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.
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.
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.
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.
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:
Based on the extractable data of vToken, developers can explore more statistical dimensions according to user needs.
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.
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
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.
