# Glossary ## Glossary ### Bifrost-Specific Terms | Term | Definition | | ------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **vToken** | Voucher Token — Bifrost's liquid staking token (LST). Minted through the SLP protocol. Yield-bearing: rewards accrue via exchange rate appreciation, not token quantity increase. | | **SLP** | Staking Liquidity Protocol — the main on-chain pallet (module) used for staking logic. | | **SLPx** | Extension of SLP enabling cross-chain minting and redemption of vTokens from other chains without requiring users to bridge manually. | | **SALP** | Slot Auction Liquidity Protocol — the main pallet used for parachain auction & crowdloan logic. | | **BNC** | Bifrost Native Coin — the governance and utility token of Bifrost. | | **vBNC** | Liquid-staked BNC. Staking rewards accrue in vBNC's exchange rate. | | **bbBNC** | Buy Back BNC — Bifrost's revenue-sharing escrow token. Obtained by locking vBNC. Non-transferable. Grants protocol revenue share, governance rights, and farming boosts. | | **vToken Vault** | Bifrost's slash insurance pool, funded by 5% of protocol revenue. | | **Ready Pool** | An order pool that accumulates and matches mint and redeem orders for each vToken before executing cross-chain operations. | | **Aggregator Module** | A module that simulates arbitrage to maintain the DEX exchange rate of vToken close to the protocol conversion rate. | | **System Staking (SST)** | A mechanism that stakes idle Bifrost parachain treasury tokens as vTokens to generate additional protocol revenue. | | **Loop Stake** | Bifrost's leverage staking product — performs recursive borrow/lend operations with DOT/KSM and vDOT/vKSM to amplify staking yields. | | **Omni LS** | Bifrost's cross-chain liquid staking interface — allows users to stake from EVM chains (Ethereum, Base, Arbitrum, etc.) without manually bridging. | | **RSP** | Reward-Share Program — Bifrost's partner revenue sharing program. | | **VBL** | Validator Boost List — a governance-curated list of prioritized validators. | ### Polkadot Ecosystem Terms | Term | Definition | | ------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **Collator** | A node that maintains a parachain by collecting transactions and producing state transition proofs for validators. | | **Crowdloan** | A mechanism for parachains to temporarily source tokens for winning a parachain slot auction. Tokens are returned after the lease period. *(Note: Polkadot parachain auctions have been replaced by Coretime as of 2024.)* | | **Era** | A period (typically 24 hours on Polkadot, 6 hours on Kusama) at the end of which validator sets are recalculated and staking rewards are distributed. | | **Governance / OpenGov** | Polkadot's on-chain governance system. Stakeholders vote on network changes. | | **Interoperability** | The ability for systems to exchange and use information — often used to mean "cross-chain". | | **Liquid Staking** | Staking tokens while retaining liquidity via a derivative token. | | **LST** | Liquid Staked Token — the derivative received when staking via a liquid staking protocol. | | **NPoS** | Nominated Proof-of-Stake — Polkadot's consensus system. Nominators back validators; both can be slashed for misbehavior. | | **Pallet** | A Substrate runtime module — the building block of Polkadot parachain logic. | | **PoS** | Proof of Stake — a consensus mechanism where participants are chosen based on their token stake. | | **Runtime** | The state transition function of a blockchain — defines how the state changes from block to block. | | **Shared Security** | Polkadot's model where all parachains are equally secured by the relay chain validators. | | **Slashing** | The removal of a percentage of staked tokens as a penalty for validator misbehavior. | | **Validator** | A node that secures the Polkadot relay chain by staking DOT, validating parachain blocks, and participating in consensus. | | **XCM** | Cross-Consensus Message — the communication format used inside the Polkadot ecosystem to transfer tokens and send messages in a trustless and safe manner. | | **XCMP** | Cross-Chain Message Passing — the protocol for delivering XCM messages between Polkadot parachains. | | **HRMP** | Horizontal Relay-routed Message Passing — a simpler, currently-deployed version of XCMP. | | **DKG** | Distributed Key Generation — a cryptographic technique used in vETH's SSV integration to shard validator keys across multiple operators. | | **MPC** | Multi-Party Computation — used alongside DKG in vETH to eliminate single points of failure in validator key management. | ### Yield & Finance Terms | Term | Definition | | ---------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------- | | **Yield-Bearing** | A token model where rewards increase the token's *exchange rate* (value per token), not the token quantity. All Bifrost vTokens are yield-bearing. | | **Rebase Model** | An alternative token model (used by stETH) where rewards mint new tokens, keeping the exchange rate at \~1:1. Bifrost does NOT use this model. | | **Protocol Conversion Rate** | The on-chain exchange rate between a vToken and its underlying token, calculated as: `Total Staked Tokens / Total vToken Supply`. | | **APY** | Annual Percentage Yield — total yield earned over a year, including compounding. | | **TVL** | Total Value Locked — the total value of assets deposited in a protocol. | | **DEX** | Decentralized Exchange. | | **AMM** | Automated Market Maker — a type of DEX that uses liquidity pools and a pricing formula instead of an order book. | | **LP** | Liquidity Provider / Liquidity Pool token. | --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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