Equilibrium, an all-inclusive DeFi platform operating on the Polkadot blockchain, has recently started a collaboration with Bifrost (a protocol for Web3 derivatives). Bifrost offers efficient and secure liquidity across the chains via its XCM integration for staked crypto assets. The current integration broadens the likely use cases dealing with staked assets on several blockchains. In addition to this, the partnership also permits the Equilibrium community to taken benefit from the services related to liquid staking for many chains.
Equilibrium Announces Integration with Bifrost for Supporting Bi-Directional Transfers of Crypto Assets
Equilibrium disclosed this partnership in a blog post published on Medium on February 24. The platform stated that the collaboration will let it have bi-directional transfers with diverse tokens including BNC (the native token of Bifrost), EQ (the local token of Equilibrium), and EQD (a stablecoin). The bi-directional payments will offer the consumers on Bifrost and Equilibrium enhanced functionality and flexibility.
The people holding the EQ, EQD, and BNC tokens will transact as well as use their assets on both platforms. Equilibrium disclosed that the partnership offers more opportunities for the clients on Bifrost. As a result, they will be able to utilize the staked assets in the form of collateral for minting as well as borrowing the stablecoin EQD on the platform of Equilibrium. This will expand their assets’ likely use cases.
The liquid staking-based derivatives of Bifrost, on being listed on the yield AMM of Equilibrium, would permit the clients to swap diverse liquid DOT assets. The HRMP channels’ introduction further improves the liquid staking forum of Bifrost along with offering several opportunities to the consumers letting them generate stablecoin EQD or borrow assets on Equilibrium.
The Integration to Likely Onboard More Consumers Apart from Expanding Staked Assets’ Use Cases
As a consequence of the respective collaboration, positive feedback is expected. With this, more consumers will be persuaded to take part in the constantly growing ecosystem of Bifrost. In addition to this, additional expansion is anticipated to be seen in the likely use cases of the staked assets.
EQD is a stablecoin backed by the native asset of Polkadot that is pegged to the USD with a 1:1 ratio. In this way, the stablecoin minimizes the collateral risks of a borrower. The use cases of EQD expand to a great extent via its comprehensive links to the rest of the ecosystems like the Bifrost Network.
