SALP Polkadot goes live, vsDOT to migrate to Bifrost Polkadot Parachain
Polkadot SALP migrates to Bifrost Polkadot parachain
On August 12, 2022, Bifrost initiated a proposal to transfer BNC across chains from Bifrost Kusama to Bifrost Polkadot. At present, Bifrost has successfully completed the first cross-chain transfer of BNC between Kusama and Polkadot parachains. Bifrost Dapp has already supported the Polkadot network. Users can switch between Bifrost Kusama or Bifrost Polkadot network in the upper right corner of Bifrost Dapp to manage common assets on the two parachains.
BNC is the common native token of both the Bifrost Kusama Parachain and the Bifrost Polkadot Parachain. As a prelude to the normal operation of the Bifrost Polkadot Parachain and the launch of the cross-chain bridge, BNC is now transferred from the Bifrost Kusama Parachain to the Bifrost Polkadot Parachain by way of a pre-cross-chain Polkadot Parachain. According to the latest Bifrost roadmap, the assets of the Bifrost ecosystem will be interconnected across the two parachains via the Kusama <> Polkadot cross-chain bridge.
In the article What’s the difference between cross-chain and transfer on bifrost.app?, we explained in detail how users can transfer and manage cross-chain assets. BNC is the “horn” that begins to realize the interconnection between Kusama and Polkadot. The Polkadot SALP protocol and related assets will also be migrated to the Bifrost Polkadot parachain.
Before clarifying how the transfer of the Polkadot SALP protocol to the Bifrost Polkadot Parachain will benefit investors, let’s take a look at the excellent data performance and high user acceptance of the SALP protocol since its launch, through its 2.0 launch, to today. For those who are new to the Polkadot SALP protocol, we also take a look at the advantages and benefits of SALP, the first slot auction liquidity protocol.
The first Slot Auction Liquidity Protocol — SALP
SALP (Slot Auction Liquidity Protocol) is the first slot auction liquidity protocol launched by Bifrost. By generating staking derivatives, the liquidity of KSM and DOT locked by users participating in the parachain slot Crowdloan is released. For users, SALP will significantly improve the utilization rate of users’ funds, while reducing the opportunity cost and profit risk of users’ lock-in funds when participating in crowdloan; for project parties, SALP increases the possibility of successful bidding; In terms of Polkadot ecology, SALP can release liquidity, enable DOT/KSM to gain more gameplay, promote more investment behaviors, and create more income and value.
Participating in crowdloan through SALP will obtain two derivatives, namely vsDOT/vsKSM (Voucher Slot Token) and vsBond (Voucher Slot Bond). vsDOT/vsKSM is the Fungible Token of DOT/KSM locked against the benchmark; vsBond is determined based on the supported auction projects. If users contribute for Parachain A, they will get vsBond — Parachian A, and contribute for Parachain B will get vsBond-Parachain B, in particular, vsBond-Parachian A and vsBond-Parachain B are not homogeneous here.
The reason for the design of vsToken and vs Bond is the promotion of liquidity by homogenized derivatives. Due to the marketing of many non-homogenization factors, derivatives cannot be completely homogenized. Homogeneous derivatives will pool liquidity from different parachain crowdloans, forming a huge liquidity advantage. Therefore, Bifrost starts with the Token attribute of participating in crowdloan, decouples its asset attribute and equity attribute, and designs vsToken and vsBond.
Since the launch of the SALP slot liquidity protocol, the vsToken series has successfully launched derivatives such as vsKSM and vsDOT, successfully participated in the Kusama slot auction, and entered Kusama as a parallel link. So far, a total of 43 ecological partners have participated in the auction, of which 40 were successful.
The latest on-chain data shows that 2,193,826 vsDOT and 81,148 vsKSM are currently minted through the SALP protocol. vsKSM TVL up to $1,790,000. And these data all reflect the remarkable achievements and positive effects of the SALP protocol in releasing liquidity, assisting project auctions, facilitating user market behavior, and reducing opportunity costs.
What will SALP migration bring？
The operating principle of the Polkadot SALP protocol before the migration is as follows: if the user uses the KSM he owns to participate in Crowdloan through the SALP protocol, and requests to generate vsKSM. This request will be executed via the XCM-UMP transact, and this Crowdloan contribution event on the Kusama relay chain will be confirmed by the Subql Multisig node and the result will be sent back to the Bifrost parachain. Bifrost SALP will receive the results and generate derivatives vsKSM for the user.
When the Polkadot SALP protocol is transferred to the Bifrost Polkadot parachain, the migrated Polkadot SALP will abandon the multi-signature contribution, but will be completely run by the parachain Runtime, and the cross-chain Crowdloan contribution event of DOT will be confirmed directly through XCM and sent to the user. Generate and send vsToken or vsBond.
The specific migration steps are: After the runtime upgrades the vsBondAuction.createOrder() method, the DOT-related vsBond is no longer supported, and the Kusama parachain will cancel all orders in the dot vsbond order. At the same time, Dapp will disable the order function of vsbond dot, and the Kusama parachain will also disable all DOT-related vsBond and vsDOT transfer functions, as well as the Refund & redeem function of SALP-Lite.
There are two points worth explaining to our users. The first is that after the migration is completed, the corresponding users on the Polkadot Bifrost chain do not have BNC. For the convenience of users, Bifrost will airdrop 0.05 BNC as the initial transaction fee or the subsequent redeem fee after vsBond expires.
Secondly, users of vs Bond are reminded that all orders in the vsBond marketplace have been cancelled through governance due to vsDOT migration requirements and that the vsBond(DOT) pending order channel has been closed. vsBond(KSM) pending orders are still available and can be reopened for users who require them.
From the technical bottom layer and operating principle, the migrated SALP protocol will be more decentralized and more in line with the establishment of a decentralized community and ecology based on blockchain. From the perspective of user perception and product, when the Polkadot SALP protocol is transferred to the Bifrost Polkadot parachain, what impact will it have on investors who already hold vsToken or vsBond? As users, what do we need to do?
Our community users and investors do not need to do anything and the transfer of the Polkadot SALP protocol will not have any impact on assets. The existing vsToken and vsBond-Polkadot on the parachain will be migrated to the Polkadot parachain as well.
An interconnected multi-chain future
Since the launch of XCM in May, there are countless examples of applications. Bifrost has completed the cross-chain transfer of BNC between the Kusama and Polkadot parachains, and is about to complete the transfer of the Polkadot SALP protocol to the Bifrost Polkadot parachain. Asset transfer and co-management between parachains are only preliminary preparations. More chains will be connected in the future. vsToken and vsBond will become common cross-chain assets with more application scenarios and investment portfolios.
After the limitations of technology are slowly removed, multi-chains and cross-chains will cover the entire ecology and the future of interoperability and interconnectivity is on the horizon, a multi-chain future that belongs to users and decentralised communities.