0g-chain/x/liquid/spec/01_concepts.md
Kevin Davis 9e7686673e
feat: add liquid module spec (#1484)
* feat: add liquid module spec

* add codeblock languages for syntax highlighting

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Co-authored-by: Robert Pirtle <astropirtle@gmail.com>
2023-03-06 17:32:52 -07:00

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# Concepts
This module is responsible for the minting and burning of liquid staking receipt tokens, collectively referred to as `bkava`. Delegated kava can be converted to delegator-specific `bkava`. Ie, 100 KAVA delegated to validator `kavavaloper123` can be converted to 100 `bkava-kavavaloper123`. Similarly, 100 `bkava-kavavaloper123` can be converted back to a delegation of 100 KAVA to `kavavaloper123`. In this design, all validators can permissionlessly participate in liquid staking while users retain the delegator specific slashing risk and voting rights of their original validator. Note that because each `bkava` denom is validator specific, this module does not specify a fungibility mechanism for `bkava` denoms.