Summary
This proposal aims to register Bifrost vBNC (liquid staking BNC) on Hydration:
- Register vBNC Token.
- Create BNC-vBNC Stable Pool
Motivation
- Following the launch of Bifrost's New Tokenomics 2.0, the Bifrost staking module will soon migrate from Bifrost Polkadot to Bifrost Kusama. As a result, vBNC—the liquid staking version of BNC—will become a new vToken requiring liquidity in Hydration.
- Currently, 5,582,645 BNC are staked via vBNC (7% of total issuance), with a $1.22m TVL in Bifrost Kusama. This will generate additional Yield DCA demand for Hydration, allowing users to yield any Token via vBNC. Furthermore, the Bifrost treasury will be able to continuously acquire Staking rewards through vBNC's Yield DCA, incentivizing the omnipool.
- Bifrost will soon feed vToken price to Hydration via XCM, which would help stablepool enablling drifting peg between vBNC and BNC, BNC in omnipool can easily route though it.
- We are all eagerly anticipating earning HDX through yields from vBNC, aren't we? :)
Liquidity Provision
Bifrost will propose to provide $80,000 as initial liquidity, incentivize is expected to be around 1-2% APR with a target liquidity of $500,000, in a three-month trial.
Technical details
Token information:
- Asset name: Voucher BNC
- Asset symbol: vBNC
- Asset Multilocation:
Multilocation: { parents:1, interior: X2(Parachain(2030), GeneralKey(0x0101)}
Decimals: 12
Links & References