们将基于 Filecoin 网络的虚拟机环境，也就是 FVM 来实施 vFIL。在我们完成相应的合约开发之后，vFIL 会进入正式阶段。届时，vFIL 铸造硬顶将会取消。

更多关于 vFIL 的技术细节请[点击查看](https://wiki.bifrost.finance/staking-liquidity-protocol-slp/vfil)

**总之，通过通过流动性质押产品，Bifrost 成为了硬件网络与 DEFI 之间名副其实的“彩虹桥”，一方面会促进硬件网络更加普惠，另一方面也会为 DeFi 世界引入更多优质资产**。


LST for Hardware：Bifrost 开启硬件流动性质押新时代

近期，我们发现部分用户对 LST 的派息方式有所疑惑，为什么有的 LST 资产随着持有的时间推移，数量会增加，而有的则不会。这实际上是因为不同的 LST 资产的派息方式是不同的，大体来说有三种，分别是 Claim、Rebase 和 Reward Bearing，Bifrost 采用的是 Reward Bearing。本文将对此做一个整体的梳理。

# Claim

LST 作为生息资产，会不断产生收益。最直接的方式就是让用户去手动领取收益。每次产生的 Staking 收益放到一个池子里，用户可以凭 LST 手动领取，如果用户不去操作，收益将始终处于待领取状态。

在这种情况下，LST 仅代表本金，LST 资产和原资产的价格保持 1:1， LST 资产也始终可以 1:1 赎回原资产，除非发生 Slash 才可能导致脱锚。

如果用户需要将收益进行复利，需要手动操作，再次质押并铸造 LST。这种方式需要用户经常去操作领取，而且每次领取或者操作复利，都会让用户产生 Gas 费用。现在主流 LST 协议已经弃用这种方式。

# Rebase

Rebase 的机制来源算法稳定币领域的探索，现在已被广泛应用于生息资产的派息领域。

在 Rebase 机制下，系统会根据产生的质押奖励或者 Slash，动态调整代币的总体供应，用户持有的 LST 数量会随着总体供应的调整而等比例调整。

从用户体验角度看，用户将不需要频繁的手动领取或者操作复利，用户将观察到手中的 LST Token 会不断增加（假如没有 Slash 事件），就像会繁殖一样。

在这种情况下，LST 与原资产保持 1:1 的关系，即便发生 Slash，依旧保持 1:1，因为系统可以通过 Rebase 减少用户手中的 LST Token 数量。

Rebase 虽然会改变所有地址中的 LST Token 余额，但 Rebase 的过程并不需要花费大量的 Gas，Rebase 的逻辑实现是在系统合约层进行的。

相比手动 Claim，Rebase 机制改善了用户体验，也降低了派息过程整体上的 Gas 消耗。目前 Lido 的 stETH 的派息采用的就是 Rebase 的方式。

然而，Rebase 依旧存在一些缺点，当 Rebase 型 Token 要作为 DeFi 中的基础资产时，其数量上的变动将让 DeFi 收益率的计算变的复杂，DeFi 协议如果要集成 Rebase 型 Token，往往还需要做特殊的逻辑来为用户提供代币数量的实时更新展示。这给 Rebase 型 Token 被广泛集成带来巨大阻碍。此外，Rebase 机制还不利于中心化交易所上市和整合。为了解决这个问题，Lido 发行了包装 stETH 的包装资产 wstETH，将其转换为了 Reward Bearing Token。

# Reward Bearing

Reward Bearing 是指在让收益包含在生息资产中。这种派息方式打破了生息资产与其基础资产的 1:1 汇率，让汇率随着收益不断增加而实时变化。

Reward Bearing 的派息方式在 DeFi 领域最早见于 Compound 的 cToken，现在已经被多数 LST 协议采用，包括 Rocket Pool、Stafi，也包括 Biforst。

我们举例来说明，期初用户 A 质押了 1 个 ETH，获得 1 个 vETH，过了一段时间，由于 Staking 产出收益， 1 个 ETH 变成了 1.05 个 ETH , 那么此时 1  vETH 则可以赎回 1.05 个 ETH。随着 Staking 收益的累积，一个 vETH 可以赎回的 ETH 数量不断增加，vETH 对 ETH 的汇率提升。如果发生 Slash，则汇率降低。

汇率变化意味着赎回率和铸币率都在变化。当协议当前的赎回率是 1 个 vETH 可以赎回 1.05个 ETH 时，通过协议质押 1.05个 ETH，才能获得 1 vETH。

Reward Bearing 模式 把 Staking 派息和 Slash 导致的质押资产变化，转化为了汇率的变化。在这种机制下， LST 代表了从质押开始到当前时点累积的本金和收益之和。

对于 DeFi 而言，这样的 LST, 和其他 token 没有区别，可以轻易集成，而 Claim 型 Token 和 Rebase 型 Token，对于 DeFi 协议而言，会被视为异型 Token，集成起来比较麻烦。

我们再来对这三种派息方式做一个对比

![1712903412731.jpg](https://cdn.bifrost.finance/cms/1712903412731_972ce44361.jpg)

除了以上三种典型的派息方式之外，还有一些生息类协议会采取本金和收益分离的方式，LST 代表本金，产生的收益则用另外的衍生资产表达（衍生资产采用 Reward Bearing 的方式派息），例如 StakeWise 和 Frax。

其实，通过第三方协议也可以实现本金和收益的分离，例如 Pendle 可以将生息资产铸造为 PT(Principle Token) 和 YT(Yield Token)。

# 小结

Bifrost 作为 2019 年发起的老牌 LST 协议，是最早采用 Reward Bearing 的方式派息的 LST 协议之一。Bifrost 尤其注重 vToken 的易集成性，目前已支持的 9 条链的 LST 资产（vToken），全部采用了 Reward Bearing 的方式。vETH 早期由于合约方面的限制，采用了 Claim 的模式，但在上海升级后，已经更新为 Reward Bearing 的方式。

为了提升 vToken 的易集成性，Bifrost 还以平行链承载所有的 LST 资产，以实现所有 LST 资产的统一集成接口，进行实现跨链集成的友好性。

借助波卡的 XCM，Bifrost 可以实现 Onmi-LST，与此同时，Bifrost 也将 LST 带到波卡生态，促进波卡生态 LSTFi 的发展。

一文盘点 LST Staking 收益派息方式

Web3 is making simpler for developers to create services using existing products. As a basic asset of the DeFi world, the vToken will be combined into other products allowing the growth and spread of more use-cases based on vToken features and possible applications.

This article intends to enlist these possibilities, guiding Bifrost users to the discovery of these different opportunities.

## Integration of vToken in DeFi protocols

Users can utilize vToken as a reserve asset for an over-collateralized stablecoin protocol. vToken, being an interest-bearing asset, can reduce the risk of mortgage liquidation offering a better protection than a non-interest-bearing assets, hence being more suitable as a reserve asset for a stablecoin protocol than its original Token.

vToken can also serve as collateral for:

- Synthetic Asset Protocol: vToken can be deployed in relation with a wide variety of assets, even Fiat currency.
- Lending Protocol: Any form of lending in the DeFi ecosystem requires collateral due to a lack of credit data.

Since the original token and its vToken have a price correlation, the over-collateralization rate can be minimized. This gives users the opportunity to leverage off the vToken mechanism and invest the asset in the most profitable way.

ie. Staking ETH, the users can obtain the Liquid Staking Token of it which is called vETH. This can be lent, borrowed, or re-staked depending on the risk-profile of the investor and the opportunities available in the market.

![1_GYQRgpR1CW-cwYd0vrgyDA.webp](https://cdn.bifrost.finance/cms/1_GYQ_Rgp_R1_CW_cw_Yd0vrgy_DA_d86ad62581.webp)

Users can also set the unlocking conditions such as the time (ie. one year later), the price (sell only when the asset reach a certain price), or other external conditions that can be input through the oracle. Through the conditional lock-up agreement, vToken holders can set conditions to restrict themselves from selling, or losing the Staking income.

- Splitting vToken: 2 tokens, endless possibilities

The price attribute of vToken actually can be divided in two parts:

- Cost
- Income

The vToken splits into a cost token and an income token.

Both cost and income tokens can be redeemed and traded independently, enabling complete price discovery. The cost Token maintains a 1:1 relationship with the original Token, expressing the principal redemption right. Meanwhile, the income token expresses the income redemption right and has an exchange ratio with the original token of R:1, with R increasing.

After this processing, the principal and income tokens can cater to different investors’ needs and opens up to more financial products.

If a user expects Staking income to increase, they can buy/long the corresponding income token. Conversely, if a user expects Staking income to decrease, they can sell/short the corresponding income token.

The nature of the income token is akin to traditional finance’s interest rate derivatives. One can exchange income tokens for other interest rate derivatives to achieve the effect of an interest rate swap.

If token holders believe that the staking reward is too stable and does not match their risk preference, they can exchange it for more volatile interest rate derivatives. On the other hand, if they believe that staking income fluctuates too much, they can exchange it for fixed interest rate derivatives.

In addition, whether it is the vToken itself, or the split cost Token and income Token, a series of option/futures can be deployed to provide investors with more hedging and arbitrage opportunities.

Bifrost will continue working hard in order to list vToken as a basic asset in more and more DeFi protocols. We also encourage developers of DeFi protocols to integrate vToken and offer Liquid Staking-based services featuring the Bifrost vToken.

## Secondary distribution of vToken revenue: How to Play

On the basis of splitting vToken, secondary distribution can also be made based on the revenue of vToken. There are several typical ways to play:

![1_E-YYfVnD0jTNnJT7BdzZlw.webp](https://cdn.bifrost.finance/cms/1_E_Y_Yf_Vn_D0j_T_Nn_JT_7_Bdz_Zlw_582629cb87.webp)

These methods apply not only to vToken, but also to other types of interest-earning assets.

## Restake Strategy by EigenLayer

EigenLayer proposes its Restake Strategy, a staking method that enables the reuse of staking funds in on-chain service scenarios. This method is based on the PoS staking concept of paying a deposit and allowing the chain to confiscate it in case of improper behavior. Restake offers multiple benefits to nodes participating in the pledge and their delegators.

Eigenlayer believes that on-chain service scenarios that require quality assurance deposits can directly reuse pledged Ethereum. There are two different ways to implement Restake, as it is also mentioned within the EigenLayer Whitepaper:

(1) The application side can develop a special contract address, and the Ethereum node can entrust staking to the contract address, granting it the right to confiscate the pledge and participate in PoS staking.

(2) The application party can directly accept LSD assets as a pledge, with vToken being a suitable option.

The second implementation option is simpler and more convenient.

Restake is still under exploration and needs to be verified in practice.

## Conclusion

The world of DeFi is rapidly developing, and the possibilities seem endless. As more projects and applications emerge, the financial tools and services available in DeFi will become increasingly abundant.

Bifrost played a fundamental part in this growth by creating vTokens, but this is just the beginning, as the protocol aims to encourage and facilitate the integration, implementation, and development of more services around vToken.

While the basic functions of vToken, such as minting, redemption, and trading, have already been established, Bifrost believes there’s more potential for vToken to offer new DeFi services.

We will explore these possibilities.

More on vToken Ⅰ: Omnichain LSD & Ecosystem Applications

On the first part of this series, we listed several derivative applications of vTokens, including scenarios such as splitting, combining, and repackaging of vTokens. This article will list the extended function modules we are looking forward to based on vTokens. We hope that expanding the functions of vToken will bring convenience to vToken holders, developers, and promoters and foster the long-term development of vTokens.

## vToken Application Integration Tool

In the article “What are the advantages of the Polkadot XCM-based Liquid Staking design?” the integration method of vTokens is not limited to using the vToken list as the basic asset. It also includes calling related events of vTokens or in response to certain conditions, triggering corresponding actions and executing vToken-related operations. This process may involve cross-chain actions, but there is no token transfer, only information transfer.

To better meet such integration scenarios, vToken is designed as a token type with a standardized interface and standard format. Developers only need to dock vToken once to integrate all vTokens.

We will provide integration tools and guidelines so developers can easily call vToken-related states and introduce external conditions to trigger the execution of vToken-related operations. Based on this, developers can create practical scripts and automation tools and develop vToken-based on-chain applications.

## vToken Channel Integration Tool

We will work towards integrating vToken minting channels into more applications so that users can reach them better. These channels include Web3 applications such as wallets, DEXs, games, NFT trading platforms, and even some Web2 platforms.

We will provide prospective channel parties with integration tools and guidelines, so they can add a vToken minting entry on the front end by adding a few lines of code. For Web2 platform integrations, we will directly support using fiat currency to purchase vToken (the back-end processing is to use fiat currency to purchase the original token and mint it into vToken).

This integration module will record the minting source of vToken, and part of the commission fee obtained by the Bifrost protocol will be used to distribute accounts to channel parties. This split will continue as long as the minted vToken is not redeemed. This is a sustainable source of income for the channel side.

## vToken Governance Mapping Tool

There is a hindrance with the current version of vTokens. When users mint the original token into its corresponding vToken, they can no longer participate in the governance of the original chain. This hindrance is harmless when the vToken minting scale is small. When the vToken minting scale is large, it may trouble the governance process of the original PoS chain. As a neutral DeFi protocol, Bifrost does not wish to impact the original chain’s governance process.

We hope to add a vote mapping extension module to support users in participating in the governance of the original PoS chain through vTokens. Suppose the original PoS chain permits staked tokens to participate in governance. In that case, users can directly vote on proposals on the PoS chain in the Bifrost Dapp through this extension module. Bifrost will map the voting situation to the governance proposal of the original PoS chain. This will allow users to utilize vTokens to participate in governance voting in Bifrost Dapp, reflecting on the original PoS chain.

## vToken Dashboard

Data statistics and analysis tools may not directly create value for vToken, but they are indispensable in information disclosure and decision-making assistance. We will promote the development of more tools for various queries, statistics, and analyses for vToken. For example:

- The current number and running status of each entrusted node of vToken is convenient for users to view the real-time status of vTokens;
- Computing the proportion of staking in each PoS chain and the percentage of vTokens in the total share of staking. Statistics of the historical APR curve and cumulative revenue statistics of each vToken help users understand the overall situation of vToken more intuitively.
- Provide the distribution of vToken holding addresses and rankings to help researchers understand the degree of dispersion of vToken holdings and the portraits of holding users. In addition, this data can also facilitate other projects to airdrop tokens, NFTs, and whitelists to specific vToken holding groups of equal rights.
- Aggregate various interest-generating scenarios of vTokens, and provide interest-yielding rate rankings and category navigation to help users better decide where to use vTokens.
- Statistics on which interest-generating scenarios vTokens are applied to and what proportion they occupy provide users with reference.

Based on the extractable data of vToken, developers can explore more statistical dimensions according to user needs.

## vToken Privacy Service

In some scenarios, users are required to use vTokens in a private computing environment to achieve functions such as anonymous minting, anonymous transactions, and anonymous redemption. This may be achieved by adding a privacy module to the SLP protocol.

It should be noted that if a user mints vTokens anonymously, the user is also anonymous when participating in the governance of the original PoS chain through the governance mapping module. That is to say, the anonymous function of vToken can help users indirectly realize anonymous governance on the original PoS chain.

## Conclusion

In summary, extension modules and add-ons aim to optimize the vToken experience and expand vToken adoption. The above list is not absolute. As a community-based protocol, Bifrost hopes to develop and explore the creativity and enthusiasm of community partners, developers, and ambassadors.

On April 22, Bifrost and Encode officially announced that Bifrost would participate in co-hosting the Encode x Polkadot Spring 2023 Hackathon. The hackathon started on April 11 and will last for four weeks. Several technical workshops are being held to educate and engage developers in the Polkadot ecosystem. As one of the initiators of the Challenge of this hackathon, Bifrost explained the possibility of vToken ecological application through the Workshop on April 24. Next, Bifrost will launch the LSD Challenge and provide a BNC reward of $2,500.

Bifrost Workshop review: [LSD challenge registration](https://www.encode.club/polkadot-hackathon)

In the future, we will carry out a series of sharing and incentive activities around vToken, including hackathons, workshops, technology sharing, project incubation camps, Grants, etc.

More on vToken II: Omnichain LSD & Ecosystem Applications

We’re excited to announce the launch of vDOT, a yield-bearing DOT (Polkadot native token) derivative aimed at maximizing locked liquidity and DeFi earning strategies in the Polkadot ecosystem.

The Staking Liquidity Protocol (SLP) protocol launched by Bifrost Finance this year is a Staking derivative protocol provided for the Polkadot ecosystem and other PoS consensus chains, such as bridging heterogeneous chains. The SLP will call for cross-chain stake interoperability through Cross-Consensus Message (XCM) broadcast to mint a fully decentralized staking derivative — vToken.

In addition to the already launched vKSM, the vToken series will soon welcome its third “member” — vDOT.

vDOT will follow the product features of vToken, with core advantages such as multi-scenario staking benefits, flexible redemption, and more, which will bring users intuitive reward, flexible DOT staking, freer investment, and release more liquidity for the PoS network.


# SLP unlocks liquidity and empowers StakeFi

SLP is Bifrost Finance’s Staking liquidity protocol, which promotes the flow of funds in staking and provides a high-yield liquidity Token — vToken (Voucher Token). The SLP protocol launch solved the liquidity problem of staked tokens. SLP also maximized the use of Staking assets on the PoS blockchain.

The vToken generated based on SLP optimizes Trading in multiple scenarios such as DeFi, DApp, DEX, and CEX, among others. Through vToken, SLP realizes the transfer channel of staked rights such as Staking and Crowdloan and the risk hedging of staked assets. It also expands vToken use cases, which include:

- Collateral for lending
- To offset interest on loans
- To realize low-interest lending

The launch of the SLP protocol is not only to release liquidity to revitalize the StakeFi ecology but also to ensure consensus security, lowering the user’s stake threshold and then feeding back the ecological prosperity. The SLP protocol selects validators with no security risk and a reasonable rate of return through on-chain governance, helping users complete one-stop nominations and complete final voting through the Sequential Phragménd Method. In the future, after XCM supports parachains to query the status of relay chain validators, SLP will complete intelligent filtering on the verifier set.

Therefore, vToken can help any user who wishes to participate in staking to complete staking in a one-stop way and improve the overall quality of staking through governance screening. vTokens facilitate higher returns to users and more vitality to the ecosystem while providing PoS public chains with more stable and sufficient staking assets.


# vKSM Achievements Review

vKSM is the first vToken introduced by the SLP protocol and Bifrost’s first staked liquidity derivative. vKSM is a combination of Staking original assets plus future Staking rewards, which are redeemable at any time using vKSM.

As of September 2022, vKSM had 217,529 staking and a total TVL of $13.99 M, or a total lock-up value of nearly $14 million for vKSM, an impressive achievement compared to other competing products in the same ecosystem. The achievement coincides with competing token derivative releases from other platforms, increasing its significance.


# vDOT Core Advantages

Inheriting the product features of vToken, vDOT is also an alternative fungible asset with transactional liquidity that unlocks the liquidity of the original DOT staking. vToken also has six features such as traceability, governability, cross-chain, full reserve, substitutability and full scenario. Like vKSM, vDOT also offers the following core benefits.

**1. Interest-bearing assets with multiple returns**

vDOT is a liquid vDOT that users can start DOT staking to obtain liquidity. vDOT will allow users to continue to receive Staking rewards, while eco-applications supporting the SLP protocol can provide users with their own business returns, i.e. users are free to use vDOT to invest, thus enhancing their overall revenue base. As long as vDOT is held, users can receive staking rewards on staked DOTs, and can also trade vDOTs for cash, reducing their opportunity cost significantly. It is also worth noting that vDOT can be used as a DOT for all trading activities.

**2. Multi-scene compatibility, automatic capture of Staking rewards**

As mentioned above, the vToken generated by the SLP can be optimized for trading in multiple scenarios such as DeFi, DApp, DEX, CEX, etc. This is because the Bifrost team designed the SLP with the key of adding derivatives compatibility in mind, so the vToken’s revenue settlement is designed to be compatible with both centralized and decentralized scenarios. When a user stakes/redeems via the SLP protocol, the system gives a real-time exchange rate. vDOT is issued with Staking rewards by the SLP by adjusting the vDOT / DOT price. vDOT Rate = Total DOT Staking / Total vDOT issued. This rate is the basis for a large number of operations in the system and will be executed automatically by the SLP runtime module under the protocol with a high degree of confidence and reliability.

vToken eliminates the traditional way of on-chain transaction settlement, and adopts the method of raising the minting price to complete the settlement of vToken reward. Therefore, in order to avoid users sharing the reward of previous users, users who enter at different time periods will follow the current minting price. Therefore, when users who have used vToken have doubts about different minting prices, it can be understood that the increase in minting price is the ideal setting to ensure the profit of vToken under the premise of preserving liquidity.

**3. Floating redemption period, vDOT redemptions ≤ 28 days**

The DOT staking redemption period is fixed at 28 days, and Bifrost SLP helps users realize the possibility of early redemption of vDOT by matching the real-time vDOT minting quantity and redemption quantity at the protocol layer.

This means that a redemption request will be executed immediately when the real-time vDOT minting volume is greater than the current redemption volume. The redemption process is also flexible, as vTokens can be immediately canceled at any point during the redemption process to regain vToken without incurring any fees. This avoids the loss of liquidity during the redemption process, reduces the opportunity cost to the user at all stages, increases the potential for revenue and gives the user maximum control.

**4. Intelligent node screening to achieve ideal yield**

According to the Sequential Phragmén Method of node staking volume in Polkadot, when a single nominator stakes to multiple nodes, the DOT staking will be automatically calculated and allocated by the algorithm, which may result in the user’s desired yield not being achieved. In the SLP protocol, the protocol filters out 10+ validator nodes (subsequently increasing with overall staking volume) through governance and adds multiple filters such as number of nominees, commission percentage, and history of blocks out to maximize the return on this portfolio of validators while ensuring that none of the nodes have experienced a forfeit. Automatic filtering rules will be added to the protocol in the future.


# Summary

In other words, when users use vDOT, they can enjoy the DOT staking reward, the investment revenue from the liquid vDOT, and the raindrops accumulated during the campaign period, which brings rewards such as airdrop dividends and NFT whitelist. I don’t think we need to elaborate on the liquidity vToken brings to the ecosystem and public chains, and the more investment options and portfolios it brings to users, as the above multiple benefits are the most intuitive illustration of the high value vToken creates for users.

Liquid DOT Staking is Coming Soon! A Preview of its Core Benefits

Currently, Bifrost launched MOVR staking (Moonriver Token) and GLMR staking (Moonbeam Token) with liquid way yesterday. Users can put MOVR and GLMR into Bifrost, and then stake and mint them into vMOVR and vGLMR.

vMOVR/vGLMR holders do not need to manually claim the Staking reward, the Staking reward will be automatically distributed to the redemption pool and reflected in the form of an exchange rate increase. In addition, you can also participate in LP Framing with vMOVR/vGLMR. The LP Farming pools of vMOVR and vGLMR will be respectively launched on November 28th and December 5th . At that time, minted vMOVR and vGLMR can be added to the liquidity pool to earn LP Farming income.

![1.webp](https://cdn.bifrost.finance/cms/1_92be9afdc2.webp)


**LP Farming Pool launch time**

- November 28th at 1pm in UTC: vMOVR-MOVR LP Farming
- December 5th at 1pm in UTC: vGLMR-GLMR LP Farming

If you have already started GLMR and MOVR staking before vMOVR/vGLMR goes online, you need to unstake first, and after the waiting period (MOVR: 48 hours, GLMR: 7 days) is over, use the unstaked MOVR/GLMR to mint vMOVR/vGLMR.

This article will take you through how to start GLMR & MOVR staking through Bifrost Dapp for staking asset liquidity.

# Stake/Mint Tutorial

1. Log in to Bifrost Dapp and enter vMOVR

Note: vMOVR is mint on the Bifrost Kusama network, and vGLMR is mint on Bifrost Polkadot. Click on the upper right corner to switch networks. This tutorial will take vMOVR as an example, and vGLMR is also applicable.

![1,1.webp](https://cdn.bifrost.finance/cms/1_1_fa0fc42ea1.webp)


2. Click on Cross in in the minting screen to jump to the Moonriver network and cross in MOVR

![2.webp](https://cdn.bifrost.finance/cms/2_2b65ace050.webp)


3. In the Cross Chain Assets section, select Moonriver MOVR — withdraw

![1_DGOJ1tXvnov9UONVCoNBBw.webp](https://cdn.bifrost.finance/cms/1_DGOJ_1t_Xvnov9_UONV_Co_NB_Bw_226a5a4b4b.webp)


4. Select Chain — Bifrost, then paste in the address of the Bifrost you want the MOVR staking to cross in and enter the MOVR amount

![4.webp](https://cdn.bifrost.finance/cms/4_801c8ee4b6.webp)


5. After confirming and completing the signature, return to the Bifrost Dapp and enter the number of minting vMOVRs, then click Mint

![5.webp](https://cdn.bifrost.finance/cms/5_3183fcc9fc.webp)


6. After successful minting, you will be able to see your MOVR staking and income status, as well as the number of liquid staked assets vMOVR on the top.

![6.webp](https://cdn.bifrost.finance/cms/6_ba9c031d64.webp)


7. At 9pm on November 28 in UTC, add liquidity to vMOVR-MOVR LP farming via [Bifrost App](app.bifrost.io/swap?tab=liquidity).


vMOVR & vGLMR are the first parachain staking derivatives to be launched by Bifrost. After vDOT & vKSM, it is also another staking derivative based on XCM minting. XCM-based cross-chain communication will also give vMOVR & vGLMR the opportunity to circulate on any parachain and be integrated with any DeFi application in the Dotsama ecosystem, which will provide a wide range of scenarios for vMOVR & vGLMR to be used.

How to Liquid Stake MOVR & GLMR with Bifrost ?

On September 15, 2022, Vitalik Buterin, the co-founder of Ethereum, tweeted, “We finalized! (Ethereum merger)!” and proclaimed this is an important moment for the Ethereum ecosystem. The transition of the Ethereum mainnet from Proof of Work (PoW) to Proof of Stake (PoS) is called “The Merge”. This also means that the era of large-scale video card farming is over.

However, The Merge did not open the redemption feature of the beacon chain Staking ETH from users. At Ethereum’s developer meeting on December 8, the Ethereum community finally decided that redemption will be officially opened after the ‘Shanghai Upgrade’ in March 2023. In addition to enabling redemptions, the Shanghai Upgrade introduces several performance improvements to Ethereum, such as lower Rollup fee consumption, a more robust smart contract infrastructure and more.

From a Token Economic Model perspective, ETH will shift from inflation to deflation due to a change in net issuance to negative from positive after the merger. The reduction in the total supply of tokens will cause deflationary pressure. After the merger, the Ethernet chain will no longer need miners to protect the chain; instead, it’ll rely on staked ETH. The staked ETH lock’s part of Ethereum’s liquidity (12% and growing), creating a positive ETH price movement.

While the Shanghai upgrade may bring a short-term sell-off to ETH, the upgrade brings a host of exciting features that keep the long-term fundamentals of ETH looking good.

The Shanghai upgrade is consequential toward greater scalability, security, and sustainability. In the future, Ethereum will achieve higher performance, accommodate a richer ecosystem, and continue to improve the fundamentals of Ethereum.

## Liquid Staking

Liquid staking is depositing cryptocurrency for lock-up while maintaining access to them and collecting rewards. Liquid staking funds are accessible in an escrow, as opposed to proof-of-stake (PoS) staking, which locks money in a protocol.

There are two types of liquid stakings: custodial and non-custodial. In custodial, $ETH owners hand over their crypto to a centralized institution, which stakes on their behalf and issues a redemption certificate. The centralized model has flaws that may lead to security risks.

Bifrost provides a non-custodial staking method, where a decentralized application collects and stakes the user’s $ETH and issues a redemption certificate — vETH. Once redeemable, users destroy the vETH through the program to unlock their ETH. The non-custodial model mitigates third-party interference in handling staked tokens.

vETH Minting entrance：https://bifrost.app/vstaking/vETH

You can trade vETH at any time in the decentralized exchange Zenlink on Moonriver and enjoy a high-efficiency and low-gas trading experience. Before that, you need to transfer vETH to Moonriver via Multichain (AnySwap).

## Hold vETH and reap triple benefits
### Buy vETH
The current vETH price typically fluctuates between 0.85 ETH ~ 0.89 ETH due to factors such as Mint Drop subsidies, market sentiment, the uncertainty of redemption times, liquidity size, and more. If you are bullish on the fundamentals of $ETH, then buying vETH is a better investment opportunity than buying ETH. You could buy a 10 ETH redemption for 8.5 ETH and cash in your redemption rights when Ether officially opens redemptions.

### Holding vETH
vETH is an interest-bearing asset that generates Staking revenue for as long as you hold it. You can claim a reward at any time in the Bifrost application interface. After the Ethernet merger, vETH synchronizes the additional revenue earned by the running nodes. In addition to the base Staking revenue, vETH includes the Maximum Extractable Value (MEV) and Gas Fee, increasing the combined annualized rate from 3.5% before the merger to 4.2% after the merger.

