On February 23rd, PolkaWorld held a topic entitled "Polkadot Liquidity Assets: How to use your cDOT, lcDOT, vsDOT to maximize the release of DOT liquidity?" "'s online live broadcast, the text content of the live broadcast is reviewed as follows.

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Question one

Parallel-Jennifer：

Host - Zou Yang: From your perspective, how big is the market for the current liquidity release in the Polkadot ecosystem? Let's talk about your views.

We also analyzed this market before making Crowdloan products. This market is very large and mainly includes two parts: the first part is Crowdloan, which means that users can obtain parachain token rewards through two-year lockup of DOT For the part, we can see the amount of DOT locked in the first 5 card slots that have occurred and the first 10 card slots so far, as well as the Auction of each card slot after that, because of the liquidity generated by Crowdloan In fact, the asset department also has a lot of innovative designs that can be played. Our event today is also to talk about this topic. In addition to the liquidity of the DOT locked by Crowdloan, there is also Liquid Staking, which is also a liquidity product. In Parallel We call it xDOT, xDOT is also to allow everyone to release the liquidity of DOT pledge. You can understand xDOT in this way, you pledge DOT on parallel, and this pledge can also obtain the annualized income of Staking through the NPOS network. Therefore, the volume of these two liquid asset markets in the Polkadot ecosystem is already a large number. , the highest data of Polkadot network NPOS Staking exceeds 60%. We can see that this part of the funds are actually required to participate in Staking to earn annualized income.

Bifrost-Tyrone：

We release the liquidity of ecological participants through liquid assets such as cDOT and xDOT, and use these liquid assets to make many innovative DeFi products, allowing users to obtain more income opportunities. Regarding the gameplay behind Parallel's cDOT and xDOT, we can chat with you step by step in some of the following questions.

Acala-YuZhu：

Our ideas should be similar. From the perspective of the track and the market, it is basically the NPOS mechanism, which is doomed to more than half, or 60% of the locked Staking volume just mentioned. Then, in addition to the lock-up, there is an additional mechanism such as Crowdloan, which locks more than 10% of the Token, which means that it adds up to about 70% of the market value. This part of assets is illiquid and needs to release its liquidity, so we are actually interested in this market, not only for the Kusama or Polkadot relay chain, but also for the parallel chains connected to it They also have their own corresponding mechanisms, such as the Collator (collector) mechanism, which has clients and collectors, so it is similar to Staking on the relay chain. After the Polkadot XCM cross-chain is opened, the liquidity solutions for this part of assets are basically just needed, so the market is definitely not to be underestimated.

Just like what Jennifer and Tyrone said, the DOT market is currently visible and tangible. They also said that the current DOT market is about 70% to 80% of the scale. In addition, I would like to share that in addition to DOT and Kusama’s liquidity release on Staking and Crowdloan, there are other liquidity releases. For example, some LPs in our DEX provide liquidity for DEX. These Assets are actually locked in DEX in disguise, and they cannot be circulated. We provide LP Tokens to these liquidity providers.

There is another point. A while ago, we officially announced an ecological project called Capx. The project they are doing is that users who participate in a project will get part of the Token, but this part of the Token is locked. They help these locked Tokens to release liquidity. For example, if I participate in a project, my Token will be locked for two years, but through their agreement, I can map the locked part into a certificate. I can use this certificate as collateral to lend out aUSD, or I can use it in our Swap to exchange it for some current liquid assets. This is also a market for liquidity release. There are already such projects. As for how big the market will be in the future, I think it is very worth looking forward to.

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question two

Bifrost-Tyrone：

Host - Zou Yang: I believe that all the guests have already brought their own products and want to introduce them to you. Please introduce your respective liquidity products. What are their characteristics and advantages?

