Token Economy
Bifrost Native Coin (BNC) is the governance token of the Bifrost protocol and the gas token of the Bifrost Polkadot chain and the Bifrost Kusama chain.
BNC holders can participate in the governance of the Bifrost chain and the Bifrost protocol through proposals and voting, including modifying protocol parameters, approving treasury expenditures, deciding on the launch of new features, etc. Later, we will grant vBNC governance rights, consistent with other vToken Voting mechanisms.
The total supply of BNC tokens is 80,000,000, with no mechanism for additional issuance.
In addition, Bifrost is about to launch a new token economic model, BNC 2.0, which aims to create a sustainable and attractive economic model. The new economic framework will introduce a protocol revenue sharing mechanism, which will not only enhance the utility and value of BNC, but also make BNC an interest-bearing asset. Through these mechanisms, long-term holders can obtain fair income distribution.
Regarding the new economic model of BNC, it is expected to be announced as planned soon, so stay tuned!
Application Scenario
vToken has a high basic yield, can be traded at any time in a unified liquidity pool, can be quickly redeemed through peer-to-peer matching, and has a series of superior features such as inheritance of governance rights.
However, with the development of the LST track, the competition between LST protocols has gone beyond the competition at the basic feature level, but has become a competition at the ecological level. Ultimately, it depends on how high the LST protocol can provide users with a superimposed yield, and whether it can provide a combined yield strategy that meets different risk preferences.
Based on this, Bifrost has set up application scenario pages for each type of vToken on Dapp:
On this page, Bifrost aggregates various application scenarios for vToken and provides a rich library of combined income strategies in the Earn category to meet the needs of Yield Maximers.
Among the LST portfolio income strategies, there is a type of strategy that cannot be ignored, that is leveraged staking. The essence of leveraged staking is that users combine the LST protocol with the lending protocol to amplify staking income while bearing higher liquidation risks. In order to meet the needs of leveraged staking, Bifrost has developed a leveraged staking product, Loop Stake , which supports users to set up to 4 times leverage.
Leveraged pledge requires the liquidity of the lending pool. Loop Stake will remain open, striving to aggregate the liquidity of the entire chain and provide users with the best lending rate. With the help of Polkadot's XCM message and Bifrost's full-chain architecture design, Loop Stake can remotely call the liquidity of any other parallel chain lending pool, for example, it can remotely use the DOT/vDOT lending pool in Interlay Lend and Hydradx Omnipool. However, considering that the increase in the business volume of leveraged pledge is a process, in the early stage of the launch of the Loop Stake product, the current solution adopted by Loop Stake is to create a lending pool locally in Bifrost to provide lending liquidity, which will be gradually expanded later.
In the DeFi field, we see a clear development trend that "Farming as a service" will become popular. Under this trend, DeFi protocols will not only provide a single source of income, but also provide users with a series of combined income strategies, so that users have multiple options to obtain multiple incomes with one click. This model will simplify user operations and provide users with higher capital efficiency and more flexible choices. Loop Stake is a start. Later, Bifrost will launch more combined income strategy products to further expand the range of choices for vToken holders.
More information: Bifrost launches new product Loop Stake to achieve multiple staking yields
