Bifrost Debuts One-Click Leverage Staking in Polkadot Ecosystem

Bifrost introduces LoopStake, a one-click leverage staking product for the Polkadot ecosystem, at the Sub0 conference, aiming to simplify yield amplification on staked assets, starting from March 13 on

In a notable development within the decentralized finance (DeFi) sector, Bifrost, a leader in liquid staking protocols, unveiled LoopStake at the Polkadot Asia developer conference, Sub0. This new service, available on from March 13, offers a straightforward approach for users to boost their staking yields through a one-click leverage staking solution within the Polkadot ecosystem. LoopStake enables users to stake their assets to receive a liquid staking token (LST), which can then be used as collateral to borrow more assets and repeat the process, thus optimizing yield generation in a user-friendly manner.

The traditional process of leverage staking, which involves looping collateral manually, is known for its inefficiency and high transaction costs. LoopStake addresses these challenges by providing a streamlined, one-click solution, making advanced staking strategies accessible to a broader audience, and enhancing the overall user experience in crypto asset management.

Bifrost, built on the Substrate framework and leveraging Polkadot’s interoperability features, stands as Polkadot’s largest liquid staking protocol with a Total Value Locked (TVL) of around $150 million. The introduction of LoopStake aims to further boost the adoption of liquid staking by simplifying the leverage staking process. Initially supporting the DOT asset, Bifrost plans to extend LoopStake’s capabilities to include additional assets and possibly integrate cross-chain functionalities.

This initiative is part of Bifrost’s commitment to innovating in the DeFi space, as highlighted by cofounder and CEO Lurpis Wang, who emphasized the goal of offering users greater flexibility and potential for higher returns. Bifrost’s liquid staking solutions, such as vDOT and vKSM, have already shown significant growth, with vDOT reaching over 7 million DOT in TVL and vKSM nearing 500,000 KSM.

The emergence of liquid staking, particularly after Ethereum’s Shapella upgrade, which allowed for ETH withdrawals from staking contracts, has marked a transformative period in DeFi. Liquid staking has become the largest category within DeFi, with a TVL of approximately $50 billion, as LSTs offer a combination of versatility and inherent yield that is increasingly preferred over traditional staking methods. LSTs are now seen as a parallel to traditional fixed-income products, like US treasuries, offering a secure and profitable investment avenue within the digital asset space.

With the introduction of LoopStake, Bifrost not only simplifies the leverage staking process but also sets a new standard in crypto asset management, aiming to attract both seasoned investors and newcomers to the DeFi ecosystem. This move underscores the ongoing evolution and growing sophistication of DeFi strategies, contributing to the sector’s broader adoption and innovation.