Liquid Crowdloan (SALP)
- 1.
- 2.View the current crowdloan list that can be contributed, select the one you need to contribute and click the contribute button on the right side of the list
- 3.Enter the number of tokens you want to contribute and click the confirm button to confirm the transaction and complete the signature
- 4.You will get the same amount of vsToken and vsBond as you contributed
When your vsBond reaches the redeemable time point, you can unstake the same amount of tokens with the same amount of vsToken.
- 1.Click the unstake button at the top of the vcrowdloan page
- 2.Select the item corresponding to your currently redeemable vsBond
- 3.Enter the amount of vsToken you want to unstake
- 4.Select normal mode below to redeem token or staking mode to redeem as vToken
- 5.Click the unstake button to confirm the transaction and complete the signature
The same amount of vsToken + vsBond is called token bond. You can sell token bond at a discount to release liquidity in advance
- 1.Enter bifrost.app and click bond under Explore more in the main navigation on the left
- 2.Position the tab in the upper left corner to sell bond
- 3.Select the bond you want to sell and click the sell button
- 4.Enter the bond quantity you want to sell in the pop-up window
- 5.Select normal mode below to get token or staking mode to get vToken
- 6.Click the confirm button to confirm the transaction and complete the signature
You can also use tokens to buy token bonds sold by other users for arbitrage
- 1.On the bond page, switch the tab in the upper left corner to buy bond
- 2.Select the bond you wish to purchase and click the buy button
- 3.Enter the amount of bond you want to buy in the pop-up window
- 4.Click the confirm button to confirm the transaction and complete the signature
In order to facilitate the user's liquidity and value replacement, you can also convert between vsBond and vsToken through the convert function. The converted exchange rate is related to the bond's expiration time
- 1.On the bond page, switch the tab in the upper left corner to convert
- 2.Click the toggle button in the middle of the right panel to choose the direction you want to convert
- 3.Click vsBond to select the type of vsBond you want to convert
- 4.Enter the amount of vsToken you want to convert
- 5.Click the convert button to confirm the transaction and complete the signature
SALP introduces a mechanism for converting between vsToken and vsBond. The system pricing mechanism is used to set different conversion exchange rates according to different redemption periods to obtain a more accurate vsBond value, and realize the conversion of non-homogenized and non-equivalent vsBonds to fully homogenized vsTokens. It makes the circulation of vsBond smoother and meets the needs of users to quickly release full liquidity.
- 1.Choose the vsBond you want to convert to vsKSM (or vsKSM to vsBond).
The purple circle on vsBond icon represents the remaining time to vsBond redemption.
2. Check Convert rate and execute your convertment.
vsBond lease remaining | vsBond expired time | vsBond → vsKSM rate | vsKSM → vsBond rate | KSM cashed out | Arbitrage Return Rate (hold equal vsKSM) | APR |
|---|---|---|---|---|---|---|
Retired | Expired | 0.9 | 0.9 | 0.6 | 0 | 0 |
9 | 378 | 0.64 | 0.66 | | | |
8 | 336 | 0.68 | 0.7 | 0.672 | 0.4706 | 0.5112 |
7 | 294 | 0.72 | 0.74 | 0.688 | 0.4368 | 0.5423 |
6 | 252 | 0.76 | 0.78 | 0.704 | 0.4045 | 0.5859000000000001 |
5 | 210 | 0.8 | 0.82 | 0.72 | 0.3736 | 0.6494 |
4 | 168 | 0.84 | 0.86 | 0.736 | 0.34409999999999996 | 0.7476 |
3 | 126 | 0.88 | 0.9 | 0.752 | 0.31579999999999997 | 0.9148000000000001 |
2 | 84 | 0.92 | 0.94 | 0.768 | 0.2887 | 1.2543 |
1 | 42 | 0.95 | 0.97 | 0.782 | 0.2658 | 2.3101 |
0 | 0 | 1 | 1 | 0.8 | 0.25 | 0 |
-1 | 0 | 0.95 | 0.95 | | | |
Due to each SALP crowdloan requires users to redeem their underlying KSM mannually, if not do so, the vsBond will expired and loss of acceptance. (Learn about why expire time for vsBond)
Bifrost uses unredeemed underlying KSM to repurchase vsKSM and burn, to maintain a long-term healthy price of vsKSM-KSM. The repurchasing and burning stracture as follow:
- Repurchase 75% unredeemed KSM to vsKSM;
- Remaining 25% KSM goes to Bifrost treasury;
vsBond Name | Unredeemed Amount | Repurchased & Burn (75%) | Transfered to Treasury (25%) |
|---|---|---|---|
20220708-KSM-BNC | 417.099782 KSM | 313 KSM to 755.55 vsKSM | 104.099782 KSM |
| | | |
vsToken can trade at any time or cooperate with vsBond for 1:1 redemption after the end of the parachain lease term. (Learn more vsToken and vsBond on liquid Crowdloan derivatives).
The bond market is a function that automatically matches vsToken and vsBond and packages their redemption period and yield, which has the same properties as the traditional bond market. For new users, there is no need to pay attention to the operation mechanism and underlying structure of slot auction and Crowdloan, but only need to understand the basic financial knowledge of traditional bonds, buy high and sell low to make the difference, and seize favorable opportunities such as interest rate fluctuations and redemption periods. , increase the rate of return, and obtain the return on investment.
In case if there is no certain period vsBond remaining in SALP protocol, so its unable to Buy from stock:
Bonds in Bond Market are automatically compounded and paired by SALP protocol, the redemption period of vsBOND determines the remaining days of each Bond. Use Bond market i.e. automatically doing arbitrage with vsToken+vsBond, thus if there is no existing vsBOND for a certain period, so no Bond either.
Each vsBond represents the redemption time of a parachain, but vsBond itself has a Expired period for 84 days.
In order to prevent vsBond from being maliciously hoarded, some kind of vsBond may have a single point of control risk, which will adversely affect normal exchange. Therefore, SALP sets an 84-day redemption period for vsBond at the protocol design level, and expired vsBond cannot participate in the redemption, thereby eliminating the motive for malicious hoarding of vsBond.
For the expired vsBond, the Redeem and Order functions are closed. However, users can still use Swap's Convert function to convert expired vsBonds to vsKSMs to minimize losses.
If you have 1 vsKSM + 1 vsBond in hand, and the vsBond has expired. The redemption steps are:
- 1.Convert expired vsBond to vsKSM: the conversion rate is fixed at 1 vsBond : 0.5 vsKSM (refer to [Convert exchange rate] in Wiki;
- 2.Exchange the remaining vsKSM for KSM for the purpose of KSM redemption. Suppose the following graph vsKSM/KSM exchange rate is 0.4 as an example, 1.5 vsKSM can be exchanged for 0.6 KSM, and the discount rate is 40%.
Redemption of expired vsBonds through the Convert ⇒ Swap process will have at least a 25% discount, and if the vsKSM price fluctuates in the market, the discount rate will increase further. Therefore, Completing the redemption before the vsBond expires is the best option.
Since each expired vsBond corresponds to a vsKSM that cannot participate in redemption, and vsKSM will continue to circulate in the market as a homogenized derivative, the unredeemed vsBond will continue to accumulate positions on vsKSM, and indirectly on the vsKSM/KSM exchange rate Create a sell-off. Therefore, Bifrost will repurchase 75% unredeemed KSM to vsKSM, and destroy vsKSM to replenish the liquidity of vsKSM/KSM; the remaining 25% KSM will be transfered to Bifrost treasury to be allocated by the treasury.
Last modified 1mo ago