Wag Dotcentralized Media! - Newsletter Edition 77

In this week’s edition:

1. Editorial: US election aftermath, Sub0 Reset, Hyperbridge announcement, Bifrost Waves, Pitch your idea.
2. Top Story - Resetting Chaos!?: Sub0 Reset Coverage, and other top news items of the week.
3. Featured Report - Bifrost Staking Waves!: Profile report on Bifrost.
4. Wag Roundup: News from our Finders Program between November 5th and November 11th.
5. Extras: Credits and anything else.

Editorial

What is up, my friends!

While the aftermath of the US presidential election has been positive for the markets, there is still a little bit of time before the official ceremony to swear the next president into office. Who knows which promises will be kept after the office seat is warm? And is Polkadot ready for what might be a Golden Age in the Web3 industry?

Meanwhile, the Polkadot ecosystem teams have largely traveled over to Bangkok, Thailand. There, they are getting ready for the Sub0 developer conference, which will be happening between November 9th to 11th. Wait, didn’t Sub0 already happen this year and also in Bangkok?

Well, for our top story this week, we will be providing some coverage of Sub0 and what seems like Resetting Chaos. Additionally, there was something quite hyper that happened, which has managed to precede the event.

As you read this week’s newsletter, some of you have already taken a break from the conference(s) and headed to the beach to stake some waves. If you’re not sure what this means, it might be a good idea to check our featured report. In it, we cover the history and penultimate waves that roll up Bifrost and its future.

Speaking of good ideas, if you have something in mind for the ecosystem then pitch it by sharing on X and submitting it on buildondot.com. We’ve added this to the Bounty Hub with a reward of $100 if it gets featured on the website. Or if you’re looking for content bounties, currently, Bifrost has one.

The US presidential election has put one big question mark on centralized mainstream media, making the case that we are now the media. In a way, this raises the importance of decentralization. Part of the WagMedia ethos is being able to tell your story without reliance on biased media organizations. Join us!

Dodow, Chief Editor

Top Story of the Week - Resetting Chaos!?

Written by yay.oi

Sawasdee Krap Wag fam! Wait, I’ve used that greeting before. That is because we are back in Bangkok for 2024’s second spicy Thai dose of Sub0.

So, to what do we owe this pleasure? Well, it wouldn’t be Polkadot without a little chaos, amirite? EXPECT CHAOS is the mantra often attributed to the initialization of the Kusama network, but elements of its ethos have persisted right through to present day Polkadot.

It was a little chaos in governance that led to the Sub0 Reset. Dissidence had been brewing since the great croissant incident, and eventually rising discontent in the community resulted in Polkadot event organizers Decentered being dealt a decisive blow.

Enter the saviors we didn’t know we needed, WebZero presented a bold alternative to the costly annual Sub0 event in Europe, that would front run DevCon in Bangkok. Their reimagining of Sub0 as a grassroots event focused on Web3 hacker culture and Substrate development struck a chord with the community, and was overwhelmingly approved.

The venue, a five-storey disused industrial building, was the perfect size to house the stages, 24-hour hacker space, and side events all in one location. Graffiti artists were given free rein to decorate every floor, and they made sure that TOD got the best seat in the house.

With the building fully kitted out, emanating an ominous pink glow from every floor, the hacker vibes were strong, and the buzz was building. The rooftop opening party was an absolute banger, reaching full capacity by 8:30pm, and even featuring a suspiciously familiar-looking guest.

While that unlikely fellow was not invited to speak at Sub0 Reset, many from outside of Polkadot were. There were speakers from Avail and Cere, our Substrate-based cousins, while the broader blockchain community was represented by Solana, Cardano, Celestia, and Filecoin.

Broad representation like this helps to build bridges between blockchain communities, but nothing brings us closer than blockchain bridges. Thankfully Hyperbridge is on the case, with their mainnet launch this week. Trustless bridging of DOT is now supported between Polkadot, Ethereum, BNB, Base, Arbitrum, Gnosis and Optimism, and 100M BRIDGE tokens are available for sale as part of their Initial Relayer Offering.

