1. Could you please define SLP? And what are the services provided?
Tyrone: SLP is Bifrost’s Staking Liquidity Protocol, which provides high yield liquidity Token for Staking Token. SLP protocol aims to solve the liquidity problem of a large number of 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 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.
Experience vKSM on https://bifrost.app/vstaking
2. So we’re seeing vKSM on the screen and from your answer, so what is vToken? What can users get if they hold vKSM?
Tyrone: 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 Staking principal and future Staking rewards, and can be redeemed at any time using vKSM. As each user stakes for a different period of time, the accumulated Staking reward per KSM varies. vKSM is designed to be a Fungible Token that can be split to better meet the needs of multiple users.
Here are several core benefits by using vKSM:
- Liquid Staking
The product allows users to stake KSM for liquid vToken, (vKSM). vKSM will continue to receive staking rewards and can continue to be used in Bifrost and Kusama-based DeFi for additional rewards. - Automatically capture Staking rewards without scenario limitations
SLP will issue Staking rewards to vKSM by adjusting the price of vKSM/KSM upwards. vKSM Rate = Staking Total KSM / vKSM Total Issuance. - Floating redemption period, vKSM redemption ≤ 7 days
While Kusama’s original chain Staking has a fixed 7-day redemption period, Bifrost SLP helps users to 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. - Higher Staking Yield, Node Intelligence Screening
In the SLP protocol, the protocol screens more than 10 verified nodes through governance (subsequently increasing with the overall staking volume) and 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.
3. Thank you Tyrone for making it clear for our members about the benefits of vToken (eg vKSM)! Can you guide us to mint and redeem vKSM?
Tyrone: Go to https://bifrost.app/vstaking/vKSM for vKSM minting, and also redeem at any time you want.
Step 1: Cross chain KSM from Kusama to Bifrost
Step 2: Mint vKSM
Step 3: Check your Staking portfolio
Step 4: Redeem
4. Can you tell us what are the future application scenarios of vKSM?
Tyrone: In the near future, there are several milestones will come up with vKSM:
Short-term: vKSM will first open up a liquidity minting and farming pool on Zenlink and then cross-chain to Moonriver as xcvKSM, which can be used in Moonriver EVM protocols.
Mid-term: xcvKSM board on Moonwell for borrowing and landing, vKSM being a collateral asset to mint aUSD. Bifrost will deploy smart contracts on Moonriver and Shiden, vKSM can be minted on EVM applications.
5. What is the next step for the Bifrost team?
Tyrone: In the following steps, we will push vToken to vMOVR, vBNC, vFIL, vPHA and more, we will keep focusing on building TVL in Substrate parachains and integrate with more external blockchain protocols for business expansion.
In the live questions section, Tyrone did answer several short questions from our community.
1. Is your project only for elite investors, how about others with small funds, is it open to everyone?
Tyrone: For sure, every step we develop on the Bifrost interface is for greater user’s experience.
2. According to the project’s roadmap- what are your most important next priorities?
Tyrone: Stay tuned, next step is vMOVR.
3. I read that Bifrost differs from its competitors, in that it uses the Staking and the DeFi application layer that work in parallel with each other, but what is really better that they work that way? just a higher transaction speed and better liquidity? or really this small change in development can provide big changes?
Tyrone: Awesome question! I have to say the liquid stating products are similar, the only advantage can be reflected on small feathers, which may attract more users. For example, vKSM has a floating redeem period, less than 7 days. That’s a specific feature for vKSM, and that’s important.
4. Zenlink was officially launched on Bifrost (Module) and Moonriver (EVM) on November 3, how did you first consider integrating the Zenlink DEX Module into Bifrost and how does the deployment of Module differ from EVM?
Tyrone: We are doing the dual environment utilities, pallets are deeper than EVM, layer0 and layer1.
5. Will there be a bridge between Moonriver and Bifrost so that you can exchange your MOVR for BNC and similar bridges? Since the coins of the new parachains are not so easy to buy and there are few exchanges where they can be bought. Thanks for the answer!
Tyrone: Thanks for the question, yes for sure, we’ve established the hemp cross chain channel with Moonriver, you can bidirectional cross BNC or MOVR on both sides now. More DEX will open the pair soon.
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.
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PolkaWarriors AMA Recap | What can we do with SLP protocol 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.