### Liquidity Farming
Earn from transaction fees by becoming a liquidity provider (LP) for vETH/ETH on the Zenlink platform. Based on historical data, the expected annualized return on vETH liquidity mining is approximately 10 %.

## Operation guide
### How to buy vETH?
Connect to MetaMask wallet, switch to Moonriver network, access Zenlink ETH/vETH trading pair, and exchange ETH for vETH.

![0_39-XHkJn5ZiVnRWw.png](https://cdn.bifrost.finance/cms/0_39_X_Hk_Jn5_Zi_Vn_R_Ww_56dd1662ab.png)

How to get the staking reward?
In order to integrate vETH into the SLP protocol standard, vETH will upgrade the contract to distribute staking reward according to the exchange rate increase (refer to vDOT/vKSM), and the vETH income will be calculated normally during the contract upgrade period.
https://bifrost.app/vstaking/vETH

![0_OsgnuoiIcc1qNFlw.png](https://cdn.bifrost.finance/cms/0_Osgnuoi_Icc1q_N_Flw_61a3b8b90d.png)

How to participate in liquidity farming?
On the Zenlink ETH/vETH interface, click Add Liquidity in the upper right corner, you can also choose to provide ETH and vETH in pairs, or only vETH. https://dex.zenlink.pro/#/info/pools/2023-0xd0a57f59a7ff9cb61e64fefc987245ffb1f963ea

![0_9ffvmCcJb32OSeFX.png](https://cdn.bifrost.finance/cms/0_9ffvm_Cc_Jb32_O_Se_FX_117754a15b.png)

ETH Shanghai Upgrade Will Open Staking Redemption, vETH 2.0 Will Be Launched Soon

In our [previous article](https://bifrost.finance/blog/bifrost-governance-on-subsquare-i-general-introduction) of the series, we introduced Bifrost’s overall governance structure, having moved our discussion space to Subsquare from Forum. This article highlights two modules earlier presented, Democracy and Treasury, explaining how users can participate in decision-making through them.

## Discuss Your Idea
We welcome everybody join the Governance, and we recommend to start from a discussion post before submit an on-chain proposal, which may attract more users to reach on common sense, increase possibility to pass the voting stage.

![0_QXFq_r_RQKWjFEyy.png](https://cdn.bifrost.finance/cms/0_QX_Fq_r_RQK_Wj_F_Eyy_3f14c7076f.png)

## Democracy
### Tabling a Proposal

Step 1: Create the on-chain proposal via Polkadot.js.
Follow the guidelines in our governance wiki.

Step 2: Add your arguments via the governance platform in the democracy section to table your proposal.
Note: Users must lock up a specified number of tokens to table a proposal on Bifrost.

### Supporting Proposals
Once a proposal is tabled, governance participants back their preferred choices.

Step 1: Enter Bifrost Democracy. Select a proposal you wish to support.
![0_-5_q1qU9lfxPRRRA.png](https://cdn.bifrost.finance/cms/0_5_q1q_U9lfx_PRRRA_0b362fb2af.png)

Step 2: Click ‘Second’ to show support for the proposal.
![0_lbgpzjviEUGDpz5M.png](https://cdn.bifrost.finance/cms/0_lbgpzjvi_EUG_Dpz5_M_956956118a.png)

## Vote on Referenda
Each week, the proposal with the highest backing will move to the Referenda, where governance participants can vote to pass the proposal.

Step 1: Select Referenda on the Democracy module and choose a proposal.
![0_-5_q1qU9lfxPRRRA.png](https://cdn.bifrost.finance/cms/0_5_q1q_U9lfx_PRRRA_a0e8c88c9d.png)

Step 2: Vote for or against the selected proposal and monitor the results.
![0_k0Kel2AW6duv3Spn.png](https://cdn.bifrost.finance/cms/0_k0_Kel2_AW_6duv3_Spn_1b5aebf0a7.png)

Members participate in the referendum by using their staked governance tokens. They execute a secure transaction that locks away their BNC for voting. After the vote has passed, these tokens are returned to user accounts.

The result of the referendum is on the right of the voting page, and members can view them after the poll closes.

## Treasury
Bifrost community members can participate in treasury proposals and bounties in the following way.

Step 1: Select ‘Proposals’ for creating or viewing treasury proposals under the Treasury module.
![0_saMsbCnEATP0CZJt.png](https://cdn.bifrost.finance/cms/0_sa_Msb_Cn_EATP_0_CZ_Jt_53f32dfad5.png)

![0_PzmgufT1Hc4mw8MX.png](https://cdn.bifrost.finance/cms/0_Pzmguf_T1_Hc4mw8_MX_52cf690ec7.png)

Step 2: Engage with bounty proposals under the ‘Bountis’ option in the Treasury module.
![0_HsYA2GGtdM1rWX2X.png](https://cdn.bifrost.finance/cms/0_Hs_YA_2_G_Gtd_M1r_WX_2_X_22a6fdab5d.png)

Finally, only council members can participate in Tips.

## Discussion
As part of the community, you can start discussions via the Subsquare platform. Discussion allows members to ignite conversations and explore potential platform improvements. Here’s how to engage others.

Step 1: Select ‘Discussions’ on Bifrost’s Subsquare.

![0_Z1JPmhWqeAPPgSb3.png](https://cdn.bifrost.finance/cms/0_Z1_J_Pmh_Wqe_AP_Pg_Sb3_9b00763f55.png)

Step 2: Select ‘New Post’ to create a post.
Step 3: Click on any active discussion to participate in it.

Bifrost Governance on Subsquare II: Democracy & Treasury

Network upgrades on Polkadot rely on the combined efforts of active token holders and a Council working in tandem. Any proposed changes will require collective approval by all stakeholders, weighted according to their stake in network transactions. Polkadot’s mechanism ensures that its community carefully considers any alterations before implementation. Bifrost’s move to Subsquare retains Polkadot’s model, bolstering what the platform established in Forum.

## Bifrost’s Migration
On July 20, 2021, Bifrost won Kusama’s fifth parachain position. As a parachain, Bifrost prioritized democratic governance, employing Kusama’s governance module framework, partially modifying governance parameters to suit its purposes, and generating a governance module suited to the rate of DeFi innovation. A tricameral governance structure, a relatively mature on-chain governance mechanism, or coordinated governance by tripartite institutions - the public, the parliament, and the technical committee - continued to be the consistent governance mechanism of Polkadot and Kusama as a whole in Bifrost.

Bifrost recently moved its governance structure to a new platform - Subsquare. The intuitive application is designed for maximum engagement and easy access to all relevant information by members of the Bifrost Network. It gives users democratic control over crucial decision-making processes, making it easier for the community to identify, react to, and cast their votes.

## Off-chain
Off-chain proposals are similar to their on-chain counterparts, with the proposals originating from different chains.

Under the discussion tab, Bifrost encourages everyone to share their thoughts on Bifrost Network, with the intent of making changes to parameters in its parachain. An open dialogue among all community members will help ensure the successful passage of any prospective proposals put forward.

![0_1u7AAXnuPEz6tsss.png](https://cdn.bifrost.finance/cms/0_1u7_AA_Xnu_P_Ez6tsss_3022733ce2.png)

The dashboard provides an overview of all the governance components in Bifrost’s Subsquare. They include Democracy, Treasury, Council, Technical committee & Discussion, and Off-chain. Each serves a different function, but the general idea behind these components is to allow users to create proposals, participate in referendums, and exercise their democratic rights based on their locked-up tokens. Here’s an overview of the governance components.

Bifrost users with novel ideas or suggestions to improve the ecosystem have the discussion tab to share their views and engage in meaningful conversations for community and network growth. The discussion tab is where to express any solutions or concepts before sending an on-chain proposal.

## Democracy

![0_kLnUMNqyRVC38i9v.png](https://cdn.bifrost.finance/cms/0_k_Ln_UM_Nqy_RVC_38i9v_d9bb0e3fc1.png)

Democracy uses public proposals, external proposals, and referenda to manage the governance process.

Governance systems rely on proposals to drive progress. Stakeholders formulate proposals while peers upvote them, thus providing the opportunity for everyone to project their voice in decisions that shape Bifrost’s future direction. Once per week, the most supported idea is elevated and brought forth as a referendum for all stakeholders.

## Treasury

![0_NOsPZqwB6gHXy7dr.png](https://cdn.bifrost.finance/cms/0_N_Os_P_Zqw_B6g_H_Xy7dr_a904cb71d5.png)

Bifrost’s network expansion facilitates the growth of Treasury assets, enabling applicants who support Bifrost’s ecology to access incentives that promote their contribution. Treasury proposals suggest the handling of protocol funds reserved in the treasury.

## Council

![0_r91WpS0gSYoql-bK.png](https://cdn.bifrost.finance/cms/0_r91_Wp_S0g_S_Yoql_b_K_ea197ce8a4.png)

The Council consists of multiple participants (currently three in Bifrost), each representing a stakeholder’s account on the Bifrost chain. Only a few members are appointed to serve in the Council; however, we plan to abandon the Council model once Open Governance (Gov 2.0) goes live. The OpenGov V2 update will abolish the Council and Technical Committee, introducing a Fellowship in its place.

With OpenGov 2.0, tens of thousands of blockchain experts will form the Fellowship, shifting governance from the centralized characteristics exhibited by the Council and Technical Committee modules.

![0_pnlUH2cSh80cdOvf.png](https://cdn.bifrost.finance/cms/0_pnl_UH_2c_Sh80cd_Ovf_67add0e85f.png)

## Technical Committee
To foster a successful ecosystem, the Technical Committee provides ongoing support to teams that operate or develop for its runtime and Host. Endorsement is granted by Council members via a vote, facilitating access to resilient resources necessary for success in this growing space.

## Building a Knowledgeable Community
Understanding Bifrost’s governance structure allows users to express their platform interests by following the appropriate channels. The mechanisms in place ensure Bifrost remains decentralized in all its activities. Revealing platform governance also helps highlight the weaknesses in the mode, which the community may address.

We will continue to update users on governance matters to maintain transparency and foster a trusting relationship with the Bifrost community.

Bifrost Governance on Subsquare I: General Introduction

Decentralized Finance (DeFi) has revolutionized the cryptocurrency market and left a significant impact on the global economy. There are numerous ways to earn passive income through various decentralized protocols. Proof of Stake (PoS) blockchains like Ethereum are secured through staking protocols, allowing network participants to run validator nodes using their staked funds. However, the primary challenge of traditional staking is that staked tokens cannot be traded or used as collateral in other DeFi ecosystems to earn additional yields. Liquid staking aims to solve this liquidity issue by providing extra token minting that represents staked assets.

How does this actually work? This post delves into liquid staking, its benefits for current DeFi users, and how it generates interest for investment.

## Staking vs Liquid Staking

Staking refers to the process of locking up a native asset of a blockchain that uses the Proof-of-Stake consensus mechanism for a certain period to help maintain the blockchain's operations and earn corresponding rewards. Traditional staking requires users to deposit their funds into a custodial account operated by a smart contract.

Liquid Staking refers to **the process through which users obtain liquidity from their staked assets**. This process begins when an investor stakes a certain token (e.g., ETH) into a protocol. This protocol stakes on behalf of the user on a specific blockchain (e.g., Ethereum) and mints derivative tokens of the underlying asset (in this case, ETH) on a 1:1 basis, which we refer to as Liquid Staking Tokens (LST). After staking their tokens, the staking rewards will accumulate into their liquid staking tokens, similar to how liquidity tokens (LP tokens) are received after providing liquidity in a decentralized exchange (DEX).

![staking vs liquid staking.png](https://cdn.bifrost.finance/cms/staking_vs_liquid_staking_ab4e2a4bc2.png)

It is noteworthy that these liquid staking tokens can be exchanged for other tokens or **used as [collateral in DeFi](https://app.bifrost.io/vstaking/vDOT?tab=loopstake) to borrow other crypto assets**. In other words, investors can unlock additional income streams besides earning staking rewards! These liquid staking tokens allow investors to redeem the original tokens (in this case, ETH) instantly, without waiting for the unstaking period. Additionally, when investors stake a token to mint its liquid staking token, they can choose from the validators provided by the protocol used.

Current blockchain networks that implement the PoS mechanism include Ethereum Beacon Chain, Polkadot, Cosmos, Solana, Tezos, Algorand, and others.

![Group 5493.png](https://cdn.bifrost.finance/cms/Group_5493_2cd0f33a5b.png)

## How Does Liquid Staking Work

Liquid Staking is a staking solution that users can obtain liquidity from their staked assets. This process begins when an investor stakes a certain token (e.g., ETH) into a protocol. This protocol stakes on behalf of the user on a specific blockchain (e.g., Ethereum) and mints derivative tokens of the underlying asset (in this case, ETH) on a 1:1 basis, which we refer to as Liquid Staking Tokens (LST). After staking their tokens, the staking rewards will accumulate into their liquid staking tokens, similar to how liquidity tokens (LP tokens) are received after providing liquidity in a decentralized exchange (DEX).

Staking pools allow users to combine several small stakes into one large stake using smart contracts, which provide each token holder with corresponding liquid tokens representing their share in the staking pool. This mechanism eliminates the barriers to becoming a staker. Liquid staking goes a step further, enabling stakers to earn dual benefits. On one hand, they profit from their staked tokens, and on the other, they earn from financial activities like trading, lending, or other transactions using the liquid tokens without affecting their original staking position.

### Case Study: Bifrost

Using Bifrost as a case study helps us understand how liquid staking works. Bifrost is a cross-chain liquid staking protocol that provide liquid staking offers on Ethereum, Kusama and Polkadot.

Users who deposit assets into Bifrost have their tokens staked on the blockchain through the protocol. Bifrost allows ETH holders to stake a small portion of the minimum threshold (32 ETH) to earn block rewards. After depositing funds into Bifrost staking pool smart contract, users receive voucher ETH (vETH), an ERC-20 compatible token that is minted upon deposit and burned upon withdrawal.

The protocol distributes the staked ETH to validators (node operators) and subsequently deposits it into the Ethereum Beacon Chain for validation. These funds are then protected by smart contracts, which the validators cannot access. ETH deposited through the Bifrost protocol is divided into sets of 32 ETH among active node operators on the network.

![veth.png](https://cdn.bifrost.finance/cms/veth_9cab618a64.png)

These operators use public validation keys to validate transactions involving users' staked assets. This mechanism allows users' staked assets to be distributed across multiple validators, **reducing the risk associated with single points of failure and single-validator staking**.

## Benefits of Liquid Staking

For all users participating in PoS staking, the advantages of liquid staking include:

1. **Capital Efficiency**: Tokens locked in staking custodial accounts (e.g., ETH) can be used as collateral in DeFi through liquid staking tokens, thereby expanding yield opportunities.

2. **Increased Blockchain Security**: Since investors don't have to choose between participating in staking and using tokens to capture DeFi yield opportunities, there is little reason not to stake their tokens. In the medium to long term, this leads to higher security and stability for PoS blockchains.

3. **Enhanced Liquidity**: For some PoS protocols (e.g., Ethereum Beacon Chain), the staking rate (the percentage of the total token supply participating in staking) may be higher, potentially resulting in lower liquidity of tokens available for trading. This can negatively impact price discovery. In contrast, liquid staking tokens (e.g., stETH) allow investors to increase trading volume, ensuring efficient price discovery without compromising blockchain security.

4. **Cross-Chain Interoperability**: Simply put, liquid staking tokens are derivative contracts. Theoretically, they can be chain-agnostic and circulate between different blockchain protocols.

5. **Broader Use Cases**: Liquid staking tokens allow investors to participate in PoS blockchain staking without dealing with complex operations such as re-staking after unstaking, waiting periods for unstaking, reward extraction, and delegation technical details.

## Risks of Liquid Staking

Liquid staking presents two main types of risks: financial risks and governance risks.

### Financial Risks:

**Liquidity Risk**: Instant redemption of liquid staking tokens (e.g., stETH) means that the protocol providing liquid staking services must maintain a certain amount of idle tokens (e.g., ETH) to meet investors' early withdrawal requests. If the market suddenly experiences turmoil, this could lead to a "bank run" scenario, potentially causing liquidity issues for some liquid staking protocols.

**Systemic Risk**: Since liquid staking tokens may be used across multiple blockchain networks, a failure in one chain could have negative spillover effects on the liquid staking tokens on other chains, potentially triggering a systemic crisis.

### Governance Risks

**Centralization of Staking**: Liquid staking tokens require a certain level of trading/lending activity to fully capture their yield potential. Therefore, liquid staking protocols might be limited in number to gather as much liquidity as possible to sustain their issued liquid staking tokens. As these protocols are responsible for delegating tokens to PoS validators, excessive concentration of liquid staking could lead to centralization issues in staking.

**Slashing Risk**: If PoS validators go offline or engage in double-signing, their staking rewards will be slashed. Investors who have delegated their tokens to liquid staking protocols are also exposed to this risk. This could reduce the number of underlying assets supporting the liquid staking tokens, posing potential risks during the redemption of liquid staking tokens.

**Validator Misbehavior**: In theory, validators could "short" their own liquid staking tokens to profit from the decline in the value of these tokens.

## What is Liquid Staking Tokens

Liquid Staking Tokens (LST) are a type of cryptocurrency token that represents staked assets on a blockchain network, primarily used in Proof-of-Stake (PoS) systems. In PoS systems, users can lock their tokens as collateral to support network operations and earn rewards. However, traditional staking involves a lock-up period during which the staked tokens cannot be freely used or traded. LSTs aim to address this issue. Users can use LSTs as a tokenized form of staked assets. During the staking period, LSTs not only provide liquidity but can also be used flexibly.

### Case Study: vTokens

Crypto users who deposit Ethereum (ETH),Polkadot (DOT), and Kusama (KSM) tokens into Bifrost’s smart contract pool will receive [vETH](https://bifrost.io/vtoken/veth), vDOT, and vKSM, respectively. These vTokens can be used to earn DeFi yields in liquidity pools or trade on decentralized exchanges (DEX), and many other use cases.

## Where Does Liquid Staking Rewards Come From

Staking rewards come from on-chain validation, where stakeholders actively participate in network construction and contribute to network security and decentralization, thereby earning rewards. The annualized yield fluctuates daily, and the actual annualized yield is based on the results of daily snapshots.

## How to Participate in Liquid Staking

1. **Choose a Liquid Staking Provider**: Select a platform that offers liquid staking services, such Lido, Rocket Pool, Ankr and Bifrost.

2. **Deposit Crypto Assets**: Deposit the desired amount into the [liquid staking platform](https://app.bifrost.io/). The platform will stake tokens on your behalf, and you will receive liquid staking tokens (e.g., vETH) in return.

3. **Earn Staking Rewards**: By holding liquid staking tokens, you participate in Proof-of-Stake consensus mechanism and earn staking rewards. Track your staked Ethereum and staking rewards.

4. **Withdraw Your LST**: You can withdraw your staked assets at any time, though there may be delays depending on the platform. Convert your liquid tokens back to the native token on the liquid staking platform, then initiate a withdrawal to your wallet.

What is Liquid Staking

Liquid Staking Tokens (LSTs) are tokens issued by [staking service providers](https://bifrost.io/) as DeFi products that represent native tokens on Proof-of-Stake blockchains. Liquid staking tokens allow people to **earn rewards while being able to trade or leverage these tokens, providing greater liquidity**.

Since Ethereum shifted from PoW to PoS mechanisms, validator nodes must stake an agreed upon amount of tokens in order to participate and earn block rewards and staking incentives; this process may not be easy or accessible for ordinary users who seek participation.

## Challenges Associated with Traditional On-Chain Staking

1. **High Minimum Requirements**: Public chains often impose strict minimum stake amounts - for instance, Ethereum requires at least 32 ETH per node which raises an entry barrier significantly.
2. **Long Staking Periods**: Retail investors who opt for long staking periods often become inefficient due to inefficiency due to lock-up periods.
3. **Technical and Hardware Requirements**: Staking requires specific knowledge as well as hardware that might make the experience user unfriendly if attempted by average participants.

## The Rise of LST with Ethereum's Shapella Upgrade

The Ethereum Shanghai (Shapella) upgrade, which enabled staking withdrawals, marked the beginning of the rise of Liquid Staking Tokens (LST). LSTs provide ordinary users with new opportunities for token earnings while unlocking liquidity of staked assets - leading to various DeFi strategies including Restaking protocols as well as rapid expansion and broad participation within DeFi ecosystem.

![liquid staking rankings.jpg](https://cdn.bifrost.finance/cms/liquid_staking_rankings_7a57a29a8f.jpg)

## LST Mechanism: How Does It Work?

When tokens are staked, they are typically locked up for a period, making them unavailable for trading or withdrawal. However, Liquid Staking Tokens (LST) change this dynamic by allowing users to stake assets and unstake them without affecting the initial deposit. The deposit is locked on the liquid staking platform, and **a tokenized version of that crypto asset** (a liquid token) is issued to the user. These liquid tokens hold the same value as the user’s deposit and are pegged one-to-one to the original staked assets.

These tokens have various names to easily distinguish them. For instance, when depositing 1 $ETH into Bifrost's liquid staking service you receive $vETH as a liquid token which can later be traded or used as collateral on various DeFi platforms.

To redeem staked ETH, all that's necessary to unlock it is returning or exchanging vETH back for real ETH on DEX and then your initial deposit amount will be unlocked.

This mechanism enables users to profit from trading liquid tokens while still earning stake rewards from their initial deposit.

## Types of Liquid Staking Tokens

Most liquid staking protocols use one of three token models when conducting liquid stakes:

1. Rebasing tokens
2. Reward-bearing tokens
3. Wrapped tokens

![liquid staking token types.png](https://cdn.bifrost.finance/cms/liquid_staking_token_types_081f110d89.png)

### Rebase Tokens

These tokens automatically adjust their balance based on deposits and rewards received through deposits and rewards deposited, known as rebasing; typically occurring daily. Examples of rebase tokens are Lido's stETH and Bifrost's vETH which both belong to this category of LST; both aim to offer user-friendly experiences by increasing your LST balance with every staked activity undertaken by its holders.

- **Example**: Staking 100 ETH on Lido would yield 100 stETH. After one week, with an annual rate of 3.5%, your stETH balance should be approximately 100.067 stETH.

### Reward-bearing Tokens

These tokens increase in value and rewards over time as the exchange rate between the native token and the liquid staking token will change. The number of LSTs remains the same, but their exchange rate varies. This single-token model is convenient but more complex than rebase tokens. Holders benefit from the increase in rewards, with examples including rETH, cbETH, swETH, and [vETH](https://bifrost.io/vtoken/veth).

- **Example**: Staking 100 ETH on Bifrost would yield approximately 92.9 vETH. After one week, the vETH amount remains the same, but its value would be around 100.076 ETH (based on the current annual rate of 3.96%).

### Wrapped Tokens

Some LSTs feature wrapped versions, which prevent automatic balance adjustments from taking place and become reward-bearing tokens instead. In comparison to rebase tokens, balance adjustments for wrapped tokens such as Lido's wstETH become increasingly popular due to higher transaction volumes and the absence of any rebase effects on exchange rates. Rewards are integrated directly into exchange rates; rewards integrated directly into their exchange rates make these LSTs especially well suited for DeFi and trading operations.

- **Example**: Wrapping 1000 stETH would yield approximately 900 wstETH. After one week, the wstETH amount remains the same, but its value would be around 1000.67 ETH (based on the current APY of 3.5%).

For stETH holders, rewards are directly paid into their wallet, potentially subjecting them to income tax as income is generated directly in this manner. Conversely, in case of rETH token holders, rewards accumulate through token value appreciation until finally sold and taxed accordingly upon sale of token.

Users looking to gain stETH or rETH can either deposit their Ethereum on Lido or Rocketpool websites or exchange it at DEXs such as Uniswap.

## Benefits of LST for Staking Activities

**Promotes and Encourages Staking Activities**

LST provides a unique solution by creating tokenized derivatives of staked assets, increasing staking activities as stakers can rest easy knowing they will receive derivative tokens that can be used for lending and trading whenever they stake assets - creating more secure networks overall.

**Multiple Sources of Income**

With LST, stakeholders can entrust funds or assets on a platform and continue using tokenized versions or derivative tokens as collateral against crypto-backed loans at higher interest rates to boost ROI returns.

## Risks Associated with LST

**Slashing**

Slashing is used to monitor validator misconduct (such as double-signing and validator downtime ) through validators (nodes or individuals that process and validate transactions on the blockchain ). When violations of rules such as double signing occur, or when someone violates them unknowingly through misuse, an amount of tokens belonging to each validator involved are taken off them regardless of intent - for any misconduct found, regardless of intent.

**Smart Contract Risk**

Another risk associated with blockchain technology is smart contract risk. While we generally consider blockchain to be secure, vulnerabilities sometimes do exist that attackers could exploit to access and misuse user funds and assets.

**Loss of  Liquid Staking Tokens**

Users that lose tokenized assets or liquid staking tokens during transactions or trades could unknowingly staked funds that can never be recovered without making another deposit of equivalent size to recover these staked funds.

Understanding both the advantages and risks associated with LST are integral for users seeking to optimize returns while developing an efficient staking plan.

What Are Liquid Staking Tokens (LST)

Web3 has experienced rapid expansion over the years, as an explosion of blockchain applications have necessitated more scalable solutions to become ever more urgent.

AppChain has emerged as an industry buzzword to refer to interoperable blockchain networks designed specifically to offer more scalable, efficient, and flexible infrastructure for decentralized apps (dApps).

In this article, we will look into what AppChains are, their advantages, current AppChain projects being undertaken as well as future prospects of AppChains.

## What Is Appchain?

**Appchain (Application-Specific Blockchain) is a type of blockchain platform  tailored for operating specific applications with unique requirements, providing customized functionality which enhance performance, scalability and effectiveness for specific use cases.** Compared with conventional blockchains which exist as one size-fits-all platforms. Appchain provides tailored features which improve performance, scalability and the effectiveness of specific use cases by meeting them more precisely than its traditional counterparts do.

## Appchains v.s Blockchains

Appchains and Blockchains both represent decentralized on-chain technologies; however, their purposes, designs, and functionalities vary considerably; Appchains often having one purpose while Blockchains having many more.

**Purpose**: Appchains typically focus on specific applications that meet targeted use cases while Blockchain platforms offer support for an assortment of uses cases and transactions.

**Customization**: Appchains offer highly tailored customization that caters specifically to project needs, while general-purpose Blockchains generally adhere to standardized protocols with one size fitting all approach.

**Performance and Scalability**: Appchains are optimized to achieve peak performance within their domain, adeptly handling any scalability challenges facing their application(s). On the other hand, general-purpose Blockchains may face difficulties scaling to handle various uses cases.

**Interoperability**: Many appchains feature inbuilt interoperability capabilities for seamless interaction with other systems; on the other hand, connecting different general-purpose blockchains often requires additional efforts or workarounds requiring extra layers or bridges to connect them together.

Blockchains provide an extensible foundation for decentralized applications, while Appchains specialize in offering highly targeted, performance solutions tailored specifically for individual project requirements, providing more focused optimization capabilities.

## An Overview of AppChain Protocols

AppChains can be created through several blockchain networks that offer unique benefits for developers:

- **Polkadot Parachains**: Connect multiple blockchains to a central Relay Chain to enhance validation, with customizable governance and economic models, native token support, customizable token distribution mechanisms and limited to 100 Parachains in total - though no smart contract functionality exists on Relay Chain itself.
- **Polygon Supernets**: Leveraging Ethereum's security and Polygon Edge's flexibility to build EVM-compliant blockchains that feature dedicated validators, flexible consensus models, customization features and extensive interoperability support.
- **Cosmos Zones**: Utilizing a hub-and-spoke model, application chains connect to the Cosmos Hub for data and token exchange. Key advantages include Tendermint Core for fast transactions, Cosmos SDK development for development purposes and governance by top 100 ATOM holders.
- **Avalanche Subnets**: These three chains with various functionalities support L1 or L2 blockchain subnets that use $AVAX for staking. Utilizing Snowball consensus algorithm for fast transactions and high scalability.

Each blockchain network offers unique benefits when developing AppChain projects, meeting various project specifications and scaling needs.

## The Benefits of AppChain

More developers are opting for AppChains over smart contracts when managing shared block spaces for three key reasons.

**High Performance**

As DApps vie for block space on the same network, popular DApps may consume significant resources that cause transaction costs and network latency to increase for other DApps like Polygon or Arbitrum.

AppChains enable project teams to predict transaction costs and network latency within predictable ranges for increased end user satisfaction.

**Customization**

As DApps grow into larger markets, developers need to continue improving the products for users.

Larger applications must balance various design considerations such as throughput, finality, security levels, permissions, composability and ecosystem coherency when considering design considerations.

Validators typically impose high performance demands upon hardware (for instance running SGX and FPGAs to generate zero-knowledge proofs).