While Polytope Labs wasn’t present at Sub0 Reset to share the Hyperbridge alpha, plenty was shared by our main stage speakers. Pauline Vorms from the Polkadot Blockchain Academy got things started with the announcement of PBA-X, an online flexible 4-week part-time course covering the fundamentals of blockchain, Web3, and Polkadot.

No stranger to non-conventional educational pathways, Polkadot co-founder Rob Habermeier’s main-stage speech elaborated on NOMT, an upcoming scaling solution for blockchain nodes. He explained that scaling a node with additional RAM is costly and comes with a limitation on state size. His solution, NOMT, scales with high-performance SSDs, which are cheaper, and offer a larger state size, meaning they can support more users, and more complex apps.

Although Jakub Panik, CTO of Hydration, is likely looking forward to the boost NOMT will bring, he had plenty to share about his own scaling solution. The Intent Composing Engine will result in dramatic increases in swap throughput, improved MEV protection, and zero slippage. However, the more exciting news is that Hydration money markets may be ready for launch as soon as next week, with Bifrost’s vDOT confirmed as the first-yield bearing collateral.

Hydration will also be the initial liquidity provider for Nova Wallet’s upcoming one-click cross-chain swaps, announced by Leemo on Day 2 of Sub0 Reset. He also shared, off the record, that the Nova Wallet Mastercard Debit Card should be ready in three weeks. Polkadot Pay is expected on Nova Wallet in Q4 2024 not long after the release of the Polkadot App.

Meanwhile, Robonomics has already launched their DePIN focused Polkadot parachain this Q4, and Sergei Lonshakov had plenty to share about how they are challenging centralized cloud infrastructure. He introduced the first devices in their new line-up of smart-home and wearable tech for end-users, all available to tinker with on the fourth floor at the venue.

While Robonomics is enjoying tinkering with their first Polkadot core, Origin Trail’s Neuroweb parachain is pushing theirs to the limit. In his speech, founder Branimir Rakic mentioned buying more cores as they prepare to scale up with the launch of DKG v8 in December. Building a safe verifiable internet in the age of AI requires significant blockchain resources, luckily Polkadot’s Agile Coretime has them covered.

There was plenty more beyond the main stage of Sub0 Reset. Presentations at the Hacker Stage had a much more relaxed vibe, with beanbags and a more intimate setting. Meanwhile, on the fifth floor, an array of workshops covered topics such as building your own DAO or launching a parachain and token.

Workshop participation was one of many challenges that developers could complete to win prizes such as merch, Gameboy Colors, and Flipper Zeros. Cere, ink!, Tangle, and Bifrost upped the ante with a bounty prize pool totalling USD $10K.

You’d need to add quite a few zeros to that to match the bounty offered by the JAM Implementers’ Prize. After the JAM0 implementers meetup earlier in the week, Gavin Wood had some insights to share in his keynote on JAM Day, the third and final day of Sub0 Reset.

A total of 32 teams are working on unique implementations of JAM, substantially more than Gav was expecting. Several teams are approaching Milestone 1, being able to sync a blockchain, while a few teams are already halfway to Milestone 2, becoming a validator node.

The Gray Paper technical specification of JAM has gone through multiple iterations since the release of v0.1 at Token2049 in April. Now quickly approaching v0.5 we have seen enhancements to data availability and we will soon see the PolkaVM specification moved from 32-bit to 64-bit architecture. From v0.6 onwards there will be a feature freeze with all further iterations focusing on tweaks and optimizations.

As Sub0 is a developer-focused conference, Gav did not tone down his speech for general audiences, However, even for the less technically inclined, it is clear that the launch of JAM is getting a lot closer.

