Cryptoeconomic model that provides network effect, stable liquidity, and high availability for the ecosystem. Includes proof of liquidity commitment, liquidity backing auction, and state guardian network.
Proof of Liquidity Commitment (PoLC)
PoLC is a virtual mining process that acquires abundant liquidity for the off-chain ecosystem. Participants commit (lock) their idle liquidity (e.g., ETH) to a “dumb box” called Collateral Commitment Contract for a certain period of time with CELR token rewarded.
Liquidity Backing Auction (LiBA)
LiBA enables off-chain service providers to solicit liquidity through “crowd lending”. Lender priorities are determined by the interest rate, the amount of provisioned liquidity, and the amount of staked CELR token (indicating their past contributions to the ecosystem).
State Guardian Network (SGN)
SGN is a special compact sidechain that guards the states when users are offline so that the users’ states are always available for dispute; and provides connectivity oracle services to simply the on-chain dispute process. Guardians need to stake their CELR into SGN to earn guarding opportunities and service fees from the users.