The key product at present is that when we launched the Kusama parachain last year, we launched derivatives applied in slot auctions, called Voucher Slot, Kusama and DOT, which are vsDOT or vsKusama. What is special about it is that it is not only a certificate, but also two derivatives, vsToken and vsBond. vsToken is homogeneous, no matter which parachain it is, the derivatives it participates in and obtain are exactly the same.

Another way to obtain is a certificate vsBond representing the expiration time of the parachain. At the beginning of our design, we designed two types of derivatives, mainly to ensure its liquidity while ensuring its futures product attributes, so we considered designing these two types of tokens. This is also a special design on the product, because after the successful bidding of different parachains, its lease period is different, so vsBond is also different for different parachains.

Acala-YuZhu：

In terms of its usability, vsToken can be traded on a DEX like Zenlink, and a non-homogeneous derivative like vsBond, which represents the expiration time of the app chain, is actually in our Dapp There is a Market on it, which is a vsBond Market in the form of pending orders, for transactions of pending orders. The more interesting part is also here, there are many ways to play. You can choose to hold your vsToken all the time and sell your vsBond, or you can choose to hold vsBond and sell vsToken, then convert between the two tokens, use vsBond to capture the liquidity of vsToken or vice versa. There is a certain connection between these two tokens, and there is a certain degree of interoperability with liquidity, so this is more interesting in design, and the exchange attribute between the two derivatives will be added in the future.

The purpose of launching our products is actually the same, which is to release liquidity, but the utility of our assets may be somewhat different after they are born. We actually know that Acala knows that in addition to stablecoins, there is also a Swap.

So whether it is release of Staking derivatives or release of slot auction liquidity derivatives, they can be exchanged for other assets on our Swap at the first time. No need to wait too long for a lock time. In addition, we can still do mortgages and loans. At present, LDOT has not been opened yet, but LCDOT has been mortgaged. If you have LCDOT, you can mortgage it, lend some aUSD, and then buy some other assets, or participate in some liquidity mining.

Parallel- Jennifer：

In terms of technical advantages, both of our products are decentralized, and the project team has no control over these assets. Another point is that Kucoin supported the deposit and withdrawal of DOT on the Acala chain last week. Everyone knows that Polkadot’s XCM is not yet ready, so we only made a one-way bridge for DOT. After docking with Kucoin, you can pass Kucoin boards and disembarks, which is more convenient for users.

Our Parallel is now using liquidity in the first stage, or through two assets: cDOT and xDOT. When users participate in Crowdloan through Parallel’s Auction Loan product, they will release the liquidity of DOT in addition to receiving project rewards. Another asset is the Liquid Staking product that we will launch in the future. The liquid derivatives obtained by staking DOT in Parallel’s Liquid Staking product are called xDOT.

In the first stage, when we helped various project parties participating in the bidding of card slots to do Crowdloan, we accumulated a relatively large market of liquid assets, and now it has exceeded the value of 26 Million DOT. Compared with Binance in crowdloan products There are more Market Dominance. In the current situation, there is an advantage that we have obtained the market for the release of the DOT liquidity of cDOT, and this market is relatively large, and the cDOT assets are also on a large scale.

On the basis that cDOT assets have formed a relatively large scale, we actually have some products that allow you to better use these two liquid assets. For example, the first point, our cDOT and xDOT can be used as collateral in the Money Market. And the MAX LTV of cDOT and xDOT as mortgage assets is also a relatively large number. That is to say, you can borrow a relatively high proportion of DOT assets with a cDOT or xDOT.

Because as long as the consideration price of cDOT/DOT is less than a ratio, there will be an arbitrage opportunity between Money Market and AMM, which will pull the price difference to a relatively reasonable position. Because if this is the case, you can continue to arbitrage, and the arbitrage will help the price of cDOT rise to a more reasonable position. We can talk about this in detail later.

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question three

Acala-YuZhu：

Moderator - Zou Yang: The Polkadot ecosystem has officially started a stage of rapid development. How will you plan to obtain the dividends of ecological development and capture value?

