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Why Supernova

The trade-off between Security and Utility​

Cosmos needs a high amount of tokens to be staked for the security. Therefore, chain’s optimal point is acquiring tokens to be staked more than a certain staked ratio. To achieve the optimal point, app-chains provide incentives in the form of staking reward along with voting powers to the on-chain governance. However, even with all the staking incentives, the most optimal behavior of token holders is not staking but using the tokens in DeFi.

Solution: Supernova​

One of the solution to this problem is liquid staking. Liquid staking allows token holders to earn both the staking yields on Proof-of-Stake blockchains and acquiring the liquidity of the staked assets. In other words, it can provide additional utility to the ecosystem while preserving the chain’s security.

Carina Labs designed and implemented Supernova, a novel liquid staking service that addresses the trade-off between security and utility of the cosmos app-chains. Supernova is the first liquid staking service that solves the following problems:

  • The Oracle Problem
  • Limitation of Withdraw Requests
  • Lock-up Period during Undelegation

Above problems are addressed through the following unique features:

  • Lazy Minting
  • Protocol-level protection against Bank-run
  • Stable/Staked Swap
  • Robust Auto Compounding
  • Emergency Withdrawal

You can refer the Supernova whitepaper for more information.