On the Bifrost side, homogeneity (standardisation), liquidity, and built-in yield are the attributes that determine Bifrost liquid staking tokens (“vToken”) ability to meet a variety of DeFi use cases.
Therefore, vToken’s cross-chain DeFi interaction scenarios will become the core of expanding XCM use cases.
As a result, Bifrost has been building the XCM Action Pallet in order to achieve the following goals:
- Support users to mint Bifrost liquid staking tokens (vTokens) on the target chain; (directly minting liquid staked DOT (vDOT) on Moonbeam, Astar, Interlay etc.)
- Expand the applications and utility of vToken liquidity on the Bifrost chain, and support cross-chain swaps and liquidations.
The XCM Action Pallet is currently under testing (likely live on Kusama network- Moonriver end of this month, and Polkadot Moonbeam Astar by next month TBC). XCM Action will be released in two versions:
V1: Supports contract invocation on EVM-compatible chain.
V2: Supports Pallet invocation on Substrate parachains.
For more information please feel free to read the following tech document: XCM-Action Pallet as well as this article about XCM V3 and Bifrost (here).