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A Solution to Your Liquid Staking — Cross-chain Staking with Bifrost | by Cryptowrit3r.x | Coinmonks | May, 2023


The best feature about liquid staking derivatives (LSDs) is that it fulfills that part of our brains that wants more money with no-to-low effort. The “bad” feature about LSDs is that they use only one (1) blockchain. While of course, the classic degen investor invests in more than one blockchain. They love money and the possibilities that open up because of crypto and DeFi.

Bifrost Finance Bifrost Finance $BNC solves that “bad” feature.

Bifrost logo
Bifrost Linkree

Bifrost is a layer 1 project built on Polkadot’s blockchain, which is famous for its interoperability. FYI, interoperability means the ability to interact with other blockchains. The project aims to solve the many problems that come with staking.


  • centralized bags making the majority of staker
  • inability to access cross-chain staking
  • low-liquidity problems
  • high minimum amount of tokens to stake (32 ETH is not an accesible amount for your average degen to lock in a staking contract)

Since Polkadot’s virtual machine is compatible with the Ethereum Virtual Machine (EVM), they have used that as a leverage to allow multi-chain staking, yet staying decentralized by distributing the staked tokens to multiple nodes using “Bifrost’s Parachain.”

Bifrost Parachain
Bifrost Parachain

This distribution across nodes solves the centralization problem and allows for cross-chain staking.

Bifrost Mechanics
Bifrost Mechanics

Futhermore, Bifrost’s tech allows fixed returns on whatever amount of currencies you stake. So you don’t need the 32 ETH to stake your ETH tokens!

how vETH is generated according to your stake on Bifrost
how vETH is generated according to your stake

Let’s say you staked 1 ETH, in return you get 1 Voucher ETH or vETH with a similar value to your stake.

The vETH:

  • can be used for yield farming
  • can be used on Polkadot and Ethereum’s chains.

Basically, you got an APY from staking AND you can farm yield at the same time.

tokens on Bifrost
tokens on Bifrost

♦Token you can stake:

  • $ETH at 12.08% APY
  • $FIL at 14.86% APY
  • $KSM at 18.22% APY
  • $GLMR at 10.94% APY
  • $DOT at 27.25% APY

The APYs are subject to change.

Bifrost $BNC token is a utility token. It’s:

  • used to pay network fees
  • used to vote on governance
  • for rewarding stakers

Note that Nodes will confiscate your BNC tokens if any fraud attempts were detected.

  • Total Supply: 80 million
  • Circulating Supply: 20.3 million

Since only 25% is in circulation, we can expect upcoming inflation.

  • Market cap: $4.3 million
  • FDV: 16.9 million

We’ve got around 75% difference, again more inflation expected.

It’s 6 times the market cap AND more than 1.5 the FDV. This is good. It means the project has legroom to grow.

Bifrost $BNC allocation and distribution
Bifrost $BNC allocation and distribution
  • 50% Ecosystem
  • 10% Treasury for Governance

These won’t have a big inflationary effect. It’s the rest 40% we need to watch out for.

  • 20% Team
  • 10% Seed Round
  • 5% private sale
  • 3% Marketing
  • 2% Mint drops

The 20% for the team, 10% for the seed round, and 5% private sale mean that 35% of supply is within big hands which could affect decentralization and price.

Bifrost Vesting Schedule
Bifrost Vesting Schedule
  1. Even though having the option to stake ETH is a great, attractive feature to onboard more users, the fact that you need to bridge ETH-WETH to Bifrost could be an obstacle standing agaisnt easy adoption.
  2. Bifrost soley depends on POS/proof-of-stake mechanism’s success. If any problems happen to POS, Bifrost will get affected.

Bifrost $BNC Good Signs

The project has been active for 3 years, which is a good sign for it shows growth, strength, and resilience.

You can buy Bifrost $BNC tokens on centralized exchanges (CEXs) like:

  • KuCoin
  • MEXC
  • CoinEx
  • Kraken

Or you can buy Bifrost $BNC tokens on decentralized exchanges (DEXs) like — Karura Swap.

This is not financial advice, so make sure to DYOR! If you enjoyed this, share it with your friends, & don’t forget to follow me here and on Twitter @ Cryptowrit3r! Subscribe to my Substack, where I’ll be sharing weekly crypto updates every Sunday!

Disclaimer: This content is for educational purposes only and should not be considered as financial or any other advice. Always do your own due diligence before investing any of your money, and stay up-to-date with all crypto regulations within your jurisdiction.

#Solution #Liquid #Staking #Crosschain #Staking #Bifrost #Cryptowrit3r.x #Coinmonks

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