Stake

The above figure shows the process of depositing wATOMs and receiving token shares in the form of snATOMs. User must communicate with the Supernova twice to avoid compromising fairness, which is as follows:

1. Deposit wATOMs.
2. Claim snATOMs.

Example

Let’s say $user_A$ deposits $n_d$ wATOMs. Deposited wATOMs are transferred to Cosmos through IBC. Then those ATOMs are delegated through the bot’s ICA call.

$user_A$ can claim snATOMs after at least one oracle update. At that time, the protocol mints and send $\Delta l=aL$ new snATOMs. The incremental ratio $\alpha$ is calculated as $\alpha = n_d / \tilde{N}$. The denominator $\tilde{N}=N+B_O-B_L$ is an estimated value of the total delegated ATOMs to ensure no loss of user assets.

Initialization

Let’s say $user_A$ deposits $n_i$ wATOMs for the first time in Supernova. Formula with incremental ratio $\Delta l=aL$ is not available since $L=0$. In this case, the amount of shares, $\Delta l$ is determined by the amount of staked wATOMs.