Introducing LoopStake! 🌈 ♾

The One-click Leverage Staking on Bifrost.

➡️ bifrost.app/vstaking/vDOT?tab=loopstake

Supercharge your staking rewards with a simple and direct in-dApp "One-click" leverage staking solution available on Polkadot and Kusama! 🧵👇

1️⃣

LoopStake has been announced to the public, for the very first time, Today!

Here's a short footage of the announcement made during the Polkadot sub0 event in Bangkok, Thailand: https://x.com/Bifrost/status/1767854520606822709

2️⃣

Leverage Staking is a strategy that utilizes liquid staking tokens on lending protocols to amplify the staking yield earned from a LST.

This creates a loop through which users can generate higher staking rewards compared to their initial deposit.
See previous article: https://grillapp.net/1013/leverage-staking-introduction-93409?ref=10240

3️⃣

Here's how it works:

1. Liquid staking assets to get LST

2. Depositing the LST obtained on a lending protocol

3. Using the LST supplied as collateral to borrow the staked asset

4. Liquid staking the borrowed asset for a LST, supplying on a lending protocol and borrowing again

4️⃣

LoopStake, our one-click non-custodial leverage staking product, removes the complexities of manual repetitive looping of collateral and cross-chain transfers of assets.

This saves transaction fees for swaps, cross-chain transfers and simplifies the leverage staking process!

5️⃣

By leveraging off our dedicated Liquid Staking Architecture and

Polkadot’s trustless interoperability with XCM, Bifrost’s LoopStake offers two unique advantages for users:

🔸 Get Up to 4x Leverage on users' staking yield

🔸 Aggregate Cross-chain Liquidity for better rates

6️⃣

Bifrost has also implemented a Leverage Pool.

Currently we only support this leverage pool for $DOT lender to receive additional APY, but $KSM leverage pool will be live in the future.

Note: The APY will decrease proportionally to the increase of liquidity in the pool.

7️⃣

It is fair to appoint that this product does carry some risks that users must be aware of:

❌ Errors in the Oracle price feeds

❌ Slash due to malicious activity of node operators

❌ Market manipulation of the price of the vToken/Token

❌ Vulnerabilities in the code

8️⃣

However, Bifrost has taken necessary steps to minimize the potential risks:

✅ Diversifying Oracle price feed sources

✅ Deploying a Slash protection strategy to safeguard user's staked assets

✅ Supporting a stable curve market-making mechanism to prevent price manipulation

9️⃣

LoopStake has been successfully audited by OAK Security through the Polkadot Alliance Legion (PAL), a grant funding initiative promoted by @PolkadotAssured.

You can read the report here: https://t.co/UQQynOKa1k

🔟

With LoopStake, Bifrost aims to accelerate the adoption of diverse DeFi strategies and products utilizing LSTs within Polkadot, Kusama and - in the future - a whole range of supported chains.

Get in the Loop with Bifrost! 🌈 ♾