Bifrost works with Coinbase Cloud to power their cross-chain liquid staking solution.
September 6, 2022
Coinbase Cloud is excited to support Bifrost in its journey of building cross-chain liquid staking solutions.
Bifrost is a web3 protocol that provides cross-chain liquidity for staked assets. Liquid staking allows locked staked assets to be wrapped into transferable tokens that represent ownership of the underlying staked assets, and any rewards earned. These yield bearing tokens are fully transferable and can be unwrapped to claim the underlying staked assets. Bifrost provides standardized cross-chain interest-bearing derivatives across Kusama and its parachains, through the issuance of the vKSM token (Bifrost’s liquid KSM vToken), backed by staked assets with leading community validators. Coinbase Cloud is an infrastructure provider powering Bifrost’s approved list of validators on Kusama, which has seen an increase of 160% in minting volume in less than 90 days. Coinbase Cloud is excited to support Bifrost in its journey of building cross-chain liquid staking solutions.
Challenge: Running nodes isn’t Bifrost’s core business
Liquid staking requires both a validator & a mechanism for users to receive liquid tokens. Bifrost’s primary objective is to provide the mechanism for users to receive liquid tokens representing staked assets. Today, Bifrost is one of the top listed liquid staking protocols by total value locked (TVL), according to Defi Llama. In addition to this, maintaining uptime, security & efficiency across any given validator can be a challenging task. With this in mind, Bifrost looked to build a node selection process with high-quality, decentralized community node operators.
Solution: Staking on trusted, high-performance public validators
Selecting reliable, high-quality validators is essential for protocols such as Bifrost to ensure users will continue to earn rewards on their staked tokens. Coinbase Cloud offers the same staking infrastructure in our public validators as the infrastructure powering the leading crypto products and exchanges. Coinbase Cloud provides high-performance infrastructure via public community validators to support the Bifrost validator set, receiving delegations from the community.
“Coinbase Cloud is a high-quality infrastructure platform for node management and staking which will provide high return and stable performance Kusama validators to support Bifrost vKSM. Whilst Bifrost Staking Liquidity Program helps Coinbase Cloud’s Kusama nodes run in an active validator set, backed by vKSM minting.” - Thibault Perréard, Head of Business Strategy, Bifrost
As both a Kusama and Polkadot parachain, Bifrost can provide standardized cross-chain liquid staking services for multiple chains and aims to be a decentralized cross-chain liquid staking hub. With Coinbase Cloud’s deep expertise in decentralized infrastructure, as well as the Substrate and Polkadot ecosystem, Coinbase Cloud is positioned to be an ideal long-term infrastructure provider for supporting Bifrost’s cross-chain liquid staking objectives. Both Bifrost and Coinbase Cloud are well-aligned to provide value to the community.
“Bifrost's next releases are coming soon with liquid DOT (vDOT), MOVR (vMOVR), and GLMR (vGLMR), which Coinbase Cloud plans to support,” stated Harry Alford, Senior Cloud Sales Specialist, Coinbase Cloud. “This collaboration is a win-win for both parties, but most importantly the cross-chain liquidity staking community.”
To participate, users can mint vKSM with Bifrost delegating to Coinbase Cloud validators by accessing the Bifrost dapp today.
To learn more about working with Coinbase Cloud to build your solution, contact us.