Cryptocurrency company Bifrost secures $600,000 seed investment

Cryptocurrency startup Bifrost picks up $600,000 to solve trading issues on decentralised finance (DiFi) markets.

NGC Ventures, SNZ Holding, Consensus Lab, Digital Renaissance, Youbi Capital, DFG and Longhash were among the backers of the round.

“Investors participating in this round of financing are not [lacking in] early Polkadot investors and staking business-related institutions,” Bifrost said in a statement. “It is expected that these institutional investors will be able to provide Bifrost with parachain slot auctions and staking liquidity business support in the future.”

DeFi has grown fast in recent years. Simply put, the difference between it is that most cryptocurrency coins create a decentralised store of value separate from any government-backed fiat currency, wheras DeFi establishes decentralised financial instruments that are separate from traditional centralised institutions.

Bifrost intends to solve DeFi and staking rewards competition issues.

“Due to the emergence of DeFi products including liquid mining, DeFi products may bring users a super high annualized rate of return, but whether the prosperity built on the ETH PoW consensus can continue under the ETH 2.0 or Polkadot PoS consensus is a problem.,” explained Bifrost.

“For users, when staking and DeFi lending can only choose one of them, which method is more profitable becomes the basis of choice. The PoS consensus network will compete with DeFi products from the underlying mechanism to compete for users.

“To solve the problem of DeFi and staking rewards competition, Bifrost allows users to obtain staking rewards and release liquidity at the same time to obtain and optimize the interests of more DeFi fields including DEX, liquidity mining, etc. Also, Bifrost can solve the two problems first is PoS network liquidity and security [mutually] exclusive. Another is staking reward acquisition in cross-chain scenarios.”

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