AppChains provide traditional institutions a way into Web3 without immediately taking an entirely permissionless approach. Companies, for example, can require validators to undergo KYC; prescreen engineers who wish to build applications on their network; and select starting/ending points for cross-chain interactions.

**Value Capture**

While general-purpose scaling solutions reduce transaction costs while upholding security and providing developers with a satisfactory experience, these do not offer them many opportunities to capture additional value.

Existing products demonstrate strong commercial viability of AppChains, enabling developers to fork existing protocols within other ecosystems and generate income (for instance fees from AMM mechanisms or NFT transactions).

AppChains would allow mods to expand these games' IP by expanding it onto rollups, thus sharing block space economically while reaping other economic advantages.

AppChains face challenges as well. Here is what to keep in mind while considering using AppChains:

**Resource Wastage** 

AppChain can become resource waste if applications don't utilize all their potential resources on-chain. With validators dedicated specifically for AppChains, any excess resources could be deployed towards supporting other ecosystems instead.

**Additional Development Costs**

AppChains development differs significantly from that of smart contracts in that their development involves multiple steps with technical difficulties in managing infrastructure (validators or sequencers) becoming even greater than when working on contracts themselves.

**Limited Ecosystem Tools and Technical Support**

There are currently no "ready-made" resources such as block explorers, RPC providers, indexers, oracles, fiat gateways and ecosystem funds that exist as "off the shelf."

## The Emerging Market of AppChains

Due to their inherent downsides in creating independent ecosystems, AppChains may be better suited for applications possessing certain characteristics:

1. Attaining scale in terms of user base, protocol revenue, TVL (Total Value Locked), product-market fit or other measures of success; or 2. Showing significant product or performance advantages within their dedicated blockchain space.
2. Needing lower security and indivisibility levels; such as P2E games, NFTs, or crypto social platforms.

## Conclusion

As Apple is often associated with offering superior user experiences, blockchain developers can take a similar route by harnessing AppChains for Web3 applications development.

AppChains may not always be appropriate. Engineers should carefully consider what needs their applications have before investing time or resources into development.

Further, many factors can have a substantial effect on an economic security model's security model, monetization strategies, platform defensibility and natural growth of stack value as well as any secondary effects it might have on crypto market structures. We look forward to watching AppChains develop in coming years!

What is Application-Specific Blockchain (Appchain)?

Since blockchain's creation, developers have faced an insurmountable "trilemma". It has proven difficult to produce a platform which excels simultaneously at security, decentralization and scalability - an arduous feat indeed!

[Appchains](https://bifrost.io/blog/what-is-an-appchain) were once seen as the panacea to scaling problems; they allow multiple chains to interoperate seamlessly while decreasing transaction load on individual chains while still upholding security and decentralization without compromise. But over time appchains have fallen behind other solutions: Layer 2 (L2). Recently discussions around L2 have intensified; rollups now being seen as key ways of reaching scaleability while maintaining security and decentralization simultaneously.

Developers who utilize appchains believe they offer unique value propositions, from using native tokens of dApps as payment to internalizing MEV (Miner Extractable Value) within blockchain solutions that generate revenue for them directly - creating more user engagement than L2 solutions ever could and generating revenues through MEV (Miner Extractable Value). Thus while L2 solutions have become the focus of attention recently, appchains will never go extinct!

### What Is MEV?

Maximum Extractable Value, more commonly referred to as MEV, allows miners and validators to extract more value from blockchain through manipulating transaction placement in blocks. Historically this has led to negative behaviors like preemptive trading or sandwich attacks but good MEV strategies such as arbitrage clearing are key parts of making DeFi more efficient.

Developers of decentralized applications (dApps) may find having their own blockchain provides greater control of MEV, helping reduce malicious behaviors while at the same time increasing revenue for themselves as an independent dApp developer. As crypto matures and grows into new frontiers of investment and commerce, building profitable and sustainable businesses becomes even more critical to success.

MEV could become the driving force for further application chain launches in the future.

## Who Can Benefit From MEV?

Though MEV can provide exciting revenue enhancing possibilities, not every crypto project stands to benefit.

MEV can truly benefit DeFi projects that specialize in clearing and arbitrage such as lending protocols, AMMs and perpetual DEXs; such as lending protocols, AMMs or perpetual DEXs that rely heavily on clearing/arbitrage dynamics like lending protocols/AMMs/PERpetual DEXs/perpetual AMMs etc if these projects were simply to launch on L1 or L2, such as lending protocols/AMMs/PERPETUAL DEXs etc; by simply using L1 and/or L2 for launch they would miss out on revenue altogether so it might be wiser for them to launch their own app chain so as to differentiate themselves from competition; for instance dYdX decided against Ether and created its own application chain using Cosmos as its foundation - an example which would suit well here!

MEV may not be appropriate if your application involves decentralized services like NFT or GameFi. L1 may provide more cost-efficient and simpler launching solutions - something Helium decided upon after switching their blockchain solution over to Solana.

### Why Do We Need AppChains？

Beyond MEV, developers may also seek other reasons to launch their own appchains.

### Transaction Fees and User Experience

Transaction fees on L1 chains present one major hindrance for non-crypto native users, making transactions confusing and cumbersome. Appchains offer developers an effective solution by enabling users to pay fees with their native token (dApp's native token or even gas free transactions), significantly streamlining user experiences and improving overall experience.

### Scalability Needs

L2 solutions may have garnered much praise for their scalability; however, appchains also can provide superior scalability solutions. Gaming-focused apps require high transaction throughput with low latency for optimal operation - for instance FIFA Ultimate Team generates thousands of transactions each second that even L2 solutions find hard to manage efficiently; such games could become ideal candidates for adopting appchains as an efficient scalability solution.

### Customizability and Adaptability

Launching an application chain gives dApp developers greater freedom in customizing the network's design, consensus mechanism, governance structure, and economic model to suit their application's exact specifications. While L1 chains should meet most general-purpose dApp needs, some niche applications may need certain protocol level modifications that need to be addressed specifically using appchains; with them developers can customize the network to their exact requirements.

## Appchains on Polkadot Network

Polkadot, created and launched by Gavin Wood - co-founder of Ether - in 2016, provides developers with an interoperable blockchain network with shared security that enables interchain interaction through dedicated 'Parachains' connected via a central relay chain (relay chain). These Parachains may interact via central hub relay chains as communication tools between their parachains.

Each parachains can use its own consensus mechanism, virtual machine and governance structure for maximum flexibility and customization for developers. Polkadot also offers a shared security model which enables smaller parachains to benefit from the security offered by larger networks.

### Bifrost - The Liquid Staking Appchain

**Bifrost is a dedicated modular Liquid Staking L1 secured by Polkadot and built with the Polkadot SDK**. 

The easiest way to understand Bifrost is to see it as a derivative issuer that provides liquidity for all staked assets, issuing corresponding shadow assets during the bonding period of the original assets. At the same time, the shadow asset is a fungible Token that can be circulated in different DEXs, pools, protocols and across chains.

Bifrost's solution **vToken** (liquid staking **voucher Token**) enables users to convert their PoS tokens into vTokens in order to obtain staking liquidity and staking rewards synchronously, without barriers in cross-chain scenarios.

More info you can read [A Deep Dive into Bifrost App Chain Liquid Staking Strategy](https://bifrost.io/blog/article-9)

### Tanssi - The Appchain Infrastructure Protocol

Tanssi offers developers in the Polkadot ecosystem an easier onboarding experience and facilitate development within this environment by offering Appchain. An Appchain is a modular parachain connected with Tanssi that utilizes its shared collators; when connected this allows more efficient block production and integration processes; additionally when projects join Tanssi Appchain they gain access to services, resources and tools designed to maximize resource usage as well as increase protocol efficiencies.

More info about how Tanssi works, you can read this [overview]( https://www.tanssi.network/post/tanssi-technical-overview)

Why Do We Need Appchains?

**Staking allows us to secure rewards by locking up a specified amount of tokens**, but its benefits extend far beyond simple financial gain; they allow us to actively take part in ecosystem governance decisions by actively taking part in its decision-making processes and helping shape its development and security. In this article, we'll learn what is Polkadot staking and why should we stake.

## Nominated Proof of Stake (NPoS)

Polkadot blockchain was launched by Gavin Wood in 2016. Polkadot employs the Nominated Proof of Stake (NPoS) mechanism, consisting of two roles - "validators," who operate nodes; and "nominators," who nominate validators to operate their machines on behalf of others and can still earn rewards through this system. Nominators can also join a nominator pool to further reduce barriers to participation and streamline operational procedures. Polkadot uses Network Proof of Stake (NPoS) technology which requires only 10 validators per parachain; so with 100 parachains there will only ever need 1000 validators total! Currently the Polkadot network boasts 297 validators but they hope to reach this target goal during its mature stage; Polkadot's "Thousand Validators Initiative" seeks to reach this goal and increase number.

Polkadot currently holds 874 million DOT staked at an approximate stake rate of 58%; there are 36,800 nominators with the historical staking yield post commission deduction being 14.86% with an inflation rate of 9.83%.

![staking data.jpg](https://cdn.bifrost.io/cms/staking_data_6b517193d3.jpg)

PoS chains typically see increasing participation and therefore higher stake rates with greater participation increasing the staking rate, creating more secure networks. Polkadot's ideal staking rate should be 50%; however, actual rates have typically ranged between 55%-60% over time.

## DOT Unstaking Period

Polkadot's current lock-up period for staked DOT is 28 days, meaning staked coins can only be unbound after this amount of time has elapsed. While this extends security of the protocol and makes staking less attractive due to reduced flexibility and higher opportunity costs. With RFC 97 proposal's approval by Fellowship, unbonding time will be shortened from 28 days to 2 days; necessary code or design changes have already been merged into github; implementation by developers will begin shortly thereafter.

## Four Staking Methods on Polkadot

Polkadot natively supports four methods of staking that range in terms of capital requirements: running a validator, direct nomination, operating a nomination pool and joining one (with minimum participation requirement of only 1 DOT).

1. **Running A Validator**: Running a Validator requires accessing the internet on a full-time basis from a dedicated computer, along with knowledge of technical operations related to validator management. In order to qualify as an active validator set either personally or nominatively stake DOT; currently this amount stands at at least 3 million DOT
2. **Becoming A Nominator**: must nominate up to 16 validators they trust by staking DOT under them, then divide network rewards equally between themselves and them (current average commission is around 2%) while giving each validator their share (network rewards are split at 60% each); validators pay their commission (current average is 2%) directly while nominators incur financial penalties should any nominated validator engage in misconduct such as going offline; nomination rewards require bonding amounts that fluctuate, currently around 250 DOT.
3. **Running a Pool**: Nominating pool is a recently introduced feature designed to reduce entry barriers for nominators, providing multiple small nominators an avenue of nominations at once and share rewards and penalties proportionate to how much of their staked shares they own in total. Operating one requires selecting validators as part of your group, with starting an operational nomination pool currently costing 500 DOT.
4. **Joining a Nominating Pool**: Joining a nominating pool is one of the simplest forms of staking; this requires only 1 DOT to participate and gain rewards through it.

Polkadot offers more native staking options with only 1 DOT required as the minimum stake required, further lowering financial and technical entry barriers and encouraging wider participation, thus strengthening decentralization and security on its network.

## Liquid Staking on Polkadot

Due to the lock-up period required by staking, staked funds become unavailable for use; hence liquidity staking has emerged as an alternative solution. Liquidity Staking Tokens (LSTs) provide users with opportunities to earn staking rewards while keeping funds liquid thereby improving capital utilization and utilization rates.

By placing tokens into a liquidity staking protocol, users can generate derivative tokens that serve the same purposes as original ones (participating in DeFi) while earning rewards as part of liquidity staking's ecosystem-boosting qualities. Therefore, its presence stimulates economic activity within PoS chains by giving users simultaneous benefits from both activities; hence liquidity staking is an integral component.

Bifrost is currently the top liquid staking platform on Polkadot, having introduced the liquid staking token vDOT for use. At present, 8.45 million DOT have been staked with a total value locked of $39.41 million representing all assets staked.

**vDOT can generate yields through staking yields as well as lend and farm protocols within DeFi to create multiple streams of income**.

Bifrost recently introduced [Loop Stake](https://app.bifrost.io/vstaking/vDOT?tab=loopstake), an advanced leverage staking product specifically tailored towards digital tokens such as DOT that allows users to set and manage leverage according to individual risk profiles. Since releasing it for public testing in April 2018 this has already attracted 120,000 DOT in supply as well as nearly 100,000 in borrowing demand demonstrating initial market success at scale and activity levels.

Polkadot OpenGov governance requires strong stakeholder representation for successful operation; **vDOT can ensure this right remains with them**.

Polkadot currently boasts 874 Million DOTS staked, which compares favorably with Ethereum in terms of penetration rate of liquidity staking market within its ecosystem. Polkadot offers significant potential growth potential when it comes to liquidity staking market within its ecosystem.

A Complete Guide to Polkadot Staking

Education

科普

Discover Bifrost’s omni-chain liquid staking solution which is unlocking liquidity and increasing asset utilization for users across diverse chains. 

# What is liquid staking?

Liquid staking offers stakers in Proof-of-Stake blockchains the ability to amplify the utility of their assets. Let's unravel what liquid staking is.

Traditionally, staking in Proof-of-Stake blockchains involves locking up assets to secure the network. While stakers receive tokens as rewards, the drawback lies in the inability to utilize these assets for other yield-earning opportunities. Add the mandatory unstaking periods to the mix, and users must wait for durations, such as 28 days on Polkadot and 7 days on Kusama before they can access and utilize their tokens.

# What are the Advantages of Liquid Staking?

Enter liquid staking, a solution that provides the benefits of traditional staking and offers a pathway to unlock previously inaccessible liquidity. [Liquid staking service providers](https://chain.link/education-hub/liquid-staking) solve this liquidity problem by minting a derivative token (LST)— receipts and a claim on the underlying staked asset— which can then be traded or deposited in DeFi protocols.

Often, these liquid staking derivatives are yield-bearing tokens, compounding staking rewards and increasing the derivative's value relative to the base asset.

In essence, liquid staking provides stakers instant liquidity access, allowing them to maximize their assets while still earning staking rewards.

# Current State of Liquid Staking

## Applications of liquid staking

Liquid staking has become a prominent trend in Proof of Stake blockchains, a major feature of chains such as Ethereum, Polkadot, Kusama, Cosmos, Moonbeam, and more. Liquid staking protocols offer users the convenience of instant liquidity when needed. Looking at current statistics, Ethereum, for instance, has [over 28.6 million ETH staked](https://www.stakingrewards.com/asset/ethereum-2-0), reflecting a 23.85% staking rate. Notably,[ 12.07 million ETH (equivalent to $27.841 billion) ](https://defillama.com/lsd)is staked on liquid staking protocols like Lido, Rocketpool, and more within the Ethereum ecosystem.

This surge has spurred the development of a new decentralized financial product category known as liquid staking token finance (LSTFi). LSTFi involves leveraging liquid staking token (LST) in DeFi across diverse yield-earning opportunities on different protocols. Notably, this ecosystem has witnessed rapid growth, with protocols like Pendle and Aura on Ethereum creating a flywheel effect, allowing users to utilize their liquid staking token of ETH continuously.

In the context of Polkadot, [the current staking rate is notably higher at 54.04%](https://www.stakingrewards.com/asset/polkadot), with a substantial 708.19 million DOT tokens staked. However, only 1.49% of staked DOT is in liquid staking platforms like Acala, Bifrost, Parallel, and Stellaswap. This highlights a significant pathway for further growth and utilization of liquid staking protocols within the Polkadot ecosystem.

## Bifrost's Unique Position

[Bifrost is a dedicated liquid staking middle layer integrated into the Polkadot and Kusama networks](https://bifrost.finance/news/bifrost-is-building-a-cross-chain-stake-fi-ecosystem). Bifrost stands at the forefront of the LSTFi race on Polkadot and Kusama, offering liquid stakers diverse applications and yield-earning opportunities across various blockchains. Users liquid staking on Bifrost receive  the receipt tokens, vTokens, which are interoperable with different blockchains, and this is facilitated by Polkadot's cross-chain messaging (XCM) capabilities.

# Challenges of Liquid Staking

Despite its transformative potential, liquid staking faces challenges that demand attention. A primary concern is staking centralization, where protocols stake users' assets on specific validators. Downtimes on these validators can result in slashes to users' staked assets. Another looming issue is network centralization, with a single liquid staking protocol holding a significant share of staked tokens, as seen with Lido accounting for 32.3% of the total share of staked ETH. These are some common problems with regards to liquid staking services provided by liquid staking protocols.

# Bifrost's Contribution to Liquid Staking

## Why Choose Bifrost?

Bifrost is a dedicated liquid staking middle layer, extending its services to over 9+ chains, including Polkadot, Kusama, Moonbeam, Astar, Filecoin, Moonriver, and Ethereum. Through its vTokens, Bifrost issues receipts of staked assets, serving as reward-bearing tokens that accrue and compound staking rewards over time. These vTokens, including vETH, vDOT, vKSM, vGMLR, vMOVR, vBNC, and vFIL, share a unified format on the Bifrost chain, enhancing interoperability between chains through [Polkadot's XCM](https://bifrost.finance/news/what-are-the-advantages-of-the-polkadot-xcm-based-liquid-staking-design).

Bifrost's innovative approach allows users to leverage vTokens across various chains, opening avenues for yield-earning opportunities. Currently, vDOT, the receipt token for liquid staked DOT, finds utility in diverse DeFi opportunities on Moonbeam, Astar, and Interlay, including utility in iBTC vaults. This suite of opportunities has seen Bifrost garner a [TVL of over $110 Million](https://bifrost.app/). A significant advantage of Bifrost’s vTokens is the ease of access to staking rewards. Users can easily purchase vTokens, hold them, and automatically accrue staking rewards without any other steps required.

At the heart of Bifrost is the burning desire to innovate and bring forth products and solutions to make utilizing our liquid staking services easier. With that thought in mind, we have these products:

- [SLPx](https://bifrost-finance.medium.com/slpx-pallet-a-further-step-into-the-omni-chain-liquid-staking-68cb4d99c82f) is an extension pallet to SLP that allows users to invoke SLP's functionality on a remote chain without crossing assets into the Bifrost chain. With SLPx, users can Mint and redeem vToken on a remote chain and swap vToken on a remote chain using liquidity from the Bifrost chain behind the scenes. [The OmniLS](https://bifrost-finance.medium.com/omni-ls-dapp-the-easiest-fastest-and-most-secure-way-to-access-bifrost-liquid-staking-tokens-21ee080b03cd) is the first app built using SLPx and allows users to access vTokens from any blockchain in one transaction.

- Reserving governance rights on base chains: Bifrost is the first liquid staking protocol on Polkadot and Kusama to enable derivatives (vTokens) to participate in the governance of the base chain on OpenGov. As such, vTokens reserve the governance rights of their base staked assets. Users can utilize these tabs for [Polkadot](https://bifrost.app/vstaking/vDOT?tab=governance) and[ Kusama](https://bifrost.app/vstaking/vKSM?tab=governance) to have their say in the governance of these networks.  

These innovations put Bifrost’s liquid staking solution above others. 

## Advantages of vTokens: Unleashing Possibilities

Bifrost's vTokens presents users with unique advantages such as:

- Governance Rights Reserved: Unlike other liquid staking tokens, vTokens on Polkadot and Kusama retain governance rights, allowing users to actively participate in the governance of their parent chains through OpenGov.

- Ease of Access: Bifrost's novel applications, such as OmniLS powered by SLPx, streamline the minting and redemption of vTokens from any chain, ensuring convenient access for users. Users can access Bifrost’s liquid staking services and liquid stake their assets from any chain.

- Node Screening for Optimal Yields: Bifrost employs node screening mechanisms to optimize yields for users liquid staking with us, enhancing the overall liquid staking experience.

- Reward Bearing with Automatic Compounding: Staking rewards on vTokens automatically compound, eliminating the need for manual claims and ensuring seamless accrual of rewards for users liquid staking on Bifrost. 

- Instant Withdrawals: Users liquid satking on Bifrost enjoy the flexibility of withdrawing liquidity instantly by swapping their vTokens for other assets, providing liquidity on demand.

- Security and Decentralization: Bifrost adopts a decentralized non-custodial protocol, maintaining diversity in validator sets through an automated and dynamic algorithm. This approach mitigates the risks of centralization, ensuring the security of users' assets.

- Slash Protection: Bifrost safeguards users liquid staking on the platform from slash losses through the BNC Insurance Fund. In a slash loss, the insurance fund compensates liquid staking users without affecting their earnings.

- Versatile Use Cases: Interoperable vTokens can be utilized across different chains, offering liquid staking users a spectrum of yield-earning opportunities in the evolving DeFi landscape. As such, users liquid staking on Bifrost can access more applications and further utilize their assets through vTokens.

# Conclusion

Bifrost is a beacon of innovation and user-centric solutions. We look forward to unlocking a world of possibilities for users, providing liquidity and a gateway to diverse yield-earning opportunities through our liquid staking services. The journey doesn't end here; it evolves as Bifrost continues across blockchains with our Omni-chain approach to liquid staking. [Join us](https://bifrost.app/) in this exciting exploration, where your assets gain fluidity, and opportunities become boundless.


Exploring Liquid Staking with Bifrost: Unlocking Asset Potentials

在 Web3 生态中，跨链桥是一个非常重要的部分，它是打破链间孤岛、实现万链互联的关键设施。在过去，人们对跨链技术的探索和实践非常活跃，相关的跨链桥产品已经达到上百个，有的致力于构建一个统一的互操作层，有的则试图打通多链资产流通，愿景不尽相同，在技术方案上也各有取舍。

本文希望探讨的是：跨链桥的未来是怎样的？什么样的跨链协议更有前景？什么样的跨链应用更有可能获得大规模采用？开发者应该采用什么方式来构建跨链应用？下文中，作者将对跨链桥的发展趋势展开探讨，并先抛出三个核心论点：

- 安全、高性能的新一代跨链桥会成为主流

- 全链应用会成为新的dApp范式

- USDC 等资产发行方的官方桥会取代流动性互换桥

跨链技术可以理解为是扩容的延伸，当一条链不足以承载所有交易请求时，那就让多链来承载，用跨链桥将他们连接起来。要理解跨链桥，首先要理清跨链桥要解决什么问题，以此分为不同的层次。

简单来看，跨链桥可以分出 协议层 和 应用层。协议层负责为跨链消息传递提供一个安全、有序的平台，而应用层则基于该平台构建 dApp 以面向用户，满足不同场景下的各类需求。

# 跨链桥在协议层的演化

协议层的核心是跨链消息传递的安全机制，也就是对跨链消息的验证方式。根据验证方式的不同，以及 Vitalik 等人的想法，业内曾将跨链桥划分为三种：基于哈希时间锁的原子交换、见证人验证 和 轻客户端验证。后来，Connext 创始人 Arjun Bhuptani 将跨链桥归纳为本地验证、外部验证和原生验证三种范式。

![6268afe6d614b2ec1512cb41ffe7ba2d.jpg](https://cdn.bifrost.finance/cms/6268afe6d614b2ec1512cb41ffe7ba2d_e372757101.jpg)

其中，本地验证仅适用于资产跨链，不能支持任意消息跨链，且用户体验并不友好（需要用户操作两次才能完成一笔交易）。一些最早采用此方案的跨链桥已经改弦更张，放弃了该路线。原生验证最安全，但成本太高，一方面是用户付出的 Gas 成本太高，甚至在某些情况下完全不具备经济可行性。另一方面，开发者的 coding 成本太高，为了接入不同的区块链，需要分别开发对应的轻客户端验证程序，工程量极大，采用范围也极其有限。

最后，大多数跨链桥还是采用外部验证方案，用户的 Gas 成本和开发实现成本都相对较低，且支持任意消息跨链。但外部验证最被诟病的就是安全性，无论是今年暴雷的 Multichian ，还是此前被黑客盗取密钥的 RoninBridge（Axie Infinity 官方桥） 和 HorizenBridge（Harmony Chain 官方桥），都在告诉我们，单纯的外部验证方案无法成为跨链桥的终局！

跨链桥的安全隐患阻碍了跨链 dAPP 的发展，应用层在设计相应业务时变得十分谨慎，一来要尽可能避免与跨链互操作有关的环节，二来知名应用会倾向于自建跨链桥（AAVE、Maker、Compound 等头部 DeFi 项目都是如此）。可以想象，在一座治安很糟糕的城市，人们会选择尽量不出行，富人出行时则会自带保镖。

但让人欣慰的是，新一代更安全的跨链桥正在快速成长起来，它们当中有 LayerZero、Chainlink CCIP 这样的双安全层桥；有将 ZK 技术和轻客户端结合的ZK桥（代表项目：Polyhedra、MAP Protocol、Way Network）；有将经济博弈机制用于保护跨链安全的乐观验证桥（代表项目：Nomad、cBridge ）；还有将 ZK 和 TEE 技术结合的桥（代表项目：Bool Network）。

![0bfad32fa20e5966b4f9f26b75e57717.jpg](https://cdn.bifrost.finance/cms/0bfad32fa20e5966b4f9f26b75e57717_d5231719b2.jpg)

总之，**新一代跨链桥基础设施在不牺牲性能的基础上，实现了更高的安全性，为应用层在跨链互操作相关设计上提供了坚实保障。**

# 跨链交互在应用层的范式变迁

最初，所有 dApp 几乎都部署在以太坊上，因为没的选。但随着应用层生态的繁荣，以太坊不堪重负，这给了其他公链发展的机会，先后出现了各种 ETH Killer，以及侧链、 Layer2。

从 dApp 的角度看，以太坊就像上海这样的超大城市，人口众多但资源紧张、寸土寸金，如果我的业务场景对吞吐量要求较高，但对互操作性要求不高，那就可以部署在一条不太拥挤的侧链上。比如一家印刷厂或种植园就没必要开在上海，而可以在郊区选址。dYdX 出走以太坊的故事，想必大家都很熟悉了。

同时，一个 dApp 可以在多链上部署，搞“连锁经营”，服务不同链上的用户，扩大规模和收入。例如，首个吸血鬼攻击的成功案例—— Sushiswap 就丧心病狂的在 28条链上做了部署，我们能想到名字的公链上，基本都有 Sushiswap。

![0921774bba563da5112b1448023f104e.jpg](https://cdn.bifrost.finance/cms/0921774bba563da5112b1448023f104e_a9fd60e599.jpg)

但这种多链的应用生态给用户带来了很差的体验：为了与不同链上的应用交互，还要理解不同链的区别，在多个链上注册地址，在每条链上都充值 gas 费，最后再把资产在不同链转来转去——天呐，太累了！

更要命的是，很多 DeFi 协议都涉及到流动性的使用，你部署在多链上就得在多链上引导流动性，这会让流动性分散在不同链上，深度不共享，用户在交易时，会产生更大的price impact。对此，有人对以太坊 L2 的发展表示担忧，认为 L2 可能会分解掉以太坊的流动性，使其丧失竞争优势。也有研究者提出了 SLAMM 这样的统一流动性解决方案，但这个方案制造的问题比解决的问题还多，十分蹩脚，这里就不展开叙述了，感兴趣的朋友可以去找相关资料看看。

真正核心的问题是：怎样才能把各个链上的资源和生态都聚合到一起，让用户不必感知“链”的存在？比如我有 1 个 ETH，能否想在哪用就哪用，把自动兑换并支付不同链的Gas 这些环节隐藏掉？我想使用某个应用程序，能否在哪条链都可以用，而不用把资产跨过去？同时，项目方也不用再站队选链，不用在多链上重复部署，而可以部署在最适合的链上，然后不同链上的人都可以来用？

**应用层需要一种新的范式，把“链”这一层隐藏掉。**有人模仿“账户抽象”的概念，创造了一个新词汇叫“链抽象”，就是这个意思。我们来看一个 LST 项目是怎么做的？

For example，Bifrost 自称是 全链 LST 的开拓者，采用不同于其他 LST 产品的架构设计。Bifrost 有一条自己的链 Bifrost Parachain，该链是 Polkadot 的平行链。Bifrost 的流动性质押模块仅部署在 Bifrost Parachain 上，其 LST 资产—— vToken 的流动性也全在 Bifrost Parachain 上，但其他链可以通过远程调用的方式使用 Bifrost Parachain 上的流动性质押模块和流动性。如此一来：

- 用户可以在其他链铸造 vToken；
- 用户可以在其他链赎回 vToken；
- 用户可以在其他链兑换 vToken，但背后触及的是 Bifrost 链的流动性；
- 用户可以在其他链为 Bifrost Parachain 上的 vToken/Token 池子提供流动性，并获得 LP Token；
- 用户可以在其他链销毁 LP Token，以赎回流动性。

这些操作，用户完全感觉不到背后的跨链传递过程，一切就像在本地完成一样，大家可以通过 Omni LST dApp 去体验一下。Omni LST dApp 目前支持在 Ethereum、Moonbeam、Moonriver、Astar 上远程铸造/赎回/兑换 vToken。