That said, it is evident that the ecosystem’s push to unify and simplify Polkadot terminology has been acknowledged. However, we might have a fight on our hands if we want to refer to parachains as rollups. In a post-JAM world, Gav insists they will be called L1 blockchains. Nevertheless, some of the new marketing terminology, such as the Polkadot Cloud, may have resonated with him.

Of course, the concept of the Polkadot Cloud has been resonating far more deeply with Polkadot wunderkind Shawn Tabrizi. His JAM Day talk took his recent performance at Tech Forum Argentina up a notch.

With the addition of JAM, the Polkadot Cloud specifications are, to put it lightly, mind-blowing! We can expect 1M transactions per second, 2 petabytes of data availability, and 852 MB/s of I/O bandwidth.

With all of that power, the scalability problem will be a thing of the past. However, Shawn addressed another persistent issue in Web3: the burden of developing applications within the size and time constraints of blocks in a chain. It’s a barrier to entry for regular developers, making blockchain development a specialized practice.

According to Shawn, JAM will be able to abstract the blockchain away from developers. Essentially, this would allow developers to deploy regular applications to the Polkadot Cloud, while JAM would take care of the blockchain elements.

So, as Polkadot ushers in a new era of Web3, freed from the technological constraints of the blockchain, why is there still a lingering expectation of chaos? This is the price of being at the cutting edge of innovation. You can make the case that Polkadot has never been about chasing the latest crypto narrative to create artificial interest in its token. It is about building the necessary infrastructure to host the new internet that the world needs.

This week was not just about a reboot of Sub0, it was about getting back in touch with the original ethos of Polkadot, or even more so, Kusama. Expect chaos, because we’re entering uncharted territory. Expect chaos because we are challenging the very nature of the global internet and the power structures that govern it. Embrace the chaos, because the change we need won’t come from playing it safe.

Featured Report - Bifrost Staking Waves!

Written by Dodow & Sanchez

All blockchains require a consensus mechanism to agree on the state of the network, which is essential to preserving a decentralized system. This mechanism involves validating transactions and creating new blocks. For some blockchains, staking allows users to participate in this process.

Staking not only supports network security but also offers incentives, with rewards that can be attractive to participants seeking value in the yields. While some may view these rewards as merely inflationary, they can still be appealing when the token appreciates against fiat currency. However, staking often requires a lock-up or unbonding period, which can be restrictive.

This is where liquid staking tokens (LST) or derivatives (LSD) comes into play, and in the Polkadot ecosystem, Bifrost currently reigns supreme. LSTs allow users to benefit from staking yields without the lock-up restriction, meaning they can further use the tokens in DeFi opportunities.

Often describing itself as a dedicated modular liquid staking protocol, Bifrost, an L1 blockchain, supports liquid staking across more than nine blockchains. These include Polkadot, Kusama, Moonbeam, Moonriver, Astar, Manta, Filecoin, and Ethereum.

Co-founded by Lurpis Wang and Zengfeng Wang, Bifrost draws inspiration from the Norse word Bifröst, symbolizing a rainbow bridge that connects humanity to Asgard. This principle is akin to how the protocol connects stakers to liquidity in DeFi.

That said, in 2019, Bifrost initially explored the EOS ecosystem with a view to building a cross-chain bridge between EOS and Polkadot. Motivated by Ethereum’s transition to a PoS consensus, the team pivoted to hold an ETH Lockdrop with the launch of ETH 2.0 staking. BNC tokens were airdropped to stakers, resulting in over 10,000 vETH minted within the first 24 hours.

These early efforts culminated in Bifrost securing the fifth Kusama parachain slot in June 2021, with 142,431 KSM crowdloaned—surpassing competitor Basilisk. This also marked the debut of Bifrost's Slot Auction Liquidity Protocol (SALP), sometimes referred to as vCrowdloans. This protocol preserves the liquidity of KSM and, later DOT, used in crowdloans.

The success of SALP with Bifrost’s crowdloan sparked increased interest. More projects vying for parachain slots began utilizing Bifrost’s SALP as an alternative option for users looking to support their crowdloans.

