On July 05, Bifrost’s representative participated in PolkaWarriors AMA to introduce Bifrost - A parachain designed for staking's liquidity as well as reveal their plan for the parachain auction.
Bifrost is a Polkadot Ecosystem DeFi infrastructure protocol that aims to become an infrastructure for providing Staking liquidity, and currently offers a derivative vToken for Staking and Polkadot Lease Offering (PLO).
This AMA was held in PolkaWarriors Global Telegram Group with the participation of Lurpis - CEO/ Co-Founder of Bifrost. Many interesting questions about their product, roadmap and plans for Kusama parachain slot auction were answered.
Below is a summary of the outstanding questions and answers from the AMA session.
1. Launching projects in a bull run is obviously much profitable than during the bear cycle. In a bear run where most of the projects fail and sometimes gone into oblivion, how will Bifrost stand the test of times? What strategies do the project employ to mitigate possible losses?
Bifrost is a sustainable profitable project, because vToken is a derivative asset issued for staking. According to the whitepaper, Bifrost will withdraw 10% of the staking commission as the funds for the repurchase of BNC and the source of income for staking is from other PoS networks Inflation (DOT/KSM/ETH etc.), and Bifrost is equivalent to providing consensus security for other PoS networks, thus receives the benefits issued by other PoS networks
Therefore, regardless of the bear market or the bull market, under the same vToken volume scale, Bifrost can obtain considerable profits
As the native asset of Bifrost, BNC will decentralize the transfer function of BNC through a referendum proposal.
If the holder of BNC believes that the current market environment is not suitable for opening transfers, they can vote against it, so BNC opens the opportunity for transfers It was passed by a majority vote.
Yes, the recent market changes may be overwhelming for everyone, but I think Bifrost is a project that can cross the cycle
2. What makes Bifrost’s bidding for the Kusama slot very important? Could you tell us the aim for this? In the event this Bifrost's bidding mechanism is successful, What impact will it have on the community and other parachain projects?
Yes, the next most important milestone for us is the successful bidding of parachain slots, so that the Bifrost mainnet can be successfully launched, and BNC and vsKSM can start transfers, so we have also launched a detailed incentive plan for this.
We believe that the successful launch of the parachain is a historic moment for the Polkadot ecology, but for the impact of the Polkadot ecology, cross-chain interoperability can reflect the positive impact of all heterogeneous parachains on the ecology.
At present, Polkadot’s biggest challenge is XCMP, Polkadot’s cross-chain messaging protocol. Its importance can be said to be Polkadot’s most competitive sword.
The XCMP code reconstructed by Polkadot some time ago has added many functions on the basis of simple asset transmission. The reason for the delay of the parachain is also closely related to the XCMP part. I think Polkadot hopes to build a complete XCMP protocol before launching the parachain. I believe that there will be many problems when the parachain truly opens the era of interoperability.
But I think it is more optimistic. From the cooperation of parachains, we can see that the local test of the mutual transfer of assets between the two parachains has been realized, and the efficiency is very high
And Bifrost’s successful bidding of parachains is also of great significance to the entire ecology.
SALP, as Bifrost’s first protocol, can also provide slot auction derivatives support for other parachains to create some more interesting DeFi applications for users Without losing liquidity, participate in slot auctions and vsKSM mining and other interesting and profitable things happen.
3. What advantage does the Bifrost token offer for the correct operation of the network? Why is it necessary? How does it order the incentives between stakers and consumers?
Good question, there are 4 main ways to capture the value of BNC. They allow Bifrost to continue to develop healthily.
Liquidity commission for derivatives: Transfer, transaction, mortgage and other behaviors in Bifrost network all need to pay a certain commission to maintain the network. BNC that used to pay commission will be sent to the Treasury for further administration and distribution. (All kinds of tokens can pay commission)
Slash collateral: Participating nodes will be required to pledge part of BNC to obtain votes from the asset of staking pool, while increasing the cost of slash. Slash collateral will be increased or decreased based on the node's performance score.