Now we are all still waiting for the opening of Polkadot’s XCM. I think that the toll booth at the intersection of the expressway will be opened only after the opening of XCM. So going forward, our key development plan for Acala will actually be on our aUSD stablecoin. There is also our EVM+. Now many projects have been tested very well on our EVM+. I believe we will meet you soon.

Parallel-Jennifer：

Then there is our aUSD. You can also see that most of our current ecological projects are related to aUSD. For projects, if your project uses our aUSD, we will give you great support . For users, you can participate in liquidity mining related to aUSD, and the income will be relatively high. Here are some of our current and future plans.

I think no matter which ecology it is, Ethereum, Solana or Polkadot, as long as it is doing DeFi, I think the foundation of DeFi is assets. I think the main purpose of DeFi is two points: the first purpose is to better release the liquidity of assets; the other is to design a system that allows everyone to increase income or interest in various aspects. The ultimate purpose is to It is for the assets held by everyone to have higher capital efficiency and obtain higher returns.

Therefore, the original intention of the DeFi products we launched is to allow everyone to increase their income and liquidity, so as to occupy more markets in the Market. The products we have launched include the Crowdloan product that has already been launched: Auction Loan, and the products of the Money Market lending market, because the lending market is the foundation of every ecology.

There is also Liquid Staking, which is also a basic product. Including products like Lido, which also have infrastructure significance, help everyone provide Liquid Staking.

In addition to these, there are some innovative designs like our Margin Staking. Simply put, Margin Staking is that normal NPOS network staking can get double the income, but under our Margin Staking mode, after you take xDOT as your DOT Liquid Staking certificate, you can then put xDOT is placed in the Money Market for mortgage, and DOT is lent out. Then put the DOT into Liquid Staking, and you can get the proceeds of the DOT you just lent out.

Bifrost-Tyrone：

Therefore, through some of these products, we can help everyone achieve a goal: to provide higher returns and more liquidity for the assets of more people. , It also allows our products to capture more users and capture a larger capital scale.

Let me continue what YuZhu said about XCMP just now, why do you look forward to the conversion of XCM so much, that is, XCMP now requires two parallel chains, and a message asset cross-chain channel opened manually by both parties independently.

XCMP is actually an advancement of it. After XCMP goes online, you don’t need to manually perform these operations on both sides like now. At that time, you should not need another request from another parachain, you can call its message and call its method transmission Assets, so generally speaking, everyone is looking forward to it. The most important thing is that this news can be communicated to each other and can be converted.

We only provide services as a bottom-level protocol, and the upper-level solutions, whether they are liquidity solutions, lending solutions, or Money Market solutions, are all ecological. Acala ecology or Parallel ecology can be done by their developers. So this is a relatively long-term dividend development goal.

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question four

Bifrost-Tyrone：

Moderator - Zou Yang: In order to attract users to participate in your liquidity products, what revenue opportunities have you provided?

Take the SALP protocol as an example. The derivatives for Polkadot slot auctions are called vsToken. It can provide several ways to maximize revenue. The first one is that if you use SALP to participate, you can get derivatives. At the same time, there are additional special rewards from the project party; the second is that Bifrost will provide a certain amount of BNC support; the third is that users who hold vsToken and vsBond at the same time, you get derivatives after you contribute to a certain project party, and at the same time hold With these two Tokens, you can participate in an activity called derivatives, which is aimed at all users who participate in coin minting, and have a chance to get additional rewards from Bifrost; the fourth is a potential liquidity opportunity , you can discount derivatives at any time during the lock-up process, and then increase the utilization rate of funds.

The second question mentioned the mutual capture of liquidity between vsToken and vsBond, because vsToken is homogeneous and has relatively deep liquidity, while vsBond is non-homogeneous and has no liquidity Token, when these users use it, you may find that the liquidity of vsToken is easier to deal with. With vsBond, you may not be able to find a market for pending orders, nor can you find a corresponding buyer or a purchase order. So for this, we will also make a function of mutual conversion between vsToken and vsBond in the next product upgrade, and then upgrade the SALP protocol.

