Bifrost is a modular, scalable, non-custodialomni-chain LSD parachain based on Polkadot. It provides standardized, high-yield, safe, and reliable underlying interest-bearing assets for Web3 through XCM, and is realizing the omni-chain vision of using any LSD on any chain.
The easiest way to understand Bifrost is to see it as a derivative issuer that provides liquidity for all pledged assets, issuing corresponding shadow assets during the bonding period of the original assets. At the same time, the shadow asset is a fungible Token that can be circulated in different DEXs, pools, protocols and across chains.
As a DeFi protocol, Bifrost is aiming to solve the following issues in PoS ecosystems:
The paradox between Staking rewards and DeFi yields
The balance between Staking/Circulating Token and security of PoS chains
Staking rewards in cross-chain scenarii
According to the questions above, Bifrost's solution vToken (Staking Derivatives Voucher Token) makes eligible users to convert PoS token to vToken and obtain staking liquidity and staking rewards synchronously, without barriers in cross-chain scenarii.
Mint vToken on Bifrost i.e. stake via Bifrost, you can control your underlying staking assets during the locked period.
Automatic Staking Management
Bifrost Staking protocols are all running under the Bifrost parachain pallets, earning staking rewards every 24 hours, without centralized risks.
Less Unstaking Period
Bifrost SLP helps users to realize the possibility of early redemption by matching the real-time staking quantity with the redemption quantity at the protocol layer in the form of a queue. Theoretically, it can achieve faster redemption.
Extra Staking Returns + DeFi Yields
Bifrost does delegating staking for users by selecting a set of validators and rebalancing the rewards, and gives out more profitable solutions. By holding the vToken, you will have chances to head into more yield scenarii.