Victor Ugochukwu · Dec 14, 2020 . 5min read
DeFi Based Bifrost Concludes its Seed Funding Round With $600K
DeFi protocol Bifrost intends to prevent the battle between DeFi and Staking reward mechanism through its cross chain network.
By Komal Joshi · Sep 5, 2020 . 5min read
Bifrost recently declared the completion of a seed round of $600,000. The Investment institutions participating in the seed round include NGC Ventures, SNZ Holding, Consensus Lab, Digital Renaissance, Youbi Capital, DFG, Longhash, etc. Bifrost is a cross-chain network that offers liquidity for staking. It is created based on the Substrate and built on the Polkadot network.
Owing to the recent development of DeFi products, comprising liquid extraction, DeFi products may bring users remarkably high returns annually. However, the issue of whether the ETH PoW consensus-based prosperity can proceed under the consensus of ETH 2.0 or Polkadot PoS is a predicament. For users, when staking and DeFi loans can only pick one of them. Thus, the most cost-effective method becomes the basis of selection.
Bifrost to Bridge gap between DeFi and Staking Rewards Mechanism
The PoS consensus network will battle with the DeFi products of the underlying mechanism to compete with users. To resolve the dilemma of DeFi and staking rewards competition, Bifrost enables users to earn staking rewards and free up cash at the same time. It acquires and optimizes the interests of more DeFi fields, including DEX, liquidity extraction, etc. Additionally, Bifrost can solve both the difficulties, first of all, the liquidity and the security of the PoS network. Another is the acquisition of staking rewards in cross-chain scenarios.
Bifrost offers an intermediate layer between the staking and the application layer. So, the staking and application layer developed initially on the underlying protocol transforms from a parallel relationship to a high and low compatible relationship. Thus it solves the problem of the DeFi reward competition and staking. The project produced a mechanism that enables users to exchange PoS tokens into Bifrost vTokens via the Bifrost protocol. Each PoS token will correspond to a distinct vToken, like vDOT, which links the Polkadot tokens.
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