Bifrost is a modular, scalable, non-custodialomnichain liquid staking parachain based on Polkadot. It provides standardized, high-yield, safe, and reliable underlying interest-bearing assets for Web3 through XCM, and is realizing the omnichain vision of using any LST on the 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 tokens and security of PoS chains
Staking rewards in cross-chain scenario
According to the questions above, Bifrost's solution vToken (liquid staking voucher token) makes eligible users convert PoS tokens to vToken and obtain staking liquidity and staking rewards synchronously, without barriers in cross-chain scenarios.
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 run 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 delegate staking for users by selecting a set of validators and rebalancing the rewards and giving out more profitable solutions. By holding the vToken, you will have chances to head into a more yield scenario.