Summary

This proposal is for the integration of vDOT into the Polkadex Orderbook. vDOT (voucher DOT) is a representation token of staked DOT, with fully underlying DOT reserve and yield-bearing feature of DOT staking reward. Users can deposit DOT into Bifrost SLP protocol and get vDOT as return, vDOT can be traded in the open market or be redeemed back to DOT. Holding vDOT equals holding DOT and its staking position, staking rewards appreciate the exchange price of vDOT.

Motivation

Most Bifrost users not only hold BNC, but also hold a variety of Liquid Staking Assets on the Bifrost chain, such as vDOT, vGLMR, vFIL, etc. More backlink assets such as the Substrate version of vETH will be introduced in the future. Therefore, adding vDOT to Polkadot Orderbook can help Polkadex attract DOT staking users, let them understand Polkadex's orderbook application, and attract more LSTs to Polkadex.

This integration will be unprecedented for Polkadot's DeFi users:

1. Both parachain native token users and LST users will be able to use the orderbook developed on Substrate on Polkadex to complete transactions.
2. Attract more LST users from Bifrost. Based on the stable exchange rate relationship between LST and native staking token, listing a trading pair like vDOT/DOT can significantly increase the trading volume of Polkadex with minimal risk.
3. User Sharing. For DOT traders, they can experience LST services by completing transactions directly with DOT/vDOT trading pairs and holding vDOT. If they want to use more additional use cases on Bifrost, Polkadex will be their entry-point to know DOT and liquid staking.