For the time being, let us agree that the process of societal development is riddled with paradoxes and perplexities. At the very least, it should be acknowledged that humans cannot predict change.

Bifrost Overview

In Norse mythology, Bifrost is a bridge that the gods often cross, it takes the shape and hue of a dazzling rainbow of seven colors. This is the only bridge that connects Midgard (Earth) to Asgard, the realm of the gods. Borrowing the image of a rainbow tree, Bifrost represents the presence of fleeting objects in the realm of matter. A rainbow bridge silhouette flashed quickly in the sky, like a faint picture portraying the road from Midgard to Asgard to rejoin the gods.

At blockchain’s battlefield, Bifrost is known as Bifrost Finance, a substrate developed web3 derivatives protocol that provides decentralized cross-chain liquidity for staked assets. By leveraging on the cross-consensus message (XCM) it can provide standardized cross-chain liquid staking services for multiple chains. The objective of Bifrost is to offer standardized cross-chain interest-bearing derivatives for Polkadot relay chains, parachains, and heterogeneous chains bridged with Polkadot, the same as the bridge that connects Midgard (Earth) to Asgard.

Artificial light illuminates the night, allowing people to spend significantly more time in the evening, which can even extend into the following morning. It can be a time for "night owls" to stay up late to take advantage of the work, or for "early birds" to entertain and relax after a long day's work. On October 21, 2021, since Bifrost presented itself on the Kusama parachain, it had generated a total of $78M in derivatives, stored in 82,496 addresses on the Kusama parachain, and performed 423,372 signed transactions. Bifrost has completed the opening of HRMP channels with six parallel chains (Karura, statemine, Khala, Moonriver, Turing network, and Darwinia) and utilized multichain bridges to move 18'000 vETH ( Bifrost liquid staking derivative for ETH 2.0) contract from Ethereum to the Kusama ecosystem's Moonriver EVM.

Bifrost staking derivatives will have a unified interface, a unified redemption method, and an interest calculation method, all of which will be forged by the same set of agreements. More crucially, each derivative may be traded and potentially generate loans to one another. Most significantly, they may share their liquidity.

But that’s not the ultimate result. At its core, Bifrost is believed by standardizing and unifying these staking liquidity derivatives such that they can interact with each other- that liquidity can be shared amongst them, only then can they be used Cross-chain and widely used in different DeFi scenarios. Finally, these derivatives can be minted and circulated in their own ecosystem ensuring convenience for the user and all integrity of each parallel chain ecosystem, are actually deep-rooted in the birth of Bifrost XCM SDK, which has been the main theme of many essays.

Bifrost Finance continues to prosper drastically as an immutable objective reality. Fundamentally, a concept is always the mixture of many initial beliefs, and Bifrost Finance created new things based on the theoretical underpinning and technology that they already hold, by picking up bits and pieces and patching them altogether. SALP (Slot Auction Liquidity Protocol) was born as one of Bifrost’s symbolic products.

BIFROST - Slot Auction Liquidity Protocol (SALP)

SALP - First Slot Auction Liquidity Release Protocol

Bifrost created the slot auction liquidity protocol (SALP), the first Polkadot eco-slot bidding liquidity module that enables users to release KSM and DOT liquidity in parachain slot auction crowd loans by producing a vsToken derivative (vsDOT,vsKSM). Bifrost has worked with the vast majority of Kusama and Polkadot projects, successfully bidding on over 12 Polkadot parachains and 14 Kusama parachains for a total of 2,195,420 vsDOT (1,450 holders - TVL $14.8M) and 88,778 vsKSM minted (38,392 holders - TVL $5.1 M).

Bifrost SALP (Slot Auction Liquidity Protocol) attempts to release the liquidity of Kusama and Polkadot crownloan contributions through the issuance of liquid derivatives. This will significantly boost asset usage and attract more cautious investors who are not willing to lose opportunity costs in order to support the parachain slot auction, amassing additional DOT/KSM lock-ups for the Polkadot/Kusama ecosystem.

For users, Bifrost has created two derivatives: vsToken (voucher slot token) and vsBond. The former is a fungible token that serves as a voucher for a user's participation in a parachain auction. The voucher can be exchanged at any time or used in conjunction with vsBond for 1-to-1 peg redemption.

SALP may benefit the following three roles in the Polkadot ecosystem:

• User: Derivatives improve the user's control over opportunity costs, whilst the vsToken/vsBond assists contributors in determining the utility and equity of derivatives. Furthermore, the high liquidity from integrating all parachain contributions may lower the substantial discount costs incurred by a separate single-parachain derivative pool.
• Parachain Projects: Projects that support the Bifrost SALP will have the advantage of attracting contributions, and will be more competitive in the parachain auction. In addition, the fiercely competitive environment will promote the accelerated innovation of parachain projects.
• Polkadot ecosystem: According to the concept of "flexible lock-up" of liquidity derivatives, more contributors willing to participate in Crowdloan through centralized services will be drawn to the on-chain, thereby weakening the controlling ratio of DOT/KSM by centralized institutions and making parachain auction more decentralized. Furthermore, a high-locked asset ratio can improve PoS chain security, and derivatives would mitigate the negative effect of low circulation.

📌 Learn more about SALP: https://medium.com/bifrost-finance/the-path-to-the-creation-of-the-first-slot-auction-liquidity-release-protocol-salp-fccfe5556386

In Conclusion

With technology comes innovations, and with innovations come additional technologies to maintain and advance the latter. It is clear that the benefits brought by Bifrost Finance were absolutely tremendous, to list them all would require an article three times the length of this one. Bifrost Finance platform is always promised to fly higher.

👉 Follow Bifrost Finance: Website | Forum | Twitter | Wiki | Telegram | Discord

👉 Follow Gafi Network: Website | Telegram | Twitter | Wiki | Blog