![e9e7bd7c9f6829ce0985281d8b3a6aa0.jpg](https://cdn.bifrost.finance/cms/e9e7bd7c9f6829ce0985281d8b3a6aa0_2be5a04687.jpg)

如果没有上述功能，用户如果想在 Moonbeam 上铸造 vDOT，必须手动操作三步，很麻烦！

① 把 DOT 从 Moonbeam 跨链转入 Bifrost
② 在 Bifrost 链上质押 DOT 获得 vDOT
③ 将 vDOT 跨链转回 Moonbeam

![cf3809f71262ab24c37f5117553bd83a.jpg](https://cdn.bifrost.finance/cms/cf3809f71262ab24c37f5117553bd83a_2a22e738d4.jpg)

而通过远程调用功能，用户的资产看似无需离开 Moonbeam 链，即可完成上述三个步骤， 直接在 Moonbeam 链上将 DOT 转换为 vDOT 。也就是说，整个过程，用户就像在使用 Moonbeam 本地应用一样体验 Bifrost 链上的服务。

听起来很酷吧！可这怎么实现呢？其实也不复杂，Bifrost 在其他链上部署了一个远程模块（remote modular），用于接收用户请求，并跨链传递给 Bifrost Parachain，流动性质押模块处理完成后，再将结果跨链返回远程模块。用户只需在远程链上发起请求，后续的过程，会由 Relayers 触发并完成。

Bifrost 将其架构称为“全链架构”，与其他 LST 协议的多链部署策略的对比如下图：

![23cf1bae4051d1af0901512ee9f87a86.jpg](https://cdn.bifrost.finance/cms/23cf1bae4051d1af0901512ee9f87a86_1667372191.jpg)

之所以这么浓墨重彩的讲 Bifrost 的架构，是为了让大家彻底理解 Bifrost 所说的“全链架构”是怎么回事，Bifrost 的架构所代表的其实是一种全新的通用范式。

Chainlink 在其博客文章《跨链智能合约》一文中，曾将这种架构描述为“总店+分店”模型。**应用程序的主要逻辑放在一条链上，就像一个“总店”，然后其他链上提供一个远程访问模块，以实现与终端用户之间的交互（获取用户输入，输出用户想要的结果），就像一个个“门店”。**

![c980725c9ba5f5f7926107daf2a9f65e.jpg](https://cdn.bifrost.finance/cms/c980725c9ba5f5f7926107daf2a9f65e_adc67490a3.jpg)

门店获取用户的输入后，将该输入跨链传递到总店，总店进行处理后输入结果，再将该结果跨链传递到门店，向用户输出。某些情况下，总店的不同模块可能被拆分到不同链上，它们共同构成一个虚拟的总店。该架构下，程序的主要逻辑都在总店，应用程序拥有一个统一的状态记录，流动性割裂和用户体验割裂的问题都得以解决。此外，**该架构的应用还具有更好的跨链可组合性，其他链上的应用程序也可以像其他链上的用户一样，远程访问总店的功能。**

尽管 Bifrost 将该结构称为“全链架构”，作者个人并不是很喜欢“全链”，也就是 Omni-Chain 这个词，因为这是个含义不明的词汇，最初 LayerZero 发明这个词汇，用来彰显它那无可比拟的可扩展性，但 LayerZero 也未曾完全说明白究竟什么是“全链”。难道是“全部的链”？必然不是，没有什么应用跑在全部的链上。作者有个做游戏的项目方说自己做的是全链游戏，细问才知道，这个“全链”是指“代码全部都上链”，和一些 Web3 游戏仅把资产数据上链区别开，和 LayerZero 说的“全链”风马牛不相及。

我认为更合适的表述还是“链抽象”，Chain-Abstraction，或者 Chain-Agnostic（与链无关），二者都可以表达一种“用户无需关心链”的状态。

![c1e62223554fc8e4bed7b480ca95496f.jpg](https://cdn.bifrost.finance/cms/c1e62223554fc8e4bed7b480ca95496f_474505039c.jpg)

# 流动性互换桥的必然没落

最后我们要谈的是跨链领域的另一个重要命题——流动性。首先我们搞清楚它是哪个层次的问题。流动性不属于协议层，因为它无关乎跨链消息安全有序传递的问题，它属于应用层，而且是一类特殊的应用—— SwapBridge。

跨链应用中最大的一个类目必然是资产桥，资产桥又分为 WrapBridge 和 SwapBridge，前者通过lock-mint/burn-unlock 逻辑帮助用户实现资产传递，也称为“资产传递桥”，SwapBridge 则通过在多个链上储备流动性来帮助用户实现原生资产的直接互换，也称“流动性互换桥”。

其中，SwapBridge 的应用范围最广，项目众多，**不同的 SwapBridge 项目本质上竞争的是流动性效率**，谁能够用最小的流动性支出为用户提供最大的深度。换个角度说，流动性正是 SwaqBridge 提供的服务核心，大家比拼的是谁更有成本优势，这和普遍意义的商业竞争是同一个逻辑。这里大家需要明白的是，补贴策略创造的成本优势是不可持续的，你必须在流动性机制设计层面有优势才行。

SwapBridge 赛道上的诸多项目，包括 Stargate、Hashflow、Orbiter、Symbiosis、Synapse、Thorswap 等，在提高流动性效率方面堪称八仙过海各显神通，也产生了不少可圈可点的创新，作者之前写过一篇文章对此进行盘点：《 [万字报告：盘点25座流动性互换跨链桥及其流动性机制 ](https://mp.weixin.qq.com/s/0dmBdw9QzsJs08x14Gjy6g)》

但 USDC 发行方 Circle  推出的 CCTP 让众多 SwapBridge 的努力变的毫无意义，换句话说，CCTP 干掉了 SwapBridge。这种感觉就像三体文明花了数亿年、200 多轮文明去求解三体问题，但最终 Circle 告诉你：三体问题无解！

比如，在资产的跨链兑换中，USDC 是最广泛采用的媒介资产，也就是说，当你需要把 X 链上的 A 资产换成 Y 链上的 B 资产时，往往需要在 X 链将 A 先换成 USDC，再将 X 链上的 USDC 换成 Y 链上的 USDC，然后再在 Y 链把  USDC 换成资产 B。

![665c37a3d1cc7fac16ab761eeffdd3e1.jpg](https://cdn.bifrost.finance/cms/665c37a3d1cc7fac16ab761eeffdd3e1_ee36bff491.jpg)

因此，SwapBridge 在各条链上储备的流动性的主要形式就是 USDC。然后 CCTP 可以支持 X 链上的 USDC 直接通过 burn-mint 逻辑换成 Y 链上的原生 USDC，无需流动性储备。换句话说，CCTP 完全没有流动性成本，用户端体验到的过桥费可以做到极低。

也许你会说，除了 USDC，常用的媒介资产不还有 USDT 吗？且不说在 DEX 领域，USDT 的使用率远低于 USDC，你就不怕 Tether 也学 Circle，给你来这么一出么？所以，我想告诉各位的是：SwapBridge 已死，资产发行方的官方桥会在跨链流动性方面具有不可挑战的成本优势。至于有的 SwapBridge 转而集成 CCTP，那就是聚合器的逻辑了。

# 小结

跨链桥协议层正在变的更加安全可靠，多签桥的时代正在结束。过去，跨链给人造成的不安全印象将随着新一代跨链基础设施的普及而消弭；

跨链应用正在通过范式迭代，大幅改善用户体验，“链抽象”的意义不亚于“账户抽象”，正在给 Web3 的 Mass Adoption 创造条件；

Circle 推出的 CCTP 则结束了 SwapBridge 流动性竞争的战国时代，让我们看到了跨链资产兑换的终局。

总之，跨链领域正在处于剧变之中！看明白前路，才能走的更加笃定。

跨链桥的未来：全链互操作成必然，流动性桥将没落

如果要提炼关键词，那么对于 Bifrost 而言，2023 年的关键词是：增长。

在这一年中，Bifrost 新上线了流动性衍生资产 vFIL、vASTR，同时跟随上海升级的步伐，更新了 vETH 合约，既有的 vToken 铸造量也有了大幅度增长，尤其是 vDOT，铸造量足足增长了 21 倍，这使得 Bifrost 的 TVL 从 4350 万美元增长到了 1.1 亿美元，增长超过 150%；

在这一年中，Bifrost 的链上流动性规模也有了显著增长，与此同时，vToken 的流动性已迁移到 Stable Swap 池中，用户可以享受到更低滑点的兑换体验；

在这一年中，Bifrost 在全链 LST 方向上积极探索，上线了重磅级模块 — SLPx，该模块允许其他链远程调用 SLP 的相关功能，完成 vToken 的远程铸造、远程赎回、远程兑换，该模块解锁了 LST 的跨链组合的可能性，为推动 vToken 的集成发挥了重要作用；

在这一年中，Bifrost 团队组织和参与了众多的线上、线下的各类展会和沙龙活动，并在活动中积极宣讲全链架构和全链 LST 的优势，在 Bifrost 在用户、合作伙伴和开发者心目中，Bifrost 已成为全链 LST 的标杆项目；

在这一年中，Bifrost 在社区建设和协议治理方面也有不少建树，Bifrost 正在迈向进一步的去中心化。

接下来，我们将对 Bifrost 的 2023 年做一个全面盘点。

# vToken 的扩充与增长

3月28日，Bifrost 首次上线 Filecoin 流动性衍生品 vFIL。上线 48 小时内，超过 13,000 FIL（价值 35 万美金）被铸造为 vFIL，截止年底，已经突破 90,000 枚 FIL 被铸造为 vFIL，增长近 6 倍。vFIL 是 Bifrost 上线的第一个 DePIN LST，这对于 Bifrost 而言，是一个新的战略方向的开始！

4月12日，万众瞩目的以太坊上海升级终于完成，Bifrost 也将 vETH 合约从 1.0 版本升级到了 2.0 版本，开启了 unstake 功能，通过激励，我们已经引导用户把 vETH 1.0 置换为了 vETH 2.0 。

10月16日，Bifrost 新增支持 ASTR 的流动性衍生 LST 资产上线，即 vASTR。截止年底，有超过 8,000,000 ASTR 被铸造为 vASTR，价值超过 900,000 美元。

除此之外，已有的 vToken，**包括 vDOT、vKSM、vBNC、vGLMR、vMOVR 的铸造量均有数倍的增长**。尤其是 vDOT 的增长最为显著，这主要得益于我们在 10 月份发起的 Polkadot Unlock Harvest ，该活动使得在插槽拍卖中锁定的 DOT 在解锁时，被大量铸造为 vDOT。

![0_iqTtHPGK9pVpB7QH.webp](https://cdn.bifrost.finance/cms/0_iq_Tt_HPGK_9p_Vp_B7_QH_3b66d115e8.webp)

# 流动性建设

相比一般的恒定乘积 (xy=k) 式的 AMM 算法，vToken/Token 交易对其实适用于类似 Curve 的稳定币兑换算法，也就是 Stable Swap。2023年，我们已经陆续将 vKSM/KSM、vDOT/DOT、vBNC/BNC、vGLMR/GLMR、vMOVR/MOVR 的流动性池迁移到了 Stable Swap 池。

在 vETH 升级到 2.0 合约时，我们也将 vETH2.0/WETH 的流动性池重建在了支持 Stable Swap 的 Balancer 协议中，并通过 Aura Finance 进行了贿选激励，以引导流动性。

vFIL/FIL、vASTR/ASTR 的流动性池则直接建立为了 Stable Swap 池。

**目前各 vToken/Token 的池子中的流动性都非常充裕，配合 Stable Swap 的高效做市算法，用户可以享受到极低滑点的交易体验。**

![0_KS24dQGc1nqsJdpE.webp](https://cdn.bifrost.finance/cms/0_KS_24d_Q_Gc1nqs_Jdp_E_0dcbc8bd92.webp)

值得一提的是，Bifrost dApp 支持了 Statemint USDT 的跨链转入功能，Bifrost 链上终于引入了 Tether 原生的 USDT。在此基础上，我们建立了 BNC/USDT、vDOT/USDT 交易对，流动性亦十分充裕。

目前，Bifrost 的整体流动性规模，约有 11,040,733 美元。

# 全链 LST

2023 年，Bifrost 正式将协议定位为 Omni-LST 协议，并在推动全链架构方面做了很多研究与实践。

借助 XCM V3，Bifrost 实现了波卡平行链间的完全去中心化通讯。除了 vETH、vFIL 这样的异构 LST 之外，vDOT、vKSM、vASTR、vGLMR、vMOVR，全部由 Bifrost 链上的 SLP 模块铸造，它们都是 Bifrost 链上的原生格式。用户需要将 DOT、KSM、ASTR、GLMR、MOVR 先转入 Bifrost 链，才能完成相应 LST 的铸造。

10 月份，**我们发布了 SLPx 模块，该模块则可以支持用户直接在远程链上铸造 vToken，而无需将资产转入 Bifrost 链。**以 vMOVR 的远程铸造为例，用户可以通过 Omni LS Dapp 在 Moonriver 网络上直接将 MOVR 铸造为 vMOVR，其实背后包含了从 Moonriver 到 Bifrost 链一来一回的两次 XCM 跨链通讯，但用户完全不必感知到这一切。

![0_vDSf9ag5Qevbdy1U.webp](https://cdn.bifrost.finance/cms/0_v_D_Sf9ag5_Qevbdy1_U_bbb91214c9.webp)

作为 SLPx 首个远程调用的案例，HydraDX 使用国库地址跨链调用 Bifrost SLPx 铸造了 81,800 vDOT。

我们认为这种远程调用的方式是更为先进的多链应用范式，因为它允许应用程序仅部署在一条链上，就可以允许任意链上的用户使用它。与此同时，它还具备流动性统一的优势和更好的跨链可集成性。

4 月，我们发布了 More on vToken 系列文章，列举了以远程调用为核心的跨链集成的各种可能性。10月12日，Bifrost 与 Odaily 联合发起并举办了全链化 Liquid Staking 开发者套件 — Bifrost SLPx 线上发布会，向社区和开发者宣讲了 SLPx 模块的意义和扩展方向。

在今年的两场黑客松（分别是 6 月 9 日开启的 OneBlock x Polkadot 2023 夏季黑客松和 9 月 7 日开启的 Polkadot x Angel Hack 联合主办的 APAC Edtion 黑客松）当中，Bifrost 都作为评委参与其中，并发起了围绕 Omni-LST 的专项 Bounty 计划，以鼓励开发者基于远程调用，实现各种灵活的应用场景。

作为第一个全链 LST 协议，Bifrost 已然成为全链架构的布道者。

# 品牌与活动

为了提高品牌曝光度，增加商务合作机会，2023年，Bifrost 一如既往地积极组织和参加各类活动，并在这些活动中积极分享、积极交流。

在 2023 年，疫情的阴霾已经一扫而光，区块链领域的线下论坛、展会开始重新活跃起来。**在这一年中，Bifrost 联合创始人 Lurpis 及核心团队成员踏足了 9 个国家的 12 座城市，出席了多场线下活动。**

![0_hTOg4tLhBzFYSD4u.webp](https://cdn.bifrost.finance/cms/0_h_T_Og4t_Lh_Bz_FYSD_4u_288ea99025.webp)

线上活动方面，在这一年中，我们组织了 6 场 Bifrost Liquid Sessions 系列 X space ，邀请到了来自 BitTensor、OriginTrail、EigenLayer、Parity、Centrifuge、Vertex Protocol 的多位重量级嘉宾一起讨论各种热点话题，累积吸引了上百位听众。

与此同时，Bifrost 作为受邀嘉宾，累计参与了 13 场线上主题演讲和讨论活动，形式包括 Space、Meetup、圆桌、直播，话题涉及 Polkadot 2.0、Filecoin 生态、Ethereum L2、Polkadot 经济模型、跨链互操作、LST 现状及未来、RWA 等。

![0_y1eokDnTr2L4_jPw.webp](https://cdn.bifrost.finance/cms/0_y1eok_Dn_Tr2_L4_j_Pw_2798776798.webp)

# 社区建设
## 英文社区

2023 年，Bifrost Twitter [@BifrostFinance](https://twitter.com/Bifrost) 关注人数超过 8 万人， 累积发送超过 1000 条推文，被浏览超过 300 万次，收到点赞 34500 次，转推 9000次，评论 3300 条。Bifrost Discord 海外社区总人数达到 18450，增长超过 3000 人。

2 月，我们开通了 Airlyft 空间，这是一个主要面向英语用户的任务平台，今年我们的四场主要运营活动都在这里发起。用户可以通过完成特定交互，在平台上领取 BNC 或 NFT 白名单等激励。目前，Bifrost 的 Airlyft 空间已经聚集了 2,400+ 粉丝。
![0_5gDj7Mhp5fuSRYKa.webp](https://cdn.bifrost.finance/cms/0_5g_Dj7_Mhp5fu_SRY_Ka_591ce6860c.webp)

## 中文社区

Bifrost 中文 Twitter [@0xBifrostCN](https://twitter.com/0xBifrostCN) 于去年建立， 目前关注人数 4428 人，累计发送 322 条推文， 获得 105200 次浏览。Bifrost 的 Discord 社区一直以来都是单纯的英文社区，但在 8 月 24 日，我们正式建立了 Discord 中文频道，目前 Discord 中文频道已经有 1183 人加入。

随着 Bifrost 中文社区的扩大与发展，5 月 24 日，Bifrost 中文社区开启 Zealy 任务中心。社区小伙伴可以选择 Zealy 平台上的任务完成并获得 XP 经验，在获得奖励的同时，能够更高效地完成对社区的贡献。通过 Zealy 任务平台，Bifrost 还可以发起各种各样的限时冲榜任务，定向激励用户的某些特定行为。截止年底，Bifrost 已经发起过 4 轮冲榜任务，共计发放了 8000 BNC 奖励。

# 治理与去中心化
## 治理系统升级为 OpenGov

与 Polkadot 治理体系的发展同步，Bifrost Kusama 和 Bifrost Polkadot 链的治理系统均已升级到 OpenGov，实现了完全的去中心化治理。过去的三院制（公投、理事会、技术委员会）结构已被废止，所有决策均通过公投轨道进行，由公投产生的 Fellowship 代替技术委员会，保留加速提案的权力。

Polkadot 钱包 Nova Wallet 上线兼容 Bifrost Polkadot 的治理功能。用户现可使用 Nova Wallet 直接参与 Bifrost Polkadot 治理。

## SLP 验证者节点自治选举

Bifrost 的 SLP 验证者节点白名单选举，已在 Bifrost OpenGov 的特定轨道中以完全去中心化的方式进行。Bifrost 本身不运行任何节点，节点可以通过提案和投票的流程将自己添加到 SLP 节点白名单。

## vToken Voting

相较于其他生态 LST，vToken 最大的成就之一是：保持治理权。用户可以用 vToken 去参与原链的投票治理，例如可以用 vDOT 参与 Polkadot OpenGov 投票。该功能是通过 Bifrost 协议中的一个跨链映射模块实现的。

在 9 月份和 10 月份，我们先后上线了 vKSM voting 和 vDOT voting 功能，更多 vToken voting 功能还在陆续开发中。

之所以提供该功能，是因为 Bifrost 希望始终作为一个中立的协议，不对原 PoS 链的治理产生任何干预。vToken Voting 功能使得 vToken 的铸造者不必担心失去原 Token 的治理权，也使得原链不必担心 vToken 被大量铸造导致治理权被 Bifrost 协议捕获。

# 合作伙伴
![0_wONO9xbkdyfPH0LC.webp](https://cdn.bifrost.finance/cms/0_w_ONO_9xbkdyf_PH_0_LC_a0f2782213.webp)

2023 年，我们与众多的项目建立了合作伙伴关系，通过与 DEX 平台，包括 Balancer、Aura Finance、 Arthswap、Beamswap、MangataX、Zenlink、Stellaswap、Picasso 的合作，Bifrost 在多条链上建立了 BNC 和 vToken 的流动性池。

通过 HydraDX、Interlay、EQ Finance、Starlay Finance、DIA 等 DeFi 协议的合作，我们增进了 vToken 的集成，扩大了 vToken 的使用场景。

通过与钱包服务商，包括 Enkrypt，Metamask, WalletConnect，imToken，TokenPocket，Nova，SubWallet，Talisman 的合作，我们增加了更多用户使用 Bifrost dApp 服务的入口，也让用户有了多元化的选择。

通过与黑客松主办方 AngelHack、Encode、OneBlock 的合作，Bifrost 成为波卡生态多场黑客松的重要参与方，并通过专项 Bounty 发掘了对 Bifrost 生态有益的优质项目。

通过与 Airlyft、Zealy 的合作，我们建立了我们的任务平台，提高了运营活动的效率。

通过与 LuckyFriday、Iceberg Nodes、Staking Rewards 这样的 Staking Community 合作，Bifrost 获得了优质的节点资源。

通过与 Downtown Moonbeam、Kusamarian-Space MonkeysPromoteam、Polkadot Insider、Polkadotters、Polkaworld、Polkawarriors、CIK — BlokTalk、DotCast、AIweb3、Astar Degens、GLMR Apes、MAD Crypto 等媒体方和 Social DAO 的合作，Bifrost 在各类活动中获得曝光，提升了影响力。

# 其他
Bifrost Wiki 已正式更名为 Bifrost Docs，对文档排版进行了重新梳理；新增 Quick Start 对各功能使用教程的梳理，BNC 最新的 Tokenomics 和 Bifrost OpenGov 介绍文档，以及社区活动等相关内容。

为了提升用户体验，我们上线了 Flexible Fee 功能，支持用户以 DOT、KSM 等其他 Token 支付 Bifrost 链上的手续费。这也意味着，在远程铸造等跨链操作中，用户可以用单一 Token 支付所有环节的手续费。

12 月 24 日，在“全民打铭文”的狂欢热潮下，有 Bifrost 生态的开发者在 BIfrost Polkadot 链上部署了第一个铭文项目 — BNCS 。从 24 日 到 27日，铭文的 mint 总共持续了三天，在此期间，Bifrost-Polkadot 链成功经受住了考验，没有出现卡顿与崩溃。3 天时间，Bifrost Polkadot 网络烧掉将近 30 万 BNC 的 Gas，累计处理了将近 150 万条交易，平均每个区块的交易超过 1100 条。

# 2024 计划
对于 Bifrost 而言，2023 年是狂飙突进的一年，这一年紧张、忙碌，但硕果累累。短暂休整后，2024 年，我们的征途将继续！

2024 年，我们的重点依旧是继续拓展 vToken ，包括：

- 上线更多的 vToken
- 支持更多 vToken 的 vToken Voting
- 打通更多跨链桥，让 vToken 能够更便捷的进入 Ethereum L2、EVM、Cosmos 等生态，为更加充分的发挥 vToken 的跨链可集成性创造条件
- 与合作伙伴共同开发更多 vToken 使用场景，包括杠杆质押、借贷等等

除此之外，我们也不会忘记继续夯实基础：

- 进一步完善 Bifrost Chain 和 Bifrost Dapp、Omni.LS 的基础功能，提高性能和体验
- 更新 BNC 的经济模型以适应业务的发展
- 进一步完善治理体系，尤其是 Typo 管理，推动去中心化
- 进一步完善运营体系，包括推进 Raindrop 链上代币化

更加详细的 2024 Bifrost Roadmap 将在不久后发布并公示。

2023 年已经过去，2024 年刚刚开始。感谢所有支持我们的用户和伙伴，也感谢每一位团队成员在这一年的努力和奉献。我们将铭记值得我们骄傲的时刻，向着更辉煌的未来出发！

2023 Bifrost 年报：TVL 大幅跃升，全链 LST 范式变革

# 技术开发
## Bifrost v0.9.93

- vMANTA 加入支持作为跨链手续费白名单
- 新增 SLPX SDK 对 vMANTA 的支持

## Omni LS 1.0.2

- 支持将 vToken 添加到 Metamask
- 修复 Subwallet 连接&切换

# 产品进展

- 流动性衍生品方面，vDOT 单月铸造净增长 773,964 枚，总铸造量 (TVS) 超 6,520,000 枚，单月增长 11.8%；vASTR TVS 突破 10,000,000 枚, 总锁仓量超 (TVL) $1.6M；vGLMR TVL 突破 $2.6M。本月 Bifrost 总 TVL：$109,681,076。

- 自上月 1 月 18 日 vMANTA 上线以来，40 天内已累积 TVL 超 $2.4M，总质押 $MANTA 超 800,000 枚，vMANTA 持有人地址突破 2,000 个。vMANTA 的铸造详情请参考 Manta Network [官方推文](https://x.com/MantaNetwork/status/1759876622201839996?s=20)。

- 本月，[Bifrost 与 HydraDX 联合发布提案](https://x.com/Bifrost/status/1757746687475364198?s=20)，将 vDOT Farming 奖励提升 100%，由 2.5%-5% APY 提升至 5%-10%。该提案已在 HydraDX 链上执行。

HydraDX vDOT Farming [入口](https://app.hydradx.io/liquidity/all-pools?id=15)

- Bifrost 已对 Polkadot 社区 Meme 项目 Pink 的空投计划完成了 Snapshot。映射时间为 2024年2月4日 03:24 AM UTC，关于 PINK 的具体分发时间，请关注 Pink 官方公告。[点击查看快照的区块高度](https://x.com/Bifrost/status/1757026959907799520?s=20)。

# 市场运营

- 2月8日，Bifrost 与 Exiled Racers 举办的 [PINK 赛车联赛](https://twitter.com/BifrostFinance/status/1755524526421479506)开启，在 bifrost.app 上铸造 vDOT 并将地址添加到赛车排行榜瓜分 10,000 GLMR 奖励。

- 2月9日，为感谢社区对 Bifrost 的信赖与支持，Bifrost 送上丰厚的红包奖励作为新年祝福并与 aiweb3dao、AcalaKaruraCN、CentrifugeAsia、ZeitgeistPM、DeStore_Network 举办了联合空投活动共同为大家送出 600U [新春福利](https://twitter.com/0xBifrostCN/status/1755803730598121671)！

- 2月17日，DED 团队宣布 vDOT 持有用户地址未来可以获得 [DED 空投](https://twitter.com/dotisded/status/1758532047772205407)。

- 2月22日，InvArch Network 将在三月对 Polkadot 生态系统进行一次快照，vDOT 和 DOT 的持有者有资格获得 [20,000,000 VARCH 的空投](https://twitter.com/BifrostFinance/status/1760616684245622962)。

月报丨vDOT 总铸造量 （TVS）超 6,520,000 枚

# 技术开发
## Bifrost v0.9.92

- 更新 vesting 模块到最新版本，与官方一致
- 单元测试所使用的 Currency 整理到 primitives pallet
- 存储升级：解决 try-runtime 时原先隐藏的 storage-version 检测报错
- 治理更新：增加 Spender Origin 用于控制 treasury.spend 发放金额
- 支持 HydraDx 普通用户调用 SLPx 铸造 vToken
- 在 vToken-minting 模块增加 timeunit 修改函数

## DAPP 1.8.7

- 支持 unlock harvest 2.0 活动
- 支持 vMANTA
- 适配优化新版 vToken Governance

# 产品进展

- 流动性衍生品方面，vDOT 单月铸造净增长 1,793,510 枚，总铸造量 (TVS) 突破 5,900,000 枚，单月增长 31%; vASTR TVS 突破 9,000,000，总锁仓量 (TVL) $1.72M；vGLMR TVL 突破 $2M。本月 Bifrost 总 TVL：$87,826,480。

- 2024 年 1 月，Bifrost 上线新年第一个流动性衍生品 (LST) vMANTA，支持 MANTA 持有者通过 bifrost.app/vstaking 一键参与 MANTA 质押的同时，获得流动性衍生品 vMANTA。未来，vMANTA 将可用于 Bifrost, Moonbeam, Manta Pacific 等多条网络的 DeFi 用例中。详见 vMANTA [铸造教程](https://x.com/BifrostFinance/status/1752255410529022431?s=20)。

- HydraDX 于本月上线了基于 vDOT 的自动化收益提取功能：[Yield DCA](https://app.hydradx.io/trade/yield-dca)。该功能允许用户选择在一段时间周期内，以任意 Token 为结算的形式收到 vDOT 收益。其底层逻辑由 DCA Trade 在 Omnipool 的自动化交易完成。

![0_Fng1jXhtfKP0EdoM.webp](https://cdn.bifrost.finance/cms/0_Fng1j_Xhtf_KP_0_Edo_M_6705918f26.webp)

- 1 月 16 日，第二轮 Polkadot Crowdloan 解锁后，Bifrost vDOT 激励活动相继上线了 HydraDX Omnipool Farming 以及 Interlay vDOT Lend Market。目前，Interlay Lend Market 已积累 $7.56M 的 vDOT 抵押物；HydraDX Omnipool 已累计超 $2M 的 vDOT 流动性。

