Workflow
The application logic is built on two main components:
The lending and delegation flow, which handles all token-delegation processes.
The reward distribution logic.
The lending and delegation flow lends assets from the PoEL vault to users based on the assets they have deposited in IntraLayer vaults as collateral and directly delegates the borrowed $SUPRA to the delegation pools operating in the system. During this process, the system maintains the necessary accounting to ensure the delegated amount is periodically updated based on changes in the amount and price of assets deposited in the IntraLayer vaults, tracks lifecycle updates of the delegated amount, and performs other operations aiming to act as an equitable delegating agent for the user.
The reward allocation logic first calculates the total staking rewards available to the user. It then determines how to allocate them across iAssets based on the amount of the underlying asset submitted as collateral and asset-specific characteristics (e.g., desirability, score, price, collateralization rate). Finally, it determines each iAsset holder’s rewards based on how much they hold and how long they have held a particular iAsset in their account.
To provide a high-level understanding of how the flow works, the following example walks through the end-to-end process of depositing ETH and minting iETH.
Users deposit ETH into the IntraLayer Vault on Ethereum.
The SupraNova cross-chain bridge relays the deposit to the PoEL modules on Supra.
This enables users to mint iETH (InterLayer ETH) on the Supra blockchain. Minting is a two-step process: first, the system pre-mints iAssets to the user’s account.
After two epochs, the user can mint the iAsset, which is credited to their account.
In the background, PoEL uses the deposited collateral to lend $SUPRA and delegate it across multiple delegation pools in the Supra Proof-of-Stake system.
PoEL acts as the delegator on behalf of users.The total lent (delegated) amount via PoEL depends on the oracle price and collateralisation rate of the asset.
If the ETH price in $SUPRA terms rises, PoEL delegates more to delegation pools, if it falls, PoEL unlocks some tokens. This keeps PoEL’s total delegated $Supra aligned with the nominal collateral value submitted to the IntraLayer Vaults.
Securing the network generates staking rewards in $Supra. iETH holders can withdraw their share from PoEL, proportional to how long and how much iETH they hold.
When iETH is transferred to another account, the right to claim rewards transfers with it. Reward withdrawal has three steps: update_rewards (allocate accrued rewards) → claim_rewards (submit intent) → withdraw_rewards (available after the lockup cycle).
After receiving iETH, users may use it freely, including supplying it to third-party DeFi liquidity pools.
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