Recently, Bifrost launched an upgrade proposal for version v0.11.0, which is another major update after the previous version. This upgrade involves many aspects, including the realization of Snowbridge connection, the addition of BNC repurchase tray function, SLPx support for reward sharing plan, the integration of vToken price oracle, and ensuring SLP compatibility with XCM V4. Each update is full of the Bifrost team's pursuit of ecological improvement and user experience improvement.
This upgrade is not only an iteration of Bifrost technology, but also a new milestone in its ecological construction. Through this comprehensive upgrade, Bifrost will usher in a new chapter of the Polkadot ecosystem with a more complete and powerful attitude. Whether it is the improvement of cross-chain capabilities, the optimization of economic models, or the improvement of infrastructure, it will lay a solid foundation for the future development of Bifrost.
As an important member of the Polkadot ecosystem, Bifrost has always been committed to providing users with the best cross-chain services. This upgrade is a key step for Bifrost on this road. By introducing new features and improving infrastructure, Bifrost is injecting new vitality into its cross-chain ecosystem. This will not only benefit Bifrost's existing users, but will also attract more projects and users to join the Bifrost ecosystem.
Below, I will elaborate on the far-reaching impact of this upgrade from these five aspects.
1. Snowbridge connection: opening up the Ren and Du meridians of Polkadot and Ethereum
As we all know, Ethereum is the most important public chain ecosystem at present, with a huge number of users and assets. As a heterogeneous chain Internet, Polkadot is also attracting more and more excellent projects to join. Now, Bifrost will build a bridge connecting these two ecosystems through the connection of Snowbridge. This bridge not only connects the two worlds, but also opens up the artery of value circulation.
What does this mean? This means that through this "bridge", ERC20 assets on Ethereum can quickly and cheaply enter Polkadot. Imagine that all kinds of ERC20 tokens gather in Bifrost and "bloom in bloom" together with Polkadot's native assets. What a rich scene it is! On the other hand, Polkadot's high-quality projects can also be more easily understood and participated by Ethereum users. Everyone can freely explore various innovative DApps and enjoy the high performance and scalability of the Polkadot ecosystem.
From Bifrost's perspective, Snowbridge will undoubtedly lead its cross-chain capabilities to a new level. The influx of ERC20 assets has made Bifrost a veritable "coin gathering place". The channel facing Polkadot also provides a wider flow space for assets on Bifrost. Bifrost will become an important hub connecting the two major ecosystems, and the asset scale and cross-chain transaction volume are expected to achieve new breakthroughs.
It can be seen that Snowbridge will be an important milestone in the development of Bifrost. It not only broadens Bifrost's asset sources, but also enhances Bifrost's voice in the cross-chain field. In the future, Bifrost will use Snowbridge as a starting point to further connect Polkadot with more public chains and become a true bridgehead for "all chains to become one". As more and more assets pour in, Bifrost will also usher in an explosive growth in cross-chain transactions, making a significant contribution to the industry.
2. BNC buyback: the ballast of token value
When it comes to Bifrost, we have to mention its native token BNC. As a carrier of ecological incentives, BNC plays a vital role in the development of Bifrost. With this upgrade, BNC will usher in an important update - the buyback tray function (a mechanism that adjusts the supply and demand relationship of tokens and promotes the growth of token value through market-oriented means). This will undoubtedly provide new support for the value of BNC and become the "ballast stone" to maintain its stability.
So, how does the repurchase tray mechanism work? Simply put, Bifrost will use part of the protocol revenue to regularly repurchase BNC from the market and destroy it. This means that as the Bifrost ecosystem continues to prosper, the protocol revenue will also rise. The increase in revenue will in turn drive the repurchase efforts to increase. This forms a positive cycle and continuously injects intrinsic value into BNC.
What impact will the buyback and destruction have? The most intuitive one is the reduction in the supply of BNC. When BNC in the market becomes increasingly scarce, while the demand for BNC is increasing day by day, the price increase of BNC can be imagined. For BNC holders, their interests will be more fully protected. The continuous appreciation of BNC will also attract more users to join the Bifrost ecosystem, thus forming a virtuous circle.
It can be said that the BNC buyback tray mechanism is a highlight of Bifrost's token economy design. It cleverly binds the protocol revenue to the token value, which not only provides intrinsic support for BNC, but also injects growth momentum into the ecosystem. Under the stabilizing effect of the "ballast stone", BNC will cross the bear and bull and stand at the forefront. The Bifrost ecosystem will also achieve long-term prosperity and development due to the resilience of BNC. I believe that in the near future, we will witness a stronger BNC and a more prosperous Bifrost!
3. SLPx Reward Sharing: Building a Tower from Small Pieces of Sand, Building Prosperity Together
When it comes to Bifrost's DeFi landscape, SLPx is a dazzling pearl. As a decentralized staking liquidity protocol, SLPx makes equity assets such as DOT "tangible" and revitalizes valuable staking coins. As the "product form" of SLPx, vToken has injected a steady stream of innovative power into Bifrost DeFi.
With this upgrade, SLPx has received another major benefit - the sharing of minting rewards. This means that all users who participate in SLPx minting will receive generous rewards. This will undoubtedly greatly stimulate the enthusiasm of users to participate and bring a lot of fresh "blood" to SLPx. As the number of participants increases, the asset scale of SLPx will continue to expand, and the influence of the protocol will also rise.
