vETH

What is vETH?

Bifrost's non-custodial liquid staking solution allows users to stake their ETH and receive vETH (voucher ETH) in exchange, with staking rewards reflected in vETH's value.

By using the bridge between Ethereum, L2s and Polkadot, vETH can exist in both EVM and Substrate environment.

Staking rewards

Staking rewards automatically add to the vETH exchange price, no manual claim. The longer vETH postion holding, the greater amount of ETH can be exchanged back while redemption.

vETH vs ETH LSTs in EVM?

vETH can operate (mint, hold, and transfer) simultaneously across both EVM and Substrate environments, enabling EVM users to access better yield opportunities within the Polkadot ecosystem.

vETH as a liquid staked ETH has enough liquidity to provide users an option to hedge risk during unforeseen market conditions (price decline during locking period), allowing holders the capability to manage their exposures and funds.

Automatically Staking rewards capturing without scenario limitations

Staking reward apprecates the value of vETH. vETH Value = SLP pledged ETH(SUM) / vETH Total Issuance. Thus, vETH automatically appreciating the value with staking rewards wherever it is.

No Technical Background Needed

Minting ETH to vETH which represents holding a representation in-locking ETH with staking rewards, requires no technical knowledge for users in running with Ethereum validators.

Extra yield senarios

vETH represents staked ETH, but simultaneously is also a yield bearing liquid-derivative, which means it can be used in various DeFi scenarios such as liquidity provision and farming on DEXs, as well as in borrowing and lending use cases. Specifically, vETH can be deposited as a collateral asset for yield leveraging on money markets.

Cross-chain

By leveraging SLPx, vETH can easily mint/redeem/trasnfer across Polkadot, Ethereum, L2s via Snowbridge and Hyperbridge.

FAQ

What is the minimum stake (as known as Deposit)?

It's 0.01 ETH.

What is the maximum stake (as known as Deposit)?

It's unlimited.

How does the protocol protect the value of vETH?

All staked ETH and the insurance of vETH are storaged in Bifrost Chain, protected by Bifrost OpenGov and Polkadot shared security.

How can I access my deposit and rewards?

vETH is a yield-bearing token where staking rewards increase the token's value. When you redeem your vETH, you'll receive both your initial deposit and accumulated rewards.

How does vETH works on Bifrost?

vETH is issued or burned on Bifrost chain, ETH is bridged between Bifrost and Ethereum via Snowbridge.

What is Snowbridge?

In the Polkadot ecosystem, Snowbridge is a crucial cross-chain communication protocol designed to enable trustless bidirectional bridging between Polkadot and Ethereum.

How does vETH works on Ethereum?

SLPx allows users to directly mint and redeem vETH on Ethereum.

What is SLPx?

Bifrost SLPx streamlined the complex process of bridging funds to destination chain, allowing users to liquid stake on any chain without leaving UI to interact with bridges.

How does vETH works on L2s?

SLPx allows users to directly mint and redeem vETH on Base, Arbitrum, BSC Chain and OP. The asset bridging is backed by Hyperbridge.

**What is **Hyperbridge?

HyperBridge leverages advanced cryptographic proofs (such as zk-SNARKs or Merkle proofs) and Polkadot’s shared security model to create a trustless, scalable, and gas-efficient cross-chain infrastructure.

How does it works?

Minting/Redeeming vETH on Bifrost

Minting Process

Mint on Bifrost using ETH, users immediately receive vETH
ETH is bridged through Snowbridge to the SLP contract on Ethereum
The SLP contract on Ethereum combines with SSV to perform wrapped staking of ETH
Bifrost vETH Oracle periodically fetches ETH Staking rewards and synchronizes to the Bifrost network for exchange rate adjustment

Redemption Process

Use vETH on Bifrost for redemption, vETH is burned and corresponding redemption request orders are created
Bifrost calculates the number of exit nodes needed through Oracle, and Oracle sends exit node requests to the SLP protocol on Ethereum
SLP protocol executes node exit operations through SSV and waits for the exit node ETH to arrive
The redeemed ETH is bridged through Snowbridge to the Bifrost SLP protocol
SLP protocol executes redemption according to the redemption request queue, users finally receive ETH

