At Sub0 2024, Tyrone Pan from Bifrost unveiled the Bifrost SLPx, an omni-chain liquid staking solution designed to streamline and enhance the staking experience across multiple blockchain ecosystems. This talk shed light on the principles, workings, and applications of the SLPx stack, illustrating how it stands to revolutionize liquid staking.
Understanding Liquid Staking and Bifrost’s Role
Liquid Staking Tokens (LSTs):
- Representation Tokens: Liquid staking tokens (LSTs) act as representation tokens for staked assets, enabling their use across various DeFi applications while still earning staking rewards.
- Middle Layer Functionality: LSTs serve as a middle layer between applications and different blockchain layers, providing flexibility and liquidity to staked assets.
Bifrost’s Approach:
- Omni-Chain Protocol: Bifrost SLPx is designed to work seamlessly across multiple chains, including Polkadot, Cosmos, and EVM-compatible chains.
- V Tokens: On Bifrost’s native chain, staked assets are converted into V tokens, which are liquid staking tokens that can be utilized across different protocols and chains.
Bifrost Key Features and Innovations
1. SLPx Stack:
- Headquarters and Branches Model: Bifrost acts as the headquarters, while the SLPx contracts deployed on various source chains serve as branches. This model allows for efficient manufacturing and delivery of V tokens across multiple chains.
- Teleported Assets: Using XCM (Cross-Chain Message), assets can be teleported from one chain to another, enabling cross-chain staking and liquidity.
2. Multi-Chain Interactions:
- Deployment on Various Chains: The SLPx contracts can be deployed on EVM or WASM environments, allowing for broad compatibility and interaction with multiple blockchain ecosystems.
- Bridge Hub Integration: The Bridge Hub facilitates connections with external blockchains like Ethereum and Arbitrum, enhancing the interoperability and reach of the SLPx stack.
3. Enhanced Use Cases:
- Remote Minting and Swapping: Users can mint and swap V tokens remotely, leveraging Bifrost’s liquidity pools without needing to interact directly with the Bifrost chain.
- XCM Oracle: The SLPx stack includes an oracle for feeding token prices, crucial for DeFi applications like money markets and DEXes that require accurate and transparent pricing.
4. Real-World Applications:
- Example Scenarios: Tyrone demonstrated use cases such as minting V tokens on Moonbeam and swapping assets on Astar, showcasing the practical applications of the SLPx stack.
- Automated Transactions: The loop staking feature allows users to amplify staking rewards by automating the process of depositing and borrowing V tokens multiple times.
Conclusion
Bifrost SLPx represents a significant advancement in the realm of liquid staking, offering a versatile and scalable solution for omni-chain staking. By providing seamless interoperability, enhanced liquidity, and innovative features like loop staking, Bifrost is set to transform the staking landscape, making it more accessible and efficient for developers and users alike.
