- Summary:
- Bifrost has won Polkadot’s 18th parachains auction slot. We tell you how it intends to use the opportunity and what’s in it for users.
Bifrost, a liquid staking derivative protocol, has triumphed to take the 18th place on the Polkadot parachain. The Polkadot multi-chain ecosystem appears to be an obvious fit for Bifrost. Bifrost wants to first incorporate liquid staking on the relay and parachains. That will enable the utilization of liquid derivatives throughout the full Dotsama network. Also, Bifrost intends to continue delivering on its purpose in the next month. To do this, it will be providing standardized cross-chain staking liquidity derivatives to Polkadot relay networks, parachains, and heterogeneous chains bridged using Polkadot.
What’s in it for users?
Using the Polkadot multi-chain architecture, Bifrost intends to bridge from Kusama. That will enable it to deliver cross-chain liquid staking to more than 80% of public PoS chains. This will be achievable through establishment of liquid staking on both Kusama and Polkadot. Having won the slot, Bifrost plans to broaden the ecosystem in which cross-chain liquid derivatives can stake derivatives on heterogeneous bridged chains.
Asset holders will benefit from greater stability and greater independence as a result of this change in legislation. Bifrost will launch Polkadot, Moonriver, Moonbeam, Astar, Acala, and Phala derivatives when its Polkadot parachain goes live. More than 80 percent of the staking liquidity in the PoS consensus chains can be aggregated through cross-chain derivatives, lowering the staking threshold for users and increasing the multi-chain stake ratio.
As a response to the current state of the bear market, Bifrost wants to pursue liquid staking as a solution. Many investors are taking a wait-and-see approach to the bear market, rather than using their assets for DeFi staking returns. As of now, Bifrost has developed a liquidity derivative for staked KSM tokens. It intends to use this strategy to increase capital use of KSM in various DeFi scenarios and to enhance security and promote KSM staking.
Lurpis Wang, the co-founder of Bifrost commented, “Despite the bear market we are thrilled and optimistic about securing the 18th Polkadot parachain slot. At Bifrost, we believe that multi-chain integration and cross-chain liquid staking is the push the market needs right now.”