Governance Voucher: BNC can be used on on-chain parliament, technical committee, Treasury allocation, referendum governance, node election and other chain governance functions, hold BNC can get a right in Bifrost network governance.
Capture of Staking Reward: Part of the staking reward generated from Bifrost will be used for BNC repurchase and put into the Treasury.
4. How is Bifrost development going? Can you describe in detail current development efforts, market expansion plans, expected applications, and when will they become commercially available?
At this stage, Bifrost has basically completed the development of the SALP and SWAP modules, is testing it on the Bifrost Asgard CC4 network(https://apps.bifrost.finance & https://dash.bifrost.finance), and will enter the audit process soon.
This means that after Bifrost wins the parachain, it will first unlock the usability of SALP liquidity derivatives at the product level, so that the first batch of users who participate in the auction through Bifrost's official auction have the opportunity to use the Bifrost embedded Bancor pool to experience the first flow on Kusama Sexual release.
Subsequently, the opening of the SWAP module will initiate the one-stop liquidity mining and exchange of derivatives of $vsKSM and $vsBond. If Bifrost successfully bid for the 4 slot of Kusama, this feature is expected to be completed in August-September.
In the next six months, the Staking Derivatives Protocol SLP will be deployed in Kusama, and the business will be migrated to the Polkadot mainnet based on the Polkadot bidding situation and the Polkadot <=> Kusama cross-chain bridge situation.
This is Bifrost parachain launch roadmap. It is worth mentioning that Bifrost has successfully minted 18,000 vETH before the mainnet launch. The current market value of vETH has exceeded 45 million U.S. dollars. These will also be launched on Bifrost's mainnet. Later, through Bifrost cross-chain to enter the parachain ecology.
5. On moving forward through your roadmap, what are your most important next priorities/Milestone? Does Your Project have enough fundamental (Funds, Community, ect) to achieve those milestones?
Yes, Bifrost, as a DeFi basic protocol that provides liquidity for staked assets, has designed a liquidity protocol for the two pledge scenarios in the parachain ecology.
It brings interest-bearing assets and more slot liquidity to the Polkadot/Kusama parachain. When Bifrost parachain launched, more parachains can use SALP to issue derivatives vsKSM, which will bring them slot auctions The advantage of, so that more users are willing to support their slot auctions.
About fundamental, Bifrost has received 2.15M of dollars in financing from institutions such as NGC, SNZ, DFG, CMS etc., They also minted a lot of vsKSM in this vsKSM Mint Drop, and provided a lot of help for Bifrost Crowdloan
6. How can I buy tokens from your project? Will Bifrost have a program to sell tokens to users in the near future?
No, Bifrost does not have any plans for public sales. If someone is selling to you, it is likely to be a fraud. Please be careful! The only way you can currently get BNC is by participating in Crowdloan or vsKSM Mint Drop to supporting Bifrost's slot auction.
Our goal is to get the fourth slot. Currently voting KSM can get double rewards (1 KSM : 22 BNC) https://ksm.vtoken.io
7. Why did you design vsToken as a fungible token? What are the problems with issuing different derivatives for different parachains?
This is a very good question. For vsToken, the higher the degree of homogeneity and the fewer types, the higher the liquidity will be
Therefore, we have built vsToken into a homogenized asset, but each parachain bidding period / redemption period are different, and the auction rewards issued are also different
So we solve this through vsBOND, so vsBOND will be an NFT issued for different parachains, and the parachain can be obtained by mortgage NFT At the same time, when vsBOND expires, you can combine it with vsKSM to redeem it back to KSM 1:1
8. Can you tell us more about the Bifrost Crowdloan program? As a small investor, how can I participate and with what is the minimum amount of assets (KSM)? What is the parachain strategy adopted by Bifrost?