From the user's perspective, SLPx minting is simply killing two birds with one stone. On the one hand, users can "activate" idle DOTs through SLPx to release the liquidity of pledged assets. On the other hand, in the process of minting vTokens, you can also get rewards such as BNC. Compared with simply holding coins, SLPx minting undoubtedly doubles the income. It can be foreseen that more and more users will join the "gold rush" of SLPx and share the dividends of Bifrost's ecological development.
So, what changes will the prosperity of SLPx bring to the Bifrost ecosystem? First, the expansion of SLPx asset scale will greatly enhance Bifrost's competitiveness in the DeFi field. As more and more assets are "activated", Bifrost will attract more high-quality projects to "compete for the top". Secondly, the increase in SLPx participants also means the expansion of Bifrost's user base. The user scale is often the core competitiveness of the public chain ecosystem, and Bifrost will use this to achieve "fission-like" growth.
4. vToken Oracle: Data empowerment, helping DeFi
DeFi is a hot topic in the current blockchain world and an important development direction for the Bifrost ecosystem. The innovation of DeFi applications is often inseparable from the support of data. As the "capillaries" of Bifrost DeFi, the accuracy and availability of vToken's price data are crucial to the prosperity of the entire DeFi ecosystem.
In this upgrade, Bifrost integrated the vToken exchange rate into the RPC interface, completely solving the problem of "difficulty in obtaining data" for DeFi developers. Now, developers can easily obtain the real-time price of vToken through simple interface calls. This is like plugging a "data engine" into DeFi applications, making their innovation smoother. Developers no longer have to spend a lot of effort to connect to data sources, but can focus more on application innovation itself.
For ordinary users, the upgrade of vToken oracle will also bring a better DeFi experience. Based on credible price data, DeFi protocols can provide more accurate key indicators such as swap matching, lending rates, and liquidation thresholds. This means that when users use DeFi applications, they will receive fairer and more transparent services, and asset security will be more effectively protected. The perfect oracle also lays the foundation for the birth of more DeFi gameplay.
From the perspective of the Bifrost ecosystem, the upgrade of the vToken oracle is "just in time". As the Bifrost DeFi landscape continues to expand, the demand for price data has become increasingly strong. Timely filling the "shortcomings" of the oracle will greatly promote the prosperity and development of the Bifrost DeFi ecosystem. In the future, more high-quality DeFi protocols will take root on Bifrost, bringing users unprecedented innovative experiences.
5. XCM V4 compatibility: deeply integrated into the Polkadot ecosystem
As we all know, Polkadot is a network composed of heterogeneous chains, and cross-chain communication is one of its core features. XCM (Cross-Consensus Message), as the standard for cross-chain message transmission in Polkadot, can be described as the "highway" for parallel chains to communicate with each other. As an important member of the Polkadot ecosystem, Bifrost is well aware of the importance of cross-chain interconnection. This upgrade, by supporting XCM V4, will enable SLP to achieve a deeper integration with the Polkadot ecosystem.
So, what changes will XCM V4 compatibility bring to Bifrost? First of all, assets on Bifrost will be able to circulate more efficiently in the Polkadot network. Users can quickly cross-chain vTokens to other parachains through XCM and participate in local DeFi, NFT and other applications. At the same time, assets from other parachains can also be transferred to Bifrost more conveniently, injecting new liquidity into the ecosystem. It can be foreseen that the "bloodline" between Bifrost and the Polkadot chains will be smoother, and value will circulate at a high speed in the ecosystem.
For ordinary users, XCM V4 will bring an unprecedented cross-chain experience. Imagine that users can transfer vDOT from Bifrost to Acala with one click and participate in Acala's DeFi application. When liquidity is needed, assets can be quickly transferred back to Bifrost for cash, and the whole process is seamless. With the simplification of cross-chain operations, users will truly have the ability to configure "global" assets. Bifrost will also use XCM to open the door to the Polkadot world for users.
From Bifrost's perspective, XCM V4 compatibility will undoubtedly promote the upgrading of its cross-chain capabilities. Bifrost is no longer an "isolated island", but a "hub" deeply connected to the Polkadot network. Bifrost will achieve value resonance and ecological co-construction with Polkadot's parachains through XCM V4. In the future, Bifrost is expected to become the "preferred" entrance for Polkadot DApps, providing developers with the richest cross-chain resources. Bifrost will also be based on Polkadot and expand its territory in the broader blockchain world.
In summary, the Bifrost v0.11.0 upgrade is full of practical information, focusing on both the present and the future. Snowbridge connection, BNC repurchase, SLPx rewards and other measures will bring visible benefits to users and developers. And infrastructure upgrades such as vToken oracle and XCM compatibility have laid a solid foundation for the future development of Bifrost.
As a Bifrost fan, Lao Mao has always been concerned about and optimistic about Bifrost's performance in the cross-chain track. Over the years, Bifrost's unremitting efforts in technology and ecological construction have made it stand out among many projects. The upgrade of v0.11.0 will undoubtedly be another important milestone in the development of Bifrost. It indicates that Bifrost is embracing the opportunities and challenges of the cross-chain era with a more open and pragmatic attitude.
Therefore, Lao Mao hereby calls on all community members to support Bifrost's upgrade proposal. With our actions, we can inject confidence and strength into Bifrost, and with our support, we can help Bifrost's future and contribute to the prosperity of the cross-chain ecosystem.
Lao Mao (Twitter): https://x.com/readonlm
Bifrost related links:
Website：https://bifrost.finance
Twitter：https://twitter.com/Bifrost
Dapp：https://app.bifrost.io
