As Bifrost’s Staking Liquidity Protocol (SLP) launches today, Bifrost eliminates the staking/dapp dilemma for KSM holders and increases Kusama’s security by issuing liquid derivatives for assets staked.
Singapore, May 12, 2022 (GLOBE NEWSWIRE) — Bifrost has just announced its Staking Liquidity Protocol (SLP) is now live on Bifrost’s Kusama parachian allowing cross-chain liquidity staking within the Kusama ecosystem. Minting vKSM through staking KSM (1:1) within the Bifrost ecosystem, allows users to have full control of their asset, a low staking threshold, and yield higher staking rewards, all whilst being able to use vKSM on various Dotsama parachains for DeFi, and Dapps. This quarter Bifrost plans to integrate SLP into the entire Kusama ecosystem to offer liquid staking not only to the relay chain but also the parachains and heterogeneous public chains bridged to Kusama.
Our mission is to provide liquid staking to over 80% of PoS chains and I am thrilled to know we are on track to fulfilling our roadmap. I believe Polkadot and cross-chain Stake-Fi are the future of secure and reward-yielding crypto and I am excited to see Bifrost be a part of this shift. – said Lurpis Wang, the cofounder of Bifrost.
Since launching on the 5th Kusama Parachain last year, Bifrost original parachain bidding for derivatives solution minted 137M in derivatives, providing over USD 11 million in liquidity and having held 81,297 wallet addresses that concluded over 300K signed transactions. SLP is the next step Bifrost is taking to encourage liquid stalking within the Polkadot ecosystem and establish it as a standard practice on PoS chains.
The importance of liquidity staking
Liquidity staking is a win-win situation for both: the PoS protocol and asset holders. From a protocol perspective, there is a competition within the ecosystem for user assets to be used for either staking or DeFi applications. Asset holders can choose to participate in the security verification of Kusama network as a validator and nominator. This reduces the amount of assets staked for governance within the PoS protocol, which might compromise security of the entire ecosystem. At the same time, asset holders are sometimes hesitant to stake as they don’t want to commit to locking their tokens and losing out on opportunities of using those assets on Dapps.
The SLP protocol allows users to swap their KSM for vKSM. The liquid vKSM staking rewards are yielded per each KSM token staked with rewards being redeemable during any point in time, while vKSM can be used in Bifrost and Kusama-based DeFi as KSM for all trading actions. Such a mechanism incentivises the user to stake the asset as the opportunity cost of locking up the tokens is removed and staking rewards are generated. On the protocol level, liquid staking fully eliminates the competition between staking and DeFi applications within the ecosystem, enhancing the security of the protocol as more tokens are staked for governance. It’s a win-win situation for all.
The Future of SLP
Q2 will see Bifrost implement SLP within the entire Kusama ecosystem not only for Bifrost and the relay chain but also for the parachain and public heterogeneous PoS chains bridged. Bifrost’s current crowdloan will secure a Polkadot parachain slot achieved the soft cap of 300k DOT in under a week. Once Bifrost migrates to Polkadot, it will implement SLP within the Polkadot ecosystem to make isomorphic chain liquid derivatives available across all Dotsama chains by the end of Q3 2022.
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. By aggregating over 80% of PoS consensus chains’ staking liquidity through cross-chain derivatives, lowers users’ staking threshold, increases 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 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 recipient of a Web3 Foundation Grant, Bifrost is also a member of the Substrate Builders Program and the Web3 Bootcamp.
For any media inquiries to Bifrost, please contact [email protected]
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