Bifrost Liquid Staking: Cross-Chain DeFi Growth on Polkadot and Ethereum L2s

Bifrost is a dedicated liquid staking appchain built with the Polkadot SDK, offering cross-chain staking solutions for multiple blockchain ecosystems. Its mission is to let users earn staking rewards while keeping their assets liquid, secure, and usable in DeFi.

From Ethereum to a Custom Appchain

Bifrost’s first product, vETH, launched in 2020 on Ethereum. While successful, Ethereum’s smart contract limitations—such as restricted security controls, limited fee optimization, and no custom governance—slowed innovation. Liquidity was also fragmented across chains.

These issues led Bifrost to develop a sovereign appchain on Polkadot, enabling:

  • Custom governance and upgrade flexibility
  • Unified liquid staking token (LST) issuance
  • Cross-chain transfers via XCM
  • Shared security from Polkadot’s relay chain

Strong Market Position

Since the migration, Bifrost has:

  • Captured 60% of DOT LST market share
  • Exceeded $125M in TVL
  • Processed 2.9M+ transactions and 180k cross-chain messages
  • enabled vDOT holders to join OpenGov governance, a first in liquid staking

Next Steps: Expanding vETH

By early 2025, Bifrost plans to:

Launch native vETH minting on Polkadot

Expand vETH across all Polkadot parachains via SLPx protocol

Deploy vETH to Ethereum Layer 2s—starting with Base and later other Optimism-based L2s through Hyperbridge

Bifrost’s evolution from Ethereum to Polkadot has redefined cross-chain liquid staking. With a dominant position in DOT staking, governance integration, and upcoming vETH expansion, Bifrost is poised to become the leading bridge between Polkadot and Ethereum L2 DeFi ecosystems.

BFC-3.17%
CROSS-9.52%
DEFI-5.78%
DOT-4.79%
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