Introduction
One of the newest unique features from StormSwap is the Bifrost Stake. It has some key differences compared to other protocols mechanism, and in this article we are going to go through how it works and how we architect Bifrost and BFX.
StormBreaker
StormSwap has a 0.3% fee, where 0.25% is earned by liquidity providers and 0.05% goes to StormBreaker. StormBreaker is a smart contract that receives LP tokens, and has a function called convert, which can be called by any address. This function converts tokens received from StormSwap fees to STORM and sends to the Bifrost.
Storm? BFX? Why?
STORM is the governance token of StormSwap’s protocol, which works as an incentive for our liquidity providers to keep their stake on StormSwap and gives them votes to decide future enhancements. BFX is a liquidity token that represent an address stake in STORM in the Bifrost. Users that hold BFX have the right of x amount of STORM tokens in the Bifrost and keep their stake increasing as StormBreaker sends STORMs to Bifrost’s contract. BFX is a BEP20 token, so users can send and swap it normally.
How The Bifrost Works
Bifrost is the smart contract receiving STORMs from fees. BFX is the BEP20 liquidity token that users earn when locking STORM in The Bifrost. However, users can only stake their STORM tokens to receive BFX or unlock their STORM tokens when Bifrost is opened. By default, Bifrost opens once every 4 days (starting on next Wednesday 1PM UTC) and stay in an open state for 24 hours. After that, it is closed and lock STORMs in the contract until next opening, so no one can stake more STORMs to earn extra fees from StormSwap neither unlock their Tokens back to STORM. The 4 days gap between each Bifrost opening can be increased or decreased through future governance and time lock contracts.
BFX/STORM POOL
BFX holders that still want to get STORM, or STORM holders who want to join the Bifrost to earn fees but it is in a closed period can swap their tokens using the incentivised BFX/STORM liquidity pool. Liquidity providers in that pool earn 3x more STORM rewards besides the swap fees. In a nutshell, everyone is still able to use BFX/STORM pool as a secondary market for their BFX or to join Bifrost any time.
