Bifrost’s SLPx palette, which includes Polkadot’s cross-consensus messaging format, has gone live. This pallet simplifies cross-chain transfers and staking to lower user barriers to liquid staking. The SLPx pallet is a great addition to the Bifrost ecosystem since it allows liquid staking with a single click on any blockchain. The method streamlines cross-chain transfers and staking, creating a user-friendly interface. The Staking Liquidity Provider (SLP) is essential for minting and redeeming vTokens on Bifrost. In the past, clients had to move their assets to the Bifrost chain, which might affect consumption.
SLPx Empowers Apps for Remote Staking Rewards
The introduction of SLPx advances Bifrost development. It lets users employ SLP on external chains without transferring assets to Bifrost. Users can mint vDOT on Moonbeam, Moonriver, or Astar using DOT on their local chains. This streamlined technique simplifies cross-chain interactions to improve the user experience.
The Bifrost chain lets users swap vDOT for DOT and vice versa. This exchange may be done using Moonbeam, Moonriver, or Astar using vDOT/DOT liquidity. This unique approach eliminates the need to split liquidity pools among networks because they share the same pool depth. Price effects are reduced and trading is enhanced.
The benefits of SLPx go beyond users. SLPx-connected apps may benefit users. Lending protocols can remotely convert users’ collateralized DOT into vDOT, allowing them to accumulate staking rewards. The incorporation of a consistent liquidity pool reduces lending protocol liquidation discounts. SLPx lets apps create, redeem, and trade different vTokens without modifying them.
The SLPx feature in Moonbeam, Moonriver, and Astar provides Liquid Staking Derivatives (LSD) assets from other blockchain networks, advancing their ecosystems. These linked networks allow users to access extensive services from other networks without switching networks, improving their experience and engagement.
XCM V3 Revolutionizes Cross-Chain Instructions
XCM V3 cross-chain instruction format is a major improvement in this process. The XCM V3 protocol allows multi-hop executions to send instructions from source to destination chains. This means the target chain can execute instructions and create new XCM messages, allowing many chains to execute instructions.
SLPx is crucial to Bifrost’s Omni-LSD approach. Chains using the SLPx remote module may simply activate the Bifrost chain’s SLP module for remote vToken minting and redemption. SLPx’s unique interaction method simplifies customer interactions, streamlines cross-chain connectivity for distant developers, and creates a more user-friendly and connected cryptocurrency ecosystem.
