Authors: Tyrone, Thibault
Summary
This proposal aims to add Bifrost vASTR (liquid staking ASTR) and vMANTA (liquid staking MANTA) on Moonbeam, prepare for two use cases:
- Pushing the integration of 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.
- Add vASTR and vMANTA in Omni LSD Dapp on Moonbeam for easy user interaction.
- Deploy xcvASTR and xcvMANTA liquidity on Moonbeam DEXs.
Test on Moonbase
xcvASTR cross-in Moonbase:
xcvASTR cross-out Moonbase:
xcvMANTA cross-in Moonbase:
xcvMANTA cross-out Moonbase:
Protocol Description
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 $88M. vDOT, Bifrost liquid LST for staked DOT was launched in late May of 2022, and there is already around $32M 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.
Motivation
Benefits for Moonbeam ecosystem
- Protocol Owned Liquidity (POL) : Provide more liquidity for staked ASTR and MANTA, promote the capital utilization of these assets in various DeFi scenarios and applications leveraging Polkadots’ XCM.
- Drive the enthusiasm and interest of more ASTR and MANTA 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 xcvASTR and xcvMANTA, 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 had published a vToken XCM mintable Pallet which is called the “SLPx 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 had deployed SLPx contract and omni chain dapp on Moonbeam, to be directly interacted by any Moonbeam applications to support vToken mint & redeem on Moonbeam.
In addition, we built a XCM vToken exchange rate price feed oracle for all vTokens, which could facilitate cross-chain liquidation for vTokens and the use cases in various DeFi protocols (i.e. Lending/Borrowing) on Substrate and EVM parachains.
Read detailed logic about how XCM-action works: https://docs.bifrost.finance/builders/liquid-staking-x-slpx/overview
Bifrost LSTs Risk Declaration
Staking Liquidity Pallet (SLP) is the core module to execute all transactions for underlying staking via the XCM and mint liquid staking Token (vToken) to users. Thus, a SLP vToken security instruction might help to understand the vToken reserve risk and protocol security. Please check all the details at: Staking Liquidity Protocol (SLP) vtoken security.pdf - Google Drive
Links & References
- Website : https://bifrost.finance
- Documentation : https://wiki.bifrost.finance/
- Github Page : Bifrost · GitHub
- Communities : Discord ; Twitter
