Decentralized Finance Transformation: Supra creates a fairer and more transparent autonomous operation ecosystem

With a high-performance L1 Smart Contract, a natively priced Oracle Machine, and an upcoming native automation mechanism, Supra is building a new set of underlying capabilities.

Source: Supra

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Supra is the first blockchain built for full vertical integration, but that's just the beginning. With a high-performance L1 Smart Contract, a natively priced Oracle Machine, and an upcoming native automation mechanism, Supra is building a new set of underlying capabilities that will fundamentally reshape the DeFi ecosystem.

We are rolling out MEV resistance mechanisms, system-level automated trapping protocols, and automated clearing systems. These automated systems can not only generate revenue for the network's Network-Owned Liquidity (NOL), but also distribute the revenue to decentralized fund vaults, node operators, and dApp ecosystems to ensure the healthy growth of the DeFi ecosystem. In addition, the decentralized fund library can also be used for $SUPRA token buybacks to build a self-circulating, transparent and sustainable DeFi economic system.

These innovations are currently being deployed on the testnet, and the team plans to launch them on mainnet in the coming months. It's not just an upgrade, it's a radical DeFi revolution. Let's dive into its core innovations.

Breaking through MEV limitations: A fairer, more transparent DeFi model

Currently, the main sources of revenue for most blockchains are high transaction fees and maximum extractable value (MEV). However, this model tends to profit investors, node operators, and dApps, while the average user suffers losses in the trading process, such as in phenomena such as opaque order execution, front-running, and high slippage.

Supra has taken a completely new solution to reduce predatory MEV through algorithmic mechanisms, create a fairer DeFi trading environment for all users, and revolutionize the existing profit distribution model.

How to reduce MEV impact and improve equity

1) Randomize Trade Execution

Supra uses threshold signatures to generate random numbers, ensuring that transaction execution is both predictable and uncontrollable, preventing malicious manipulation of the order of transactions.

2) Local Fee Market

Traditional blockchains allow users to manipulate the market by maliciously prioritizing their own transactions. Supra introduces a local fee market, making it expensive and unfeasible to leverage MEV for front-running, sandwich attacks, and more.

3) Native Oracle Machine Data

When the traditional blockchain network is congested, the Oracle Machine data may not be updated in time, resulting in a lag in the market price. Supra will prioritize ensuring that 500+ native price Oracle Machine data is updated in each block, ensuring that transactions are executed based on the latest market data.

The final result: the transaction execution of ordinary users will be more fair and transparent, and the DeFi ecosystem will enter a new stage of development.

Automatic Liquidation: Ensure market stability and create long-term returns

Supra's native automated system will perform liquidation operations every block, which means that the system will perform multiple liquidations per second, ensuring market stability while creating continuous revenue for the ecosystem.

How it works

1) Decentralized fund pool provides liquidity

While traditional liquidation relies on external liquidators, Supra provides immediate liquidity directly from a decentralized fund treasury to improve clearing efficiency.

2) Fast and Fair Liquidation Mechanism

The loaned funds can immediately fill the liquidated position, avoiding a chaotic liquidation in the market.

3）交易通过 Supra native DEX 执行

The flow of funds will be handled by Supra's dynamic decentralized liquidity management mechanism (DFMM), which ensures the best trading price and reduces slippage.

4) Clearing Fee Income

A clearing fee of up to 1% may be charged for each settlement, providing an ongoing revenue stream to support the growth of the network.

How income is distributed

• Decentralized fund library: Obtain clearing fees and possible borrowing interest to promote the long-term growth of the ecosystem.
• Node operators: Obtain partial liquidation profits, replace the traditional MEV revenue model, and achieve a fairer income distribution.
• dApp Ecosystem: Directly participate in liquidation to drive the development of more decentralized applications.

Automatic Trapping: Build a self-circulating financial engine

At the end of each block, Supra's built-in automated system will execute network-wide trap interest transactions, optimizing market efficiency while creating new sustainable sources of income.

How it works

• Real-time discovery of trap opportunities: Continuously monitor the price fluctuations of dApps and DEXs in the Supra ecosystem to find trap opportunities.
• Automate Trapping Trades: Capture market trapping opportunities with extreme speed and precision with Supra's automated system.
• Transparent distribution of profits: Trap profits will be fairly distributed to the network, dApps, and node operators, eliminating the traditional MEV exploitation model.

Beneficiaries

• Decentralized fund library: Use trap income to buy back $SUPRA tokens to promote the sustainable growth of the ecosystem.
• Node operators: Obtain a part of the trap profit and no longer rely on MEV to withdraw profits.
• dApp ecosystem: Improve liquidity with the help of trap mechanism while reducing the loss of liquidity providers (such as impermanent loss).

Native Automation: At the heart of the Supra economy

A key innovation of Supra is its native automation network, which seamlessly runs trading strategies and automates tasks in every block, making Supra a truly decentralized automated execution platform.

The main features are:

• Automated transactions can be run multiple times per second, far exceeding the capabilities of existing blockchain automation services.
• Blockchain transactions are mainly executed by automation, reducing manual intervention and making the system run more efficiently.
• The automated network becomes the main source of gas consumption for the Supra ecosystem, ensuring long-term economic sustainability.

Looking to the future: Supra is leading the DeFi revolution

Automated liquidation, automated trapping, native automation – these are not simple upgrades, but a paradigm shift in DeFi that will revolutionize the future of decentralized finance.

The main objectives of Supra are:

• Let ordinary users enjoy a high-frequency trading level trading experience
• Create sustainable revenue models to ensure the long-term stable development of the network
• Promote decentralized governance to make fund management more efficient
• Rely on automated trading and algorithmic growth to make Supra the next generation of DeFi infrastructure

These features are currently being tested on a closed testnet, with plans to go live on mainnet in the coming months. Supra is driving a major breakthrough in the blockchain economic model and is committed to building a truly decentralized and sustainable financial system.