Recap of PromoTeam AMA session with Product Manager of Bifrost -
Vlady Limes: Today we have here very interesting person and very cool guest Bifrost project. Bifrost is a base DeFi protocol on Polkadot ecosystem. Bifrost creates a system for collateralized assets and liquidity. Now we have crowdloans and Bifrost is very active about it and trying to win 4th-5th slot amongst other competitors.
- Hello, Tyrone! Welcome to our chat.
Tyrone: - Hello, everyone. My name is Tyrone and I’m listening to you, guys.
Vlady Limes: First question from me. We all see a battle between Bifrost and other projects for 4th slot of parachain. Could you tell us about your plans to win in next two weeks in crowdloan.
Tyrone: I feel Bifrost is planning to get a first of five of Kusama slot auction and now our strategy is to use a sweet mail KSM to attract hundred or thousand of Kusama and to cut the portion last is actually are based to get a parachain. And for now on we can see that a parachain is very stimulating a parachains projects and we planning to expose the 4th parachain slot as we planned. And now you can see that Kusama main job which is a product about Bifrost is releasing a lot things but something afforts which means it use all of us need to be a parachain and access need to be locked and wait. In sphere often we using wormhole that they can get liquidity through Bifrost and which means parachains swapped this through unbounding area. We can get liquidity from it. Last of advantages of Bifrost that incentive users they can get 1 Kusama you can say after beginning and that not only he can get. Today we have a big news for you. That’s bring you can get a 200 % reward from us, which means if you a gonna be first one of 200. That’s 11 KSM commit in they now and in additional you can get the 5 % of concluding reward and at this stage we’re bubbling the reward and you limitation also will bubble too. So, this is the all option probably now.
Vlady Limes: What is the place and role of your product in the Kusama ecosystem? Am I correct in understanding that the main task will be to help projects planning to take over the parachain slot? How will you be useful directly to the ecosystem?
Tyrone: That’s incredible question. That a question Bifrost will led in ecosystem. All of you full ecosystem of right there is to be the diffract protocol to prove our secondly place assets. And Bifrost is to realize staking gravity assets you can’t evenly understand basic assets for the ecosystem like synthetix in the Ethereum. We also provide it, derivatives will use this and it can be easily use for different protocol like Acala, Liebe and another like Tinlake. We create it to provide liquidity to the swap pool and Ethereum liquidity mining. And the next feature after we go to the parachain that the single route to the Bifrost ecosystem.
Vlady Limes: The very first bridge that was created by Bifrost was a bridge with EOS, do you plan to support this bridge and will there be any design of new bridges?
Tyrone: Yeah. The EOS bridge from the beginning is actually a technical grant we applied from WEB3 foundation. This was first grant we applied for and the second grant for DEFI protocol to release liquidity from Kusama bridge bounding and actually applying hold after EOS bridge last the double way bridge. You can transfer assets to EOS and bring them back to Polkadot and Kusama, but for now we actually not focused on this bridge. Instead we focused on the diffract protocol development and we will used a bridge Darwinia and other bridges project that provide professionally service from Kusama to Ethereum. EOS bridge will be also use in the future and, of course, we develop well by now. You know that situation in EOS is not that quite as we imagine in the Kusama. Well this bridge will be using in the future.
Vlady Limes: What will be the value of the BNC token? That is, what will be its practical application and will it be in any way related to minting V-tokens (wrapped)?
Tyrone: The utility of BNC is closely related to V-token which is the operative of Bifrost and the other is one the governance mechanism same as other project. The third one is voting of community for example like a treasury for developers of, maybe, a smart contract in Bifrost to suppose small dapps and to reward them with small grant. This utility will be a value application I can see in future.
Vlady Limes: Projects that have only recently entered the market have problems with ensuring liquidity, what is your plan for resolving this issue?
Tyrone: Okay. The reason why Bifrost chose to use a parachain is we choose to use mechanism of Polkadot and develop on Substrate which means we can use modules of Substrate framework it can be integrated with different parachains and it can share their security of ecosystem. So, for us the liquidity actually aggregated by different projects and what we want next is to aggregate different protocols chain liquidity by providing SLP which is slow option liquidity protocol. And to survey different project of Kusama auction and to aggregate different derivative for different projects to be a deeply liquidity pool. That we’ll be a resolve of liquidity problem.
Vlady Limes: Let’s dream a little and move 2 years forward, tell us about the Bifrost of the future.
Tyrone: That’s tighten with how development of Polkadot and Kusama ecosystem. In our imagination last roadmap Polkadot ecosystem will finish and complete the development of XMP protocol which means we can easily communicate with other projects. On another hand we can bridge up with different bridges like Darwinia and we can bridge up another chains like Polygon and maybe Avalanche, Ethereum, different ecosystem and bring them back to Polkadot ecosystem that will be huge. Actually huge staking on derivative market for two years. By now we have Ethereum 2.0 to staking liquidity which accumulating about 600 million dollars market value and which will be out perform of market cap of developing value of Polkadot ecosystem and bring the Ethereum value back to Polkadot value.
Vlady Limes: One of Bifrost’s competitors in the Polkadot ecosystem is Stafi. What are the competitive features of your platform and what problems would you like to solve in the first place?
Tyrone: That’s a frequently asked question for Bifrost. For Stafi they actually develop smart contract for staking liquidity for different ecosystem. The problem if they hacked when you use product of Stafi. They will takes fee for several times. One is all intern on Ethereum and another one is smart contract fee and the third one is transaction fee from their main node to Polkadot an fourth one is Polkadot fee. The fees that bring them back to the main node. You can see that’s a complicating routing from main node to Polkadot and bring it back for Stafi. Bifrost by won’t a use smart contract to provide liquidity in Polkadot instead this we using a parachain. It can be easily done in this relay chain Polkadot and the other hand only using smart contract that can provide two of third market value derivatives for use this. The cost of value exceed the two of third of Ethereum that will be harmed Ethereum consensus security. That’s gonna be a bit problem for they if you asked me. For Bifrost this is not existing problem because we use a parachain well secured, well hard protected. We don’t harmed, we don’t care about value cap of existing market.
