Overview

Supra has developed the Multi-Asset Liquid Staking framework, which implements the Proof of Efficient Liquidity (PoEL) protocol. Within the Supra ecosystem, the protocol has three objectives: (a) bootstrap Supra DeFi by attracting assets and liquidity from external ecosystems to Supra; (b) serve as a liquidity-attraction program for Dynamic Function Market Maker (DFMM), and (c) strengthen the economic security of the Supra blockchain. This mechanism is designed to deliver on these objectives. The framework is the first phase of a broader architecture: once DFMM is live, the framework’s liquidity pools will serve as LP pools for DFMM.

Testnet Status: PoEL is currently live only on Supra Testnet for testing and integration.

What is PoEL?

PoEL solves the circular dependency problem in DeFi: applications need liquidity to attract users, but users need attractive returns to provide liquidity.

PoEL addresses LP challenges through:

• Dual income streams for liquidity providers

• Dynamic risk management with automated collateralization

• Network security enhancement through diversified staking

• Capital efficiency optimization using the same assets for multiple purposes