Acala-YuZhu：

Mutual conversion is actually to allow them to complement each other's liquidity. Whether it is vsBond or vsToken is actually a better choice. In terms of product logic, this is more in line with user needs, and it can also lower the threshold for users to use, without having to consider the pending order mode between different projects in the vsBond market, which means that there is no need to monitor the market, and the liquidity will be better.

To attract users to participate in our liquidity products, the first thing we need to attract is our Liquid Staking, the product that releases Staking liquidity, that is, LDOT. Because LCDOT currently mainly serves our own Acala, if other project parties want to make slots, our module is open source, and we can also use this module to issue their own LCDOT. And about our release of Staking liquidity, the most basic thing is good Staking income. Users who have participated in Staking in the Polkadot network know that you have to choose the best node every day. If you choose one day or two later, the income of this node may go down directly, and you will not be able to get the highest staking income. Our staking derivatives are to help users solve this problem. Users can directly switch to LDOT without worrying about keeping the highest yield every day and switching frequently. And we have many service providers of staking nodes to provide cooperation, that is to say, in the case of slash in staking, first of all, our partners provide users with rights protection, no matter how much the loss is, these partners will provide compensation.

Parallel-Jennifer：

For users who want to do Staking for a long time, LDOT is a better choice, because you don’t have to worry about anything. Then there is another point that LDOT can be used as collateral to generate stable coins. With extra liquidity you can have extra income opportunities. Our EVM+, you have also seen that we have officially announced that there are 4 projects on EVM+. I believe that with the official launch of our EVM, there will be more and more projects on it, and more and more projects will refer to LDOT, and the opportunities for correspondingly generating revenue will increase.

For the current income opportunities of cDOT and xDOT, the first point is to use cDOT and DOT to form LP in AMM, and then use LP to mine. Our income from LP mining in the first few months should be higher than that in the next few months. This is the first stage of opportunity.

Opportunities for the second stage are in our Money Market. Probably in this quarter, we will launch AMM, Money Market, and Liquid Staking products one after another. You can deposit cDOT in the Money Market as collateral. If you don’t want to borrow money, you can put it directly to earn interest. If you want to use it, you can mortgage your cDOT and use DOT to do other things. Anything you find beneficial.

If you buy cDOT at the lowest possible price, your rate of return must be higher than the 14% in NPOS, so there will be such arbitrage opportunities. Then it may be necessary for the user to combine the DOT loan interest rate in the Money Market, and then combine the price in the Money Market to calculate the arbitrage space and opportunity.

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Question five

Bifrost-Tyrone：

Moderator - Zou Yang: In your liquid assets, how can users maximize their benefits?

Two derivatives, vsToken & vsBond, can be minted by participating in crowdlending through SALP; the former, vsDOT/vsKSM obtained by participating in different parachain auctions are exactly the same; the latter, vsBond represents the redemption period of a certain parachain. This is also the essence of SALP gameplay.

Bifrost has created a special market for vsBond. Holders can trade vsBond alone or in combination with the same amount of vsDOT/vsKSM. If you want to hold vsBond for a long time without selling it, we also provide a way to lock up and earn interest. vsBond can merge with vsDOT/vsKSM to participate in SALP Farming, and lock vsDOT/vsKSM+vsBond to share the reward pool jointly provided by Bifrost and the parachain project party.

Acala-YuZhu：

Therefore, the combination and decoupling of vsToken & vsBond can flexibly deal with more usage scenarios. In the future, we will also launch the conversion between vsBond and vsToken to maximize revenue.

Regarding this issue, our LDOT has not yet come out, and some operations related to LCDOT are already available. If you hold LCDOT, the first point is that you can sell it in our AcalaSwap.