- 本月 Bifrost 在 Moonbeam 提交的[第 38 号公投](https://moonbeam.polkassembly.network/referenda/38)正在进行中，旨在将 vASTR, vMANTA 注册为 XC-20 资产格式。当该提案执行成功后，omni.ls 将支持用户在 Moonbeam 网络一键铸造 vASTR, vMANTA 两种 LST 资产。此外，vMANTA 将在未来通过 Moonbeam 跨入 Manta Pacific 网络。

![0_X-MsFx2BX38f5aOj.webp](https://cdn.bifrost.finance/cms/0_X_Ms_Fx2_BX_38f5a_Oj_cdf5fc2bb2.webp)

# 市场运营
1 月 3 日，Bifrost Polkadot Unlock Harvest 启动了[第二轮预热活动](https://twitter.com/0xBifrostCN/status/1742477045538718190)，参与过第二轮 Polkadot Crowdloan 的用户可以将持有的 vsDOT & vsBond 充值到 farming pool 参与质押，并瓜分 7,358 枚 BNC 的奖励。

1 月 3 日，Bifrost 新年第一话，Bifrost Cofounder Lurpis 与 Bifrost Council 成员 Tyrone 做客 PolkaWorld 直播间，对关于 [Bifrost 2023 & 2024 & 铭文话题](https://twitter.com/MoonbeamChinese/status/1721812550038311001)展开了讨论。

1 月 11 日，Bifrost Council 成员 Tyrone 受邀出席 PolkadotDapps 空间，与其他 Polkadot 生态项目方嘉宾共同分享了 [LST 未来的看法以及 Polkadot 上的 LST 用例](https://twitter.com/Polkadot/status/1745119947062210918)。

1 月 16 日，Bifrost Council 成员 Tyrone 与其他波卡项目方嘉宾做客 [AIWeb3DAO](https://twitter.com/aiweb3dao/status/1745504123552960512) 共同讨论了超 2,000 万枚 DOT 解锁，Polkadot 2.0 和 Memecoin 将会带来哪些改变。

1 月 16 日至  2 月 20 日，Bifrost 推出了面向第二轮 DOT 解锁的 [Airlyft 活动](https://twitter.com/BifrostFinance/status/1750093238902374630)，瓜分 15,000 枚 BNC 总奖池，旨在使用户更轻松、更安全、更快捷、更轻松的使用 Omni LS dApp 并提高用户体验。

1 月 16 日，Bifrost 第二轮 [DOT 解锁活动](https://twitter.com/0xBifrostCN/status/1747212139998433715)正式开启，活动将持续至 2 月 20 日，使用邀请链接在 Bifrost 流动性质押 DOT，获得 10% Raindrop 质押积分加成的同时，还可以额外获取 1000 个 Raindrop 积分。参与活动可瓜分超过 150,000 枚 BNC 的总奖池。

1 月 30 日，Bifrost 与 Ctalks 联合主办了以“波卡生态的跨链交互与合作 — Manta 流动性质押上线 Bifrost”为主题的推特 Space 直播，Bifrost Council 成员 Tyrone 与其他项目方嘉宾进行了[精彩的分享](https://twitter.com/talk99/status/1751825394683216305)。

月报｜vDOT 总铸造量 597 万，TVL 4000 万美元

# 从单链到多链，再到全链

作为最早的智能合约平台，以太坊在诞生之初，所有去中心化应用大多都只能部署在以太坊上，但随着公链生态的百花齐放和 L2 的发展，应用程序有了更多的选择。

其一，应用程序可以选择适合自身业务的某条链进行部署。每条链或者 L2 都有自己独特的机制设计，在去中心化程度、隐私性、数据可用性等方面各具特色，可以满足不同应用的需求。与此同时，各种一键造链的 Stack 也日趋成熟，应用开发者完全可以做自己的链，并自定义相关特性。比较典型的例子是 DYDX 协议，这是一个最早创建在以太坊上的去中心化衍生品交易市场，现在已经迁移到了一个单独的 Cosmos Zone，以更好的满足其对吞吐量的要求。

其二，应用程序可以选择部署在多条链上，让不同链上的用户能够使用该应用所提供的服务。从应用自身角度讲，这么做可以扩充业务规模，提升协议收入。例如知名借贷协议 AAVE 将其程序部署在了 6 条链上。

然而，**多链的格局，以及应用程序的上述选择，也带来了 Web3 生态的割裂，包括用户体验的割裂和流动性的割裂。**

用户体验割裂：用户为了使用不同的链上服务，需要将资产在多链中转移，注册不同链上的地址，并学习不同链上的操作。很多时候，**用户需要操作很多个步骤，准备很多种 Gas，才能达成想要的结果。**

## 流动性割裂

在很多类型的 DeFi 协议中，流动性深度都是其核心体验的一部分。然而，**同一份流动性无法同时存在于多条链上**，每一个 DeFi 协议，当部署到一条新链上时，都需要**重建流动性，这降低了流动性的整体效率。**

为了解决上述问题，一种新的应用范式开始被探索—全链应用（Omni-dApp）。全链应用是一种崭新的应用程序构建方式，开发者构建应用时，将全链互操作作为前提，把应用在不同链上的部分，作为一个整体去设计，而不是简单的把单链应用程序复刻到多链上去跑。全链应用由不同链上的不同模块组成，这些模块具有互操作性，共同构成一个完整的应用。相比多链部署，**全链应用可以做到把触角伸到更多的链上，让更多链上的用户可以使用程序服务，不存在用户体验割裂与流动性割裂的问题。**

# 全链应用的一般架构

全链应用的架构可以被描述为“总店+分店”模式。应用程序的主要逻辑是放在一条链上，就像一个“总店”，然后其他链上提供一个远程访问模块，以实现与终端用户之间的交互（获取用户输入，输出用户想要的结果），就像一个个“门店”。

![0bc87024d9785bfc31124655d3f63443.jpg](https://cdn.bifrost.finance/cms/0bc87024d9785bfc31124655d3f63443_5b394e07b0.jpg)

门店获取用户的输入后，将该输入跨链传递到总店，总店进行处理后输出结果，再将该结果跨链传递到门店，向用户输出。某些情况下，总店的不同模块可能被拆分到不同链上，它们共同构成一个虚拟的总店。

这种架构的优势在于：

其一，便于扩展。程序的主要逻辑在一条链上处理，应用程序拥有一个统一的状态记录。用户在新的链上部署门店模块之后，**可以继承来自总店的所有状态记录和流动性，而不必重造车轮**；
 
其二，用户体验更好，用户无需关心程序部署在哪条链上，可以从任意门店访问该程序，就像访问本地程序一样，而**不用将资产跨来跨去，也无需学习多条区块链上的操作，准备多种 Gas；**

其三，便于跨链集成。其他应用程序在集成该程序时，**仅需和总店进行对接，就可以使用其所有功能和流动性，而非需要分别于所有分店对接。**

在下表中，我们将全链架构和单纯的多链部署做一个类比：

![WX20240321-145031@2x.png](https://cdn.bifrost.finance/cms/WX_20240321_145031_2x_48082b1c1a.png)

# Bifrost 如何实践全链架构

全链应用对于链间的可操作性有较高的要求。从目前来看，异构链间的互操作还存在诸多问题 ，包括缺乏安全可靠的基础设施、缺乏通用的意图表达语言，但波卡生态没有这些限制：

- 波卡的共享安全性架构及 XCMP 传输协议，允许平行链间安全的传递信息，其安全性与中继链的共识安全性相当。

- XCM 为平行链之间的消息传递提供了一套规范的意图表达语言。当用户发起跨链请求时，应用程序可创建清晰的语句来表达用户的意图。这个意图可以很复杂，逻辑可能涉及多个平行链之间的跳转，但无论如何复杂，XCM 都可以清晰的表达并被执行。

作为全链 LST 协议的开拓者，Bifrost 选择使用一条平行链来承载程序全局状态，在其上部署了用来支持 vToken 铸造和赎回的 SLP 模块，也在其上部署了 vToken 的官方流动性池，这些将是全链 LST 的“总店”模块。

我们将首先在其他平行链上部署“分店”模块，并在基础设施允许时，在异构链上部署“分店”模块，最终，用户将可以在任何链上铸造、赎回、兑换 vToken。**值得注意的是，用户将可以在任何链上铸造、赎回、兑换所有的 vToken，而非只是某一个 vToken**，例如用户可以在 Moonbeam 上铸造、赎回、兑换 vGLMR、vMOVR、vDOT、vASTR，而非只是 vGLMR。

进一步讲，与用户直接使用“分店”模块相比，我们更期待的是，其他链上的 dApp 通过访问远程模块，实现对 Bifrost 的深度集成，例如某条链上的借贷协议可以自动帮助用户把抵押品转化为 vToken 进行抵押，从而在用户无需额外操作的情况下为用户提升收益率。

# 小结

总之，全链应用作为一种新的范式，为我们打开了很多新的可能性。除了 LST 资产的任意链铸造、赎回、兑换之外，我们还可以想象到更多场景：

- 用户在 Chain A 抵押资产，希望在 Chain B 取出借款
- 用户在 Chain X 提供资产 X，希望换得 Chain B 上的资产 Y
- 用户在  Chain A 上用资产  X 兑换资产 Y，但使用 Chain B 上的 Pool
- 用户的资产在 Chain A 上，但是想使用 Chain B 上的某个应用进行挖矿

在全链架构下，上述情形，应用程序都可以让用户在**不感知任何跨链过程的前提下，为用户完成操作。**

**当全链应用成为去中心化应用的主流范式时，无论是应用程序开发者还是用户，都能在区块链世界中体验到前所未有的自由度。**

以 Bifrost 为例，解析全链应用新范式

# 技术开发
## Bifrost 0.9.87 & 0.9.86

- 修复 vBNC 汇率调整方法
- SLP 支持 vMANTA 更新 treasury pallet 权限
- 修复 slp.bond 在 vDOT & vKSM 下跨链执行失败的问题
- 修复 Kusama 侧跨链确认失败的问题

## Omni LSD 1.0.1

- Astar 网络支持 vDOT

# 产品进展

- 流动性衍生品方面，vDOT 单月铸造净增长 1,126,494 枚，总铸造量（TVS）突破 3,900,000 枚，单月增长 30%，本月 Bifrost 总 TVL：$54,562,444。

- LST 的原链治理功能 [vToken Voting](https://bifrost.app/vstaking/vDOT/governance/)  现已正式上线。vToken Voting 允许用户查看 Polkadot OpenGov 中的提案并锁定 vDOT 参与提案投票。该功能目前支持 Polkadot 与 Kusama 的原链治理。 具体内容请查看详细的[介绍文档](https://docs.bifrost.finance/quick-start/lst-voting)。

![0_rHvXbMJhjENAWGqG.webp](https://cdn.bifrost.finance/cms/0_r_Hv_Xb_M_Jhj_ENAW_Gq_G_89692318e5.webp)

- Interlay #85，创建 vDOT-INTR pair 民主公投已执行。用户在使用 vDOT 作为 Valut 抵押物或参与借贷市场的同时，可选择 vDOT 作为 fee Token。即使您没有 INTR 也可顺利完成交易的执行。[查看提案详情](https://interlay.subsquare.io/democracy/referenda/85)。

![0_GwGKa7L0sZNnUuAC.webp](https://cdn.bifrost.finance/cms/0_Gw_G_Ka7_L0s_Z_Nn_Uu_AC_0fe321ca71.webp)

- 继上月 Bifrost 推出 Liquid Staked ASTR (vASTR) 后，vASTR-ASTR 流动性现已登录 [Arthswap](https://app.arthswap.org/#/farms)。
进行 yield farming 之前，您可访问 [Omni ls](https://omni.ls/) 在 Astar 网络中完成 vASTR 的铸造。[查看铸造教程](https://x.com/BifrostFinance/status/1730198824524685672?s=20)。

- 本月，Bifrost 对 Moonbeam 生态 Dexes，Beamswap 以及 Stellaswap 进行了流动性的持续激励。其中包括 xcvDOT-xcDOT、xcvGLMR-xcGLMR、xcDOT-xcBNC 以及 xcvFIL-xcFIL。
[访问 Stellaswap](https://app.stellaswap.com/zh-CN/pulsar)
[访问 Beamswap](https://app.beamswap.io/farm)

# 市场运营

- 11 月 2 日，Bifrost Business Strategy 负责人 Thibault 出席了由 Moonbeam 项目方举办的推特 space，并跟其他项目方嘉宾共同探讨论了[使用 DeFi 的技巧和工具](https://twitter.com/0xBifrostCN/status/1719651741984247926)！

- 11 月 7 日，Bifrost Council 成员 Tyrone 受邀参加了 Moonbeam 项目方主持的币安直播，就如何使用 Bifrost 进行 DOT staking 展开了讨论。
[详情](https://twitter.com/MoonbeamChinese/status/1721812550038311001)

- 11 月 24 日，Bifrost 联合创始人 Lurpis 与其他波卡生态项目方嘉宾共同出席了由 [PolkaWorld 举办的直播](https://twitter.com/0xBifrostCN/status/1727930067605672328)，共同探讨了 Polkadot 通胀有没有可能降低。

- 11 月 30 日，Bifrost 联合创始人 Lurpis 与其他项目方嘉宾共同探讨“Polkadot 以其跨链互操作性、可扩展性、安全性和治理等优势，凝聚着广大的开发者社区，而波卡 2.0 的全新叙事包含哪些内容？如何理解波卡 2.0 的全新愿景？”[查看活动详情](https://twitter.com/0xBifrostCN/status/1729436109342650750)

历时 42 天的 Polkadot Unlock Harvest 活动为 vDOT 铸造量带来了有将近 113 % 的显著增长，吸引了超过 1700 个地址参与活动。用户通过 bifrost.app 流动性质押 DOT，不仅可以享受流动性质押带来的复合收益，还可以通过 vDOT 的应用场景获得更多的玩法。

月报丨vDOT 总铸造量（TVS）突破 3,900,000 枚

距离上海升级已经过去半年了，LST War 还在持续升温。由于千亿市值的巨大体量，LST 领域一直是个竞争激烈的领域。前有 Lido、Rocket Pool 等老玩家们争议不断，后有新玩家 Puffer、Stader 等加入牌桌。

作为老牌 LST 协议之一的 Bifrost，对 LST War 有着深度和长远的思考。与其通过补贴提高铸造量、引导流动性，亦或者拿着“去中心化”的大棒打压对手，不如思考如何从根本上提升资本效率，提升 Real Yield。**Bifrost 认为，“互操作性”才是 LST Real Yield 的核心。**

&emsp;

# 全链架构与互操作性

LST 的基础收益率决定于底层链的 Staking 收益率，基本可以认为是一个固定值，而通过提升互操作性，可以让 LST 在更多的 DeFi 中被集成和使用，创造更高的叠加收益率。

Bifrost  在设计 SLP 协议 时，始终围绕“互操作性”这一基本原则，让所有细节为其服务。

其一，为了让 DeFi 协议更容易集成 vToken，vToken 的派息方式从一开始就被设计为 Reward-Bearing 模式。一般来说，生息资产的派息方式有三种：Claim、Rebase 和 Reward Bearing，我们在《 [一文盘点 LST Staking 收益派息方式 ](https://mp.weixin.qq.com/s/8JwheQaA0vZLwkapnwVfjg)》中有详细介绍。**Bifrost 是最早采用 Reward-Bearing 的协议之一，截止现在，Reward-Bearing 已经成为 LST 主流的派息方式。**

其二，**为了获得更好的跨链可集成性，Bifrost 采用了“全链架构”，Bifrost 选择使用一条平行链来承载 SLP 协议，在其他链上，Bifrost 则部署远程模块，让用户和其他链上的应用通过远程调用的方式使用 SLP 协议。**在这样的架构下，Bifrost 获得了一些很酷的功能：

- 用户可以在其他链铸造 vToken，例如用户可以在 Moonbeam 上用 DOT 铸造 vDOT；
- 同样，用户可以在其他链赎回 vToken；
- 用户可以在其他链兑换 vToken，但背后的使用的是 Bifrost 链上的 vToken/Token 流动性
- 用户可以在其他链为 Bifrost Parachain 上的 vToken/Token 池子提供流动性，并获得 LP Token
- 用户可以在其他链销毁 LP Token，以赎回流动性。

我们看到，全链架构可以做到让用户在任何链上使用 SLP 的功能，就像在本地使用一样，完全不用感知背后的跨链过程，也不再有割裂的体验。

与此同时，其他链上的应用程序也可以通过远程调用的方式使用 SLP 的功能，这意味着其他链上的应用程序可以跨链集成 SLP 协议。这里有一个关键点，其他链上的应用程序可以通过远程调用 SLP ，集成所有的 vToken，而无需一一集成各个 vToken，因为所有 vToken 的全局状态都在 Bifrost 链上。这点，我们之前也有过分析：《 [相比 Lido，为什么 Bifrost 对跨链集成更加友好？](https://mp.weixin.qq.com/s/skjcxtlaw_r8d4skzi37Dg)》

**全链架构还有一个重大的优势，就是“统一流动性”**，对于 Bifrost 而言，所有的 vToken 的流动性都在 Bifrost 链上，其他链的用户和应用程序通过远程的方式使用 Bifrost 链上的流动性。这避免了 Bifrost 在其他链上引导 vToken 流动性的必要，**用户和应用程序可以在任意链上完成 vToken/Token 的兑换。**

总之，全链架构让 SLP 协议仅仅存在于 Bifrost 链上，而又无所不在。在改善用户体验的同时，获得了无可比拟的互操作性。如今，LST 和 LSTFi 共同繁荣的情形下，Yield Maximizers 最大的乐趣就是如何在多链互操作中，寻找最佳的叠加收益率，Bifrost 可以最大化的满足这种需要。

&emsp;

# 链抽象

Web3 现在是一个多链格局，有数百条 L1 区块链，还有各种 Layer2，子网、平行链、应用链。虽然百链争鸣推动了区块链的创新和采用，但它也使应用程序、资产、流动性、用户分割在不同的链上。尽管跨链桥可以让它们在不同链间迁移，但无法让它们重新成为一个整体，而全链架构可以实现这一点。

我们期待全链架构成为行业共识，被越来越多的 DeFi 协议采用。倘若如愿，最终将达成这样的效果：

- 用户不需要在关心程序部署在哪里，资产在哪里，流动性在哪里，而是把全链理解为一个整体，自由的去使用所有的程序、资产、流动性，用户将获得前所未有的便捷体验和资本效率。
- 开发者也不需要再选链站队，也无需为了不错失用户而在多条链上重复部署实例，而是可以把程序和流动性只部署在一个最合适的地方，就可以让全链用户去使用。
- 应用程序之间的互操作也完全不受链的限制，而是可以自由的跨链集成。

我们可以用“链抽象”来描述这种状态。

“抽象”是一个软件学术语，指的是把繁琐的细节向用户隐藏起来，只提供一个简单的表层形态，以减少理解的复杂度。**“账户抽象”是指把私钥、助记词等隐藏起来，实现对用户的无感，而“链抽象”则是把链隐藏起来，让用户无感，或者无需在意。**就像我们使用微信、淘宝，无需关心腾讯、阿里的服务器在哪里。

“链抽象”是终局，但要达成它，将是全行业协调努力的结果，这里面除了包括全链架构的应用程序之外，还包括更加安全、高性能的跨链桥协议层、也包括 Gasless 的账户抽象解决方案等等，是一个系统工程。

作为 Omni-LST 领域的开拓者，Bifrost 所能做的是，为 DeFi 协议的全链化提供一个范例和参考。


Bifrost 观点：互操作的终局是“链抽象”

# Kusama Slash “误杀”事件

2022年12月9日，Kusama 网络在高度为 4543 的区块，发生了一次 Slash “误杀”事件 。起因是某个节点广播了大量的争议信息，阻塞了网络，导致大量节点宕机。

宕机的节点被网络认为是恶意离线，因此触发了 Slash 。Kusama 1000 多个节点中，有 155 个节点被 Slash，发生此次事件的深层次原因以及进一步的解决方案还在研究中。

![0_dBW3DmMVs_wuuDue.png](https://cdn.bifrost.finance/cms/0_d_BW_3_Dm_M_Vs_wuu_Due_6a529ead63.png)

12月9日，此次 Slash “误杀”事件， Bifrost  SLP 协议所委托的 81 个节点，有 9 个节点被 Slash ， SLP 质押的 KSM 总量约为 23.7 万，其中有约 711 KSM 被 Slash 。明细如下：

![0_AtxwS4J-qx9trjlj.png](https://cdn.bifrost.finance/cms/0_Atxw_S4_J_qx9trjlj_f16bc80bce.png)

**在 Slash 发生时， SLP 协议已经第一时间自动取消对这些节点的委托，并将其移出了白名单（VWL）**。

12 月 11 日，Kusama 社区已经通过治理公投，撤销了这些 Slash ，解除了对这些节点的冻结，并重启验证人选举，恢复了网络的正常状态。而本次涉及到 SLP 节点的 Slash 也都被撤销，**用户持有的 vToken 收益及 vToken 汇率不受影响**。[点击查看事件详情](https://kusama.polkassembly.io/referenda/16)

# 为什么要有 Slash

Slash 是 PoS 网络中对节点不当行为的一种惩罚机制，但节点存在生产或是签名冲突的区块，恶意断线，篡改客户端程序等威胁 PoS 网络安全的行为时，网络便会触发对作恶节点的 Slash ，根据作恶的严重程度，罚没其部分或者全部的质押通证。**Slash 是维护 PoS 网络安全的必要机制**。

但 Slash 更多是作为一种促使节点忠实履职的威慑手段， PoS 网络在实际运行中， Slash 的情况极少发生，**像此次 Kusama “误杀”事件级别的大幅度 Slash ，更是少之又少，属于黑天鹅事件**。

# SLP — 规避和缓冲 Slash 风险

大幅度 Slash 即便发生概率很小，如果发生在个体 Staker 身上，也是难以承受的，从风控角度， SLP 协议作为一个 PoS “矿池”，是 Stakers 参与 PoS 质押更好的选择。这是因为：

28. SLP 协议作为一个整体去承担 Slash 风险，对于每个 vToken 持有者而言，风险被摊薄了。
29. SLP协议相比个人 Staker ，是个更精明的 Staker ，它会比个人 Staker 采取更好的策略，以平衡收益率和 Slash 风险。SLP 协议会根据节点的历史稳定性、安全信用、杠杆率、收益率等指标进行综合评分，并根据此评分选择和调整委托节点集。相比个人 Staker ， SLP 对节点的考察会更加全面，委托的节点数量及其分散程度也会更高，可以最大程度减少和减轻 Slash 风险。
30. SLP 可以比个人 Staker 更加敏捷的调整委托节点集，当有 Slash 发生时，可以比个人 Staker 更快的采取止损行动。此次 Kusama Slash 风波，9个遭 Slash 的验证者第一时间被取消委托，移出白名单，就是最好的例证。个人 Staker 即便第一时间注意到了事件的发生，也不一定有时间及时上线，进行修改提名的操作。
31. SLP 协议设置了保险机制，可以在 Slash 发生时，为用户提供一个缓冲补偿。详情见下文。

# SLP 协议的 Slash 补偿机制

如果发生 Slash ，根据严重程度，SLP 会启用不同的补偿机制。

37. 节点每个 Era 给 SLP 结算收益（Kusama 的一个 Era 是 6 小时），如果当前 Era 结算的收益，大于 Slash 金额，意味着当前 Era 的收益率依旧为正，这种情况不会触发补偿。
38. 假如当前 Era 的 Slash 金额超过了收益，当前 Era 的收益率为负，会触发补偿。SLP 协议会将 vToken Vault  中的 vToken 销毁一部分，抵消 Slash 带来的影响，使得当前 Era 收益率为 0 。
39. 假如 vToken Vault 中的 vToken 数量不足以完全抵消 Slash 带来的影响，那么 vToken Vault 中的 vToken 将被全部销毁，减轻一部分 Slash 损失。但此时，当前 Era 的收益率依旧为负，这意味着 vToken 的赎回率会下降，也就是说， 当前 Era ， vToken/Token 的汇率会下调。
40. vToken Vault 是一个保险池，用户铸造和赎回 vToken 是的 Commision 费用会有 5% 进入 vToken Vault 。如果不发生 Slash ，随着时间的延续， vToken Vault 中的金额会一直累积。vToken Vault 中的金额累积的越多，赔付能力越强，这意味着大概率下， **SLP 协议运行时间越长，其安全保障越高**。

需要注意的是每个 vToken Vault 都是独立的，vDOT Vault 不会用来赔付 vKSM Vault 应赔的损失。

# 小结

这次 Slash 风波尽管让受影响的节点商和用户虚惊一场（尤其是欧洲区的节点商很多半夜醒来跟进事件），但随着撤销 Slash 提案的执行，此次事件并没有给 Kusama 中继链包括平行链生态带来实质性的影响。况且， Kusama 的 Slogan 正是“No promises ，Expect Chaos”，因此， Kusama 社区对此次风波并无多少抱怨，对官方的处理效率也相对满意。 

Bifrost 社区的一些伙伴，关注到此次事件，并向我们询问，SLP 协议对 Slash 事件有和对策？这篇文章应该是一个比较完整的回答。对于 SLP 协议已经移出白名单的 9 个节点，我们会通过治理投票，重新选举节点，由于 Slash 被撤回，这 9 个节点的评分并未受影响，因此他们大概率还会入选。

作为一个流动性质押协议，Bifrost SLP 不止为用户释放 Staking 资产的流动性，也为用户提供了一套完整的规避和分摊 Slash 风险、降低和补偿 Slash 损失的方案。用户通过 SLP 参与 PoS 网络的质押，相比作为个人直接参与质押，是更优的策略。

面对 Slash 风险， Bifrost 如何为 vToken 持有者提供保险机制

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."

![Capture d’écran 2024-06-06 à 12.49.29.png](https://cdn.bifrost.finance/cms/Capture_d_ecran_2024_06_06_a_12_49_29_7a6a4d1a24.png)

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.

![Capture d’écran 2024-06-06 à 12.45.35 (1).png](https://cdn.bifrost.finance/cms/Capture_d_ecran_2024_06_06_a_12_45_35_1_81c6cd4b35.png)

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:

![Capture d’écran 2024-06-06 à 18.10.38.png](https://cdn.bifrost.finance/cms/Capture_d_ecran_2024_06_06_a_18_10_38_f473bf732b.png)

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 Parachain**.

## Redemption of vTokens

![Capture d’écran 2024-06-06 à 13.02.06.png](https://cdn.bifrost.finance/cms/Capture_d_ecran_2024_06_06_a_13_02_06_daecaeafa3.png)

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.**

![GJmHaFPXQAAYKZd (1).jpeg](https://cdn.bifrost.finance/cms/G_Jm_Ha_FPXQAAYK_Zd_1_342ca61dc0.jpeg)

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.

![Capture d’écran 2024-06-06 à 13.09.23.png](https://cdn.bifrost.finance/cms/Capture_d_ecran_2024_06_06_a_13_09_23_b3a2b9b61d.png)

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.

