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lp

Supernova CL

Rejected
Max sleeve
Reviewed
2026-08-16 · v1
Next review
2026-11-16
Chains
Ethereum · sovereign

Rejected venues wait the longest for re-review; a rejection has to earn another look before the scheduled date.

Supernova CL is a concentrated liquidity AMM on Ethereum. Concentrated liquidity narrows the price band a provider covers, which raises fee income and sharpens the same trade-off: once price leaves the band, the position sits entirely in the losing asset. That is impermanent loss made steeper, and the class rule rejects the whole AMM category because the loss cannot be explained to a mass-affluent client in two sentences. The 2026-08-16 survey reported about $700K on Ethereum.

The research file

Mechanism applicability

Supernova documents an Ethereum ve(3,3) DEX with Algebra Integral concentrated pools using customizable tick-based ranges. LP positions supply paired inventory inside a selected range, so swaps and price movement change their token composition. This is the exact economic exposure controlled by the shared AMM-LP dossier.

Control and exit applicability

Supernova combines dynamic or static pool fees, plugin-capable Algebra contracts, gauges and weekly governance-directed emissions. Staked concentrated positions earn NOVA emissions while fees flow to the gauge; unstaked positions receive neither under current rules. Exiting realizes the position’s current token composition and accrued entitlements, not the original ratio or principal.

Current observation and perimeter

The DefiLlama read on 2026-08-16 classified Supernova CL as a DEX and reported approximately $700K, entirely on Ethereum. Current primary documentation and published mainnet contract inventory likewise place this Supernova DEX on Ethereum. This record covers the concentrated-liquidity survey perimeter, not governance-token locking.

Why the class rule decides

Range-selected paired inventory is unavoidable for the client LP claim. Plugins, gauges and emissions alter control and compensation but not inventory transformation or impermanent loss. The version-1 AMM-LP dossier therefore decides. Reopen only for a separately measured Supernova product without paired or synthetic market-making exposure, then review its controls and exits independently.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

Inherited controls

The verdict above grades the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The least safe layer sets the position’s grade, and the position table names which one that is.

ChainVerdictGradeControl constraint
EthereumApproved sovereign No sequencer, no upgrade key, no operator who can be compelled — rule changes require social consensus.
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