Everyone knows that the current price of Binance’s bDOT is 0.6, which means you want to sell your DOT at a 40% discount. But in our Acala's Swap, your price is about 0.71, which is 0.1 higher than the price of Binance's bDOT. For those users participating in Acala Crowdloan, 70% of DOT can be redeemed in advance. Because the DOT you redeemed can be sold, or you can participate in the next round of card slot auctions, this is the first point.

The second point, if you have DOT and LCDOT in your hand, you can form LPs of DOT and LCDOT. Of course, because of the large number, the current annualized rate may be relatively low, but everyone thinks that LCDOT is originally 0 income. Relatively speaking, this also makes your LCDOT have certain benefits.

Parallel-Jennifer：

Another point is that the current way to maximize benefits is that if you hold LCDOT now, you don’t have any other ACA, and neither does LDOT. What you can do is to mortgage your LCDOT, and then lend aUSD, borrow aUSD The annualized interest rate is around 3%. Now you have a USD and LCDOT pair in your hand, because we have opened a USD and LCDOT pool before, if you want to provide liquidity for the pool, the current annualized rate is about 28%, minus the stable fee rate 3%, there is still an annualized return of 25%. For a bear market, I think this is still a very impressive figure. This is a way to maximize your own interests that is currently available on Acala. As for the LDOT in the future, when our products come out, we will also explain them to you based on our actual products.

I think the topic can be changed a little bit. It may not be the maximization of benefits, but the way to obtain profit opportunities, because with the different market prices in various aspects, there may be no way to guarantee an absolute maximization of benefits. It should be relative. income. Many people in the comment area said that it is simpler, so I think you can count each product in detail, and then tell you in a very simple way how you can obtain benefits.

The first point is that you can pledge in Liquid Staking, and you can obtain the most basic NPOS Staking income. The second point is that you can store it in the Money Market, and then get the interest on your deposit. The third point is that you can deposit and then lend DOT, and then use your DOT for other purposes, and you can earn some income in other ways. The fourth point is that you can add liquidity in AMM, and after getting LP Token, use LP Token to participate in Parallel mining.

On top of these points, I need to mention that our AMM product should be launched around the same time as the Money Market product. Then we have a better strategy for AMM in the first few months, and everyone can come to add your cDOT and DOT liquidity at that time. In this way, you can obtain a relatively high return with a very low risk, and you may even be able to obtain a return with an extremely low risk during our previous Program period.

You can pay attention to the launch time, we will tell you in time on our English Twitter and various channels in Chinese, you can participate in adding the liquidity of cDOT and DOT trading pairs as soon as possible. This purpose is also to maximize your liquidity when the trading pair between cDOT and DOT is large enough. Because of the high liquidity, the price of your cDOT may not easily deviate too much from the reasonable price. Just like the logic we just mentioned earlier, it has a reasonable price range.

Remind everyone that you can add liquidity to cDOT and DOT trading pairs as soon as possible, and enjoy such an opportunity of high returns and low risks.

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question six

Acala-YuZhu：

Moderator - Zou Yang: With regard to the derivatives of pledged liquidity, many users have been confused about how to price them. How do you view the value of your respective pledged liquidity derivatives? From your understanding, how to price it ?

Parallel-Jennifer：

Regarding the pricing of LCDOT, we have two aspects. The first aspect is the price on our Swap. The current price is about 0.71, which is equivalent to a 30% discount. The price on Swap actually reflects the matching situation of the current supply and demand relationship between DOT and LCDOT. So the market is currently a fair price of 0.7. Another price is the price at which we regard LCDOT as collateral. For LCDOT collateral, we generally set a discount rate for LCDOT, and then multiply the discount rate by the expiration time of the slot auction to calculate its value. It is the value of the user mortgage LCDOT on it. In this way, users can get in touch with aUSD, because everyone knows that LCDOT can be exchanged back to DOT at 1:1 after two years, and a DOT futures that expires after two years. So in terms of price, one is the market supply and demand on DEX, and the other is what we think it should be a fair value.