With stiff competition from other protocols offering liquid crowdloans, Bifrost built additional features into their products. This included the launch of a market for vsBONDS, which represented a part of the locked tokens used in the crowdloans.

Bifrost’s SALP proved exceptionally resilient as bear market conditions worsened and crowdloan participation declined. Establishing itself as a reliable entity amid negative sentiment across Web3, Bifrost demonstrated a solid commitment to the Polkadot ecosystem. It maintained its services even as other protocols scaled back, shifted focus, or shut down entirely.

You could make the case that this resilience and commitment were widely recognised and appreciated by the community. As over 400,000 DOT were crowdloaned in support of Bifrost, ensuring it secured the 18th parachain slot on Polkadot. This support further extended as the team put more focus into its Staking Liquidity Protocol (SLP).

Initially facing larger liquid staking protocols in terms of TVL, like Acala and Parallel for DOT and KSM, Bifrost sought to differentiate itself. Given Bifrost’s use case as an app-chain focused on LST, it aimed to become the liquid staking standard for any chain. This led to the expansion of LST services across parachains on Polkadot and externally with the addition of Filecoin.

The integration of Bifrost’s LST (aka vTokens) started to take effect, becoming a prominent part of DeFi within the Polkadot ecosystem. This includes the addition of vDOT to Interlay’s lending market and its use as a vault option for minting iBTC.

Also included is farming using vDOT and vASTR in Hydration’s Omnipool, with vDOT earmarked as a collateral asset for Hydration’s imminent money market. The use of vDOT as collateral is also featured on Pendulum’s Spacewalk bridge to the Stellar ecosystem.

Adoption across Polkadot’s general-purpose parachains, Moonbeam and Astar, has taken shape, with various vTokens listed on their leading DEXes such as Stellaswap, Beamswap, and Arthswap. Users can employ these vTokens for farming additional yields on top of the base staking rewards.

Close ties with Zenlink, which includes the integration of its DEX module, have more recently extended to Zenlink’s Eden platform for yield management. This builds on recent trends in DeFi, where LSTs are increasingly geared towards maximizing yield preferences. Also following DeFi trends is the increased yield offered by Bifrost’s leveraged staking product Loop Stake, which supports both vDOT and vKSM.

Perhaps the most compelling innovation, driven by the killer application of Polkadot OpenGov, is Bifrost's ability to use its LSTs in on-chain governance—an achievement that is quite revolutionary in Web3. Another innovation, focused on creating streamlined multi-chain liquid staking, is SLPx, which led to the creation of OmniLS. This allows users to liquid-stake and redeem assets across any supported chain with just one click.

Bifrost's journey thus far demonstrates a tireless work ethic, earning it numerous plaudits and accolades. This includes fully repaying Polkadot and Kusama treasury loans with interest multiple times, securing a solid treasury, and embracing on-chain behavior through its Raindrops and Rainbow Boost campaigns. Bifrost has also consistently set TVL milestones and is now leading in DOT liquid staking with about $40 million in value (at the time of writing).

Our WagMedia reporter initiative highlighted the massive growth in the TVL of liquid staked DOT on Bifrost within a year, revealing a 1200% increase through its SLP. The report also compared this against the total amount of DOT staked conventionally, illustrating the potential of LSTs.

Furthermore, while there has been fanfare around the move to implement a reduced unbonding period for staked DOT, many have overlooked that Bifrost’s vDOT users have already been enjoying fast redeems. In fact, Lurpis recently mentioned in an interview with Polkadot ERI that he viewed RFC 97 as positive for vDOT.

Not all has been without hiccups or delays. These include a successful but short-lived inscription, a paused marque NFT collection, and an unfortunate exploit on its treasury. While the exploit was serious, half of the stolen funds were recovered, and the remaining balance was reimbursed by the core team from their own pockets to restore the treasury. Overall, the protocol has remained robust, and it's a testament to the dedication of the core team.

