Proposal to add vDOT to Starlay on Astar EVM


Introduction of vDOT as an Initial Onboarded Asset on Starlay


@SeiyaChida (Starlay Chan Initiative)


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.


Referral links

Telegram: Telegram: Contact @bifrost_finance
Forum: Subsquare | Bifrost-polkadot Discussions
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


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


Bifrost audited by Certik and Slowmist. Staking liquidity protocol and vtokens audited by Certik

Next Steps

We will put the proposal to a vote via Snapshot in 3 days

Voting Schedule

Snapshot Voting: Jan 8th, 09:00 UTC - Jan 11th, 09:00 UTC.

Voting Option

YES - Approve the proposal
NO - Reject the proposal