Unlocking the Potential - Chapter 1: A Deep Dive into Bifrost App Chain Liquid Staking Strategy

2023 年 4 月 13 日，以太坊顺利激活上海升级并开放质押提款功能，为流动性质押（LST）叙事的蓬勃发展扫平了最后一个障碍。过去一年，无论是 LST 协议 TVL 的迅速增加，还是 LSTFi 的再质押代币（LRT）的新繁荣，似乎都在预示着堪比 2021 年 DeFi Summer 的繁荣景象即将复现。多年后，我们回首 2024 年的加密行业，或许会将其称为「质押年」。
&emsp;
![Capture d’écran 2024-06-06 à 12.49.29.png](https://cdn.bifrost.finance/cms/Capture_d_ecran_2024_06_06_a_12_49_29_7a6a4d1a24.png)
&emsp;
然而，业内的注视点似乎大多数集中于以太坊上的 LST 协议，对其他新公链的 LST 则关注甚少。这也不足为怪，毕竟以太坊的市值规模、DeFi 繁荣度远远超越其他新公链，能给 LST 协议的发展和演化带来更多的可能性。
&emsp;
![Capture d’écran 2024-06-06 à 12.45.35 (1).png](https://cdn.bifrost.finance/cms/Capture_d_ecran_2024_06_06_a_12_45_35_1_81c6cd4b35.png)
&emsp;
但我们如果稍收视线，放眼更广泛的 PoS 公链，就会发现，其实有一些很有意义的创新，正在给 LST 行业带来崭新的启示。今天，我们将全方位的介绍**全链 Liquid Staking 协议——Bifrost**。Bifrost 针对 LST 业务做了很多可圈可点的创新，其采用的全链架构可能在未来的多链格局中，具有巨大的竞争优势。
&emsp;
Bifrost 是基于 Polkadot 构建的 LST 项目，Bifrost Chain 本身是 Polkadot 的平行链。在过去半年，Bifrost 的 TVL 增长了 4 倍，已然坐稳了波卡生态龙头 LST 的位置，成绩斐然。与此同时，Bifrost 在不断扩展支持更多的链，为其生态提供流动性质押服务。
&emsp;
本文将对 Bifrost 展开详细介绍，让您了解 Bifrost 的方方面面。文章将会涵盖以下内容：
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- Bifrost 的架构—— SLP 协议、SLPx 协议与 vToken 的核心优势
- 当前 LST 市场的分析
- 增长机会——为什么 Bifrost 具有巨大的市场潜力
&emsp;
## SLP 与 vToken
&emsp;
vToken 是由 Bifrost 创建的 LST 资产，全名 Voucher Token。Bifrost 目前支持了 9 条链，上线了 9 种 vToken，如下表：
&emsp;
![image.png](https://cdn.bifrost.finance/cms/image_3f19f0cb82.png)
&emsp;
其中 **vDOT、vKSM、vGLMR、vMOVR、vBNC、vASTAR** 都是波卡生态的 LST 资产，Bifrost 的vToken 在其中拥有着绝对主导的市占率。
&emsp;
## vToken 的铸造
&emsp;
Bifrost 用以支持 vToken 的模块被称为 SLP(Staking Liquidity Protocol)，Bifrost 分别在以太坊上、Bifrost Polkadot 、Bifrost Kusama 上面部署了 SLP 模块。SLP 模块在以太坊上体现为智能合约形式，用以支持 vETH 的铸造，在 Bifrost Polkadot、Bifrost Kusama 上则体现为 runtime 的形式。Bifrost Kusama 是 Polkadot 先行网络 Kusama 的平行链，被用以支持 vKSM、vMOVR 的铸造，Bifrost Polkadot 是 Polkadot 的平行链，被用以支持** vDOT、vGLMR、vASTR、vBNC、vFIL、vMANTA **的铸造。
&emsp;
![Capture d’écran 2024-06-06 à 18.10.38.png](https://cdn.bifrost.finance/cms/Capture_d_ecran_2024_06_06_a_18_10_38_f473bf732b.png)
&emsp;
随着跨链桥基础设施的成熟，未来 Bifrost 将可能把所有的 vToken 的铸造和管理都放在 **Bifrost Polkadot 平行链上**。
&emsp;
SLP 模块的工作方式很简单，用户将原 Token 放入 SLP 模块管理的账户，SLP 模块为用户创建债券凭证，即 vToken，并将原 Token 质押到网络中。
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## vToken 的赎回
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![Capture d’écran 2024-06-06 à 13.02.06.png](https://cdn.bifrost.finance/cms/Capture_d_ecran_2024_06_06_a_13_02_06_72d411c875.png)
&emsp;
一般来说，用户发起赎回 vToken 时，SLP 模块需要申请解质押对应数量的原 Token，并在解锁等待期结束后，把这些原 Token 返回给用户。
&emsp;
不同于 PoS 链的解锁等待期，例如 Polkadot 为 28天，Kusama 为 7 天，Ethereum 没有固定的解锁等待期，具体取决于队列中等待解锁的 ETH 数量。解锁等待期是 PoS 链为了防止长程攻击做的一种保护措施，但对于质押的用户而言，却是一个讨厌的设置。
&emsp;
和大多数 LST 协议一样，Bifrost  的 vToken 支持用户以 Swap 的方式实现快速赎回。Bifrost 提供了 **vToken/Token 的 Stabel Pool**，采用类似于 Curve 的 Stable 做市曲线，降低兑换产生的 price impact。
&emsp;
尽管如此，Swap 始终会不可避免的产生折损，Bifrost 还提供了另外一种快速赎回的选项。当用户发起赎回的时候，Bifrost 会首先与当前队列中的铸造订单进行点**对点匹配**，如果匹配成功，那么用户的赎回就会绕过解锁等待期，立即被兑现。
&emsp;
## vToken 的收益
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尽管 Bifrost 从 vToken 的 Staking 收益中会抽佣 10%，但 vToken 的收益率在大多数时候都高于竞品。原因在于** vToken 的收益是多元化**的，除了基础的 Staking 收益率之外，Bifrost 还会将节点的 MEV 收益也共享给用户。不定期开展的 mint drop 活动会使得 vToken 持有者获得 BNC 收益。
&emsp;
Bifrost 作为一个中立的协议层，会将原 Token 携带的其他权益悉数给到用户，例如 DOT 携带的在 OpenGov 中参与治理的权益，以及获得 PINK 和 VARCH 空投的权益，vDOT 用户也同样拥有。Bifrost 力求不让 vToken 的持有者存在任何的机会成本。
&emsp;
![GJmHaFPXQAAYKZd (1).jpeg](https://cdn.bifrost.finance/cms/G_Jm_Ha_FPXQAAYK_Zd_1_342ca61dc0.jpeg)
&emsp;
更重要的是，Bifrost 试图让 vToken 拥有丰富的使用场景，使得用户可以在 DeFi 世界中，借由 vToken 获得更加**多元化的收益和更高的叠加收益率**。这点非常重要，我们会在后文中展开叙述。
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## vToken 的派息
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纵观 LST 协议的发展历史，我们发现 LST 的派息方式经历了三个阶段的演化，从**手动 Claim 到 Rebase，再从 Rebase 到 Reward-bearing**。Bifrost 虽然是 2019 年启动的老牌 LST 协议，但却最早认识清楚了 Reward-Bearing 的优越性，在大多数竞品采用 Claim 或是 Rebase 机制的时候，Bifrost 已经采用 Reward-Bearing 机制。
&emsp;
所谓 Reward-Bearing，就是指将 Staking 收益积累到 vToken 的赎回权益中，使得 vToken 与原 Token 的汇率处于不断上升中。这种方式不再纠结于 vToken 与原 Token 的 1:1 兑换，而是通过汇率的变化来体现 Staking 收益的积累。
&emsp;
![Capture d’écran 2024-06-06 à 13.09.23.png](https://cdn.bifrost.finance/cms/Capture_d_ecran_2024_06_06_a_13_09_23_b3a2b9b61d.png)
&emsp;
假设起初你质押了 1 个 DOT，铸造了 1 个 vDOT，在期末的时候，由于 Staking 收益的积累，这 1 个 vDOT 可能可以赎回 1.2 个 DOT，这就是 Reward-bearing。
&emsp;
Reward-bearing 的最大优势就是，让 DeFi 协议更好处理和集成 vToken。
&emsp;
如果你希望更深入的理解这一点，请参考[一文盘点 LSD Staking 收益派息方式](https://bifrost.finance/zh-CN/blog/lst-staking)。



Bifrost：探索全链 Liquid Staking 的前景与多维增长空间（上）

## Introduction

The [first chapter](https://bifrost.finance/blog/article-9) explored the functionalities and operations of **Bifrost's staking liquidity protocol (SLP) and vTokens**. This chapter will explore how Bifrost leverages its cross-chain architecture and SLPx module to overcome traditional barriers, offering users and developers a streamlined and efficient way to interact with vTokens across multiple chains.

## Cross-chain architecture and SLPx

### Bifrost's Unique Approach

Unlike Ethereum's liquid staking protocols, Bifrost from inception has supported Polkadot's Omni-chain ecosystem. This strategic choice allows Bifrost to address the cross-chain friction users face when minting and using vTokens across the Omni-chain.

### Why use a cross-chain architecture?

To understand the need for cross-chain architecture, consider a user who intends to mint vGLMR. They must first transfer GLMR from Moonbeam to the Bifrost-Polkadot chain. After minting, if the user wishes to use it on Moonbeam, they must transfer the vGLMR back to Moonbeam. This complex process requires multiple transactions, making it cumbersome for the user.

However, Bifrost's cross-chain architecture and SLPx module simplify these complexities. They offer users a seamless experience by combining all vToken minting processes into one transaction on a single chain.

**Simplified Process**

Under the cross-chain architecture, instead of deploying SLP modules on multiple chains, Bifrost allows other chains **to utilize the existing SLP modules** on the Bifrost-Polkadot, Bifrost-Kusama, and Ethereum chains **through cross-chain remote calls.**

For instance, to mint vGLMR, users only need to initiate a minting request on Moonbeam. The remote call module on Moonbeam will cross-chain transfer the user's GLMR to the Bifrost-Polkadot chain, where it is minted into vGLMR. After minting, vGLMR is transferred back to the Moonbeam chain. 

Throughout this process, users do not perceive the underlying cross-chain operations; they only experience the seamless minting of GLMR into vGLMR on Moonbeam.

![xcm.png](https://cdn.bifrost.finance/cms/xcm_365b14b89a.png)

The redemption of vGLMR to GLMR and swaps follows a similar mechanism.

Like a chain franchise, this structure resembles a "headquarters + branch" system. Users interact with the branches on different chains. These branches communicate with the headquarters to obtain results, which are then presented to the users. This abstraction allows users to interact with the branches without being aware of the underlying cross-chain operations.

![lsd comparison.png](https://cdn.bifrost.finance/cms/lsd_comparison_e9e03bc001.png)

### Advantages of Cross-chain Architecture

**Unified Liquidity**

Bifrost eliminates the need to bootstrap the liquidity of vTokens on multiple chains by consolidating liquidity onto a single chain. This optimization reduces user transaction fees and improves overall efficiency.

For example, when users want to swap vGLMR to GLMR, they can utilize the unified liquidity pool on the Bifrost-Polkadot chain via remote calls. This approach ensures better transaction prices and execution, avoiding the additional costs associated with bootstrapping liquidity on other chains like Moonbeam.

**Cross-chain Integrability**

Furthermore, when a DeFi project seeks to integrate vTokens, it no longer needs to integrate SLP modules from different chains separately. Instead, the project only needs to communicate with the primary SLP protocol on a single chain (or a few selected chains).

The SLP modules on Bifrost-Polkadot, Bifrost-Kusama, and Ethereum maintain the global and comprehensive status of vTokens. Ideally, in a fully interoperable blockchain ecosystem, the SLP module on Bifrost-Polkadot will hold the global and comprehensive status of vTokens, streamlining the integration process for various DeFi projects.

## SLPx: The Developer Toolkit

### Introduction to SLPx

SLPx is an extension module developed based on SLP, serving as a developer toolkit that enables the minting of vTokens on any chain. The goal is to simplify the integration of vTokens for more DeFi applications.

For developers, integrating SLPx involves only a few lines of code. Once integrated, developers can use remote calls to access minting, redemption, and swap services for vTokens on the Bifrost-Polkadot chain.

![slpx.png](https://cdn.bifrost.finance/cms/slpx_4d5043be31.png)

In October 2023, HydraDX became the first to utilize remote calls with SLPx. They used a treasury address for cross-chain calls and successfully minted 81,800 vDOT through Bifrost SLPx.

Bifrost considers the cross-chain architecture and remote call method a more advanced paradigm for **multi-chain applications**. It allows applications to be deployed on one chain while enabling users from any chain to access them. 

For instance, in two hackathons held this year, namely the [OneBlock x Polkadot 2023 Summer Hackathon](https://medium.com/oneblock-community/review-of-polkadot-hackathon-2023-summer-exploring-the-infinite-possibilities-of-the-polkadot-1e04417129dd) launched on June 9th and the Polkadot x Angel Hack jointly hosted [APAC Edition Hackathon](https://www.youtube.com/watch?v=B6bJiXsjAPo&list=PL2q74pmc6sPebFdkusKUaZmEj8X8r42wZ&index=6) started on September 7th, Bifrost participated as a judge and initiated specialized bounty programs centEred around Omni-LST. These programs aimed to encourage developers to implement various flexible application scenarios based on remote calls with SLPx.

In conclusion, in both theory and practice, Bifrost is establishing itself as a pioneer and leader in cross-chain architecture. Bifrost is paving the way for a more efficient and interconnected DeFi ecosystem by simplifying complex processes and providing unified liquidity and integrability.

Unlocking the Potential - Chapter 2: A Deep Dive into Cross-chain Architecture and SLPx

在[上一章](https://bifrost.finance/zh-CN/blog/article-10)，我们探讨了 Bifrost 的流动性质押协议（SLP）以及 vToken 的功能和操作。本章将探讨 Bifrost 如何利用其跨链架构和 SLPx 模块来突破传统障碍，为用户和开发者提供一种简化高效的方式，与 vToken 进行跨链交互。

## 全链架构与 SLPx

和以太坊上的 LST 不同，Bifrost 从一开始面对的，就是 Polkadot 这样一个多链生态，因此必须解决用户在铸造和使用 vToken 时面对的跨链摩擦问题。

举例来说，用户如果要将 GLMR 铸造为 vGLMR，必须先把 GLMR 跨链到 Bifrost Polkadot 链，完成铸造后，用户如果需要在 Moonbeam 上使用 vGLMR，还需要再次跨链回去。

为什么不把这一切抽象掉，为用户模拟单链上的操作体验呢？这就是 Bifrost 全链架构及 SLPx 模块要做的事情。

在全链架构下，Bifrost 不再执着于在更多的链上部署 SLP 模块，而是倾向于允许其他链以跨链远程调用的方式使用 Bifrost Polkadot 链/ Bifrost Kusama 链/ Ethereum 链上本就存在的 SLP 模块的功能。

还是以铸造 vGLMR 为例，用户只需要在 Moonbeam 链上质押 GLMR，发起铸造请求，部署在 Moonbeam 上的远程调用模块将会把用户的 GLMR 跨链发送到 Bifrost Polkadot 链，铸造为 vGLMR 之后，再跨链传输回 Moonbeam 链。从始至终，用户感受不到背后的跨链过程，用户感受到的只是在 Moonbeam 上链，GLMR 被铸造为 vGLMR 了。

![xcm.png](https://cdn.bifrost.finance/cms/xcm_365b14b89a.png)

vGLMR 的赎回与兑换同理，也都可以通过类似的方式完成。

这种结构可以理解为类似于连锁经营式的“总店+门店”结构，用户在其他链上访问分店，门店通过与总店通讯获取结果，并向用户输出。用户感受到的是与门店的交互，门店与总店之间的交互则被抽象掉了。

这种方式还带来了两个巨大的优势，分别是**统一流动性**与**跨链可集成性**。

![lsd comparison.png](https://cdn.bifrost.finance/cms/lsd_comparison_e9e03bc001.png)

### 统一流动性

Bifrost 将不需要在很多链上引导 vToken 的流动性，而是把它们集中到一条链上，优化用户的成交价格。例如，当用户需要将 vGLMR 兑换为 GLMR 时，可以通过远程调用的方式，使用 Bifrost Polkadot 链上的统一流动性池，获得更好的成交价格。而 Bifrost 则**避免**了在 Moonriver 上引导**流动性造成的额外开销**。

### 跨链可集成性

例如，某 DeFi 项目想要集成 vToken，那么它不需要分别集成不同链上的 SLP 模块，只需与一条链（或有限的几条链）的 SLP 主协议进行通讯即可。Bifrost Polkadot/ Bifrost Kusama/ Ethereum 上的 SLP 模块掌握全局全量的 vToken 状态。在万链互通的理想状态下，Bifrost 希望 Bifrost Polkadot 这一条链上的 SLP 模块即掌握全局全量的 vToken 状态。

## SLPx：全链开发者套件

[SLPx](https://docs.bifrost.finance/builders/liquid-staking-x-slpx/overview) 是 SLP 的基础上开发的一个扩展模块，是一个能用任意链去铸造 vToken 的开发者套件。我们希望更多 DeFi 应用能够更方便的集成 vToken。对于任意链的 DeFi 应用开发者来说，**集成 SLPx** 仅仅需要最简单的**几十行代码**。集成之后，就可以**远程使用** Bifrost Polkadot 链上的 vToken **铸造、赎回以及兑换服务**。

2023 年 10月份，作为 SLPx 首个远程调用的案例，HydraDX 使用国库地址跨链调用 Bifrost SLPx 铸造了 81,800 枚 vDOT。

![slpx.png](https://cdn.bifrost.finance/cms/slpx_4d5043be31.png)

Bifrost 认为全链架构和这种远程调用的方式是更为先进的多链应用范式，因为应用程序仅部署在一条链上，就可以允许任意链上的用户使用它。在 OneBlock  x Polkadot 2023 夏季黑客松和 Polkadot x Angel Hack 联合主办的 APAC Edtion 黑客松活动中，Bifrost 都作为评委参与其中，并发起了围绕 Omni-LST 的专项 Bounty 计划，以鼓励开发者**基于远程调用**，实现各种**灵活的应用场景**。

无论是理论还是实践，Bifrost 正在成为全链架构的布道者和引领者，并为更高效、互联互通的 DeFi 生态铺平道路，简化复杂流程并提供统一的流动性和可集成性。

Bifrost：探索全链 Liquid Staking 的前景与多维增长空间（续1）

## What is XCMP

In May 2022, Polkadot officially launched XCM (Cross-Consensus Message), which is a cross consensus message format. As a message format, XCM allows parachains to interact with other parachains and relay chains from their native state, and allows any asset to be transferred on the chain.

XCM is a format, and XCMP is the protocol that supports cross chain. Its full name is “Cross-Chain Message Passing”. As one of Polkadot’s cross chain messaging protocols, XCMP regulates the way of cross chain messaging between parachains of the same relay chain.

## XCMP Advantages

The island phenomenon of traditional blockchain has brought inconvenience to its own integration. Although Dapps on the chain can be connected with each other, they cannot interact with other chains, and cross-chain difficulties between blockchain chains are numerous.

To realize the transmission and communication of messages between chains, we must first have a cross chain protocol between parachains, which is used to regulate the whole process of message transmission, so that projects between ecosystems can interact efficiently and safely across the chain, just as there should be general trade rules in international trade. XCMP came into being as a protocol to solve cross chain problems.

The birth of XCMP is a milestone for Polkadot and its ecological Dapps and users. Its advantages and gains can be analyzed in detail from the following aspects.

## Cross-chain Combinations

We must make it clear that XCMP can span more than just assets. Therefore, XCMP can not only be used for token and asset transfer between parachains, but also support sending any type of data and messages. The most common is that smart contracts can be called across chains. In other words, similar to the composability between contracts in Ethereum, Polkadot’s parachains can also have chain level interoperability, that is, cross chain composability. Existing on chain contracts will be combined to show more product possibilities and innovations.

## Polkadot Milestone

After XCMP, Polkadot is realizing the cross chain future that it truly promises. The ecosystem will no longer be a loose collection of sporadic blockchains, but is becoming a huge ecosystem that maintains interaction, and its performance and security are much higher than Ethereum. Based on the Substrate development framework, XCMP makes Polkadot a leader in heterogeneous sharding. XCMP protocol can be implemented on Polkadot, which is also from Polkadot’s excellent underlying technology design, such as shared security model and bridge model. XCMP and Polkadot complement each other and achieve each other.

## Decentralized Business

As mentioned above, Polkadot’s XCMP makes inter chain messaging safe and simple. This means that DAPP can choose to run on the parachain of independent computing resources to process business with high TPS, but at the same time enjoy the interconnection of the whole ecosystem and even the whole blockchain world. Information can be transferred between parachains through the hub of the relay chain. The whole process is constrained by consensus, resources are independent and communicate with each other. The normal competition between Dapps for underlying resources will no longer exist. Here we must point out that Ethereum is a huge and independent community, and the progress and insufficient performance of L1’s underlying resources are the root causes of underlying resource problems among Dapps. Polkadot with XCMP will not be bound by performance. Cross chain realizes the win-win of independent resources and on chain interconnection, which really brings dawn to the sustainable development of decentralized business and more business possibilities.

## Sharing Security

Parachains can send messages to another chain, and XCMP ensures that messages are delivered to destinations accurately in order. Polkadot creatively realizes the “shared security” between chains, which not only ensures the blocking and acceptance of parachains, but also maintains the consistency of the state of the whole network. On a network without shared security, any operation requires a lot of block confirmation time (just like a centralized exchange). Network certainty is the key to XCMP implementation.

## XCMP Progress

At the Polkadot annual conference Polkadot Decoded 2022 held last month, Gavin, the founder of Polkadot, focused on the content of XCM, XCMP, XCM V3 and higher versions in his speech in China. Gavin compares XCM to a language that can be used in a call, and XCMP is like a phone, and there can be many types or multiple phones.

Since the launch of XCM in May, cross-chain channels have been opened between multiple parachains in just a few months. XCMP has also entered the transitional HRMP (Horizontal Relay-routed Message Passing) cross chain scheme period, which is also the cross chain scheme actually used at present. As a transitional scheme, HRMP can provide the same interface and functions as XCMP. But compared with real XCMP, message storage is different. HRMP needs to put all messages in the storage of the relay chain, while XCMP only stores the metadata hash associated with the message in the relay chain. The former will generate additional message load, while the latter fully meets the simple and high-performance requirements across the chain. Therefore, HRMP is only a temporary transition plan, which will be replaced by XCMP in the near future. The significance of HRMP transition period is that it not only ensures the practicality and effectiveness of XCMP, but also lays a foundation for the full realization of XCMP.

Bifrost has opened a number of cross chain cooperation. Bifrost Finance continues to launch innovative staking derivatives, provide effective liquid staking solutions, and dare to be the first on the cross-chain. Bifrost can provide cross-chain flow pledge services for multiple chains by using cross consensus messages (XCM). At present, HRMP cross-chain channels have also been opened with many networks. The specific cooperation is as follows:

On February 18, 2022, the cross-chain channel between Bifrost and Statemine was opened, and the user asset use scenarios were expanded. Statemint is a parachain of public interests in Polkadot ecosystem. Its main role is to mint and manage some tokens and NFT assets. It is the only way for off chain assets (such as USDT) to enter Polkadot ecosystem. After opening the two-way HRMP channel with Statemint, the most direct behavior is to be able to transmit the USDT on statemint to each parachain. Users of Bifrost will get more diverse asset types, lower use thresholds and easier stable currency transfer.

On June 6, 2022, Phala asset cross chain routing SubBridge officially opened a two-way HRMP channel with Bifrost. Users can transfer BNC (Bifrost Token) and ZLK (Zenlink Network Token) from Bifrost to Khala through SubBridge, and also support the reverse transfer of related assets. This realizes the cross chain transfer between Khala and Bifrost, and expands the use cases of new scenarios.

Bifrost users can enjoy a variety of parachain asset use scenarios: quickly and easily realize one-stop asset exchange with Bifrost on SubBridge; Provide liquidity including PHA trading pairs for DEX of Bifrost and Zenlink, so as to become a liquidity provider; Users who choose to stake PHA on DEX of Bifrost and Zenlink can realize risk hedging, low interest lending and free liquidity of pledged assets while enjoying the pledge rights and interests.

On April 14, 2022, Bifrost’s BNC token can be integrated on Moonriver through XCM as xcBNC. Users can conduct asset extraction, purchase, storage and other transactions, and the use of derivative assets will be extended to Moonriver, enjoying more liquidity and investment options.

![1_zvPbjc47I083fRyMEXe19A.jpg](https://cdn.bifrost.finance/cms/1_zv_Pbjc47_I083f_Ry_ME_Xe19_A_a5bd3c20e2.jpg)

At present, the HRMP channels that Bifrost has opened include Karura, Khala, Crust, Mantagax, etc. in the initial stage, the use scenario is mainly around the cross chain transmission of assets. However, in the future, Bifrost will open more cross chain channels, realize more interoperability across parachains, make full use of the professional functions and fields of parachains, and connect Bifrost with DEX, derivatives, storage, privacy, identity management, etc., to create more possibilities, So as to truly play the potential of Staking derivatives.

## XCMP and Staking Derivatives

Staking derivatives, which are based on releasing the liquidity of the PoS public chain Staking module and providing users with more assets, have always been deeply combined with DeFi to produce richer DeFi scenes and gameplay. For users, without paying attention to the complex pledge and delegate process, they can directly obtain the interest bearing digital assets after synthesis in the secondary market for more investment behavior.

The launch of XCMP has brought two greater gains. Not only in the field of DeFi, Staking derivatives can be connected and combined through XCMP and other professional function chains, so as to create more products and trigger more diversified ecological prosperity. Users have more freedom, operability and sovereignty to use cross chain assets in various smart contracts and consensus mechanisms. For staking itself, opening more cross-chain channels means that more users enter. The user’s staking threshold will be reduced, the proportion of Multi Chain staking will increase, and the application interest foundation of the ecosystem will be improved. Realize the positive cycle of the StakeFi ecosystem through enabling users, multi chain and ecosystem applications.

XCMP Enables Staking Derivatives, and Bifrost Has Opened Multiple Cross-Chain Channels

The DeFi Summer will go down in history as one of the most disruptive changes in the cryptocurrency world. It brought enormous liquidity and infrastructure growth to decentralized finance (DeFi) and provided rapid access to wealth for many investors.

Although DeFi was born in 2018, it reached unprecedented levels during the Summer of 2020. The TVL of DeFi protocols grew from millions to hundreds of billions of dollars and platforms such as Compound, AAVE, Curve, Uniswap, issued their governance tokens, reaching millions of users and providing the first farming services. These high yields led to a rapid influx of capital and then a second ‘new wave’ of investors.

![1_XKCpkPKmZs2RSgN734Xc9g.webp](https://cdn.bifrost.finance/cms/1_XK_Cpk_P_Km_Zs2_R_Sg_N734_Xc9g_0e437bb309.webp)

## A Temporary Step-back

With the beginning of the bear market in 2022, farming opportunities decreased as funds flowed out, and TVL fell by dozens billions of dollars. Despite this, many innovative applications have created a more inclusive, open, and composable financial system based on blockchain technology.

Over the last 6 months, the TVL of DeFi protocols has slowly picked up as market sentiment is recovering. In March, a new category known as LSDFi began to appear in the DeFi space as the size of liquid staking assets (LSD) on Ethereum grew rapidly with the completion of the Ethereum Shapella upgrade.

Thirty days after the completion of the upgrade, ETH staking volume has surpassed 19,000,000 ETH. With the potential to reach hundreds of billions of dollars, LSD is an essential underlying product within DeFi that can no longer be ignored. This is already driving developers to create new DeFi applications based on LSD, named in fact LSDFi.

What are the progresses within LSDFi? What is possible to built on it? And, most importantly, is LSDFi able to replicate the incredible development brought to the crypto ecosystem by the DeFi Summer?

![1_s2Fs5cSxHvQD3-VbMuiyFA.webp](https://cdn.bifrost.finance/cms/1_s2_Fs5c_Sx_Hv_QD_3_Vb_Muiy_FA_93599fa73d.webp)

## A New LSD Competition

With the development of this new narrative, LSD based projects are in fierce competition to gain the highest staking volumes and liquidity.

LSD projects provide the opportunity for users to increase their revenue, with a mechanism of staking that unlocks their liquidity, allowing them to pursue different opportunities.

Some LSD projects have emerged to help users aggregate various types of LSD assets and guide them to get the highest returns through specific strategies. These projects (ie., Balancer, Aura, Agility) aggregate liquidity and sell it to LSD project owners with a so-called flywheel economy model, similar to the one proposed by Curve.

## Collateral-based protocols

There are three type of collateral-based protocols: over-collateralized stablecoins, lending, and synthetic assets. Even if they achieve different goals, we will collectively refer to them as collateralized protocols.

Some collateral-based protocols (MakerDAO, AAVE, etc.) have already listed LSD assets as underlying assets, allowing users to enjoy staking benefits while gaining the corresponding utility. Users can also achieve leveraged stakings through revolving lending.

In addition to this, we are seeing some new players taking advantage of the LSDFi boom. Examples include Agility’s aUSD and Lybra Finance’s eUSD, both looking to gain stablecoin market share. These new protocols are offering high returns to attract users to mint and provide them liquidity.

![1_ul9sWjQH7xDbSDgkTSatFQ.webp](https://cdn.bifrost.finance/cms/1_ul9s_Wj_QH_7x_Db_S_Dgk_T_Sat_FQ_a00406f94e.webp)

## Index Protocols

Due to the increasing amount of LSD assets in the market, Index protocols combine different assets into a basket of LSDs, according to specific ratios and strategies, issuing so-called Index LSD Assets.

Indexcoop has launched two Index LSDs, dsETH and icETH. dsETH is a normal ETH LSD, while icETH is a risk-adjusted Index LSD more volatile than dsETH, leveraged by AAVE. gtcETH is roughly the same as dsETH, except that some of the proceeds from gtcETH are donated to Gitcoin.

The emerging protocol Unsh has also launched its Index ETH product, which currently supports the minting of UnshETH with four ETH LSDs: sfrxETH, rETH, wstETH, and cbETH.

![1_lBDXC_jgcSbhQ0_Mz3OAew.webp](https://cdn.bifrost.finance/cms/1_l_BDXC_jgc_Sbh_Q0_Mz3_O_Aew_1ac3d20d08.webp)

## Interest Rate Derivatives Protocols

Interest rate derivatives have been a gap in the DeFi space for a long time, and attempts at fixed rate protocols in the DeFi space have failed repeatedly. Previously, interest-bearing assets were absent in the DeFi space, making it difficult to focus on building greater liquidity and motivating developers to explore innovation.

