How to participate in crowdloans

How to redeem KSM/DOT

How to release the liquidity of vsToken

Expired vsBond

Base mechanism

User contributes 1 Token to the crowdloan and receive 1 vsToken + 1 vsBond. At redemption, the user brings back 1 vsToken + 1 vsBond to get his contributed Token back.

SALP mechanism

• vsToken (vsDOT & vsKSM) are fungible: they are standardized between any crowdloa

vsToken represents the asset part that can be exchanged at any time with no siloed liquidity between crowdloans.

• vsBond are semi-fungible: each vsBond has unique crowdloan properties (duration & lease)

vsBond represents the Bond part associated with a maturity date. The closer you are from the maturity date, the more the vsBond price increase.

Major characteristics:

• SALP enables users to release their locked liquidity (See How to release the liquidity of vsToken if you decide not to wait till the end of the lease period.)
• No automatic redemption: users need to follow their investment to be able to redeem in time (see How to redeem KSM/DOT)
• vsBond expires after 84 days on Kusama side and 168 days on Polkadot side following the opening of the redemption. After that a discount rate will be applied based on market price (see Expired vsBond)

vsKSM Repurchase & Burn

Each SALP crowdloan requires users to redeem their underlying DOT (KSM) manually, if not doing so, the vsBond will expire resulting in a discount rate (see Expired vsBond)

Bifrost uses unredeemed underlying DOT (KSM) to repurchase vsDOT (vsKSM) and burn them to maintain a long-term healthy price of vsDOT/DOT (vsKSM/KSM). The repurchasing and burning structure is as follow: