# What is Bifrost

{% embed url="<https://www.youtube.com/watch?t=2s&v=DeWBzIs1oNg>" %}

Bifrost is a **staking yield layer** that establishes a standardized multi-chain liquid staking rewards infrastructure, delivering composable crypto-native yields for stablecoins, RWAs, and DeFi across various blockchains. Its modular design allows developers to tap into multi-chain staking rewards with one integration, greatly lowering development costs and enhancing user simplicity.

<figure><img src="https://757947912-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FJFtVsA5N3spWTWKvFvv0%2Fuploads%2FD0sAzSSKkqAvzjTrFj47%2FCapture%20d%E2%80%99e%CC%81cran%202024-08-05%20a%CC%80%2016.19.44.png?alt=media&#x26;token=197d8555-541f-4180-83d3-49932abfb8fa" alt=""><figcaption><p>Bifrost's vision</p></figcaption></figure>

The easiest way to understand Bifrost is to see it as a derivative issuer that provides liquidity for all pledged assets, issuing corresponding shadow assets during the bonding period of the original assets. At the same time, the shadow asset is a fungible Token that can be circulated in different DEXs, pools, protocols and across chains.

As a DeFi protocol, Bifrost is aiming to solve the following issues in PoS ecosystems:

* [x] The paradox between **staking** rewards and **DeFi** yields
* [x] The balance between **staking/circulating tokens** and **security** of PoS chains
* [x] **Staking** rewards in **cross-chain** scenario

According to the questions above, Bifrost's solution **vToken** (liquid staking **voucher Token**) enables users to convert their PoS tokens into vTokens in order to obtain staking liquidity and staking rewards synchronously, without barriers in cross-chain scenarios.

<figure><img src="https://757947912-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FJFtVsA5N3spWTWKvFvv0%2Fuploads%2FcOPoBZoaJ2Worhk4gcUQ%2FCapture%20d%E2%80%99e%CC%81cran%202024-08-05%20a%CC%80%2016.21.39.png?alt=media&#x26;token=757cc663-7a04-4575-906a-9c54b1bfaedd" alt=""><figcaption></figcaption></figure>

### Why Bifrost?

{% hint style="info" %}
Have a look to the blog article: [A Deep Dive into Bifrost App Chain Liquid Staking Strategy](https://bifrost.io/blog/article-9)
{% endhint %}

#### **Liquid-Staking**

Mint vTokens on Bifrost (equals stake through Bifrost), you can control your underlying staking assets during the locked period.

#### **Automatic Staking Management**

Bifrost Staking protocols run under the Bifrost pallets, earning staking rewards every era, without centralized risks.

#### Reduced Unstaking Period

Bifrost SLP helps users to realize the possibility of early redemption by matching the real-time staking quantity with the redemption quantity at the protocol layer in the form of a queue. Theoretically, it can achieve faster redemption.

#### **Extra Staking Returns + DeFi Yields**

Bifrost offers delegate staking for users by selecting a set of validators and rebalancing the rewards to give more profitable solutions. By holding vTokens, you will have chances to head into a world of yield scenarios.