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Bifrost unveils LoopStake to improve yield on staked assets 

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on Mar 13, 2024
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  • Bifrost has launched a leverage staking protocol known as LoopStake.
  • The protocol is set to go live on March 31 on bifrost.app.
  • Bifrost is currently the largest liquid staking protocol on Polkadot.

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Decentralized liquid staking protocol Bifrost has announced the release of LoopStake to offer leveraged staking.

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Bifrost announced the launch of LoopStake during the Asia developer conference known as Sub0.

Decentralized finance (DeFi) users can access Bifrost through the mobile app from March 13, after which they can amplify yield on staked assets using a simple strategy.

Bifrost is tapping the liquid staking market, whose popularity exploded after the Ethereum Shapella upgrade because of its versatility and risk-free yield.

Bifrost unveils a leverage staking product

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The LoopStake Leverage Staking product will involve the LST liquid staking token, which will serve as collateral on a lending protocol.

Users can borrow staked assets and receive LST tokens in return through a process known as looping.

DeFi users who do not want to engage in the inefficient and gas-intensive process of manual looping collateral will access leverage staking in a single swoop, paving the way for improved crypto asset management.

The co-founder and CEO of Bifrost, Lurpis Wang, believes that the launch of LoopStake will transform crypto asset management while allowing investors to access better opportunities.

“This innovative solution aims to give users greater flexibility and higher potential returns through a lending curve customized for liquid staking tokens, marking our commitment to continuous exploration and innovation in decentralized finance,” Wang said.

LoopStake plans to attract both seasoned DeFi investors and those who are still new to the industry by simplifying the complex nature of leverage staking.   

A leading protocol on Polkadot

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LoopStake has the potential for growth by tapping into the trustless interoperability offered by Polkadot, making liquid staking popular with more people.

During the initial phase, Bifrost will offer leverage staking for $DOT, with the project planning to add more tokens and blockchains to its offering.

The Bifrost platform is currently the largest liquid staking protocol on Polkadot with around $150 million in total value locked (TVL).

Additionally, Bifrost’s liquid staking token on Polkadot, vDOT, has a TVL of over $68 million, while its liquid staking token on Kusama, has a TVL of $25 million.

Liquidity staking is becoming a lucrative venture across DeFi protocols, with some comparing this activity to investing in US Treasuries in the traditional financial market.

By building on the robust Polkadot network, Bifrost seeks to be a market leader in this industry.

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