Protocol Growth Flywheel

1. Growth of $BNC Market Cap

   Higher BNC value capture (via protocol profit buybacks and burn mechanisms) increases Bifrost’s market capitalization, driving expansion of Liquid Staking Token (LST) use cases.

   • 100% of protocol profits are used for BNC buybacks, with 90% distributed to bbBNC holders and 10% burned, creating a deflationary token model.

2. Expanding Use Cases and vToken Yield Enhancement

   More LST use cases (e.g., DeFi lending, leveraged staking) boost vToken’s comprehensive yield (base staking yield + vToken senario yield). Higher yields attract more users to mint vTokens.

3. vToken Minting and Protocol Revenue Growth

   Increased vToken minting directly drives protocol revenue through liquid staking fees.

4. bbBNC Holder Returns Amplification

   Protocol revenue growth feeds back to bbBNC holders via buybacks, delivering higher annualized returns. Benefits include:

   • Direct dividends (90% of protocol profits)

   • Governance advantages for ecosystem decisions

   • Farming yield boosts (e.g., vToken liquidity mining incentives).

5. Positive Growth Flywheel Formation

   A closed-loop cycle emerges:

   BNC value ↑ → LST use cases ↑ → vToken yields ↑ → Minting volume ↑ → Protocol revenue ↑ → bbBNC returns ↑ → More BNC locked → Reduced BNC supply → Further value capture.