Bifrost was launched in 2019 and has focused on developing Parachin Home Liquidity. Tyrone Peng, Product Manager at Bifrost, spoke with Cointelegraph about solutions for liquidity liberalization and why they are important for efficient and safe gaming.
What are the liquidity efforts and why did you decide to go in that direction?
Proof of concept (PoC) consensus currently dominates the blockchain world. Most public Proof of Stake (PoS) chains require validators or entire nodes on the network to share a portion of the token, ensuring secure operation of the blockchain.
According to Staking Rewards, the average bet rate for PoS blockchains is over 55%, while for DeFi protocols it is over 30%.
Therefore, it is necessary to solve the liquidity problem during the storage period, which will increase the utilization rate of the entire network significantly. Anc Bifrost was founded in 2019 with the goal of solving this problem.
what is your mission?
Bifrost hopes to free up liquidity to allocate derivative assets and open interconnected channels between heterogeneous chains to provide enough liquidity to watch Web 3.0 for interoperability with multiple chains.
Tell us about solutions to free up liquidity and why they are important.
Bifrost has two solutions for unlocking liquidity:
1. Liquidity Purchase Protocol (SLP)
Bifrost is a fully decentralized network that issues gaming derivatives with standardized interest generation, settlement and shareholding of betting funds, which can provide liquidity for all types of gambling funds.
However, due to the decentralized characteristics, the security should also have the following characteristics, including issued assets, remuneration paid and the capital installed online.
vETH is a derivative of Bifrost’s introductory game, which has currently raised 18,000 ETH.
2. Auction Liquidity Protocol (SALP)
Bifrost SALP (Auction Liquidity Protocol) aims to unlock the liquidity of deposits in CrownLan Kusama (KSM) and Polkadot (DOT) through the issuance of derivatives. This will significantly increase the use of assets and attract more cautious investors who will not miss out on the lost opportunities to support the parachine slot auction, thus accumulating more DOT / KSM locks for the Polkadot / Kusama ecosystem.
What is the auction liquidity protocol and how does it work?
SALP is a liquidity release protocol designed specifically for Polkadot parachain auctions.
Parachain Auction is a unique model of Polkadot which is essentially a multi-chain architecture with a cutting mechanism that provides end-to-end security for para-chains by allowing them to validate blocks of para-chains.
However, there is a limit to the number of pair chains that the relay chain can access. To assign limited Parachain slots to more valuable Parachains, Polkadot / Kusama will use one auction for each Parachain project to compete for slot machines. The competition takes place by placing a DOT / KSM on the relay chain, the more bets there are, the greater the probability of getting slot machines. This process is known as a slot machine auction.
SALP creates derivatives for Crowdloan members who deposit DOT / KSM through Bifrost, and will receive vsDOT / KSM and vsBond as derivatives for use in securing alternative costs during closing.
What have been your most important accomplishments in the last 12 months?
During the period 2020-2021, Bifrost has largely completed 80% of the assignment in four quarters of 2021. There were mainly five key areas: test network launch, core business online, VETH business, SALP business and bridges, which enriched the product Bifrost line and forge closer environmental cooperation.
Since the launch of Bifrost in Kusama Parachain on July 20, 2021, Bifrost Parachain has generated and verified 1,062,400 blocks, processed 259,684 chain transactions and 230,108 transfers; It is in second place in Kusam in terms of the number of BNC addresses in the chain – 78132. The number of BNC addresses in the chain is 78132, in second place in Kusam.
After sudo was removed, access to updates for the Bifrost network was sent to a democratic referendum. Since the launch of the Governance module, there have been 42 Democratic polls, including 11 mainnet updates, 5 Zenlink updates and 26 community proposals. The Council will open the function of democratic campaign in 2022.
What happens next with Bifrost?
Bifrost is expected to launch the second batch of Polkadot parachain auctions. Since Bifrost only uses one network, Bifrost-Kusama will gradually move to Bifrost-Polkadot in the future.