Supernova CL

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.

Review triggers: events that reopen the verdict
• Ships a product line without impermanent-loss exposure that merits its own review

Watched nightly: a warning on its venues or files, or a cited document that changes, reopens the memo. The first confirmation is due 2026-11-16.

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.

Class rule

The amm lp class is outside the approved structures, so every protocol in it is not approved until the rule changes. The rule is about the structure, not an adverse finding about this protocol, and it is not a client instruction. The events that would reopen it are listed with the memo.

Sources

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

• Supernova docs — Ethereum AMM overview · primary · accessed 2026-08-16
  Supports: Ethereum, AMM models, concentrated liquidity, gauges
• Supernova docs — technical AMM design · primary · accessed 2026-08-16
  Supports: Algebra Integral, tick ranges, LP positions, fees, contracts
• Supernova docs — LP rewards · primary · accessed 2026-08-16
  Supports: staked LP, emissions, gauges, weekly epochs
• Supernova docs — security architecture · primary · accessed 2026-08-16
  Supports: Algebra, plugins, upgradeable architecture, security
• DefiLlama — Supernova CL survey record · secondary · accessed 2026-08-16
  Supports: current TVL, Ethereum, DEX category, survey observation

Inherited controls

The research above describes the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The layer with the most administrative power sets the position’s effective control; that describes control, not quality or suitability.