Authors: Tyrone, Thibault
This proposal aims to add Bifrost vDOT (liquid staking DOT) on Moonbeam, prepare for two use cases:
- Pushing the integration of xcvDOT& xcvGLMR XCM stake/unstake SDK (Bifrost XCM-action SDK) on Moonbeam, it is convenient for users to mint Substrate Native LSTs directly in Moonbeam EVM applications.
- Bifrost will deploy the Omni LSD Dapp on Moonbeam for easy user interaction.
- Deploy xcvDOT, xcvGLMR and xcvFIL liquidity on Moonbeam DEXs.
xcvDOT cross-in Moonbase:
xcvDOT cross-out Moonbase:
xcvGLMR cross-in Moonbase:
xcvGLMR cross-out Moonbase:
xcFIL cross-in Moonbase:
xcFIL cross-out Moonbase: Subscan | Aggregate Substrate ecological network high-precision Web3 explorer
xcvFIL cross-in Moonbase:
xcvFIL cross-out Moonbase: Subscan | Aggregate Substrate ecological network high-precision Web3 explorer
Bifrost (https://bifrost.finance) is a substrate based Kusama and Polkadot parachain that provides non custodial decentralised cross-chain liquid tokens for staked assets. By leveraging on Polkadots cross-consensus message format (XCM) it provides standardised cross-chain liquid staking services for various networks notably Polkadot (vDOT), Kusama (vKSM) and the first LST solutions on both Moonbeam (vGLMR), Moonriver (vMOVR) as well as other multiple chains (currently 6+ chains).
Bifrost is currently one of the largest liquid staking protocols on Polkadot with a current total TVL of $38M. vDOT, Bifrost liquid LST for staked DOT was launched in late May of 2022, and there is already around $4M TVL of DOT staked with Bifrost. vGLMR, the first parachain-liquid staking derivative in Polkadot ecosystem launched in late Nov of 2022, which has accumulated over 5M GLMR staked with Bifrost.
Recently, Bifrost had implemented XCM V3, improved the underlying logic of vTokens (SLP Pallet). Learn more details here.
Bifrost App: https://bifrost.app/
Check Bifrost LST statistics at here.
Benefits for Moonbeam ecosystem
- Protocol Owned Liquidity (POL) : Provide more liquidity for staked DOT, FIL and GLMR, promote the capital utilization of DOT, FIL and GLMR in various DeFi scenarios and applications leveraging Polkadots’ XCM.
- Drive the enthusiasm and interest of more DOT, FIL and GLMR holders to participate in staking and benefit from the capital efficiency and liquidity benefits of holding these LSTs vs. native staking.
- Support the growth of the protocols building natively in Moonbeam and Polkadot by integrating xcvDOT, xcvFIL and xcvGLMR and driving utility and usecases within their ecosystems.
What are the differences between Bifrost LSTs “vTokens” and Lido?
The Bifrost parachain pallet natively executes Substrate runtime logics to stake and mint LSTs, thus Bifrost vTokens are easily crossed to other parachains via XCM, these Substrate LSTs’ are supported by Polkadot parachain consensus thus ensuring security.
As vTokens can be crossed chain via XCM, Bifrost is finalising a vToken XCM mintable Pallet which is called the “XCM-action Pallet”. It services other parachains to call this pallet via XCM and mint vTokens, this Pallet then will automatically send vTokens back via XCM to the destination chain’s caller address (the caller address is LST user). Therefore, Bifrost will deploy an XCM-action contract and UI on Moonbeam, to be directly interacted by any Moonbeam applications to support vToken mint & redeem on Moonbeam.
In addition, we are trying to test if this pallet could facilitate cross-chain liquidation for vDOT/DOT and vDOTs use cases in various DeFi protocols (i.e. Lending/Borrowing) on Substrate and EVM parachains.
Read detailed logic about how XCM-action works (we are currently co-testing with Astar): Notion – The all-in-one workspace for your notes, tasks, wikis, and databases.
While Moonbeam’s original chain Staking has a fixed 28 rounds (about 168 hours) revoking period, Bifrost SLP helps users to realize the possibility of early vGLMR redemption by matching the real-time GLMR staked order unstaked order, and form a fast-redeem queue.
In the capture above, the green line shows there are no other unstaked orders above me, which means if there is any new GLMR stake with Bifrost, my unstaking order will be fulfilled in the first place.