This problem has been solved by the rise of ETH LSD.

As a result, the interest rate derivatives protocol Pendle has collected interesting results since the Shapella upgrade. Pendle present itself as a new platform for buying futures: Users get a long-term fixed rate by buying futures at a discount, bringing a massive innovation into the LSD space.

There are also protocols which promises to bring a disruptive change within the ecosystem. Ion Protocol, for example, which is not live yet, it assures to be the first Index protocol for ETH LSD that split principal and revenue components into allETH (equal to ETH in value) and vaETH.
The ETH price of vaETH will increase as the revenue accumulates.

![1__7GBl-UkeYZdhUtgIoCVtA.webp](https://cdn.bifrost.finance/cms/1_7_G_Bl_Uke_Y_Zdh_Utg_Io_C_Vt_A_12d5060e10.webp)

## More possibilities

From the perspective of these current LSDFi products, the LSDFi space is still relatively early. There are still many opportunities for innovation, with the potential for more combinations and forms of service in the future:

1. The number of nested layers can be increased. In addition to LSD assets, their LP tokens can also be used as the underlying assets to participate in the collateral, income aggregation, and Index products to generate multiple returns.

2. With the split into principal and income components, more derivatives and trading methods to leverage the opportunity brought by income components will born: Interest rate swaps are just one of them.

3. Based on ERC3525, more flexible and diversified financial instruments-based derivatives will be generated. (ERC3525 is a Token standard particularly suitable for financial instruments but has not yet been used on a large scale.)

![1_ndYhml9Sj1LquIdEvW39lw.webp](https://cdn.bifrost.finance/cms/1_nd_Yhml9_Sj1_Lqu_Id_Ev_W39lw_ab9f2f1353.webp)

## Conclusion

LSD is to the DeFi space what treasury bonds are to the real world of finance. Its existence will give DeFi a completely different purpose.

With the development of LSDFi, Bifrost will expand the application of vToken expanding their interoperability to more protocols and applications.

At the same time, Bifrost will also stimulate innovation in this space promoting the development of LSDFi economy through formats such as Hackathons, Grants and Workshops.

Will LSDFi Follow in The Footsteps of DeFi Summer?

New participants are joining the LST craze that was sparked by the Ethereum Shanghai upgrade, while established participants are striving for the highest minting volumes and liquidity. However, most of these protocols need more fundamental innovation at the product level and rely mainly on subsidies and airdrops as their competitive strategies.

Against this backdrop, our community partners have continuously asked:

- What sets Bifrost apart from other LST protocols?

- What advantages does it have?

- What ecosystem niche will Bifrost occupy, and what competitive strategies will it adopt?

Bifrost is the first Omni-chain LST application, which is differentiating it from single-chain LST applications at the architectural level. This grants Bifrost better integrability and higher liquidity utilization.

## What is Omni-chain?

The term Omni-chain is different from Multi-chain and Cross-chain, but only a few have been able to explain the differences clearly.

Firstly, Omni-chain does not mean all chains. No application runs on all chains, nor is there any cross-chain bridging infrastructure compatible with all chains.

Omni-chain refers to an application architecture approach where developers create applications, considering full-chain interoperability as a requirement. In this approach, developers design the application by incorporating different parts of the application on other chains rather than simply replicating a single-chain application on multiple chains.

## Why is Bifrost referred to as an Omni-Chain LST protocol?

The pallet Bifrost uses to support vToken minting and redemption is known as SLP (Staking Liquidity Protocol). Through SLP, Bifrost has successfully facilitated the issuance of LST assets on nine different chains. However, Bifrost does not do this by deploying the SLP pallet on each chain.

The SLP pallet is exclusively deployed on the Bifrost chain. The minting and redemption of vToken on other chains are accomplished through cross-chain interactions, which invoke the SLP pallet on the Bifrost chain. To achieve this, an auxiliary module supporting remote invocations must also be deployed on the other chains.

Omni-chain applications can be built in a “headquarters + branch” model, where the main program logic of the application is placed on one chain, acting as the headquarters. Then, a lightweight program is provided on other chains to facilitate interaction with end-users (receiving user input and providing desired output), thus acting as individual branches or stores. When a branch/store receives user input, it is transmitted across the chain to the headquarters for processing. The results are then sent back to the branch/store for output to the user.

In the case of the Bifrost SLP protocol, the portion deployed on the Bifrost chain serves as the headquarters, while the parts deployed on remote chains act as branches/stores.

## What are advantages of Bifrost Omni-chain LST protocol？

The Omni-chain architecture offers several benefits, including:

- Applications that integrate with Bifrost only need to interact with the headquarters instead of individually interacting with all the branches, reducing the complexity of cross-chain integration.

- If the logic of the headquarters involves the utilization of asset liquidity, it can be uniformly deployed on the chain where the headquarters resides to avoid liquidity fragmentation.

- LST protocols such as Lido, Rocket Pool, and Frax Finance support LST minting on multiple chains but employ a multi-chain deployment approach, which cannot be classified as a omni-chain application.

The essence of multi-chain deployment is to replicate the same functionality on different chains without cross-chain interoperability. Unlike the Omni-chain architecture, multi-chain deployment faces challenges with integration and liquidity fragmentation.

### 1. Easy Integration

We previously discussed cross-chain integration in the article [“What are the advantages of the Polkadot XCM-based Liquid Staking design”.](https://bifrost.finance/news/what-are-the-advantages-of-the-polkadot-xcm-based-liquid-staking-design) In the case of multi-chain deployment, each chain has its own LST format and varying standards. If applications on other chains need to integrate, they must integrate separately for each chain.

However, as an Omni-chain LST protocol, Bifrost ensures that all vTokens are issued in the native format of the Bifrost chain. This allows applications on other chains to integrate all vTokens in one go. To integrate LST assets through Lido, you must make N efforts (connecting with N chains). But with Bifrost, you only need to make one effort (connecting with the Bifrost chain).

### 2. Unified Liquidity

Cross-chain application integration involves not only the integration of tokens but also the integration of liquidity. In the case of multi-chain deployment, the primary liquidity for each LST is typically established on its native chain. The liquidity for different LSTs is fragmented across diverse chains, and this liquidity cannot be accessed across chains. In Bifrost, all vTokens’ official liquidity pools are deployed on the Bifrost chain, enabling cross-chain accessibility. Users can swap vToken/Token on other chains while utilizing the liquidity on the Bifrost chain.

Suppose a lending protocol on a particular chain integrates vToken as one of the collateral assets. When liquidation is required, the liquidity on the Bifrost chain can be remotely accessed without the need to establish liquidity pools on the local chain. By centralizing liquidity in one place, the depth of liquidity can be maximized.

### 3. Scalability

Due to the Omni-chain architecture, where the main components of the application are deployed on one chain and other chains only require a lightweight remote invocation program, the overall code is more concise compared to multi-chain deployment. Concise code implies higher security and a lower probability of contract vulnerabilities. Additionally, only a simple pallet must be deployed when adding support for a new chain. Therefore, it exhibits stronger scalability.

### 4. The Empowerment of XCM

Bifrost has chosen to build as a parachain on Polkadot because XCM provides maximum empowerment for Bifrost’s cross-chain interoperability.

XCM is a set of instructions for cross-chain interactions with specifications and language standards that apply to the Polkadot ecosystem and cross-chain messaging between heterogeneous chains. In Bifrost’s Omni-chain architecture, pallets on different chains must communicate, and all communication is done using the XCM message format.

It is important to note that using the XCM message format is a choice, and applications on different chains can use any agreed-upon standard for communication. However, XCM is a more general and widely applicable choice. If applications default to using XCM as the language for cross-chain communication, it will save a lot of costs in business integration and unlock deeper levels of cross-chain interoperability.

## Conclusion

We believe that the competition between LST protocols goes beyond just the base interest rate; it is a competition of composability.

LST assets integrated into more protocols will give holders more options for usage scenarios and higher yield earning opportunities. In the future multi-chain era, composability includes both on-chain and cross-chain composability, and an Omni-chain architecture undoubtedly brings superior cross-chain composability.

For LST protocols and all DeFi protocols, Omni-chain integration is the inevitable direction of development. Bifrost, as a pioneer of Omni-chain LST protocols, is undoubtedly at the forefront of paradigm iteration.

Omni-Chain Unveiled: What Sets Bifrost Apart From Other LST Protocols?

As blockchain technology evolves, interoperability has become essential to the ecosystem’s success. Polkadot’s parachain infrastructure allows for interoperability amongst different blockchain networks, and XCM (Cross-Chain Message) is the standardized messaging protocol that enables cross-chain communication.

In this article, we will explore the crucial role of XCM in Bifrost’s Liquid Staking Protocol and the recent upgrades in XCM v3 that have improved the speed and security Bifrost’s liquidity protocol.

## Why is XCM important for Parachains?

Polkadot Wiki explains this problem:

“One of Polkadot’s main functionalities is interoperability amongst parachains and any other participating consensus-driven systems. XCM is the language through which complex, cross-consensus interactions can occur. Two blockchains can “speak” XCM to seamlessly interact with each other using a standard messaging format.”- Polkadot Wiki Learn XCM

Parachains utilize a standardized messaging protocol, which allows for explicit and secure communication between chains, akin to Morse code. This communication format ensures mutual understanding while maintaining the accuracy and security of cross-chain information transmission.

## Why is XCM important for Bifrost?

Bifrost is a multi-chain liquid staking protocol that must communicate with other chains to perform operations such as staking, unstaking, switching validator/collator, and receiving execution messages back from those chains. Bifrost uses this method to ensure the original staked token reserves each liquid staking derivative.

Therefore, the logic above mainly relates to two operations using XCM:

Sending assets and messages to a destination chain.
Retrieving messages from a destination chain.
XCM V1-V2 mainly defined how to send messages, while the upgrade of XCM v3 adds message query functionality:query_respond.

Including the message query feature simplifies Bifrost’s ability to verify the message status sent to the other chain, streamlining the communication process.

## What protocol features did Bifrost upgrade using XCM v3?

### SALP - MultiSig Confirmation Service Removed

SALP (Slot Auction Liquidity Protocol) is the underlying runtime module of Liquid Crowdloans. It provides liquid crowdloan tokens for crowdloan contributors. To learn more about SALP, click here.

XCM V2 requires a multisig server to serve as a relayer between Bifrost and Polkadot, enabling the teleportation of event results. The server must inform Bifrost of the success or failure of the contribution, ensuring that the contribution fund reserves the liquid crowdloan token.

![0_ND-9qLpanu1Zu59O.png](https://cdn.bifrost.finance/cms/0_ND_9q_Lpanu1_Zu59_O_b063e8bdb6.png)

However, upgrading to XCM v3 eliminates the need for a multisig server. Instead, the XCM v3 query response replaces it, enabling Bifrost SALP to query Polkadot with a simple Yes or No answer.

![0_KfdnfF45H9Q7a0ov.png](https://cdn.bifrost.finance/cms/0_Kfdnf_F45_H9_Q7a0ov_9cfb092bf5.png)

## SLP - Message Confirmation Upgrade

Bifrost’s Staking Liquidity Protocol (SLP) utilizes a message-synchronized flow, which is more complex than the SALP approach. To learn more about SLP, click here. The price appreciated model of their liquid staking tokens needs regular monitoring to make accurate price adjustments. Find out more about this process in the Bifrost doc.

![0_gcwW6FUlXLIPyuFa.png](https://cdn.bifrost.finance/cms/0_gcw_W6_F_Ul_XLI_Pyu_Fa_8dcaad3b39.png)

## XCM Action - Transaction Confirmation

XCM Action pallet simplifies vToken minting with a cross-chain function, enabling users to expand the application of vToken liquidity to different chains. It also supports convenient swaps and liquidation for a broader application range.

The underlying logic of the XCM action allows users to initiate vToken minting on a target chain. Bifrost’s XCM action pallet simplifies asset transactions for users. It automatically transfers the asset to its platform, mints a vToken and then returns it to the target chain in an easy-to-manage form. Thus, the user does not need to bring their asset to Bifrost themselves.

![0_gcwW6FUlXLIPyuFa.png](https://cdn.bifrost.finance/cms/0_gcw_W6_F_Ul_XLI_Pyu_Fa_8b5df72a1b.png)

XCM v3 upgrades empower the action pallet to ensure all transaction details throughout the workflow are accessible and accurately confirmed.

## How Does XCM v3 Benefit Users?

The evolution of XCM mainly improves the speed and security of the Bifrost product. Users can receive vsTokens faster than ever and check their XCM transaction results under validated transactions rather than through a relayer.

Furthermore, XCM v3 enables more potential use cases between parachains, although, at this point, it only queries results. The Bifrost product will soon become more decentralized with the addition of upcoming features, such as the ability to query data from a pallet.

How the Upcoming XCM v3 Upgrade Improves Bifrost Protocol Security and Interoperability

Founder Vitalik Buterin celebrated the completion of an important milestone merger in Ethereum with a tweet on Twitter.

The industry’s much-anticipated Ethereum merger saw Ethereum transition from PoW to Pos. ETH will shift to a deflationary model following the Merge. Total token supply reduction will create deflationary pressure and have a continued positive price impact. The ETH issued will be paid to verifying nodes (i.e., those who have staked their ETH) to help secure the network. Not only will the reduced issuance make ETH a deflationary currency compared to the pre-merger period, but energy consumption will also reduce by ~99%.

We’ll analyze the relationship between staking finance and PoS mechanisms and the development of liquid staking to estimate the Ethereum merge impact.

# PoS & Staking

The PoS method is intrinsically tied to staking, as staking is used to reach and co-create consensus in the blockchain network. Validators use their native token holdings on the blockchain to aid in transaction validation via Staking. Verifiers receive compensation for correctly confirming blocks. Staking also maintains the security and stability of the PoS blockchain.

With Ethereum also opting for the PoS consensus mechanism and the increase in Staking behavior by crypto users, the pain points of Staking behavior become apparent. Staking assets are not available during the lock-in period, thus users bear the opportunity cost and market risk, and the ecosystem experiences inadequate asset liquidity. The crypto market’s demand for a Staking finance and related derivatives economy will grow, so the StakeFi track in the Ethereum ecosystem will become a crucial part of DeFi following the merger.

Before the merger, staking finance was developing, with numerous inventive projects in StakeFi gaining market practice and recognition by providing liquid staking. StakeFi growth lowered the threshold for participation in staking protocols, reducing the opportunity risk and asset lock period. Thus, users could unlock more potential from their staked assets.

After the switch to the PoS consensus mechanism, staking finance, especially liquid staking, will become a pivotal investment and a valuable area in the ecosystem.

# Merge & Liquid Staking

Liquid staking refers to the process in which users obtain liquidity by staking their assets. Investors mortgage tokens (such as ETH) into a certain protocol than the protocol mints the claim assets of the staked token. Staking reward is still attributed to liquid Staking derivative tokens, such as LP tokens of decentralized exchanges. Liquid derivative tokens enable unrestricted DeFi investments, allowing users to realize gains.

Messari’s statistics reveal the current market value of all staked tokens as ~$146 B, the total value locked in DeFi is ~$186 B, and the liquid staking protocol market size is $10.5 B. Messari estimates that liquid staking could see a significant wave of market growth as crypto networks such as Ethereum shift to a proof-of-stake (PoS) consensus mechanism. By 2025, it is expected that the annual reward of staking will reach $40B, and the liquid pledge penetration rate relative to the total reward will achieve an annual growth rate of 17%-40%.

At the same time, under the two-way promotion of the increase of liquid staking, the staking yield is expected to increase, because, after the merger, stakers may obtain transaction fees and reward from MEV (Miner Extractable Value), which is expected to improve the staking yield from about 4% to 6–12%. The higher yield will help attract more stakers into various liquidity pools.

The smooth development of liquid staking will be the driving force for the development of Ethernet under the PoS mechanism, improving network security and flexibility, deepening decentralization, enriching the application scenarios of the ecology, and opening new business models.

# Liquid Staking — Bifrost

A challenge for users is choosing a liquid staking protocol and product, given the proliferation of StakeFi in various ecosystems. Based on the method of staking as a division, there are four types of liquid staking: native, non-native, synthetic, and custodial. We’ll focus on custodial staking. Corresponding to custodial staking is non-custodial staking, the core of which is whether users have complete control over their assets. We can see the advantages of non-custodial staking from the following custodial/non-custodial staking comparison.

# Custodial Staking

Custodial staking is where the custodian involved in the staking issues tokenization of the staked assets, enabling the user to receive the staked proceeds while the custodian takes part in the Staking. It’s like contractual law, where the custodian holds the tokens on behalf of the stakee through an associated protocol. A crucial advantage of custodial staking is that it encapsulates the technical threshold of node construction and maintenance so that the average user does not have to bother with hard and software setup, Slash penalties, etc. Non-custodial staking means that users have control over their assets and staking reward, and jointly manage verification nodes with service providers through two keys.

Custodial staking is further broken down into full custodial and staking pools. In fully hosted, the custodian takes care of all node transactions. The user transfers the ETH participating in the staking to the custodian, who will manage and operate the validator nodes 100% for the user and share the staking rewards. While a fully managed user does not have to worry about the operation and maintenance of the validator node, the control of the assets and the custodian’s reputation during the staking period is unavoidable. A user may lose their staking reward and their principal amount in a risk situation.

Therefore, decentralized non-custodial staking can bring users greater asset freedom. Therefore, compared with the custody scheme, the non-custodial scheme has more advantages. After all, the control and ownership of the staked assets still belong to the user, which also reflects the essence of decentralization.

# Decentralized Staking Pools

Custodial and non-custodial staking are viewed from a centralised/decentralised perspective, with centralised fully custodial staking services in the form of common exchanges, notably CEX (e.g. Binance) and cloud wallets (e.g. Cobo), and decentralised, also known as non-custodial staking, divided into native self-built nodes, node-providing service providers, aggregated liquid stakings and pooled liquid stakings.

Closer to decentralization and more scalable: decentralized staking pools can control any percentage of the staking share in the network, avoiding the dominance of single staking, thus avoiding the problem of centralization.

Staking derivatives are de-trusted — they cannot be faked or forged. When the yield of liquid staking does not create a significant difference, a de-trusted and decentralized derivative token will be more in line with the choice of crypto users.

Reduced MEV withdrawal restrictions: Whereas centralized staking such as CEX would be more restricted by MEV withdrawals, decentralized staking pools could, in this space, give more of the MEV withdrawn with centralized staking pools to stakers, attracting more stakers.

# Choose Bifrost for liquid staking

Bifrost Finance is committed to StakeFi. We provide liquidity solutions and underlying protocols for staked assets. When ETH 2.0 beacon chain staking was launched in 2020, the liquidity derivative vETH was released to enable users to participate in ETH 2.0 beacon chain staking through the Bifrost Dapp channel. The staking derivative protocol from Bifrost is proven by the market and is user-friendly, easy to operate, liquidity free, and highly profitable.

Bifrost Finance’s successful Staking Liquidity Protocol (SLP) is a notable example of an exemplary liquidity staking protocol solutions. SLP is a fully decentralized Staking derivative forged through XCM broadcasts to invoke cross-chain Staking interoperability, thus solving the problem of conflicting revenues between the underlying consensus mechanism and the ecological application. The SLP protocol provides users with multiple benefits, including Staking liquidity and lowers the barrier to Staking participation.

In the grand scheme of Web3, the question of how to seize the opportunity in the age of Ethereum staking is a concrete question for users and investors. With the advent of staking finance, liquid staking and its liquid derivatives are bound to be a practical investment option. It is Bifrost’s drive and vision to continue to provide excellent investment returns and security to investors and to connect with the decentralized era.

# About Bifrost

Bifrost is a cross-chain network built on a substrate that gives liquidity to staked assets as staking derivatives. It is based on open-source platforms, primarily as a Polkadot parachain. Because of Bifrost’s cross-chain functionality, others can create integrations to enable staking on other PoS networks.

Bifrost offers vToken (Staking Derivatives Voucher Token) as a DeFi project in the Polkadot ecosystem, allowing users to exchange PoS tokens to vToken and gain liquidity and staking incentives via protocol at any moment.

ETH Staking to Unleash Liquid Staking Potential

Bifrost is a Web3 infrastructure that provides cross-chain liquidity for Staking. It provides a decentralized, cross-chain Liquid staking service for multiple chains through the Cross-Chain Message (XCM). Since Bifrost went live on the Kusama parachain on October 21, 2021, it has minted a total of $137M in derivatives, provided $11.04M in liquidity, held 81,297 addresses in the chain, and completed 333,921 signed transactions.

Looking at Bifrost’s 2022 Roadmap, this is only a tiny step in the less than six months since Bifrost’s parachain went live. The more significant challenge for Bifrost is to create and capture value from a cross-chain StakeFi ecosystem. You can see the value catch of this cross-chain StakeFi in the Staking Liquidity Protocol (SLP) and the Slot Auction Liquidity Protocol (SALP), two Staking derivative liquidity protocols launched by Bifrost.


# Staking Liquidity Protocol

## Reward Competition under PoS Consensus

SLP is Bifrost’s Staking derivative protocol for Proof-of-Stake consensus chains such as the Polkadot ecosystem, Cosmos ecosystem, and other chains that bridge heterogeneous chains. The protocol provides cross-chain Stake interoperability calls through XCM broadcast across the consensus message communication format to mint fully decentralized Staking derivatives.

Since PoS consensus Token can generate rewards through Staking, it will inevitably lead to the following situation: the rewards in DeFi, GameFi, LearnFi, and other applications deployed in the ecology will compete with the rewards of Staking at the bottom of the chain. It will bring significant challenges to the ecological application development of the PoS consensus chain. With the emergence of high market cap PoS consensus chains such as Ethereum 2.0, Polkadot, and Cosmos, the ecological development problems caused by this conflict will become increasingly severe.

## Indispensable middle layer

Bifrost SLP solves the conflict between the underlying consensus and the income of ecological applications by providing an intermediate layer of derivatives with interest. Eco-applications that support the SLP protocol can provide users with their business rewards while supplying them with Staking reward protection, enhancing the overall reward base. Users can indirectly participate in Staking by minting derivatives, lowering the threshold of user Staking participation. At the same time, the PoS consensus chain will get a higher staking ratio and improve the consensus security of the network.

Bifrost SLP is built on the XCM Cross-Chain Message format and can communicate with various parachains, contracts, and public chains across chains, enabling decentralized minting of derivatives. It also makes it easier to build the derivatives application scenario. Bifrost parachains will aggregate the derivatives process through cross-chain interoperability instead of scattering across different contracts in multiple chains, aggregating their liquidity and providing more competitive depth and slippage.

The validator set election process is completed by a standardized automatic strategy and the governance council, providing efficient, decentralized, and governable validator set election standards for various PoS consensus chains. Compared with Lido staking, which is currently the largest derivative of ETH 2.0, Bifrost’s advantages are mainly reflected in the cross-chain interoperability, liquidity aggregation, and governance standardization. As an indispensable intermediate layer for PoS consensus and its ecological application, Bifrost will capture value in staking reward generation, validator’s voting rights, and derivative liquidity fees.

# Slot Auction Liquidity Protocol

## Slot auction decisions and opportunity costs
SALP is Bifrost’s protocol for providing Polkadot and Kusama slot bidding derivatives. 9 Polkadot parachains and 11 Kusama parachains have been successfully bid on, with a total of 1,774,509 vsDOT and 174,667 vsKSM minted.

![9.png](https://cdn.bifrost.finance/cms/9_9d5ed86c32.png)

Polkadot leases security and cheapness to other parachain projects through slot auctions. It provides secure sharing and a set of cross-consensus message protocols for parachains to facilitate arbitrary message communication between parachains, relay chains, and external chains.

To enjoy this service, parachains need to provide a two-year DOT liquidity lock as a leasing fee. For liquidity and the scale of cold-start funds, parachains often pay community users the interest for this part of the locked DOT by distributing tokens.

Therefore, the slot auction forms a StakeFi economic model with a three-way game among Polkadot, parachains, and community users. Whether the tokens paid by parachain projects bidding for slots can outweigh the opportunity cost (price fluctuation, Staking revenue) lost from locked DOT becomes the key to whether community users can profit from slot bidding.

Therefore, the two-year opportunity cost is brought by locked DOT needs. It has to be decided at the moment of slot bidding, which brings a vast difficulty to the decision. The threshold decision also prevents a large number of new users from continuously participating in slot bidding. At this time, the question of reducing the difficulty of user decisions and lowering the opportunity cost of locked DOT has created a considerable demand and value.

## The new game of liquidity bonds

Community users can participate in the auction of slots for specified parachain projects through SALP. At the same time, DOT that initially needs to be locked for two years can be mint into vsDOT and vsBond with liquidity through SALP, where vsDOT is the redemption certificate for locked DOT and vsBond represents the time when the redemption certificate is opened for the redemption.

By combining vsDOT with vsBond at maturity, the DOT can be redeemed 1:1. In contrast, vsBond has a different discount due to its different maturity, representing the discounted gain paid to the liquidity provider. It creates a vsDOT bond market that satisfies both the arbitrage needs of the liquidity provider and the liquidity needs of the community users.

Based on current observations of the SALP protocol operation, the vsDOT two-year bonds are mint through slot bidding, of which the discounted annualized rate can reach up to 40%. At the same time, because the bond is fully reserved. There is no acceptance risk, a reliable, low-risk, sustainable, long-cycle return that is impressively compared to other DeFi projects of the same risk level. The source of reward comes from the Polkadot slot auction through SALP, which indirectly allows more funds to participate in this ecosystem of Polkadot slot auctions. As a bond market aggregation platform, Bifrost will capture value from discounting, liquidity, and acceptance cycles.


# Summary

According to the 2022 Roadmap, Bifrost will use SLP and SALP protocols to provide standardized cross-chain interest-bearing derivatives (vDOT, vETH, vFIL, vGLMR, vSOL, etc.) for Polkadot relay chains, parachains, and heterogeneous public chains bridged to Polkadot. It will lower the threshold of Staking for users, increase the ratio of multi-chain staking, improve the reward base of ecological applications, and create a positive cycle of StakeFi ecology with the empowerment of users, multiple chains, and eco-applications.


# What is Bifrost

Bifrost is a web3 derivatives protocol that provides decentralized cross-chain liquidity for staked assets. Leveraging the cross-chain message (XCM) can provide cross-chain liquid staking services for multiple chains.

Bifrost has raised over USD 2M from top-tier venture capital firms by NGC, SNZ, DFG, CMS, and other institutions. In addition to being an early receiver of a Web3 Foundation Grant, Bifrost is also a member of the Substrate Builders Program and the Web3 Bootcamp.


Bifrost is Building A Cross-Chain StakeFi Ecosystem

When Ethereum, the earliest smart contract platform, was born, most decentralized applications could only be deployed on Ethereum. With the flourishing of the public chain ecology and the development of L2s, applications have more choices.

# What are the conditions that give rise to omni-chain?

Firstly, applications can choose to deploy on a specific chain that suits their business needs. Each chain or Layer 2 solution has its unique mechanism design, with different degrees of decentralization, privacy, data availability, and other features, catering to the needs of various applications.

At the same time, user-friendly tools for creating chains have become more mature, enabling application developers to develop their chains and customize relevant features. A typical example is the DYDX protocol, deployed initially on Ethereum as a decentralized derivatives trading market. It has migrated to a separate Cosmos Zone to meet its throughput requirements better.

Secondly, applications can choose to deploy on various chains, allowing users on different chains to access the services provided by the application. This approach can expand the business scale and increase protocol revenue from the application’s perspective. An example is AAVE’s well-known lending protocol, which deployed its program on six chains.

However, the multi-chain landscape and the choices mentioned above for applications create fragmentation in the Web3 ecosystem, including user experience and liquidity fragmentation.

# What problem does omni-chain solve?

In many DeFi protocols, liquidity depth is integral to the core user experience. However, the same liquidity cannot exist simultaneously on multiple chains. When a DeFi protocol is deployed on a new chain, liquidity needs to be accumulated, which can reduce the overall efficiency of the protocol.

To address this issue, a new application paradigm is being explored — Omni-dApps. Omni-dApps are a novel way of building applications, where developers design the application as a whole with omni-chain interoperability as a prerequisite rather than simply replicating a single-chain application onto multiple chains.

Omni-dApps consist of different modules on different chains that are interoperable and form a complete application. Compared to multi-chain deployment, Omni-dApps can extend their reach to more chains, allowing users on various chains to access the program’s services without experiencing fragmentation in user experience or liquidity.

# What is the general architecture of omni-chain applications?

The architecture of an omni-chain application can be described as a “headquarters + branch” model. The main logic of the application is placed on one chain, like a “headquarters.” Then, a remote access module is provided on other chains to facilitate interaction with end users (receiving user input and outputting desired results), like individual “branches.”

![1_kEoGQ1A7ufgRjUSllqf0jw.webp](https://cdn.bifrost.finance/cms/1_k_Eo_GQ_1_A7ufg_Rj_U_Sllqf0jw_567ca4071a.webp)

After the branch receives user input, it passes the input across chains to the headquarters, where it is processed. The input result is then passed back across chains to the branch, which outputs it to the user. In some cases, different modules of the headquarters may be split across other chains, collectively forming virtual headquarters.