In fact, I talked a lot before. YuZhu said it very well just now. There are two main points. One is that it has a reasonable price under the ideal model, just like what I just said. income, so the market will have a discount on it. Then because this Token must be 1:1 in the next two years, so you can assume that as the expiration date gets closer, the actual value will be higher and higher.

Then in the Parallel system, we designed a model, that is, the price of cDOT has an arbitrage space, which can be combined with the Borrow Rate of DOT in the Money Market. Then you can roughly predict the reasonable price of cDOT through this arbitrage space design. That is to say, what is the approximate price that its long-term price will go down and the price will eventually return to when it goes up. Under the ideal model, the price that cDOT will return to may be more than 0.8, approaching a position of 0.9.

When our Money Market and AMM are launched, we expect that if we follow this model, its price will be in a price range of 0.8~0.9. This is our entire logic for cDOT pricing.

Bifrost-Tyrone：

But for some extreme market behaviors, no one can predict this. The three projects we are present cannot predict. Ethereum and Bitcoin also have such extreme markets. But when we look at the long-term market price, what we just talked about is a pricing method for liquid assets as a whole and its price curve.

Pricing actually depends on the depth of vsToken and the demand for VsBond, because vsBond represents a parachain, so as Jennifer said at the end of the last question, your derivatives are actually partially discounted because the project party has already given Your Crowdloan reward, so this part of the value will be discounted into the discount of the current derivatives. So this is also the key point of how vsBond is priced and how vsToken is priced.

In addition, this question is how we look at pricing. We feel that it is completely priced by the market. This product is a futures attribute. As you just said, it is an asset that can be paid rigidly in the future. But this discount depends on, firstly, the part of the discount that the project party has given some rewards just mentioned, and on the other hand, the time discount of the two-year DOT period in terms of time. This discount should include the rate of return of staking on Polkadot’s relay chain, which is about 15%, so the time cost also represents the rate of return of staking, which is the price cost of the discount for reference.

Later, when there is an exchange relationship between the two of them, there may be more interesting pricing situations. In extreme market conditions, it is beneficial for everyone to hold derivatives. In this extreme situation, the Token you locked cannot be redeemed, so with liquidity, you have some strength to resist this extreme situation.

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question seven

Acala-YuZhu：

Moderator - Zou Yang: Derivatives actually have the effect of leverage. Can you tell us about the financial risks involved? And how to prevent the risks brought by derivatives?

Regarding this issue, I think one is the technical security of the code. For example, the derivatives you send out are created out of nothing by hackers. If you send out a lot, those who hold the derivatives will definitely suffer losses. From this perspective, I think the first security issue that should be considered is that when choosing derivatives, we must pay more attention to the technical strength of the project team and some things about security audits.

Then there is another point. I feel that the most important thing is that the risk is not due to derivatives, but because of leverage. Because leverage amplifies returns, it will amplify risks. Compared with original assets, derivatives are more reliable because they will provide liquidity. Stronger positions, and derivatives are just tools.

Parallel-Jennifer：

The premise of continuously increasing leverage is that you need to consider yourself, whether you have enough ability to repay when the secondary market falls, pay attention to the market in time, and then pay attention to changes in the mortgage rate, and adjust your strategy in a timely manner. These are all very necessary measures. Finally, I would also like to say that even the best strategy is prone to failure if used by all market participants at the same time. The most dangerous risk is often a relatively comfortable consensus that everyone agrees with, so we need to constantly look at the market dialectically, and then do a good job of risk control and seize opportunities.

I very much agree with the points YuZhu said. The first one is some technical risks. Then I think everyone will use some auditing companies with better capabilities to help us do some things other than our own checks. thing. The second point I think is actually the most important thing is leverage, because whether it is some innovative DeFi design, it is essentially how to release more liquidity for users, and it provides users with more leverage. opportunities, or room for leverage.

