Hello, GM, to the HydraDX community. The Bifrost.Finance team would like to initiate the integration between the HydraDX and Bifrost Polkadot parachains, specifically proposing to open a bi-directional HRMP channel and add the BNC token and other Bifrost assets (specifically liquid staking derivatives - vTokens such as vDOT) to HydraDX.
Bifrost.Finance is a substrate based Kusama and Polkadot parachain that provides decentralised cross-chain liquid derivatives for staked assets. By leveraging on the cross-consensus message (XCM) it can provide standardised cross-chain liquid staking services for multiple chains. Bifrost facilitates the issuance and deployment of liquid staked assets (“vTokens”), allowing users to earn staking rewards while participating in DeFi, such as liquidity provisioning on DEXs, and lending/borrowing. Bifrost aims to offer a seamless staking and DeFi experience for PoS users and enable developers to build innovative applications around Bifrosts’ liquid staking derivatives (vTokens) and to solve for the conflict between DeFi yield and the staking yield. Finally, Bifrost's goal is to promote liquid staking derivatives as a key underlying asset in ensuring a healthy and composable dynamic between protocol security, protocol staking and the DeFi ecosystems built on top of protocols.
Bifrost Polkadot: Channel opened with 6 parachains
https://polkadot.subscan.io/xcm_channel?fromChain=2030&toChain=all&direction=all&result=all&filterParaId=
Bifrosts first liquid staking derivative was for ETH 2.0 - with vETH launched end of 2020 with a current TVL of 19,000 ETH (approx $30M). vETH was recently included within Defillamas ETH Liquid Staking Derivative dashboard. Following the official launch of our Staking liquidity protocol in May 2022, we launched vKSM - for liquid staked KSM. Last year, Bifrost successfully obtained a liquidity loan from the Kusama Treasury to kick-start the growth of vKSM (more information here) now the largest liquid staking derivative for staked KSM in terms of TVL (256,000 KSM) with over 45% of market share.
In Q4 of 2022, we have then launched liquid staking derivatives for staked DOT (vDOT) with a current TVL of 311,000 DOT, and later staked MOVR (vMOVR), staked GLMR (vGLMR) and staked BNC (vBNC).
Access to live TVL data
Read more about Bifrost.Finance: https://wiki.bifrost.finance/
HydraDX is an innovative permissionless protocol which aims to solve for liquidity fragmentation and efficiency within the Polkadot ecosystem. HydraDX Omnipool will be a key tenant for deep liquidity facilitating a number of vital future usecases for assets and protocols looking to interact with and within Polkadot. Furthermore, the protocols community driven approach and on-chain democracies are clearly aligned with Bifrosts protocol values.
As more and more DeFi projects appear in the Dotsama ecosystem, the conflict between Staking rewards and DeFi interest will become increasingly obvious. Bifrost liquid staking solution is key in addressing this dichotomy and solving for liquidity and capital inefficiency. Collaborating closely with HydraDX is part of our broader initiative in building and establishing utility for assets such as vDOT (our liquid staking derivative for staked DOT) within DeFi scenarios as well as promoting it within EVM ecosystem are key priorities for the Bifrost team. Bifrost will actively expand the application of vToken scenarios, such as the provision of XCM SDK, being a convenient solution for each parachain to directly mint vTokens across chains, and apply vTokens to the corresponding parachains ecosystem. These opportunities will not only benefit collaborating projects in terms of sharing liquidity, driving TVL, and attract builders to build open this featured asset but will also allow for protocols and applications to attract end users and promote broader cross chain adoption.