- Bifrost introduces LoopStake, a new product for easy leverage staking that simplifies crypto asset management.
- LoopStake allows users to maximize yield on staked assets with a one-click strategy, avoiding manual looping.
Bifrost, the leading decentralized liquid staking middleware, has unveiled LoopStake, a groundbreaking Leverage Staking product. The news was made during the Polkadot Asia developer conference Sub0, indicating a substantial advancement in crypto asset management. LoopStake provides users a simple one-click technique to increase income on staked assets, transforming how investors interact with decentralized finance (DeFi) protocols.
Leverage staking is easier with LoopStake since it eliminates the laborious and gas-intensive manual looping collateral procedure. Users stash assets to earn Liquid Staking Tokens (LSTs), which are then borrowed using the staked item as security on a lending protocol, yielding additional LSTs with the borrowed asset. With its user-friendly interface and unmatched versatility, this smooth process democratizes the management of cryptocurrency assets.
Unparalleled Value-added Opportunities
The CEO and co-founder of Bifrost, Lurpis Wang, highlighted LoopStake’s importance in the cryptocurrency space. “With the launch of LoopStake by Bifrost, we are opening a new chapter in crypto asset management and providing investors with unprecedented value-added opportunities, ”Wang stated. LoopStake simplifies leverage staking and exemplifies Bifrost’s dedication to ongoing research and development in decentralized finance.
LoopStake serves a broad spectrum of users, from experienced DeFi investors to beginners exploring opportunities in the market, by utilizing Polkadot’s trustless interoperability and Bifrost’s liquid staking architecture. For individuals eager to engage in the yield strategy, leverage staking is easily available to non-native DeFi users because of the platform’s user-friendly design.
Initially supporting leverage staking for assets such as DOT, LoopStake has plans to gradually expand to more assets, including cross-chain offerings. This expansion will further enhance the platform’s versatility and accommodate the evolving needs of the crypto community.
The DeFi environment has changed because of the emergence of liquid staking, especially after Ethereum’s Shapella update. Liquid staking is the industry leader, with almost $50 billion in Total Value Locked (TVL). In several DeFi protocols, Liquid Staking Tokens (LSTs) have become the preferred collateral because they provide users with an intrinsic «risk-free» yield similar to fixed-income instruments found in conventional finance.
Supporting Growth Through Treasury Loans
This announcement follows the statement one month prior by the decentralized liquid staking system, which stated that Polkadot had provided a 500,000 DOT cash loan. This one-year loan, made possible after a successful Treasury proposal, demonstrates Polkadot’s faith in Bifrost’s growth potential and dedication to advancing the development of liquid staking solutions. In keeping with the profitable precedent set by prior Treasury loans from Kusama, Bifrost declared that it has pledged to repay the DOT liquidity loan in full, plus with the yield from the staking incentives.
The impact of Bifrost goes beyond the Polkadot ecosystem because it supports several parachains, such as Astar and Manta, through its liquid staking solutions. In addition, Bifrost has been a major force in the Ethereum staking market for a number of years and introduced one of the first Filecoin (FIL) liquid staking options last year. With its innovative products and commitment to interoperability, Bifrost continues to drive the adoption of liquid staking across diverse blockchain networks.
