TI Rating Report - Bifrost

TI Research

In TI microscope, we present you the truest side of projects."Bifrost is a Polkadot DeFi ecological protocol developed based on the Substrate framework. Its focus is to provide liquidity services for the assets that have been locked in staking, and it is committed to becoming an intermediate abstraction layer between the application layer and the staking layer. Bifrost is currently in the stage of preparing for the mainnet launch. The Asgard testnet has been running for some time. Polkadot Eco's slot auction will be held in April 2021. Like many projects in the ecology, Bifrost also announced that it will participate in the slot auction.

Project Introduction

Bifrost is a Polkadot DeFi ecological protocol developed based on the Substrate framework. Its focus is to provide liquidity services for the assets that have been locked in staking, and it is committed to becoming an intermediate abstraction layer between the application layer and the staking layer.

Bifrost tries to solve the contradictory selection problem of staking of limited assets in Staking and DeFi applications. Through the Bifrost protocol, users can pledge their native assets to Bifrost's proxy contract, and the Bifrost proxy contract manages the native assets for Staking; the user also obtains the liquid asset vToken (Voucher Token) issued by Bifrost, and vToken can flow freely on the Bifrost platform and enter the DeFi ecological activities.

Through such a scheme, native assets can continue to be pledged on the original chain to provide security for the solution of the original chain; and the vToken in the Bifrost chain has gained liquidity and can continue to be freely controlled by users.

Bifrost's structure design (the original chain takes Ethereum as an example, and the asset takes ETH as an example), source: TokenInsight.com
* The agency contract is actually a "cross-chain bridge contract", and the agency contract is used to facilitate readers' understanding.

Of course, the picture above shows the entry point of the Bifrost protocol. At present, the bridge with Ethereum has been realized, and vETH assets have been successfully in staking and issued. Bifrost's vision is to link more public chain networks to make Bifrost a liquidity release solution for more (or any) basic staking services.

From another perspective, Bifrost can be understood as a PoS mining pool. Users entrust assets to Bifrost for mining activities and lock in liquidity. At the same time, Bifrost gives vToken as an exchange certificate for assets in the PoS mining pool. At the same time, more applications have been built and opened in the Bifrost ecosystem, so that these vToken certificates can also be circulated, and even the benefits generated from the applications can be obtained.

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TI Research

TokenInsight is a data and research organization for the digital asset market. TI provides comprehensive asset-related data and comprehensive and timely information and research services for digital assets.