Bifrost Liquid Staking (Biquid) is a solution that allows you to monetize by staking BFC and utilizing your staked BFC in various DeFi. When you stake BFC, you will receive stBFC or wstBFC, which can be exchanged back to BFC whenever you want, and can be used for additional profit.
When a user stakes BFC on Bifrost network, they are rewarded with a corresponding amount of (w)stBFC. During this process, BFC is staked internally to the most profitable and trusted validators. Users holding (w)stBFC can periodically receive staking rewards, which can be freely utilized in DeFi. You can also instantly exchange ownership between (w)stBFC and other tokens through decentralized exchanges such as Everdex, or you can unstake to burn your (w)stBFC and withdraw your BFC staked on Bifrost network.
Biquid operates on Bifrost Network. Bifrost Network handles a variety of cross-chain communications through cross-validation by mainnet relayers, maintaining superior security likewise L1 protocols. Biquid also introduces a non-custodial staking solution to eliminate counterparty risk, and has been audited by Theori, a global security auditing firm, to further enhance its security credibility.
Biquid does not charge any fees other than the minimal fees required to operate the nodes and gas fees, and the annual percentage yield takes into consideration of node operating fees. The reason why Biquid doesn't charge additional fees is because our goal is focused on activating Bifrost Network’s ecosystem.
Wrapping is the process of converting an asset into another form to increase usability. In Biquid, the process of converting stBFC to wstBFC is called wrapping, and conversely, the process of converting wstBFC back to stBFC is called unwrapping.
stBFC is a rebasing token that earns interest in a way that increases in quantity over time, which means that the stBFC you own will automatically increase in quantity based on your staking rewards. As a result, the exchange ratio between stBFC and BFC remains 1:1.
wstBFC is a reward-bearing token that accrues interest in a way that increases the value of wstBFC relative to BFC over time, which means that the amount of wstBFC you own does not change, but the amount of BFC you can exchange for 1 wstBFC automatically increases based on your staking rewards.
(w)stBFC can be utilized for a variety of purposes, including collateralizing loans, providing liquidity, and swaps. You can find specific uses in DeFi Integration.
Staking rewards are distributed every 12 hours.
Since stBFC and wstBFC have different uses, we recommend that you check the use case of each token in DeFi Integration and choose the appropriate token for your needs. Regardless of which token you choose, there will be no loss to your assets, and you will receive the same staking reward.
(w)stBFC can be utilized for a variety of purposes, including collateralizing loans, providing liquidity, and swaps. You can find specific uses in DeFi Integration.
If you received the wrong token when staking, you can exchange it for the correct token on the wrapping page. For example, if you received stBFC when you needed wstBFC, you can exchange stBFC for wstBFC on the wrapping page.
Staking rewards for stBFC are reflected in an increasing quantity every 12 hours. On the other hand, wstBFC reflects staking rewards by increasing the value of wstBFC every 12 hours. These two values are converted to BFC and then added.
The expected rewards are calculated by multiplying the current ‘Staked BFC’ by the expected return per period. The formula is as follows.
Expected reward after 1 day = Staked BFC * APY / 365
Expected reward after 1 week = Staked BFC * APY / 52
Expected reward after 1 month = Staked BFC * APY / 12
Expected reward after 1 year = Staked BFC * APY
Yes, you can earn rewards. Rewards and staking updates are automatic on the Biquid dashboard. However, if you use (w)stBFC on other DeFi platforms, rewards won’t reflect on the dashboard but will still accumulate automatically.
Withdrawal is the process of receiving BFC by exchanging with (w)stBFC.
There are two main withdrawal methods.
Withdrawal without fees after a 7-day unstaking period
Immediate withdrawal through a decentralized exchange such as Everdex.
The benefit of withdrawal after unstaking is that you don't have to pay any fees, but the downside is that you have to wait for a 7-day unstaking period before you can withdraw. On the other hand, withdrawing through a decentralized exchange has the benefit of immediate withdrawal, but the downside is that you'll have to pay a fee of around 0.3%.
You can withdraw through decentralized exchanges such as Everdex.
The reason why the quantity of (w)stBFC received when staking is slight different from the exchange rate is because the quantity of staked tokens are managed in terms of shares and are divided in integers.
During this process, decimal values are rounded down (discarded), which can lead to subtle differences. For example, in certain situations, the calculation can result in a difference of 1-2 wei. This is also common in other staked assets, such as staked Ethereum (stETH).
If you would like to receive additional (w)stBFC to fill in the difference, try clicking the [Adjust Token Unit] button at the top right corner.