Polkadot Parachain slot auction has always been an important liquidity release scenario. Bifrost has included the development of slot auction derivatives of parachain in roadmap since the launch of the auction. In September 2021, Bifrost launched the first slot auction liquidity release protocol of Polkadot Ecology — SALP. Since then, SALP has been put into practice since helping Bifrost to bid itself. So far, SALP has helped 14 projects successfully get parachain slots. By releasing liquidity for contributors, SALP can win supporters who are unwilling to lose opportunity cost for parachain candidate projects, and significantly improve the success rate of bidding.
With the maturity of SALP and the normalization of slot auction, we now encourage parachain candidate projects to self connect SALP to increase the odds of winning the auction. This paper will explain the process of self-service docking, including access application process, front-end page integration process, incentive activity process around SALP, etc.
Basic logic of SALP
SALP will create an intermediate account for each supported parachain candidate project, which will be responsible for collecting the user’s contribution and sending it to the slot auction lock account on the relay chain instead of the user. At present, there are two versions of SALP, which run on Kusama and Polkadot respectively. The former is the official version, and the intermediate account is the only account allocated by the relay chain for Bifrost parachain (Bifrost has auctioned the fifth slot of Kusama to become Kusama parachain on July 20, 2021). The latter is the Lite version, and the intermediate account is a multi signature escrow account controlled by multiple parties on the relay chain.
For more technical implementation information:
SALP:https://hackmd.io/7gf6E-btT52WKnpIwCKM9w
SALPLite :https://hackmd.io/MdL7i30wSyOmAhe0cTcHuw
By contributing to parachain candidate projects through the SALP channel, derivatives vsToken (vsKSM or vsDOT) and vsBond will be obtained: vsToken is a fungible token that those who contribute 1 KSM / DOT will obtain 1 vsKSM / vsDOT, and vsToken can be traded or transferred at any time like other fungible tokens. vsBond is a semi fungible token. If you contribute 1 KSM / DOT, you will get 1 vsBond. vsBond represents the lease term of different parachains. Therefore, different vsBonds are obtained by contributing to different parachains.
vsToken and vsBond can redeem DOT / KSM after the slot lease expires. Meanwhile, vsToken can be traded in DEX; vsBond will be able to trade through a specific order book market. Bifrost has built several flow pools of vsToken and will build a special trading market for vsbond. In addition, holding vsToken and vsBond can also participate in mining and obtain income (see the SALP mining section below for details).
Both vsKSM / vsDOT and vsToken can be realized at any time, which eliminates the user’s concern that the funds are occupied and the opportunity cost is lost after the position is locked. Therefore, the parachain project connected to SALP protocol will be easier to succeed in bidding.
Here are more about vsToken and vsBond.
How to apply for SALP support?
SALP access applications need to be voted through Bifrost governance, which usually takes 9 days to complete the whole process. Please refer to the operation guide below.
1. Visit Bifrost governance voting page
https://polkadot.js.org/apps/?rpc=wss%3A%2F%2Fbifrost-rpc.liebi.com%2Fws#/democracy
2. Click Submit preimage
3. Fill in parameters
1. Select or enter your Bifrost address in the Send from account column ( the balance of at least 100 $BNC must be pre deposited );
2. In the Proposal column, select “salp” or “salpLite” from the order menu on the left (salp for bidding Kusama slot and salpLite for bidding Polkadot slot), and then select “create a new crowdload fund” from the drop-down menu on the right;
3. Enter your parachain ID (paraID);
4 . Enter the maximum number of KSM / DOT you want to raise, that is, the Crowdloan hardtop value. The subsequent BNC is regarded as KSM / DOT, regardless;
5&6. Enter the start and end time of the slot lease you want to auction
7. The system will generate a preimage hash. Please copy and save it properly
8. Click Submit preimage to submit the application
4. Submit proposal
In the previous step, we completed the Submit preimage. Next, we need to click Submit proposal in the upper right corner to open the following interface
1. Paste the preimage hash you just copied in the preimage hash column
2 . Locked balance enter 100, which means you will deposit 100 $BNC, which will be returned after the governance vote (whether passed or not).
3. Click submit proposal
5.Waiting for governance voting results
If the governance vote is passed, your SALP fund pool will be created, and your project will appear on the contribution list page in Bifrost dapp :
The governance voting process takes about 9 days to complete. Due to the fluctuation of the blocking speed of the substrate chain, the specific voting completion time may be slightly shorter or longer than 9 days.
How to integrate SALP on Crowdloan page?
Please refer to Kusama and Polkadot SALP API : https://hackmd.io/erri6l3ESP690XEDC_zTnw
How are parachain crowdfunding rewards issued?
Since SALP performs contribution through Bifrost parachain address (excluding private key), the address runs completely under SALP tray logic: https://github.com/bifrost-finance/bifrost/tree/develop/pallets/salp
Therefore, we cannot directly allocate crowdfunding rewards for the project.
What is SALP Farming?
Each parachain candidate project supported by Bifrost will be able to create a mining reward pool for contributors. Contributors will mine through lock-in vsKSM & vsBond to obtain funds in the reward pool. Candidates only need to do two steps:
- Create a prize pool on Bifrost
- Fill the reward fund into the reward pool
To see more details about How to create a prize pool.
Marketing support
As the core of Bifrost’s liquidity business for slot auction, the SALP module has accumulated 170,815 个 KSM & 1,589,600 DOT derivatives since its launch in September, with a market value of about US $80,554,425.
For supported projects, we will draft partnership announcement and post them on Twitter、Telegram、Bifrost Forum and Medium.
If required by the partners, Bifrost will also provide them with Crowdcast AMA to introduce and explain the crowdloan rules of the cooperation project to Bifrost community. After AMA, the video will be uploaded to Bifrost Youtube, and then re publicized on Twitter, Telegraph and Discord. To see more Bifrost crowdcast videos AMA: https://www.crowdcast.io/bifrost-finance
What is Bifrost?
Bifrost is the Polkadot Ecological DeFi basic protocol. It is committed to becoming an infrastructure for staked assets to provide liquidity. Bifrost has launched derivatives vToken for Staking and Polkadot Parachain Slot (Crowdloan). It has obtained $2.15M fundraising from NGC, SNZ, DFG, CMS, Web3 Foundation Grant, and other institutions. Bifrost is also a member of the Substrate Builders Program and a Web3 Bootcamp.
vToken can optimize transactions in multiple scenarios such as DeFi, DApp, DEX, CEX, and realize the transfer channel of stake rights such as staking and Crowdloan through vToken. Moreover, it can recognize the risk hedging of stake assets and expand scenarios such as vToken as collateral for lending. Its staking reward part can be offset to achieve low-interest loans.
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Governance｜How to Launch a SALP Parachain Registration Proposal to Unlock Slot Bidding Liquidity was originally published in Bifrost — DeFi for PoS. Staking and Liquidity. on Medium, where people are continuing the conversation by highlighting and responding to this story.