# What are the advantages of the omni-chain architecture?

Firstly, it is easy to scale. The main logic of the program is processed on one chain, and the application has a unified state record. When the branch module is deployed on a new chain, it can inherit all the state records and liquidity from the headquarters without reinventing the wheel.

Secondly, the user experience is better. Users do not need to worry about which chain the program is deployed on and can access the program from any branch, just like accessing a local program. They do not need to transfer assets back and forth, learn to operate on various blockchains or prepare multiple types of gas for transactions.

Thirdly, it is easy to integrate across chains. When other applications integrate with this program, they only need to connect with the headquarters to use all its functions and liquidity, rather than connecting with all branches separately.

In the table below, we compare omni-chain architecture with multi-chain deployment:

![1_dc3Ext6hY80Rlg0oMlAX0Q.webp](https://cdn.bifrost.finance/cms/1_dc3_Ext6h_Y80_Rlg0o_Ml_AX_0_Q_05c66666d8.webp)

# How Bifrost Implements Omni-Chain Architecture?

Omni-chain applications have high requirements for operability between chains. Currently, there are many issues with interoperability between heterogeneous chains, including the lack of a secure and reliable infrastructure and a common language for expressing intentions. However, the Polkadot ecosystem does not have these limitations:

- Polkadot’s shared security architecture and XCMP transmission protocol allow for secure information transfer between parachains, with security comparable to that of the relay chain’s consensus security.
- XCM provides a standardized language for message passing between parachains. When a user initiates a cross-chain request, the application can create clear statements to express the user’s intentions. This intention can be complex, with logic involving jumps between various parachains, but XCM can communicate and execute it.

As a pioneer of the Omni-chain LSD protocol, Bifrost chose to use a parachain to host the global state of the program and deployed the SLP module to support vToken minting and redemption. Additionally, Bifrost deployed the official liquidity pool for vTokens on this chain, which will serve as the “headquarters” module for omni-chain LSD.

We will first deploy “branch” modules on other parachains and, when infrastructure permits, on heterogeneous chains. Ultimately, users can mint, redeem, and exchange vTokens on any chain. It is worth noting that users will be able to mint, redeem, and exchange all vTokens on any chain, not just a specific vToken. For example, users can mint, redeem, and exchange vGLMR, vMOVR, vDOT, and vASTR on Moonbeam, not just vGLMR.

Furthermore, we expect other dApps on other chains to achieve deep integration with Bifrost by accessing remote modules rather than users directly using “branch” modules. For example, a lending protocol on a particular chain can automatically help users convert collateral into vTokens for a mortgage, thereby increasing user yield without additional operations.

# Conclusion

Omni-chain applications open up new possibilities for us as a new paradigm. In addition to the arbitrary chain minting, redemption, and exchange of LSD assets, we can imagine more scenarios:

- Users collateralize assets on Chain A and want to borrow on Chain B.
- Users provide Asset X on Chain X and want to exchange it for Asset Y on Chain B.
- Users exchange Asset X for Asset Y on Chain A but use the pool on Chain B.
- Users have assets on Chain A but want to use a mining application on Chain B.

Under the omni-chain architecture, applications can enable users to complete these operations without knowledge of the cross-chain process. When omni-chain applications become the mainstream paradigm for decentralized applications, application developers and users will experience unprecedented freedom in the blockchain world.


A New Paradigm of DeFi Applications: Analyzing the Bifrost Omni Chain Case

In the world of DeFi, Liquid Staking has surpassed decentralized exchanges (DEXs) to achieve the highest Total Value Locked (TVL). Liquid Staking Token (LST) protocols manage substantial assets, significantly impacting the security and functionality of their underlying Proof-of-Stake (PoS) chains.

[Bifrost's cross-chain architecture](https://bifrost.io/blog/a-deep-dive-into-crosschain-architecture-and-slpx) enhances the interoperability and efficiency of DeFi applications. However, effective cross-chain communication and seamless user experiences require a robust security framework. Bifrost addresses this need with a comprehensive security model that protects staked assets and maintains network integrity.

## Key Aspects of Bifrost's Security Model

### Polkadot's Shared Security

The Bifrost Polkadot and Bifrost Kusama chains are parachains of Polkadot and Kusama, respectively. **Their security and resistance to reorganization are protected by the relay chain**.

As widely known, Polkadot employs a shared architecture where [the relay chain](https://www.youtube.com/watch?v=Q9WnY82fGMo) randomly assigns validators to parachains and verifies their blocks. The blocks of the relay chain will include the blocks of the parachain, providing data availability for the parachains. This mechanism is the foundation of Polkadot's shared security.

Parachains do not require running validators, nor do they need to increase validator numbers to promote decentralization. Instead, they operate with a limited number of collator nodes. The role of collator nodes functions similarly to the Sequencer in Ethereum L2, which is responsible for collecting and ordering transactions in the parachains. The number of collators does not need to be excessive; it only needs to ensure network availability and make transactions less prone to censorship. Currently, the Bifrost Polkadot chain **has over 32 collator nodes**, which is more than sufficient to maintain robust network performance.

### Cross-chain Communication Based on XCMP and XCM

In Bifrost's cross-chain architecture, there's a significant involvement of cross-chain communication. The security of cross-chain bridges is a well-known challenge in the blockchain space. So, how does Bifrost ensure the security of cross-chain communication?
The answer lies in the cross-chain communication mechanism of Polkadot. Polkadot aims not only to create a platform for shared security but also to achieve seamless cross-chain interoperability. Polkadot accomplishes this through the Cross-Chain Message Passing (XCMP) protocol and the Cross-Consensus Message (XCM) format.

### How XCMP works:

- Cross-chain messages enter the Egress (exit queue) of the sending chain.
- Collators of the target chain collect these messages from the Egress of other chains and place them into their Ingress (entry queue).
- Messages are included in the relay chain's blocks and finalized, then executed by the target chain.

In summary, XCMP ensures fast, secure, ordered, and cost-effective cross-chain message delivery between Polkadot parachains.

![xcmp.png](https://cdn.bifrost.finance/cms/xcmp_3b3f203056.png)

When XCMP is used for communication between parachains, XCM is used to ensure that these chains can understand each other's messages and know how to execute them. Polkadot's vision for XCM extends beyond the cross-chain communication within Polkadot. It aims to be adopted by a broader range of heterogeneous blockchains. Therefore, it is named the Cross-Consensus Message format.

For a more in-depth interpretation of the operational mechanisms of XCMP and XCM, Bifrost provides detailed insights in this article: [How Bifrost Supports vMOVR and vGLMR Based on XCM](https://bifrost.io/blog/how-bifrost-supports-v-movr-and-v-glmr-based-on-xcm).

However, Bifrost also acknowledges that heterogeneous cross-chain infrastructure is currently not mature. Therefore, it has not opted for a radical approach to fully implement the cross-chain architecture but instead retained the SLP modules on Ethereum and Kusama. Nevertheless, as the cryptocurrency industry develops, secure and reliable heterogeneous cross-chain solutions are expected to emerge.

### Non-custodial Mechanism and Rigorously Audited Code

Bifrost adopts **a fully decentralized approach to manage staked assets**. All processes are completed through decentralized contracts or runtime, without any human intervention and the need to trust any third party, including the Bifrost development team.

![vdot.png](https://cdn.bifrost.finance/cms/vdot_5420aa1c6e.png)

Furthermore, Bifrost's on-chain code is open source, allowing for public scrutiny and vulnerability reporting. [The code has been rigorously audited](https://docs.bifrost.io/resources/audit-report) by multiple security firms, including Beosin, Slowmist, and TokenInsight.  Since its inception in 2019, Bifrost has maintained a flawless security record, demonstrating its resilience in terms of code security.

### Secure Validator Set and Slash Protection

Apart from the risks of intentional misconduct and code vulnerabilities, users' staked assets may also face the risk of slashing. Staked assets essentially serve as collateral for running nodes. If a node engages in improper behavior that disrupts the network, a portion or all of the malicious node's staked funds may be slashed by the network.

An LST protocol that selects validators irresponsibly can expose LST asset holders to slashing losses, which could manifest as a decrease in the exchange rate between LST and the original token.

To minimize users' exposure to slashing losses, Bifrost has implemented several measures:

- **Rigorous Validator Selection:** Bifrost evaluates validators not only based on profitability but also by considering factors such as **the node's leverage ratio (self-staking ratio) and historical credibility**. Detailed criteria and methods for selecting validators will be discussed in the next chapter.
- **Proactive Node Switching:** In the event of a slashing risk, Bifrost can **immediately switch nodes to prevent further losses**, a capability that individual stakers typically lack.
- **[vToken Vault](https://docs.bifrost.io/tokenomics/bnc#slash-insurance-fund):** Bifrost has established an insurance pool called the vToken Vault, allocating 5% of the protocol's income to it. If slashing occurs, this pool compensates users for their losses. If no slashing occurs, the amount in the vToken Vault accumulates over time. The more funds accumulated, the stronger the compensation capability.

For a more detailed explanation of how Bifrost distributes, mitigates, and compensates for slashing risks, refer to [How Bifrost provides an insurance mechanism for vToken holders against the Slash risk](https://bifrost.io/blog/how-bifrost-provides-an-insurance-mechanism-for-v-token-holders-against-the-slash-risk).

## Conclusion

Bifrost's security model is a testament to its commitment to protecting staked assets and ensuring the reliability of its network. By leveraging Polkadot's shared security, implementing a non-custodial approach, conducting rigorous code audits, and establishing robust slash protection mechanisms, Bifrost provides a secure environment for DeFi activities.

Unlocking the Potential - Chapter 3: An Overview of Bifrost’s Security Model

在 DeFi 世界中，LST 已然超越 DEX，成为 TVL 最大的 DeFi 应用类目。LST 协议中托管着大量的资产，对于某些头部 LST 应用，其托管的资产量甚至对其所在的 PoS 链都有着举足轻重的影响。因此，LST 协议的安全是一个重要的命题。

[Bifrost 的跨链架构](https://bifrost.io/zh-CN/blog/article-11)增强了 DeFi 应用的互操作性和效率，但有效的跨链通信和丝滑的用户体验离不开安全框架的支持。Bifrost 设计了全面的安全模型，致力于保护质押资产安全和维护网络的完整性。

Bifrost 协议的安全性来源于以下几个方面：

## 波卡的共享安全性设计

Bifrost Polkadot 链和 Bifrost Kusama 链分别是 Polkadot 的平行链和 Kusama 的平行链，它们的**安全性和抗重组性是由中继链保护的**。

众多周知，波卡的本质是分片架构，中继链为平行链随机分配验证人，并验证他们的区块，中继链的区块会包含平行链的 Egress 中收集发向中继链的跨链消息，为平行链提供数据可用性。这就是共享安全性的来源。

平行链不需要运行验证器，也不需要考虑如何增加验证器的数量，促进其去中心化。只需要运营有限数量的收集者（Collator）节点即可。收集者节点的角色，类似于以太坊 L2 中的 Sequencer，它负责收集和排序平行链中的交易。收集者的数量不需要太多，只需要能够保证网络的可用性，且让交易不容易被审查即可。Bifrost Polkadot 链目前的**收集者数量已经超过 32 个**，绰绰有余。

## 基于 XCMP 和 XCM 的跨链通讯

Bifrost 所采用的全链架构中，涉及到大量的跨链通讯。众所周知，跨链桥的安全性是一个备受挑战的命题。那 Bifrost 如何保证跨链通讯的安全呢？

这就要提到波卡的跨链通讯机制。波卡要创建的不仅是一个共享安全性的平台，而且要在共享安全性的基础上，实现无缝的跨链互操作。波卡通过跨链消息传输协议 XCMP 和跨共识消息格式 XCM 来实现这一点。

在 XCMP 中，每一条跨链消息，都要首先进入发出链的 Egress（出口序列）中，目标链的收集者则会从其他平行链的 Egress 中收集发向自己的跨链消息，并放进自己的 Ingress（入口序列），当这些消息被包含到中继链的区块，并形成最终确定性，目标链才会更新 Ingress 中的消息状态为已验证，并执行它。总之 XCMP 可以保证波卡平行链之间进行快速、安全、有序、廉价的跨链消息传递。

![xcmp.png](https://cdn.bifrost.finance/cms/xcmp_3b3f203056.png)

如果说 XCMP 用于平行链之间的通讯，XCM 则用于保证平行链之间能够相互理解彼此的消息，并知道如何执行它。波卡对 XCM 的期待，不只是成为波卡内部的跨链通讯语言，也希望它能够被更广泛的异构区块链采用，因此它被命名为跨共识消息格式。

在这篇文章中，Bifrost 对 XCMP 和 XCM 的运行机制有着更加深入的解读：
《[以 vMOVR/vGLMR 为例，读懂基于 XCM 的跨链通信](https://bifrost.io/zh-CN/blog/v-movr-v-glmr-xcm)》

但 Bifrost 也意识到，异构跨链基础设施，目前尚不成熟，所以并没有激进的选择全面实践全链架构，而是保留了 Etherrum 和 Kusama 上的 SLP 模块。但随着加密行业的发展，安全可靠的异构跨链解决方案一定会出现在我们眼前。

## 非托管的机制与严格审计的代码

Bifrost 采用**完全去中心化的方式来管理质押资产**，所有过程均通过去中心化的合约或是 runtime 完成，没有人为干预的因素，也无需信任任何第三方，包括 Bifrost 开发团队。

![vdot.png](https://cdn.bifrost.finance/cms/vdot_5420aa1c6e.png)

此外，Bifrost 的所有链上代码都是开源的，任何人都可以发现和报告漏洞。事实上，Bifrost 的代码已经经过了 Beosin、Slowmist、TokenInsight [多家安全公司的多轮审计](https://docs.bifrost.io/resources/audit-report)，且 Bifrost 从 2019年项目启动开始，从未出现任何代码安全方面的问题，在代码安全方面已经久经考验。

## 安全的验证者集与 Slash 保护

排除掉人为作恶风险和代码漏洞风险，用户的质押资产可能还会面临 Slash 风险。质押资产本质上是运行节点的保证金，当节点存在破坏网络的不当行为时，网络将会 Slash 掉恶意节点的部分或全部质押资金。

如果 LST 协议在选择验证器时“所托非人”，那么就可能会让 LST 资产持有者承受 Slash 损失，具体会体现为 LST 与原 Token 的汇率下降。

为了尽可能让用户免受 Slash 损失，Bifrost 采取了很多措施：

1. 在选择验证人时，除了评估收益率之外，也会**评估节点的杠杆率（自抵押率）、历史信用**。关于 Bifrost 如何选择验证人，我们还会在后文中进一步解释；
2. 一旦发生 Slash 风险，Bifrost 将**立即切换节点，防止损失扩大**，这是个人质押者无法做到的；
3. Bifrost 设置了一个保险池，称为 [vToken Vault](https://docs.bifrost.io/tokenomics/bnc#slash-insurance-fund)，Bifrost 协议的收入会有 5% 进入 vToken Vault。如果发生 Slash，将启用该池对用户的损失进行赔付，如果不发生 Slash ，随着时间的延续， vToken Vault 中的金额会一直累积，累计越多，意味着赔付能力越强。

关于 Bifrost 如何分摊、降低和补偿 Slash 风险，可以查看我们之前的文章：《[面对 Slash 风险， Bifrost 如何为 vToken 持有者提供保险机制](https://bifrost.io/zh-CN/blog/slash-bifrost-v-token)》

Bifrost 的安全模型致力于保护用户资产和确保其网络可靠性。通过利用 Polkadot 的共享安全、实施非托管方法、进行严格的代码审计以及建立强大的 Slash 保护机制，Bifrost 为 DeFi 活动提供了一个安全的环境。


Bifrost：探索全链 Liquid Staking 的前景与多维增长空间（续2）

## Governance and Neutrality of Bifrost Protocol

After removing the sudo keys in September 2021, Bifrost adopted a tricameral governance system based on Polkadot Gov1.0. Following Polkadot's transition from Gov 1.0 to OpenGov, Bifrost has completed its own governance upgrade. It now employs fully decentralized governance through [OpenGov](https://bifrost.subsquare.io/referenda), **allowing $BNC and $vBNC holders to participate in decision-making via referendum proposals**.

Customizing the principles and mechanisms of Polkadot OpenGov, Bifrost has tailored and customized its governance to fit its business needs. This customization is mainly reflected in the establishment of 8 tracks that are highly relevant to Bifrost's operations. For more details, please read [Bifrost Governance Tracks](https://docs.bifrost.io/governance/opengov-tracks).

## How Does Bifrost Elect Validators For vTokens?

First and foremost, to maintain neutrality, Bifrost does not run its own nodes. All validator sets for vTokens are elected through governance voting. Among the 8 governance tracks, the most commonly used one is for the election of validator sets.

The validator set for vTokens is divided into two parts: the Validator White List (VWL) and the Validator Boost List (VBL). The VWL is created based on a set of clear evaluation criteria and confirmed through referendum proposals. The VBL consists of nodes that apply proactively and are approved by community voting. The SLP protocol will only delegate staked assets to nodes listed in these two lists.

![vtoken validator election.jpeg](https://cdn.bifrost.finance/cms/vtoken_validator_election_e5164dc8a2.jpeg)

### Validator Whitelist List

VWL validators are scored according to the defined scoring rules. Validators with a score above the threshold will automatically obtain the VWL qualification without actively applying.

The main factors that affect the score include:

- **Validator decentralization**: The geographic and jurisdictional distribution of the node set should be relatively balanced and diverse.
- **Validator reputation** include the central information of the validator under the chain, the duration of the validator, the number and period of the validator’s disconnection, etc.
- **Security risk**: Our model will consider the number and severity of Slash in the validator history
- **Validator leverage ratio**: When we allocate voting rights, we will consider the self-delegate amount of the validator to avoid excessive leverage of the validator (referring to the proportion of the validator self-delegating in the total delegation);
- **Yield**: Including the historical income performance of the validator and the Staking income commission ratio provided to the client.

Based on these factors, Bifrost periodically evaluates and selects eligible validator sets, which are then confirmed through referendums.

### Validator Boost List

The VBL is reserved for nodes that provide additional value. Nodes can apply to the Bifrost community through governance proposals. Once a referendum is passed, the node can officially enter the VBL. We expect VBL validators to provide added value to the SLP protocol or vToken holders to **promote the long-term development of the protocol**. The value provided can be in any of the following forms:

- Provide liquidity for vToken / Token trading pairs
- Provide exposure and user promoting opportunities, or promote user education and guidance, and increase vToken minting volume.
- Facilitate the integration of vTokens in DeFi applications
- Provide other forms of benefits to vToken holders

For more details on the selection of the SLP node set, you can refer to this article:[VET - Validator Election Track Based on Bifrost OpenGov for The Multichain](https://bifrost.io/blog/vet-validator-election-track-based-on-bifrost-open-gov-for-the-multichain)

## How Does Bifrost Maintain Neutrality?

Bifrost maintains neutrality by avoiding interference with the chain’s governance. This ensures decentralized decision-making remains intact, empowering the community to control the protocol. This neutrality is evident in the following forms:

**Decentralization in Validator Elections**

When electing validator sets, Bifrost considers the decentralization factor. This is not only for its own security but also to minimize its impact on the distribution of validators within the PoS chain. The validator elections are voted on by token holders, ensuring full decentralization of the selection process.

**Governance Participation**

![bifrost governance.jpeg](https://cdn.bifrost.finance/cms/bifrost_governance_b0e3b14326.jpeg)

An important right for token holders is participating in governance. For instance, holding or staking DOT allows users to participate in the governance of Polkadot through OpenGov. 

When users delegate their DOT to Bifrost through liquid staking, Bifrost indirectly captures a portion of these governance rights. However, Bifrost fully returns these governance rights to stakers through the [vToken voting mechanism](https://app.bifrost.io/vstaking/vDOT?tab=governance). Both vDOT and vKSM holders can use their vTokens to participate in the governance of [Polkadot](https://app.bifrost.io/vstaking/vDOT?tab=governance) and [Kusama](https://app.bifrost.io/vstaking/vKSM?tab=governance). This is a unique approach not seen in other liquid staking protocols.

The principle behind the vToken voting mechanism is that when holders use their vTokens to vote, the vToken governance module maps these votes using the staking tokens in the pool. Currently, this mechanism is implemented with vDOT and vKSM.

## Conclusion

Bifrost's commitment to maintaining protocol neutrality is evident through its comprehensive and decentralized governance framework. By transitioning from Polkadot Gov1.0 to OpenGov, Bifrost empowers $BNC and $vBNC holders to actively participate in decision-making via referendum proposals. This ensures that the community retains control over the protocol, fostering a truly decentralized environment.

Bifrost's neutrality is further emphasized in its approach to validator elections for vTokens. **By not running its own nodes and relying on governance voting to elect validator sets, Bifrost minimizes its influence and promotes a fair, balanced selection process**. The Validator White List (VWL) and Validator Boost List (VBL) ensure that only qualified nodes are selected based on rigorous criteria, maintaining the integrity and security of the network.

Additionally, Bifrost's unique vToken voting mechanism allows token holders to participate in governance, distinguishing it from other liquid staking protocols. This mechanism ensures that governance rights are fully returned to stakers, reinforcing Bifrost's commitment to neutrality.

In summary, Bifrost's meticulous governance structure, fair validator election process, and innovative voting mechanisms collectively uphold its status as a neutral and equitable LST protocol. These efforts ensure that the community remains at the heart of Bifrost's operations, fostering a decentralized and transparent ecosystem.

Unlocking the Potential - Chapter 4: How Bifrost Maintain its Protocol Neutrality

自从 2021 年 9 月删除 Sudo 以后， Bifrost 就开始采用波卡 Gov1.0 的三院制来治理。随着波卡的治理由 Gov1.0 过渡到 OpenGov，Bifrost 的治理也同步完成了升级。目前，Bifrost 已经实现了基于 OpenGov 的完全的去中心化治理，**任何对协议的治理决策都将通过公投提案来进行**。

BNC 和 vBNC 的持有者都可以参与治理投票。

基于 Polkadot OpenGov 的理念和机制，Bifrost 结合自己的业务做了调整和适配，主要体现为设置了 8 条跟 Bifrost 业务高度相关的轨道。

详请可以查看 [OpenGov 轨道](https://docs.bifrost.io/governance/opengov-tracks) 文档。

## 如何选举 vToken 的验证人集？

首先，为了保持中立性，Bifrost 不运行自己的节点，所有 vToken 的验证者集都是通过治理投票产生。在 8 条治理轨道中，最常用的一条，就是验证者集的选举。

vToken 的验证者集分为两个部分，分别是 Validator White List（VWL）和 Validator Boost List（VBL），前者将根据一套明确的节点评选规则产生，并经公投提案确认；后者则由节点主动申请，社区投票批准产生。SLP 协议只会把质押资产委托给这两个 List 中的节点。

![vtoken validator election.jpeg](https://cdn.bifrost.finance/cms/vtoken_validator_election_e5164dc8a2.jpeg)

对于 VWL，影响评分的主要因素包括三个方面：

- **收益率**，即节点能为质押者提供的收益率
- **安全性**，主要考量节点的历史信用和杠杆率（自抵押率）
- **去中心化因子**，节点集在地理位置和司法辖区的分布上要相对均衡和多元化

根据以上因素，Bifrost 会定期评选符合条件的验证者集，并通过公投来确认。

VBL 是为提供附加价值的节点专设的席位名额，节点可以通过治理提案，主动向 Bifrost 社区提出申请。公投通过后，节点可正式进入 VBL 名单。

关于 SLP 节点集选择的更多细节，可以阅读 [Bifrost 基于 Polkadot 治理 2.0 的多链验证人选举机制](https://bifrost.finance/zh-CN/blog/vet-bifrost-polkadot-2-0)。

## Bifrost 如何保持中立？

作为一个中立的 LST 协议，Bifrost 并不希望干预 PoS 链本身的治理。

在选举验证者集时，Bifrost 将去中心化因子考虑在其中，不只是出于自身安全的考虑，也是在试图降低自身对 PoS 链本身的验证者分布的影响。

![bifrost governance.jpeg](https://cdn.bifrost.finance/cms/bifrost_governance_b0e3b14326.jpeg)

另外，值得注意的是，参与治理是用户持有代币的一个重要权益，以 DOT 为例，持有 DOT 或者 Staking DOT 都可以参与到 Polkadot OpenGov 的治理中。BIfrost 收集到用户委托的 DOT，变相地捕获了这部分治理权益。但 Bifrost 选择通过 vToken Voting 机制，允许 vToken 持有者来参与治理，将治理权益归还给了质押者，这是大多数竞品不曾去做的事情。

其原理是 vToken 持有者在使用 vToken 参与投票时，vToken Goverance 模块会使用池中的 Staking 代币进行映射投票（目前 vDOT 已采用该机制）。

## 总结

在流动性质押这个新兴的领域，实现系统的去中心化治理是非常复杂的，但 Bifrost 通过引入 OpenGov 和 vToken Voting 机制，**将治理权益归还给质押者，让利益相关者能够积极参与治理投票**，以更透明有效的方式推动 Bifrost 生态的发展。

Bifrost：探索全链 Liquid Staking 的前景与多维增长空间（续3）

## 代币经济

Bifrost Native Coin (BNC) 是 Bifrost 协议的治理代币，也是 Bifrost Polkadot 链和 Bifrost Kusama 链的 Gas 代币。

BNC 的持有者可以通过提案、投票参与 Bifrost 链及 Bifrost 协议的治理，包括修改协议参数、审批财库支出、决定新功能的上线等。后续，我们将赋予 vBNC 治理权，和其它 vToken Voting 机制保持一致。

BNC 代币的**总供应量为 80,000,000 枚，无增发机制**。

此外，Bifrost 即将推出全新的代币经济模型——BNC 2.0，旨在创建一个可持续且具有吸引力的经济模型。新的经济框架将引入[协议收入共享机制](https://x.com/0xBifrostCN/status/1813515157622104236)，不仅增强了 BNC 的效用和价值，还将使 BNC 成为生息资产。通过这些机制，长期持有者能获得公平的收入分配。

关于 BNC 新经济模型，预计不久将按计划公布，敬请期待！

## 应用场景

vToken 具有较高的基础收益率，可以在一个统一的流动性池中随时交易，可以通过点对点匹配快速赎回，还拥有治理权继承等一系列优越特性。

但随着 LST 赛道的发展，LST 协议之间的竞争已经超越了基础特性层面的竞争，而是生态层面的竞争。归根结底，要看 LST 协议能为用户提供多高的叠加收益率，以及能否提供满足不同风险偏好的组合收益策略。

基于这一点，Bifrost 在 Dapp 上为每类型的 vToken 专设了应用场景页面：

![usecase.png](https://cdn.bifrost.finance/cms/usecase_84d4fd3ebb.png)

在这个页面，Bifrost 为 vToken 聚合了各类应用场景，并在 Earn 类目中提供了丰富的组合收益策略库，满足 Yield Maximers 的需要。

在 LST 的组合收益策略中，有一类不容忽视的策略，那便是杠杆质押。杠杆质押的本质是用户将 LST 协议与借贷协议组合使用，在承受更高清算风险的基础上，放大 Staking 收益。为了满足杠杆质押的需要，Bifrost 开发了杠杆质押产品 [Loop Stake](https://app.bifrost.io/vstaking/vDOT?tab=loopstake)，支持用户最高设置 **4 倍杠杆**。

杠杆质押需要用到借贷池的流动性，Loop Stake 将保持开放，力求聚合全链流动性，为用户提供最优的借贷利率。借助波卡的 XCM 消息和 Bifrost 的全链架构设计，Loop Stake 可以远程调用任何其他平行链上借贷池流动性，例如可以远程使用 Interlay Lend 和 Hydradx Omnipool 中的 DOT/vDOT 借贷池。但考虑到杠杆质押的业务量上升是一个过程，在 Loop Stake 产品上线初期，Loop Stake 目前采取的方案是在 Bifrost 本地创建一个借贷池提供借贷流动性，后续会逐渐扩展。

![loopstake.png](https://cdn.bifrost.finance/cms/loopstake_f411e576a2.png)

在 DeFi 领域，我们看到一个明确的发展趋势，就是“Farming as a service”会流行起来。在这个趋势下，DeFi 协议将不只是提供单一的收益来源，而是为用户提供一系列组合收益策略，使得用户有多种方案可以一键获得多重收益。这种模式将简化用户的操作，也为用户提供了更高的资本效率和更灵活的选择。Loop Stake 是一个开始，后续，Bifrost 将推出更多组合收益策略产品，进一步拓展 vToken 持有者的选择范围。

更多信息请阅读《[Bifrost 推出新产品 Loop Stake，实现多倍 Staking 收益率](https://bifrost.io/zh-CN/blog/bifrost-loop-stake-staking)》