Minting/Redeeming vETH on Ethereum

Minting Process

Call the SLPx contract to deposit ETH for minting
SLPx contract sends ETH and minting request to Bifrost SLPx through Snowbridge
SLPx executes minting and bridges vETH and ETH to the SLP contract on Ethereum through Snowbridge
User receives vETH

Redemption Process

Call the SLPx contract to deposit vETH for redemption
vETH and redemption request are bridged to Bifrost SLPx through Snowbridge
SLPx executes redemption, and after redemption is credited, ETH is bridged to the Ethereum user address through Snowbridge

Minting/Redeeming vETH on L2

Minting Process

Call the SLPx contract to deposit ETH for minting
SLPx contract sends ETH and minting request to Bifrost SLPx through Hyperbridge
SLPx executes minting and bridges vETH to the SLP contract on Ethereum through Hyperbridge
SLP contract bridges vETH to the L2 user

Redemption Process

Transfer vETH to SLPx contract to send redemption request
vETH and redemption request are bridged to Bifrost SLPx through Hyperbridge
SLPx executes redemption, and after redemption is credited, bridges to the L2 user address through Hyperbridge

SSV and DKG in vETH

vETH 3.0 uses the SSV network to implement a trustless staking pool.

After users stake ETH, they receive vETH, while the operation of the underlying ETH validators is maintained by the SSV Cluster - different unique groups of operators running by various parties.

In conclusion, SSV uses distributed key sharing (DKG) and multi-party computation (MPC) to shard validator keys across multiple node operators, avoiding single points of failure and enhancing the security and censorship resistance of vETH staking.

vETH Contracts

Stay tuned.

Appendix

ETH 2.0 Deposit Records

vETH minting refers to the process in which users invest any amount of ETH to participate in Ethereum 2.0 staking and obtain the corresponding certificate vETH. After minting, users can sell vETH at any time to gain liquidity. vETH minting.

vETH minting vETH will be divided into four stages to achieve complete decentralization, and is currently in the second stage of development. The ETH invested by users will be put into the official Ethereum 2.0 Deposit contract to complete the staking operation. This operation process is transparent and open, but the smart contract calling process is more complicated. The contract calls involved are 4 levels of concatenated calls:

Multisig Management Contract » BatchDeposit Contract » vETH Mint Contract » ETH 2.0 Official Deposit Contract

The BatchDeposit contract is upgradeable, and a layer of proxy contract is encapsulated on it. There is a Worker account in the BatchDeposit contract, which can be replaced by multi-signature operations, and is specially used to store the Deposit parameters on the chain. This Worker role is currently played by Bifrost. After the Worker fills in the parameters, it can initiate another transaction that triggers Deposit. After multiple partners have signed and approved it, the ETH invested by the user will be deposited into the Ethereum 2.0 official Deposit contract.

The parameters filled in by Bifrost are currently provided by InfStones and Ankr respectively, and are double-checked by InfStones and Ankr before multi-signature approval. After each multi-signature operation is completed, the Deposit transaction information will be publicly displayed in the community, and users can check the corresponding parameter information through Etherscan. Through these parameter information, the actual staking income can be queried and counted. Before the launch of the Bifrost mainnet, staking rewards are distributed in the form of ERC20-vETH. After the Bifrost mainnet goes online, all ERC20-vETH will be mapped to the Bifrost mainnet, and the subsequent staking income will be reflected in the minting price adjustment formula. Check how Bifrost vToken works.

Multisig Parties

The current parameter configuration is that any 3 of the 5 participants sign the Deposit operation to take effect.

Check Multisig

https://gnosis-safe.io/app/#/safes/0x7c7FCb39BAA90f2FDef625e7B0b0e858D579CD8E/transactions

MintDrop Contract

https://etherscan.io/address/0xec1d6163e05b3f5d0fb8f354881f6c8b793ad612

vETH Contract

https://etherscan.io/address/0xc3d088842dcf02c13699f936bb83dfbbc6f721ab

https://etherscan.io/token/0xc3d088842dcf02c13699f936bb83dfbbc6f721ab

vETH Minting Records (Updated on 2021-02-18, Deposit total 162 x 32 = 5184 ETH)

1 Deposit InfStones first test

9 Deposit InfStones