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 can be circulated in different DEXs, pools, protocols and cross-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 Token Staking/Circulating and security of PoS chains
- Staking rewards in cross-chain scenarios
According to the questions above, Bifrost's solution vToken (Staking Derivatives Voucher Token) eligible for users to convert PoS token to vToken and obtain stakinng liquidity and Staking rewards synchronously, without barriers in cross-chain senarios.
Liquid Staking Workflow
Mint vToken on BIfrost i.e. stake via Bifrost, you can control your underlying staking assets during the period.
Bifrost Staking protocols are all running under the BIfrost parachain pallets, earn staking rewards every 24 hours, without centralized risks.
Bifrost does delegating staking for users by selecting a set of validators and rebalancing the rewards, gives out more profitable solutions. By holding the vToken, you will have chances to head into more yield senarios.