In line with the previous SALP economic model Bifrost Council has recently completed the first buybacks of vsKSM, details of which are as follows.
| Buyback Number | Bifrost Block Height | Number of KSMs used | Buyback vsKSM Quantity | Average buyback price | Transaction details |
|---|---|---|---|---|---|
| 1 | 2345011 | 500 | 1088.361221607 | 0.459406298271 | Subscan Aggregate Substrate ecological network High-precision Web3 explorer |
| 2 | 2345980 | 500 | 1084.650313614109 | 0.460978062445 | Subscan Aggregate Substrate ecological network High-precision Web3 explorer |
| 3 | 2346163 | 500 | 1035.431922279986 | 0.482890269501 | Subscan Aggregate Substrate ecological network High-precision Web3 explorer |
| 4 | 2346771 | 350 | 730.593499727222 | 0.479062570541 | Subscan Aggregate Substrate ecological network High-precision Web3 explorer |
| 5 | 2350423 | 300 | 620.927857297398 | 0.483147915614 | Subscan Aggregate Substrate ecological network High-precision Web3 explorer |
| Total | - | 2150 | 4559.964814525715 | 0.471494866178 | - |
Bifrost will use the KSM in the buyback fund pool to continue to buyback vsKSM when the price of vsKSM is lower than 0.5. Buybacks are triggered by the Bifrost Council and executed entirely by on-chain logic. The goal of the buyback is to create a stable and healthy vsKSM derivatives trading environment and promote vsKSM’s liquidity and application scenarios. Users of Bifrost are welcome to supervise and suggest on-chain buyback behavior at any time.
The vsBond (BNC) in the SALP Fund in the Bifrost network has expired after two full leases (84 days) since expiry. The use of funds for the unlocked KSMs corresponding to this expired vsToken is as follows:
| Date | Behavior | KSM Changes | Buyback reserve balance | Governance of redemption of set-aside balances |
|---|---|---|---|---|
| 2022-08-11 | Bifrost Fund expired | + 21058.626784765337 | 4574.56882 | 16484.057964765337 |
| 2022-08-25 | vsKSM buyback | - 1850 | 2724.56882 | 16484.057964765337 |
| 2022-08-26 | vsKSM buyback | - 300 | 2424.56882 | 16484.057964765337 |
In the SALP protocol, vsKSM and expiring vsBond can be redeemed in a 1:1 combination of 1 KSM. As vsBond is tradable and redeemable, there is a risk of malicious hoarding, so in the SALP protocol there is a rule that vsBond cannot be redeemed after 2 leases of expiry, and the corresponding assets will be used to buy back the vsToken. This is to prevent the malicious hoarding of vsBonds and to clean up the chain of low value information to make the network more efficient and to improve the utilisation of funds on the chain for the benefit of active users of the Bifrost SALP protocol.
After vsBond(BNC) expired as per the SALP protocol, we closed the redemption channel for vsBond(BNC) at the corresponding time as per the SALP protocol.
At the same time we observed that there were still 20000+ KSMs that were not redeemed, some of which were not redeemed due to early release of liquidity, but based on on-chain analysis there were still 10000+ unredeemed KSMs corresponding to users that had not touched vsKSM and vsBond(BNC) derivatives at all.
It is likely that the majority of these users have either forgotten due to the length of time that has elapsed, or have not been aware of the redemption notifications and therefore have not redeemed properly during the redemption period. This is one of the reasons why many users did not redeem properly, as the SALP protocol was not available at the time of the Bifrost Kusama Crowdloan and the rules were not as clear as they are today. Although it is still possible to convert expired vsBond (BNC) to vsKSM and then sell it on the market via the Convert function, the market price and transaction costs would have been prohibitive for this group of users.
For these reasons, and thanks to the powerful governance platform provided by Polkadot, Bifrost has decided to retain the assets not normally redeemed by this group of users and not to participate in the SALP buyback process, but to keep them in the Bifrost chain as a reserve for those users who meet the requirements and submit applications to redeem their corresponding KSMs through the governance.
Addresses that meet the above criteria are initially judged to be redeemable through governance
SuperDupont44 Aug 29
I think it is a fair proposal!
Some concerns have been raised by the community and this is a fair solution.
Some improvements are going to be implemented in the next version of SALP for a better management of vsBond expiry.
It remains weird that people put their money in a protocol without following the news.
I know we are in a bear market but, about money, i feel it’s not normal to stay away for 6 months forgetting what you did it with it.
At some point it’s just about basic money management, which does not have to be the responsability of the Bifrost team.
So from my point of view it’s a fair solution, and a transpareny action that shows Bifrost does not want to capture user’s value for nothing.
Bifrost Council has completed the first buybacks of vsKSM. The goal of the buyback is to create a stable and healthy vsKSM derivatives trading environment and promote vsKSM’s liquidity and application scenarios. Bifrost will use the KSM in the buyback fund pool to continue to buyback vsKSM when the price of vsKSM is lower than 0.5.
The vsBond (BNC) in the SALP Fund in the Bifrost network has expired after two full leases (84 days) since expiry. The use of funds for the unlocked KSMs corresponding to this expired vsToken is as follows: Bifrost Fund expired, vsKSM buyback, vsKSM buyback.
After vsBond(BNC) expired as per the SALP protocol, we closed the redemption channel for vsBond(BNC) at the corresponding time as per the SALP protocol. Bifrost has decided to retain the assets not normally redeemed by this group of users and not to participate in the SALP buyback process, but to keep them in the Bifrost chain as a reserve for those users who meet the requirements and submit applications to redeem their corresponding KSMs through the governance.
Users with expired vsBond(BNC) can redeem KSM via governance. Addresses that meet the criteria are initially judged to be redeemable through governance. The governance redemption process involves submitting a request for managing redemptions, summarizing and manually reviewing the redemption requests, launching a referendum, voting, and executing the redemption.
The community has raised some concerns, but this is a fair solution. It is important for users to follow the news and manage their money properly.