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Wrap and Delegate Songbird
Wrap and Delegate Songbird

How to wrap SGB and delegate WSGB to FTSO signal providers

Markus avatar
Written by Markus
Updated over a week ago

Bifrost Wallet supports wrapping, unwrapping, and delegating Songbird. This article is for new users unfamiliar with these concepts. It explains why and how you want to wrap and delegate your Songbird to support the network and its participants.

The Songbird network has a built-in system called the Flare Time Series Oracle (FTSO). It's a system that sources externally provided price data for trade pairs such as SGB/USD, XRP/USD, and DOGE/USD in a decentralized manner. The price estimates are made available on-chain to smart contracts and services built on the Songbird network.

Many independent data providers, also known as FTSO signal providers, submit price data at regular intervals to the Songbird network and are rewarded if their estimates meet specific quality criteria. Each signal provider's price estimate is weighted according to how much vote power they have.

Your delegated Songbird tokens count towards a signal provider's total vote power. If the signal provider you delegate your Songbird to provides good price data, you are rewarded with Songbird tokens that are claimable every two weeks and forfeited if left unclaimed for six months. These time constraints are governed by the Songbird network and not determined by Bifrost Wallet.

Songbird (SGB) cannot be delegated directly; instead, you need to wrap your SGB to the utility token Wrapped Songbird (WSGB). You can wrap SGB to WSGB at any time, and you can unwrap WSGB to SGB at any time. You only pay the network fee to wrap or unwrap.

If you want to delegate your Songbird, click on the Songbird asset row in your asset overview. This action will open a more detailed view, where you can see your latest Songbird transactions. You will also find three buttons. Tap the rightmost button, the one with three dots. This action will open a context menu with a few different options. Tap the Delegate option.

In the bottom section of the delegate view, you'll see a notice asking you to wrap some Songbird. Proceed by wrapping some Songbird.

IMPORTANT: Do not wrap all of your Songbird (SGB), you need to save some SGB to pay for network fees. Enter the amount of SGB that you'd like to wrap, make sure to leave a few SGB, and click Continue.

Back on the delegate screen in the statistics section, you'll see the amount of WSGB you hold. Whenever you feel ready to delegate your WSGB, proceed by adding your first delegation. Delegating your WSGB tokens doesn't send them anywhere; instead, their vote power transfers to a signal provider.

When you add a delegation, there will be a list of FTSO signal providers to choose from. They are all run by different teams and entities spread across the globe. The Bifrost Wallet team runs a signal provider named Bifrost Oracle.

You should pick signal providers that you trust will provide the FTSO system with reasonable price estimates. If the signal provider you delegate to provides wrong price estimates or fails to provide price estimates during some periods, you'll miss some rewards. FTSO performance can be viewed at flaremetrics.io/.

Tap on the signal provider that you'd like to delegate to and enter an amount. Delegating WSGB is done by percentage and will automatically update as your balance of WSGB changes. If you wrap additional SGB or unwrap some WSGB, your delegations will update automatically.

In this example and for the sake of simplicity, we'll delegate 100% to Bifrost Oracle. In practice, we encourage you to delegate a portion of your WSGB to two different signal providers. By delegating to two signal providers, you contribute towards a healthier and more decentralized ecosystem.

Once you've continued from the amount screen, you'll see a confirmation screen. Carefully review all details; if all details are correct, tap Confirm. Back on the delegate screen you'll now see your active delegations.

The delegation view is still under development, and coming updates to Bifrost Wallet will add additional statistics and performance-based sorting to the signal provider list. Make sure to keep Bifrost Wallet updated and check the delegation view regularly.

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