Moving forward, it's all about Bifrost staking waves. The motion towards sustainability has been in place for quite some time. This has also been supplemented by a fellowship to ensure Bifrost stays ahead of the curve within DeFi.

The transition to Bifrost 2.0 will merge the Polkadot and Kusama parachains, in turn, there will be decentralization of its Polkadot collator set. It will also launch the BNC 2.0 campaign, ushering in changes to the BNC tokenomics.

Bifrost currently operates a one-token model across Polkadot and Kusama, but its new tokenomics framework introduces bbBNC (buy back BNC), a revenue-sharing token designed to enhance the protocol’s sustainability. This model positions bbBNC at the center of a growth flywheel, granting it both governance powers and a share of the protocol’s revenue.

100% of Bifrost’s profit will buy back BNC, with 90% allocated to bbBNC holders and 10% burned. Coupled with locking BNC to obtain bbBNC, this creates deflationary pressure, potentially increasing BNC’s price and enhancing the value of BNC-denominated incentives. This could drive more user engagement with vTokens, generating more fees for buybacks and further strengthening the cycle.

This brings us on to the Bifrost Liquid Wave Campaign, which serves as the enabling step to generate participation from existing community members and new participants, aligning them with the new tokenomics. Raindrops will also contribute to the Wave points from this campaign, which will be converted into bbBNC at the end after the final season.

During this first season, a BNC reward pool has been established, offering further incentives to accumulate more Wave points. Based on previous insights from the Rainbow Boost Campaign, this approach will likely be repeated in subsequent Wave Campaign seasons.

Remember, there’s also the opportunity to earn extra yields with the vTokens you generate from this campaign. You may soon recognize the benefits of LSTs, including the opportunity cost of staying liquid, along with the potential for further yields.

Wag Roundup

Written by yay.oi & Sanchez

• The Web3 Foundation has announced the third cohort of Decentralized Voices (DV) delegates. The delegates include ChaosDAO, KusDAO, Saxemberg, Le Nexus, Luck Friday Labs, and Polkadot Hungary, whowill be delegated voting powers on Polkadot and Kusama.
• Hyperbridge has been launched, enabling the trustless bridging of DOT and other tokens across Polkadot, Ethereum, BNB, Base, Arbitrum, Gnosis, and Optimism. Currently, users can only bridge DOT. More tokens will be integrated soon, with liquidity for DOT made available on these networks. They also announced the launch of their Initial Relayer Offering (IRO) and changed the token name from NAND to BRIDGE.
• The Polkadot Blockchain Academy (PBA) has announced PBA-X, a 4-week online course on understanding blockchain technology, which begins on January 6th, 2025. Instructors include Polkadot developers Shawn Tabrizi and Kian Paimani, and participants will be given a certificate of completion.
• LAOS Network announces a strategic partnership with Life’s Meta, an AI social simulator. LAOS will help enhance the game with advanced NFT functionalities, boosting player engagement through ownership of digital assets.
• Flappy Wud v2.0 dropped on November 9th. To celebrate, Gavun Wud held a massive Flappening airdrop event on November 10th, livestreamed on Polkaworld Pro.
• Kylix has teamed up with Mandala Chain to provide institutional-grade lending services to corporations in Indonesia. Kylix will provide the DeFi infrastructure, while Mandala will provide local market and institutional access.
• The Sub0 Reset opening party was a hit, reaching capacity at 8:30pm. The attendees that were lucky enough to make it inside enjoyed a tuktuk disco experience with DJs and a live performance by Kukabi, who transforms Polkadot blockchain data into an interactive audio-visual art.
• Full Wag Roundup 5th November to 11th November.

Extras

• Awesome cover art created by Dodow.
• Sub0 Roundup of some of sessions from the main stage.
• For all you budding creators out there, don't hesitate any longer – join us now! There are plenty of rewards awaiting your creativity.