Bifrost Crowdloan has now entered the auction sprint stage. Double auction rewards are opened for all voting addresses.
The rewards have been increased from 1 KSM: 11+ BNC to 1 KSM: 22+ BNC, and the rewards have increased by up to 200%!
During the sprint, the invitation reward rose to 5.5%! Voting greater than 0.1 KSM through Bifrost's official channel ksm.vtoken.io can generate a personal invitation code.
Invite friends to vote, and you will get an additional 5.5% friend bonus bonus. Double reward means that you can get twice the invitation reward compared to the original one.
Since Bifrost has not yet launched the mainnet, users can estimate the reward APY through valuation expectations (the valuation is for reference only)
If compared with the Phala, if the total market value of Bifrost reaches half of the PHA, the annualized revenue can already exceed 50%. Invitation rewards are also a big source of BNC. For example, if you invite others to vote for 100 KSM, the total reward is 2200 BNC, then you can get 121 BNC as an inviter.
Our goal is the 4 slot. We are currently ranked second, and we will be the first after winning the bid on the Shiden network tomorrow, thank you to everyone who supports Bifrost slot auction, thanks again
In the live questions section, Lurpis did answer several short questions from the PolkaWarriors community.
1. Bifrost can use NFT technology to raise more funds. For example, NFT auctions can be organized for the works of benevolent artists. Do you have any such plans regarding NFT?
RMRK is our in-depth partner. In the future, we will build vsBOND into an NFT, which will bring more value and fun to the parachain and slot auctions. If Crowdloan supports Bifrost for more than 10 KSM, you can also get one of RMRK Kanaria Bird’s rare piece of equipment, please see here for more details: https://bifrost-finance.medium.com/2326b3b314c5
2. WiII the Bifrost token be ERC20 and be available on the main Ethereum network (Main Net)?
No, BNC not ERC20, and is based on the mainnet token issued by Substrate (Kusama/Polkadot)
3. What plans do you have to increase and maintain the value of Bifrost tokens in the long term? What are the benefits of holding?
- Liquidity commission for derivatives
- Slash collateral
- Governance Voucher
- Capture of Staking Reward
4. How long is Bifrost SALP reservation period open for community and can you share with us your plans for the auction? Can you tell us about the vsKSM mint drop?
If Bifrost can successfully win in the 4th slot, SALP is expected to provide services for the next batch of parachains (6-10 slots) and at the same time bring a lot of value to vsKSM holders. So Bifrost hopes to get more people’s support and let the 4 slot win
5. Are you planning to integrate with other different blockchain technologies to expand the ecosystem and generate more trust?
Yes, in addition to providing vDOT and vKSM for Kusama and Polkadot, Bifrost will also provide staking derivatives of other PoS networks such as vETH, vSOL, vBNB, etc.
Bifrost does not require inflation, and there is no staking mechanism. If you run an independent PoS network consensus, you need staking to maintain security, and you also need to use inflation to pay for high security maintenance costs. Bifrost is a parachain and shares the security of Kusama/Polkadot, so there is no need to maintain a PoS consensus independently
6. Staking and DeFi are very popular in crypto space. Are there any ideas to implement DeFi in platform? Does have a staking program (like Binance pool) like other exchange?
Yes, Bifrost is also a Layer 1 network, which will support WASM smart contracts in the future, but our logic is that if a network does not have users and assets, it will be difficult for developers to contribute high-quality applications in the ecosystem. Therefore, Bifrost will first attract a large number of users and assets through the SLP and SALP, and then provide a WASM environment for developers to deploy smart contracts.
7. What is the structure of this project, is it decentralised or a open sourced protocol where everybody can contribute? If so, how does the governance plan on being handled?
Bifrost is a decentralized parachain network with modules such as governance, technical committee, parliament, and treasury, which is the same as Polkadot
Read more about Bifrost at: https://dotmarketcap.com/blog-detail/79/a-deep-dive-into-bifrost-finance