8 months ago
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Bifrost has recently achieved an importnat milestone, becoming the largest liquid staking protocol on Polkadot with approximately $150 million in Total Value Locked (TVL).
Bifrost, a decentralized liquid staking protocol has launched LoopStake, a leverage staking solution tailored for the Polkadot ecosystem. According to a press release shared with Coinspeaker, the platform officially unveiled the new product at the Polkadot Asia developer conference “Sub0” in Bangkok, Thailand.
The event is a two-day conference slated for March 12 and 13. It will bring together Web3 innovators and developers from all levels of the Polkadot tech stack. Participants will discuss various topics relevant to the Polkadot ecosystem, including custom layer-1 blockchains, decentralized applications (dApps), and smart contracts, fostering knowledge sharing and collaboration.
Bifrost Unveils LoopStake
At the conference, the protocol said LoopStake is designed to streamline the automation of asset looping in lending protocols.
In traditional leverage staking, users stake assets to receive liquid staking tokens (LST). They then use these tokens as collateral on a lending protocol to borrow the staked assets and receive LST again with the borrowed asset – a process known as looping.
However, the launch of LoopStake eliminates the need for users to loop collateral manually, a highly inefficient and gas-intensive process.
According to Bifrost, the new solution offers users access to this strategy with just one click, democratizing and revolutionizing crypto asset management.
Bifrost also said the product leverages its liquid staking architecture and Polkadot’s interoperability to boost its adoption. The platform targets non-native DeFi users, simplifying the complex process of leverage staking.
Simplify Liquid Staking for DeFi Users
LoopStake provides an intuitive solution for those interested in participating in yield strategies within the DeFi space. The staking solution targets a broad user base, catering to both seasoned DeFi investors and newcomers exploring the decentralized finance landscape.
The product aims to give users greater flexibility and higher potential returns through a lending curve customized for liquid staking tokens.
Initially supporting leverage staking for digital assets like DOT, LoopStake plans to expand to include more cryptocurrencies, potentially even cross-chain assets.
The introduction of LoopStake into the market comes at a time when LSTs are gaining traction, replacing native network assets as preferred collateral within DeFi protocols due to their versatility and “risk-free” yield.
LSTs are often likened to fixed-income products in the traditional financial ecosystem, such as US treasuries, highlighting their appeal to investors seeking stable returns within the volatile crypto market.
The surge in popularity of liquid staking can partly be attributed to Ethereum’s Shapella upgrade, which enabled ETH withdrawals from staking contracts. This development marked a significant shift in the DeFi space, with liquid staking emerging as the largest category within the sector, boasting approximately $50 billion in TVL.
Bifrost Emerges as Leading Staking Protocol in Polkadot
Apart from LoopStake’s launch, Bifrost recently achieved another milestone, becoming the largest liquid staking protocol on Polkadot with approximately $150 million in Total Value Locked (TVL).
The platform’s liquid staked token for DOT, vDOT, has surpassed 7,000,000 DOT ($68M) in TVL, while vKSM, its liquid staked token for Kusama (KSM), is nearing the 500,000 KSM ($25M) TVL milestone, solidifying its position as a leader within the Kusama ecosystem.
The protocol received a treasury loan of 500,000 DOT from the Polkadot in February.
