In the evening of March 1, Bifrost and Plasm Network joined with Polka Warriors to hold an AMA with the community to introduce the two projects, discuss about cross - chain interoperability on Polkadot as well as the intersection points of Bifrost and Plasm Network.
The AMA session was held on Polka Warriors' Telegram, with the participation of Lurpis - Co-founder Bifrost and Sota Watanabe - Founder Plasm Network. Interesting questions were made for both projects during this AMA about the advantages and correlations between the two projects. The AMA session took place successfully with a large number of users and investors who are interested in the project.
Below is a summary of the outstanding questions and answers from the AMA session.
1. Can you tell us how Bifrost is working with Plasm?
Sure, let's have a brief understand on what is Bifrost prior.
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). We are also a member of the Substrate Builders Program and Web3 Bootcamp.
vToken can optimise transactions in multiple scenarios such as DeFi, DApp, DEX and CEX. vToken can be used to realise the transfer channel of governance right such as Staking and PLO to hedge the risk of Staking assets. In extended scenarios such as when vToken is used as collateral for lending, the staking proceeds can offset part of the interest and realise low-interest lending.
Recently, Bifrost formed a strategic collaboration agreement with Plasm, a highly scalable smart contract platform for the Polkadot ecosystem. We will cooperate on the liquidity and application cases for our vToken on Layer2 applications to practice interoperability between parachains.
2. What are the future applications of vToken in Plasm platform?
Bifrost's vToken as a staking derivative has its unique feature beyond the normal interest generation way, staking interests increase vToken price instead of multiply tokens. Therefore, vToken don't have the barrier of different usecases or under cross-chain scenarios.
Plasm will gradually bring those smart contracts from Ethereum to Polkadot, whatever they are Layer-1 or Layer-2 or different Rollups, so that vToken can easily transfer crossing these smart contract like a general asset for over-collateral, loan, swap, deposit and etc DeFi applications. That's also one of the product advantage than other staking derivatives.
In addition, Plasm will establish a tradable smart contract market in the future, it means all dapps are traded on this platform. If there is creative dapp for vToken, we may buy it further.
3. The second phase of Bifrost Mint Drop has ended, does Lurpis have anything to say to ETH holders based on the current minting result?
We are very happy to announce that our recent Mint Drop has been fully minted, with a total of 15,000 ETH minting.
According to our plan, we estimated that mint 5,000 ETH within 72 hours will going much longer.
In fact, each round was fully minted sooner than our prediction. The second round of quota 5,000 ETH took only 12 hours. At present, a total of 17,788 ETH has been minted.
According to the current price of ETH, a total locked-up market value of $27M has been generated.
In the next step, we will implement the vETH liquidity incentive plan. By now, vETH has been traded on DEX such as Uniswap, Loopring, SakeSwap, DODO, etc., but there is still a relatively high discount rate.
I think this will be resolved quickly with the increase of liquidity, allowing users to obtain the benefits of ETH 2.0 Staking at the same time ETH secondary market arbitrage can be carried out at any time, without missing any short-term arbitrage opportunities.
4. What are the development plans for Bifrost after the mint Drop is over?
2021 is a critical year for Bifrost, we will launch the last Testnet of Asgard CC4 before going live on the main network, and push Bifrost Dapp, that we have already bounced twice (the main reason for the bounces is the underlying refactoring and dissatisfaction with the user experience).
The Kusama network is expected to launch a parachain slot auction in March to April, and Bifrost has been preparing for the slot auction for a long time and will participate in the Kusama slot auction at the right time.
Upon completion of the Kusama bid, Bifrost will go live with a parachain that shares the security of Kusama and continue to bid for the Polkadot slot.
Upon bidding the Polkadot slot, Bifrost will perform a security upgrade from Kusama Consensus to Polkadot Consensus to provide a more secure decentralized financial services.
After the Bifrost mainnet goes live, vETH will enter the third phase and become a common asset for ETH and Polkadot parachains to provide more usage scenarios
1. I know Solang is a Solidity to wasm compiler written in rust and Plasm Network is support this tool. Does devs deploy Solidity contracts on both EVM and WASM? If yes, how Plasm Network can do that?
Plasm Network is a multi-chain and multi-virtual machine dApps platform. This means that developers can deploy both Ethereum Solidity smart contracts and WASM smart contracts.
When developers deploy Solidity contracts, they have 2 choices, deploying Solidity contracts on our Ethereum Virtual Machine or compiling Solidity contracts into WASM and deploying them on our WASM environment.
