In April 2022, Bifrost announced its support for the Polkadex crowdloan, a fully decentralized peer-to-peer orderbook-based cryptocurrency exchange for the DeFi ecosystem built on Substrate Bifrost is committed to providing liquidity to locked assets between multiple chains and establishing a liquidity bridge between heterogeneous chains.
During this Polkadot crowdloan event, Bifrost will cooperate with Polkadex to help crowdloan participants access liquid derivatives of staked DOT, creating innovative solutions for users participating in the Polkadot crowdloan and competitive opportunities under the multi-chain development pattern.
Polkadex have now opted to set up a two-chain system to combine the advantages of having a parachain with the flexibility of the Polkadex network. In this set-up, the Polkadex network will have all Polkadex products on top of it, as well as Thea, which means it will be connected to Ethereum (and other blockchains further down the line).
The Polkadex parachain will connect Polkadex to the Polkadot network and all its parachains and their respective assets. The two networks will be joined by a Substrate to Substrate bridge (Parity technology) in the backend. Meanwhile, frontend users will not see any friction and the two networks will work as one seamless system.
Bifrost's advantage is to mint fully decentralized liquid derivatives based on the Kusama Parachain. Support for the Polkadex crowdloan event will help Bifrost unlock a new opportunity with the Polkadex community to introduce the Slot Auction Liquidity Protocol (SALP), and encourage more users to participate in the Polkadex crowdloan.