According to a post shared on the X app, Bifrost SLPx Pallet, a protocol that is designed to leverage the Polkadot (DOT) native cross-consensus messaging format, has gone live.
SLP is built as a module that enables the processing of vToken minting as well as its redemption via the Bifrost chain. The process requires that users transfer their assets to the Bifrost chain first and the newly created SLPx which forms an extension pallet to SLP will help address any apparent user experience issues.
Bifrost SLPx Pallet is Live! 🎉
By leveraging @Polkadot's native cross-consensus messaging format (#XCM), the #SLPx pallet will crucially lower the barrier of liquid staking for users.
By reducing the whole process to one click from any chain, it abstracts away the… pic.twitter.com/33J87mL0Wj
— Bifrost – Omnichain LST (@BifrostFinance) October 12, 2023
Operation Modalities of Bifrost SLPx
With the new SLPx, users are able to invoke SLP’s functionality on a remote chain and they would not need to cross-assets into the Bifrost chain. The solution is designed to significantly reduce the barrier of liquid staking for users with actions embedded in just one click. This reduction takes away the complexities and drudgery involved in cross-chain transfers and liquid staking processes.
Ultimately, the Bifrost SLPx Pallet will allow users to mint, redeem, and swap vToken on the remote chain while leveraging on the liquidity derived from the Bifrost chain. The process has become more simplified in the absence of cumbersome cross-chain operations. Moving forward, DOT can be utilized directly to mint vDOT on either Moonbeam, Moonriver, or Astar. At the completion of the entire process, both the original and target assets will remain on these protocols.
Users hardly bother themselves with the cross-chain interaction process that took place behind the scenes. From the outlook of the entire process, it looks like it was totally conducted on the Moonbeam/Moonriver/Astar local chains. In the same vein, the redemption of vDOT from DOT can happen directly on these protocols. Furthermore, the exchange of vDOT/DOT on Moonbeam/Moonriver/Astar using the vDOT/DOT liquidity pool on the Bifrost chain can be achieved.
This would take away the need for Bifrost to split the liquidity of vDOT/DOT into several chains. The idea of remote minting and redemption offers convenience to users especially those on remote chains. This remote invocation feature that is implemented by SLPx is a major milestone for Bifrost in terms of reaching Omni-LSD.
Based on a Bifrost blog post, “SLPx serves as Bifrost’s technical solution to achieve its Omni-LS vision.”
Better Swapping And Trading Experience For Users
Apart from the convenience of the user’s operation, the token swaps that receive support from remote chains provide a different outlook to “unified liquidity.”
This unified liquidity feature also brings about a better swapping experience for users and it reduces liquidation discounts for lending protocols. It is worth noting that all chains’ vDOT/DOT exchanges utilize the same pool depth and this provides a more negligible price impact and a better trading experience for users.
So far, the SLPx remote pallet/contract has been deployed on Moonbeam, Moonriver, Astar, and Ethereum. For the near future, Bifrost is considering further deployment on Acala, Karura, Filecoin, and Shiden.
