Bifrost is a derivatives protocol that provides cross-chain liquidity for staked assets and is capable of offering cross-blockchain liquidity services.
Cross-blockchain liquid staking protocol Bifrost has won the Polkadot parachain slot number 18. Bifrost wants to create a bridge from Kusama using the infrastructure of Polkadot to bring cross-chain liquid staking to over 80% of PoS blockchains.
Almost a year ago, on June 20, 2021, Bifrost won the Kusama's fifth parachain slot.
The protocol has been developing a liquidity derivative for staked KSM in order to promote the utilization of KSM capital in various DeFi scenarios, as well as enhance the security of the relay chain consensus and promote the activity of KSM staking.
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Bifrost's goal is to continue offering standardized liquidity derivatives for Polkadot relay chains, parachains, and heterogeneous chains with DOT. The team is confident that Multichain integration and liquid cross-chain staking is the boost the market needs right now.
Once launched, Bifrost will launch derivatives for Polkadot, Moonriver, Moonbeam, Astar, Acala, and Phala.
What role does liquid staking play in a bear market?
Cross-chain liquid staking allows more conservative investors to stake and wait out the bear market, while earning profits from staking, rather than using the assets in DeFi applications. This causes lower asset turnover, which could mean a further drop or stagnation in the price of the tokens.
Liquid staking allows you to earn profits and use liquid derivatives in DeFi applications, bringing a greater volume of traffic and businessIn this sense, additional activity in liquid derivatives could revitalize the market and play a positive role in the use of assets.
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Acala and the Dotsama ecosystem stablecoin
The Dotsama ecosystem is made up of all the projects and protocols that are part of the Kusama and Polkadot parallel blockchain network. In it, we can find Acala, an Ethereum-compatible smart contract platform adapted for DeFi, which created a $250 million fund to support aUSD, its own stablecoin.
The stablecoin will initially be integrated into sister networks Moonriver and Moonbeam, thanks to Zelink, a Polkadot-based DEX protocol. This stablecoin seeks to generate greater liquidity in Dotsama's DeFi protocols, which could lead to growth for both tokens.
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