SPoL

As we described before, we integrate some unique features in Sunrise as a DA layer. One of them is Sovereign Proof of Liquidity (SPoL).

Key Value: Mutual Increase in Security and Liquidity

In general, crypto-asset projects must reward the participants of the community who do the following:

• Participating in the governance

• Providing liquidity

It is difficult to reward these participants at the same time with conventional methods. SPoL is a mechanism that can reward both participants at the same time.

By using the SPoL mechanism, Sovereign rollup can utilize the LST of the LP token LST-LP-XXX/SR for its supplementary staking asset.

In this mechanism, the participants can stake the LST of the LP token LST-LP-XXX/SR to the Sovereign rollup XXX. Sovereign rollup projects can reward the stakers of the LST of LP token LST-LP-XXX/SR to enhance the economic security and make the liquidity of their token.