How PoL Works

Liquidity Provision as a Security Basis

In PoL, validators are selected and rewarded based on their contribution to providing liquidity to the network. Users who deposit assets into Biturbo’s liquidity pools and delegate their assets to validators play a crucial role in maintaining network stability and transaction efficiency.

Separation of Staking and Gas Tokens

PoL separates the staking token from the gas token, ensuring that staking does not reduce on-chain liquidity. This separation allows for a more stable and liquid network, as users can continue to transact efficiently even when large amounts of tokens are staked.

Reward Mechanism

Validators and liquidity providers are rewarded based on the amount of liquidity they contribute to the network. Rewards are distributed in the form of native tokens, and the amount of reward is proportional to the liquidity provided and the validator's performance.

Incentivizing Liquidity Providers

By rewarding users who provide liquidity, PoL ensures that there is always enough cryptocurrency available for transactions. This continuous liquidity provision helps maintain smooth and efficient network operations.