What YuZhu just said is very complete. You have to evaluate your risk. When you hold a position, you have to evaluate the risk and pay attention to the price changes in the market. Especially like now, why I just said that we need to consider the depth of liquidity of cDOT and DOT for the growth of AMM, the reason is that when we are doing money market and various innovative products When combined, we hope that the depth in AMM will get better and better. Relatively speaking, for users, it can help them slightly control some risks.

Then on this basis, we will try our best to help users make the liquidity pool higher, and then release more PARA rewards, so that everyone can add more liquidity, but you still need to pay attention to the price on the market , the price of the secondary market and changes in the price will have much impact on your position. You have to increase or decrease positions at the right time, and remove leverage at the right time. These are indeed out of the control of any project party. Users can only prepare themselves and may face such risks. .

But the simplest thing is that LCDOT and cDOT are the same, we can put them in the Money Market. But it also has a risk, that is, when the prices of cDOT and LCDOT on the market drop sharply, the value of your mortgage assets may not be able to pay for the assets you have lent, and you need to buy new LCDOT or LCDOT from the market. It is cDOT, to replenish your position. Of course your position is safe.

Bifrost-Tyrone：

These potential risks need to be considered by users. Users need to plan these in advance, and then go to carry your suitable positions.

The first two guests have basically said it, and I may just say more. Technically, there is nothing to say about this part of risky products, and users have to check it themselves. In fact, the protocol is not safe. In fact, the chain is already much more secure than the smart contract. Rationally formulate your own strategy under the premise of protocol security, the development of derivatives will inevitably have a higher threshold for use, and more analysis and research can maximize the avoidance of risks brought about by blind speculation.

In fact, we all use this kind of Substrate chain to make products. During the operation process, no one has had any problems until now. In terms of stability and security, it is much higher than that of smart contracts. This is guaranteed. of.

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Question Eight

Parallel-Jennifer：

Host - Zou Yang: Under the trend of multi-chain development, how can our products have stronger scalability in this context, or what directions and functions can be expanded?

Recently, we have just been docking hrmp with Acala and the future XCM. In fact, docking with each Parachain should be the first step. First of all, we need to have relatively high interoperability and scalability among various Parachains within the Polkadot ecosystem.

For example, we want to list Acala and other Parachain assets on our chain, or whether we want to accept this kind of Native Token from other chains as one of the collateral assets of Collector Assets in the future, or put the Parachain Assets of other chains Added to AMM, then these are actually some interoperability within the Polkadot ecosystem.

I think it may not be ruled out in the future that, for example, we will cooperate with some assets in the Ethereum ecosystem and other ecosystems, and then add a part to cooperate with EVM and other ecological projects outside the entire Polkadot Substrate ecosystem. It will cooperate and expand around assets.

Bifrost-Tyrone：

The ultimate goal is what I just said, in order to improve the entire Polkadot ecological asset holders, whether it is Parachain Assets, Parallel’s Native Token, or Polkadot Assets or Kusama’s Assets, to improve the liquidity and yield of these assets, all The ultimate goal of scalability is this.

Bifrost will be committed to developing the underlying protocol and modularizing the underlying structure of the product to facilitate the docking of more multi-chain ecological projects in the future. We hope that PoS chains can selectively integrate liquidity staking products, which will also benefit the development of more derivative projects.

One of our businesses, in addition to the liquidity of the Polkadot card slot auction that we have been introducing just now, also has solutions for the staking mechanism of all PoS chains, so this piece needs to be connected to multiple chains, that is, it needs We support the liquid products of other POS chain staking mechanisms, that is, we will modularize the logic of our products. This is a future plan that allows other chains to do docking of customized derivatives.

Acala-YuZhu：

What to do before this is to follow the progress of Polkadot technology, connect more external POS parachains, and get through their Staking mechanism.

First of all, what I want to say is to return to the topic of our activities today and talk about liquid products. In the future, Jennifer and Tyrone have already said that each parachain in the Polkadot ecosystem must be interconnected.