Vlady Limes: Can your project exist without Polkadot/Kusama ecosystem?
Tyrone: Yeah. We can be a separate but that will be a very complicated to achieve, because we need to maintain consensus mechanism that will be highly cost for actually people think, to maintain a consensus mechanism well at least 40–60% people think and to put 80% energy in it to maintain the mechanism. For Bifrost we use Substrate just to focus on DeFi business. That will be very convenience for projects who wants to focusing on one thing and to one business more deeper.
Vlady Limes: What is your strategy if Bifrost will not be able to get a slot in first five slots in Kusama?
Tyrone: Well, if we not get the first five of parachain, we will actually gain for a next five parachains, which is staked to tend parachains. Of course, we will put all energy and progressing to get first five, but if we lose it, debonding will be actually a rebond and unstake we use and take it out and put it back to use this and crowdloan again for the next parachains. If we lose the first five, we keep running for the next five. That’s the answer.
Vlady Limes: Tell us about Vtoken. When is the listing planned and what will its task to be? If it is possible in more detail about vsKSM / vsBOND?How to use?
Tyrone: Ok. For listing it literally a long way after we accumulate enough liquidity on that, on decentralize usecases. Firstly we will establish pool with a link to provide liquidity for vsKSM and vKSM maybe vsBOND and vBOND. That will be a main derivative by now and probably all liquidity will first aim the half of parachain. Then if we accumulate enough liquidity, they will be listed in centralize exchanges.
Vlady Limes: And what about vsKSM and vsBOND?
Tyrone: After you bound wKSM for Bifrost and different parachains, after Bifrost host the project you can get vsKSM and vsBOND. This vsKSM is a utility token, which mean you can trade or buy it on the market and it fun, but during the bonding pure cost this will count to buy or sell it. Of course, this buy or sell it on the marker. So, you can get it, you can buy discount Kusama. Maybe you can buy 18% discount Kusama from the market, but instead of you maybe have to pay 18% cost to sell vsKSM. So, this is opposite aspect of buyer or seller on the market and for this bonded asset premium of launched token. That we will create market in or up and you can to do depending market to list your bond and how many you want to sell. Like a NFT market and if anybody want to buy it, they will have vsBOND and vsBOND well represent the percent reward to it after the parachain auction.
Vlady Limes: Is there a 51% protection against an attack, in the case of the popularity of KSM liquidation.
Tyrone: I can explain that concept from two aspect. First one is from consensus mechanism of Polkadot. The Polkadot will have to share their security for parachain projects and for 51% percent attack it turn appear, but the POS work for Polkadot. In future will released about 1000 validators to you have literally no have chains to 51% attack. I thought the POS ask of attack it will be the two sort of attack. If you have two sort of validators you can attack from the home network.
The second point is Bifrost itself we’re have to share security and it’s actually very secured mechanism for Bifrost. And another hand if someone can control enough liquidity of Kusama maybe they will have control the feeding pool of derivative, but we also design actlivity like hack and slash for users, because for every users when they want to buy Kusama they are use this. Instead of it someone we name it biter. The biter is a usual who wants to buy this world and uses and unstaking of validators. This role will have to flash access to be slash security for the ecosystem of Bifrost. So, they will have also a sourcehood of BNC they need to staking and also they can get a gold of thought of Kusama for them. If they do anything that harmed security, they will be slash all they token. So, the mechanism is likely the post chain and Polkadot mechanism.
Vlady Limes: There is such a problem in liquidity pools as “volatile loss”. What solutions does your project have in dealing with “fickle loss”
Tyrone: We were use actually Curve or the AMM liquidity pool. You know the Curve V.2 on Ethereum we are using their dynamic curve to issue that volatile loss. Can be literally minimum to almost disappear. So, we will actually use the similar as the Curve v.2. They will be develop by Zenlink and we integrating with AMM with Zenlink also. They will lead that loss not to much percent. The users can also set their liquidity cost control, maybe a, for example, 1 percent. 0.1 percent, 0,01 percent. Users have to control the loss by themselves.
Vlady Limes: Many people wishing to lock KSM in favor of any of the projects chose Bifrost, not least because, in addition to BNC tokens, the project will distribute liquid wrapped vKSM instead of locked ones. Can you tell us in more detail what are the conditions of this collateral, commissions, terms and mechanism for returning vKSM, etc.?
Tyrone: The mechanism of vsKSM is a we received the users bonding and we transfer this users bonding to multisig account and we transfer the multisig account’s asset to crowdloan account. So, you can see this a vsKSM job warpage so, that’s a actually a tentatively strategy by now, when we haven’t been a parachain. After we have a parachain, we will use a Kusama Substrate pallet to achieve this procedure. Instead we create a proxy account for a parachain and we received to use this bounding to passing this proxy account and contribute to a parachain who allowed us to create this proxy account. And after the unbounding of the bounding assets, this assets will be transport to a proxy account and automatically get back to users. That’s the routine.
Vlady Limes: Tyrone, thank you very much for you time, for this conference call. We wish you good luck for fourth slot of parachain.
Yeah. Thank you. I’m back again. Thank for translation. Thank your audience and actually for pushing us to be a parachain, we’ll expect to be a forth parachain and good luck.
Good buy, everybody. Thank you very much