The more options for devs, the better for our ecosystem. Solang is a Solidity to WASM compiler and I believe this will be a killer tool for Polkadot developers who have some experiences on Solidity smart contracts.
2. Scalability is obviously one of the most crucial demands that DApp developers need, however, the Polkadot Relay chain’s design does not support smart contracts. So, how’s Plasm Network designed to solve that?
Plasm Network is a "dApps hub" that support layer2 solutions like ZK Rollups. Polkadot itself is a scaling solution because of its sharding ish architecture. However, Polkadot Relaychain doesn't support smart contracts. That's why we need a smart contract platform.
When it comes to smart contract, today we have 2 big important things, scalablity and ethereum compatibility. Plasm Network supports scaling solutions like ZK Rollups and we do have ethereum compatibilities. You can deploy Ethereum solidity contracts by using Metamask, Remix and Truffle today.
3. There are several smart contract platform which are ready to serve the Polkadot ecosystem. What is your advantages compared to other smart contract platform?
First of all, the more options for devs, the better for the ecosystem. Technically speaking, we have some features that other smart contract platforms don't have.
- The first one is laye2 solutions. In years, Ethereum developers will use rollups solutions more and more and they can migrate from Ethereum to Polkadot without changing Rollups codes. This is what only Plasm has.
- Second, we do have innovative incentive mechanism for dApps developers called dApps staking. PLM token holders can stake their tokens not onnly on the network but also on the dApps. By doing so, both dApps developers and nominators can get PLM tokens. dApps developers can earn tokens/money by making dApps on Plasm Network. This is really simple but really strong because developers can earn tokens on Plasm Network though they lose tokens as a gas fee when they build dApps on other platforms.
- Third, we support both WASM and EVM. We don't think Ethereum compatibiity is not a differentiator. Ethereum compatibility is easy to copy/be copied and easy to implement for all Polkaodot parachains.
DApps Staking UI
4. What are the advantages I can get when bonding KSM to vote for you in the upcoming parachain auction while your PLM token only rewards DOT voters? Do I need to wait until you guys bid on Polkadot?
We are going to launch Shiden Network, a canary and R&D chain of Plasm Network for Kusama Parachain. We have 30% researve for Kusama parachain auction. By locking KSM tokens for Shiden Network, you will be able to receive SDN tokens, native token for Shiden Network.
In the live questions sections, Lurpis and Sota Watanabe did answer several short questions from Polka Warriors community.
1. DeFi project is very popular and there are many DeFi projects right now, what are your plans for now? what makes Plasm unique?
Plasm Network will be highly likely DeFi platform at the first point. We are making Ethereum bridge so that ethereum defi developers can join our network very easily. And we will make our own DeFi apps soon!
2. Did you raise funds so far? If so, how did you handle them? Are you planning to do any f Plasm re raises?
Yes. We raised funds led by Binance. We are working with Binance and other exchanges to make Plasm unique.
3. Community support is one of the biggest aspects of a project’s success. Most projects have programs that interact with their users. Does you have any special plans to attract and expand the community and improve the user experience?
I am using more than 50% of my time for users as well as developments. I am constantly answering questions on Telegram and Discord as well as our forum. We aim to make a DAO which is managed by our community!
1. Defi has become the fastest growing and most accessible aspect of the blockchain industry. How does BIFROST feel about this? In your opinion, are we in danger of saturation?
I think there is still a lot of room for development in the DeFi. Compared with traditional financial and DeFi, which is only in its infancy, I think there are still many opportunities to explore. At the same time, I also think that with the launch of the Polkadot parachain, cross-chain derivative assets can be obtained. Will heat up quickly
2. Do you have any Coin Burn / BuyBack systems or any $Token Burn plans to increase the value of Token & attract Investors to invest?
Yes, we will use 10% of the staking income generated by vToken to repurchase BNC into the Bifrost Treasury, and choose whether to grant or destroy according to the referendum. For details, please refer to our white paper https://whitepaper.bifrost.finance/en.pdf
3. Liquidity, Transaction fees and slippage are always important factors in Finance services. How does BIFROST solve the above problem to attract users?
Liquidity, we will use derivatives to reduce the opportunity cost of users in the process of staking, so as to reach more people to mint vToken, and provide an incentive plan for vToken minting for up to 10 years Regarding transaction fees, it is the reason why we use Polkadot as sharing consensus. I think Parachain is currently a better solution than ETH 2.0
For more information about these two projects, please read our articles.
A Deep Dive Into Bifrost
A Deep Dive Into Plasm Network
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