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With new loan program activated, more and more opportunities will be unlocked for enthusiasts of liquid staking in the Polkadot (DOT) and EVM ecosystems.
Bifrost receives 500,000 DOT loan from Polkadot (DOT): What to know
Dedicated liquid staking middleware Bifrost has announced that it has received a 500,000 DOT treasury loan from Polkadot. The one-year loan, facilitated following a successful Treasury proposal by the Bifrost Foundation in January, is intended to bolster the growth of vDOT, Bifrost’s liquid staked version of DOT.
Presenting Bifrost, the omni-chain liquid staking protocol secured by @Polkadot.
— Bifrost - Omnichain LST (@BifrostFinance) January 2, 2024
Bifrost allows users access to the liquidity of their staked assets, facilitating the further utilization of these staked assets within #DeFi.
Follow the 🧵 to learn more about Bifrost #LST. pic.twitter.com/mfWjCgwANq
This, in turn, will accelerate the asset’s adoption, utilities and use cases across DeFi dApps within the Polkadot ecosystem, including Substrate and EVM parachains.
Notably, the Polkadot-powered Bifrost has committed to repaying the DOT liquidity loan in full along with the yield derived from the staking rewards it generates. This arrangement mirrors the successful precedent set by the protocol’s previous two successful 50,000 KSM Treasury liquidity loans from Kusama.
According to the latest proposal made to Polkadot in January, the minting of vDOT for the Polkadot Treasury “represents a strategic diversification approach, effectively putting its DOT capital to productive use over a 1-year period, while ensuring the return of its 500,000 DOT principal with staking rewards.”
Introducing modern liquid staking solutions to Polkadot (DOT)
The 500,000 DOT loan, equivalent to $3.9 million at the time of writing, marks a significant milestone for Bifrost, which now has over 6.5 million DOT tokens staked on its platform, making it the most popular liquid staking protocol in the Polkadot ecosystem.
Bifrost’s influence extends across multiple Polkadot parachains, including Astar and Manta, as well as beyond the Polkadot ecosystem, having supported ETH staking for several years.
Bifrost also launched one of the first liquid staking solutions for Filecoin (FIL) last year.