Title
Introduction of vDOT as an Initial Onboarded Asset on Starlay
Author
@SeiyaChida (Starlay Chan Initiative)
Motivation
Launching vDOT on Starlay Finance aims to enrich our DeFi offerings by integrating liquid staking with enhanced APR to our users. This move also enables DOT holders to engage in staking while accessing Starlay’s unique leverage lending functions for maximized asset utilization. The addition of vDOT aligns with our goal to innovate within the DeFi space, meeting community needs and expanding cross-chain capabilities in the Astar EVM environment.
Specification
Referral links
Website: https://bifrost.finance/
Telegram: Telegram: Contact @bifrost_finance
Forum: Subsquare | Bifrost-polkadot Discussions
Twitter: https://twitter.com/BifrostFinance
Github: Bifrost · GitHub
Medium: Bifrost — DeFi for PoS. Staking and Liquidity. - Medium
Price Oracle: LSDs Price Feeds | DIA App
Brief of the project and the token
vDOT is a derivative asset of DOT, the native token of the Polkadot network, created by Bifrost Finance. It represents a liquid staking solution that allows DOT holders to participate in staking and earn staking rewards without locking their assets. This means vDOT holders can use their tokens in various DeFi activities across the Polkadot ecosystem while still benefiting from staking yields.
Initial Token Parameters suggested by SCI
| Token | LTV | Liquidation Threshold | Liquidation Bonus | Reserve Factor | U Optimal Rate | Slope 1 | Slope 2 |
|---|---|---|---|---|---|---|---|
| vDOT | 50% | 55% | 15% | 20% | 55% | 7% | 300% |
Risk management
Orcle
In line with our commitment to reliability, we are considering the implementation of a price oracle provided by DIA(LSDs Price Feeds | DIA App). To ensure uninterrupted service, a backup mechanism will also be established. This backup will utilize market price data from CoinGecko on Starlay’s end. In the event of an oracle failure, we will transition to this alternative method, ensuring consistent and accurate pricing for our operations. Such a dual-system approach guarantees the resilience and trustworthiness of our platform, even in unexpected circumstances.
vDOT price rate
vDOT fair price = Base asset * (Locked total DOT / Total vDOT issued). This rate is the basis for a large number of operations in the system and will be executed automatically under the protocol with a high degree of confidence and reliability
Details here: Pricing methodology - DIA Documentation
Audit
Bifrost audited by Certik and Slowmist. Staking liquidity protocol and vtokens audited by Certik
Next Steps
- Solicit and consolidate community feedback from this discussion
- Progress to the proposal (signaling) phase
- Conduct a Snapshot polling vote