Bitfrost releases upgraded SALP 2.0 after protocol helped secure $450M via parachain auctions

CoinTelegraph

On Friday, Bitfrost, a Web 3.0 derivatives protocol that provides decentralized cross-chain liquidity for staked assets, launched the updated Slot Liquidity Auction Protocol dubbed “SALP 2.0.” Projects such as Moonbeam, Unique network, OAK network, Polkadex, etc., held their parachain crowdloans on Kusama and Polkadot via the original SALP. A total of 8,834,746 vsKSM ($439 million) and 3,045,564 vsDOT ($21 million) was minted through the protocol.

The SALP protocol works by releasing the liquidity of tokens staked during an auction; liquid derivatives such as vsDOT and vsKSM are issued on a 1:1 basis for the tokens staked. Both vsDOT and vsKSM can be used for decentralized finance, or DeFi, applications, and rewards throughout the ecosystem as long as the native tokens remain locked for the duration of the parachain lease.

How To Get Free Crypto  

This avoids the opportunity cost of locking their coins. However, the new SALP 2.0 allows users to obtain liquid tokens via direct investment, not just via crowdloan participation. Tyrone Pan, head of development at Bifrost, commented:

“The upgrading of SALP 2.0 is generating a Bond market for Crowdloan assets, improving the efficiency of vsToken & vsBond liquidity while lowering the threshold for users. This model not only facilitates Crowdloan users to manage derivatives, but also cleverly combines Crowdloan with DeFi.”

Liquid staking is a relatively new phenomenon in the DeFi realm, mainly born to allow users to recover potential opportunity costs while staking their assets. The potential downside is their vulnerability to the changes in underlying assets as they are classified as DeFi derivatives. 

Go to Source
Author: Zhiyuan Sun


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.