Bifrost wins 18th Polkadot ‘parachain’ slot to bring cross-chain liquid staking to PoS chains » CryptoNinjas
Bifrost, a cross-chain liquid staking derivative protocol, has just won the 18th Polkadot parachain slot. Now, Bifrost is planning on bridging from Kusama using the Polkadot infrastructure to bring cross-chain liquid staking to over 80% of public PoS chains.
Note, Bifrost won Kusama’s fifth parachain slot on July 20, 2021.
Currently, Bifrost has developed a liquidity derivative for staked KSM in order to promote the capital utilization of KSM in various DeFi scenarios as well as empower the security of the relay-chain consensus and promote the activity of KSM staking.
The Bifrost team intends to follow through on providing standardized cross-chain staking liquidity derivatives to Polkadot relay chains, parachains, and heterogeneous chains bridged with Polkadot.
“At Bifrost, we believe that multi-chain integration and cross-chain liquid staking is the push the market needs right now. We are excited to have Polkadot’s and our community’s support and to see more projects such as Moonriver or Astar team up with Bifrost in making liquid staking mainstream. The strength in combating the bear market lies in cross-chain cooperation and the Bifrost-Polkadot integration brings us one step closer to achieving this goal.”
– Lurpis Wang, Co-Founder of Bifrost
When Bifrost’s Polkadot parachain goes live, Bifrost will launch derivatives of Polkadot, Moonriver, Moonbeam, Astar, Acala, and Phala. Through Polkadot’s unique cross-chain interoperability, Bifrost can enable derivatives with parachains to be directly cast and circulated in their own ecosystem.
What’s next for Bifrost and Liquid Staking
Bifrost aims to bring liquid staking mainstream with cross-chain staking on over 80% of PoS chains. Polkadot multi-chain ecosystem was a natural choice for Bifrost, who will first integrate liquid staking on the relay and parachains to allow for liquid derivatives to be used within the entire Dotsama ecosystem.
Following that, Bifrost will launch staking derivatives on heterogeneous bridged chains expanding the ecosystem in which the cross-chain liquid derivatives can be used, giving asset holders more freedom.
Is Liquid Staking the Bear Market Remedy?
Right now many cautious investors choose to stake and wait for the bear market to fizzle out, yielding staking profits rather than using their assets for DeFi applications.
Yet, less turnover of assets could mean a further drop or stagnation of token price.
Liquid staking is a solution that allows for both: yielding staking profits and using liquid derivatives for DeFi applications, bringing the extra traffic and turnover. Bifrost thinks that this extra activity brought by liquid derivatives could play a positive role in asset utilization.