PolkaWarriors AMA Recap | SLP protocol essentials
- Could you please define SLP? Furthermore, what are the services provided?
Tyrone: SLP is Bifrost’s Staking Liquidity Protocol, which provides high yield liquidity for a Staking Token. SLP protocol aims to solve the liquidity problem of many staked Tokens, 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 resources for 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.
Learn more about vKSM here: https://bifrost.app/vstaking
2. Therefore, we see vKSM on the screen and from the previous answer. Then comes the question: 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 using vKSM. As each user stakes for a different period, the accumulated Staking reward per KSM varies. vKSM is designed to be a Fungible Token that can be split to meet the needs of multiple users better.
Here are several core benefits of 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 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
The SLP protocol screens more than 10 verified nodes through the governance (subsequently increasing with the overall staking volume). It also 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 to our members about the benefits of vToken (e.g. vKSM)! Can you guide us on how to mint and redeem vKSM?
Tyrone: Simply 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 the future application scenarios of vKSM are?
Tyrone: Shortly, 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.
Midterm: xcvKSM board on Moonwell for borrowing and lending, 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, etc. We will keep focusing on building TVL in Substrate parachains and integrating 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: Every step we develop on the Bifrost interface is for a more significant user experience.
2. According to the project’s roadmap — what are the following essential priorities?
Tyrone: Stay tuned, the next step is vMOVR.
3. I have read that Bifrost differs from its competitors in that it uses the Staking and the DeFi application layer that works in parallel with each other, but what is better that they work that way? Is this just a higher transaction speed and better liquidity, or can this small development change make significant changes?
Tyrone: Awesome question! I have to say, the liquid stacking products are similar. The only advantage can be reflected in small feathers, which may attract more users. For example, vKSM has less than a 7-day floating redeem period. That is a specific feature for vKSM, and that is 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 Module’s deployment 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, we have established the cross-chain channel with Moonriver. You can use 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-consensus message (XCM) 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. Furthermore, by aggregating over 80% of PoS consensus chains’ staking liquidity through cross-chain derivatives, our protocol lowers users’ staking threshold, increases the multichain 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 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.