Supra Mission 46 Answers

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20 Mar 2024
25

Question 1: How does Supra’s Proof of Efficient Liquidity protocol boost the network’s security?

  • It integrates assets submitted to liquidity pools to diversify the asset base of network security
  • It eliminates the need for network security capital base
  • It limits the network security to the native staking token
  • It offers short-term incentives to bolster staked capital for security


Normally, PoS blockchains use only their native token to secure the network. But with Supra’s Proof of Efficient Liquidity (PoEL) protocol, Supra combines its native token with assets from liquidity pools for security. 
This makes the network stronger because it’s not just relying on one type of asset for security.

Question 2: How does Supra’s Proof of Efficient Liquidity protocol offer dual-rewards for token contributors to the network?

  • It makes them pick one of either staking rewards or AMM fees
  • It reduces their share of AMM fees for borrowing staked token
  • It takes away AMM fees if LPs borrow staking token
  • It helps them earn both AMM fees and staking rewards with the same capital


If you contribute your tokens to Supra’s network, you can earn money from both fees charged on trades in the AMM and rewards for helping to secure the network. It’s like getting paid twice for the same work.

Question 3: Which elements of Supra’s blockchain does the Proof of Efficient Liquidity protocol revolutionize?

  • The accuracy of data on the blockchain
  • Cross-chain interoperability of the network
  • Capital efficiency of the network’s cross-chain AMM and staking mechanism
  • The TPS and throughput of the blockchain


Supra ensures the tokens people contribute to its network are used in the smartest and most effective way possible by using them to both trade assets and secure the network. So, instead of just sitting there idle, the tokens can do more things at the same time, which is really cool.

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