What is Bifrost Finance ($BNC)?

Bifrost Finance ($BNC) is a Polkadot-based parachain designed to enhance cross-chain liquidity and provide users with staking service. Bifrost pays vTokens (Staking Derivatives Voucher Tokens) to users who help with liquidity by depositing PoS tokens on the platform. Users can convert a Proof-of-Stake (PoS) token into a vToken (such as ETH to vETH) for cross-chain functionality. 

Many blockchain networks in the crypto space offer various DeFi services supported by unique native tokens. Although the global DeFi and blockchain sectors are growing, most operate individually and have little to no interoperability with each other. This lack of cohesion between chains created a void that only cross-chain projects could fill.

Cross-chain infrastructure solutions are slowly gaining popularity. However, these projects still face problems with liquidity across networks and cross-chain reward mechanisms for staked assets. Bifrost Finance aims to address these blockchain limitations, allowing the easy flow of assets and user incentives between blockchain networks. 

Ecosystem, Technology, and Utility

The Bifrost project lets users earn incentives for staking assets and providing cross-chain liquidity. The project functions as an intermediary protocol between decentralized applications, and supports these applications via PoS services and liquidity staking.

Usually, staking crypto assets require users to lock their tokens in smart contracts for a specified period. Staked tokens are generally not accessible until the lock duration expires. However, Bifrost uses its native vTokens to solve this problem through liquid staking. Liquid staking on the Bifrost platform lets users stake crypto assets and receive vTokens in exchange instead of waiting for the specified staking period to expire. Stakers can then use the vTokens to access and fund Bifrost-compatible networks like Kusama and Polkadot. Bifrost Finance uses Polkadot’s GRANDPA consensus algorithm for staking and other functions.

Components of the Bifrost Finance Network 

The Bifrost Finance network includes the following components:

  • Cross-chain users, including vToken holders, and BNC miners
  • Voters, who are BNC holders, capable of voting for the governance and management of the Bifrost platform. Voters receive rewards for their service.
  • Node validators who vote on valid transactions. Validators also receive a percentage of the total platform’s rewards.
  • Stake proxy nodes nominated to support PoS chains of other networks associated with Bifrost. These nodes connect with various mining pools, liquidity pools, DApps, and wallets, making it easier for the staking node to interact with other DeFi services and protocols.
  • A vToken DEX that provides liquidity for vToken. Users can also stake or unstake their tokens on this exchange.
  • Community Developers who build applications like wallets and DApps, developing new features on the Bifrost platform.

Is the Bifrost Finance Network Safe?

The Bifrost network is a Polkadot parachain project. The network provides security by leveraging Polkadot’s existing infrastructure instead of providing its own. Polkadot also helps provide secure communication between networks with the help of its relay chain, without any additional trust mechanisms through a concept known as “shared security.”

Bifrost Native Coin ($BNC) Utility

The BNC token is essential for the governance and operation of the Bifrost network. Some of its main use cases include:

Trading Fees

Users performing Bifrost network transactions, including transfers and staking, must pay transaction fees. Bifrost has a flexible fee model that supports multiple asset payment fees such as BNC, DOT, vDOT, KSM, and vKSM. The platform converts these fees into BNC before storing them in the treasury to promote network growth and maintenance.


Participating nodes have to stake BNC to guarantee good conduct on the Bifrost network. Based on node performance, required collateral may increase or reduce.


To build and establish community governance, BNC holders can recommend and vote on network enhancements, with each vote corresponding to the amount of BNC tokens held.

Bifrost ($BNC) Unique Features?

  • Bifrost provides PoS networks with much-need liquidity by letting users convert assets to vTokens with the option to receive passive income from staked tokens.
  • vTokens can help optimize transaction speed and improve transaction efficiency across various protocols and platforms, including decentralized applications (DApps), decentralized exchanges, and centralized exchanges.
  • Bifrost Finance guarantees genuine democratic governance by ensuring all processes on its parachain are transparent.


Cross-chain liquidity allows users to use and enjoy various blockchain protocols and maximize the many opportunities in the DeFi space. By providing quick and cost-effective cross-chain liquidity, Bifrost Finance has made a significant leap in DeFi advancement.

Official Channels

Website — https://bifrost.finance/ 
Twitter — https://twitter.com/bifrost_finance  
Telegram — https://t.me/bifrost_finance 
Medium — https://medium.com/bifrost-finance 
Github — https://github.com/bifrost-finance