February 23, 2024 – Devoted liquid staking middleware Bifrost has introduced that it has acquired a 500,000 DOT treasury mortgage from Polkadot.
The one-year mortgage, facilitated following a profitable Treasury proposal by the Bifrost Basis in January, is meant to bolster the expansion of vDOT, Bifrost’s liquid staked model of DOT, supporting the asset’s adoption, utilities and use-cases throughout DeFi dApps inside the Polkadot ecosystem, together with Substrate and EVM parachains.
Notably, the Polkadot-powered Bifrost has dedicated to repaying the DOT liquidity mortgage in full together with the yield derived from the staking rewards it generates. This association mirrors the profitable precedent set by the protocol’s earlier two profitable 50,000 KSM Treasury liquidity loans from Kusama.
In accordance to the most recent proposal made to Polkadot in January, the minting of vDOT for the Polkadot Treasury “represents a strategic diversification method, successfully placing its DOT capital to productive use over a 1-year interval, whereas guaranteeing the return of its 500,000 DOT principal with staking rewards.”
The referenda was handed by a wholesome majority, with 98.9% of voters in favor (69.2m DOT) and simply 1.1% opposed (748.1k DOT). With the approval, the funds might be disbursed to Bifrost inside the subsequent 12 days.
The 500,000 DOT mortgage, equal to $3.9 million on the time of writing, marks a big milestone for Bifrost which now has over 6.5 million DOT tokens staked on its platform, making it the most well-liked liquid staking protocol within the Polkadot ecosystem. Bifrost’s affect extends throughout a number of Polkadot parachains together with Astar and Manta, in addition to past the Polkadot ecosystem having supported ETH staking for a number of years. Bifrost additionally launched one of many first liquid staking options for Filecoin final yr.
The approval of Bifrost’s mortgage displays the rising sophistication of Polkadot’s decentralized governance platform OpenGov, in addition to the usefulness of its canary community Kusama. Whereas the blockchain’s treasury was not all the time related to DeFi, Bifrost and others have proven that Polkadot is prepared to assist base-layer DeFi primitives that promote adoption by catering to a number of monetary use circumstances. The community’s OpenGov course of, in the meantime, ensures Polkadot neighborhood members have a say in how the treasury’s funds are allotted.
About Bifrost
Bifrost is a devoted liquid staking center layer serving the omni-chain ecosystem. Constructed on Substrate and powered by Polkadot, it offers standardized cross-chain liquid staking options for a number of chains.