2nd vETH Mint Drop FAQ
Q1: Why we need vETH?
Since the process of Ethereum 1.0 ETH entering the 2.0 deposit contract is one-way, it is impossible to go back at this stage. After ETH 2.0 enters the Phase 1, that part of funds pledged in ETH 2.0 may be redeemed, but this process may take more than 1 year. Mint vETH can obtain both ETH 2.0 staking reward and other leveraged income, while releasing the liquidity of pledged ETH, it hedges risks for pledged ETH.
Q2: What can I get from vETH Mint Drop?
Currently, in 2nd vETH Mint Drop, you can participate in vETH minting during the event and share BNC rewards. Rules detail
In addition, participating in Loopring’s AMM liquidity mining can receive LRC as reward. Note: If your vETH deposited into Layer-2 account will no longer receive staking reward.
Q3:How to participate vETH Mint Drop?
Q4: How to calculate my BNC reward?
Mint1 ETH=1 vETH. BNC airdrop reward will be settled once per round. The calculation formula is: Total Reward/Current Round’s Minting Amount*My Minting Amount=My BNC Reward
Please Notice: In each round, reach 5000 vETH quota or 3 days countdown will both trigger the end of the round.
Example: First round, Mint quota: 5000 vETH, Total reward: 250,000 BNC, my minting amount is 0.1 vETH.
Situation 1: If the mint quota is reached before the end of the countdown, I will get 250000/5000*0.1 = 5 BNC
Situation 2: If first round’s total minting amount is 100 vETH at the end of the countdown, I will get 250000/100*0.1 = 250 BNC
Q5: When will the event end?
There is no exact end time, it is determined according to the mint amount of each round. The maximum time of each round is 3 days. If 5,000 vETH are minted within 1 minute after the start of each round, the round will end within 1 minute; if the 5,000 minting limit is not reached within 3 days, the countdown will end. The interval between every two rounds is 30 minutes (Mint vETH during this period will not share BNC).
Q6: Can I participate in the share of BNC if I purchase vETH or already own vETH?
No, this event only counts for vETH mint, but not existing vETH.
Q7: What is the MintDrop contract address? Has it passed the audit?
Contract address: 0xc3D088842DcF02C13699F936BB83DFBBc6f721Ab
Q8: When can I redeem vETH?
There are two ways to redeem vETH back to ETH:
1. Sell it on the secondary market, there will be a little bit of discount, but the discount will decrease with time to ETH 2.0 Phase 2.
2. The 1:1 redemption through Bifrost protocol requires waiting until ETH 2.0 Redemption starts, probably a year.
Q9: How do I estimate the cost of BNC I can get for participating in Mint Drop?
The cost of obtaining BNC can be viewed in two main points.
1. Sell vETH immediately after minting, and the BNC cost is equal to the discount cost of vETH.
2. After vETH is minted, hold it until ETH 2.0 starts redemption. The BNC cost is equal to 0, plus Staking reward of ETH 2.0 by holding vETH.
What is Bifrost ?
Bifrost is a Polkadot Ecosystem DeFi infrastructure protocol that aims to become an infrastructure for providing Staking liquidity, and currently offers a derivative vToken for Staking and Polkadot Lease Offering (PLO). It is also a member of the Substrate Builders Program and Web3 Bootcamp. vToken can optimise transactions in multiple scenarios such as DeFi, DApp, DEX and CEX.
vToken can optimise transactions in multiple scenarios such as DeFi, DApp, DEX and CEX. vToken can be used to realise the transfer channel of governance right such as Staking and PLO to hedge the risk of Staking assets. In extended scenarios such as when vToken is used as collateral for lending, the staking proceeds can offset part of the interest and realise low-interest lending.