Summary

This proposal aims to add Bifrost vGLMR (liquid staking GLMR), vASTR (liquid staking ASTR) on Hydration, prepare for multiple use cases:

1. Increasing Omnipool TVL by adding two new LSTs. Current vGLMR TVL is $360k and vASTR TVL is $2.13m.
2. Increasing trading volume of GLMR and ASTR on Omnipool, mainly situmulate the LP incomes of GLMR, ASTR, vGLMR and vASTR providers.
3. Leveraging yied DCA for increasing positions of HDX, BNC and other parachain tokens.
4. Adding more potential POL chances for Hydration Treasury.

Protocol Description

Bifrost (https://bifrost.finance) Bifrost is a Liquid Staking app-chain tailored for all blockchains. 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 Astar and Astar zk-EVM (vASTR) 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 $100M. vDOT, Bifrost liquid LST for staked DOT was launched in late May of 2022, and there is already around $66M TVL of DOT staked with Bifrost. vASTR, the top3 parachain-liquid staking derivative in Polkadot ecosystem launched in late Aug of 2023, which has accumulated over $2.1m $ASTR staked with Bifrost.

Bifrost App: https://bifrost.app/

Omni Liquid Staking App: https://omni.ls/

Check Bifrost LST statistics at here.

Motivation

Benefits for Hydration ecosystem

• Protocol Owned Liquidity (POL) : Same as POL holiding postion of vDOT in Hydration Treasury, vASTR and vGLMR will also provide same beneficial use case by converting and yielding ASTR and GLMR in Hydration Treasury, which may further increase treasury’s diversified income.
• Increasing TVL: Drive the enthusiasm and interest of more GLMR, ASTR holders to participate in staking and benefit from multiple capital efficiency senarios on Hydration, benefits of holding these LSTs vs. native staking.
• Since vGLMR and vASTR are actively available for minting and redeeming on both Moonbeam and Astar, and meanwhile Hydration has HRMP opened with them, hence supporting vGLMR and vASTR will easily driving the growth of users from Moonbeam and Astar.

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

Technical details

Token information:

• Asset name: Voucher GLMR
• Asset symbol: vGLMR
• Asset Multilocation:

Multilocation: { parents:1, interior: X2(Parachain(2030), GeneralKey(0x0901)}

Decimals: 18

Token information:

• Asset name: Voucher ASTR
• Asset symbol: vASTR
• Asset Multilocation:

Multilocation: { parents:1, interior: X2(Parachain(2030), GeneralKey(0x0903)}

Decimals: 18

Next Step

Since Hydration have not finished the HRMP openning with Manta parachain yet, maybe vMANTA can be considered in the next proposal, which has already accumulated $5.5m TVL on Bifrost.

Links & References

• Website : https://bifrost.finance
• Documentation : https://wiki.bifrost.finance/
• Github Page : https://github.com/bifrost-finance
• Communities : Discord ; Twitter