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canoLiq Documentation

canoLiq is a liquid staking protocol built as a Canopy Network plugin. It enables users to deposit CNPY, receive a yield-bearing receipt token (cCNPY), and earn staking rewards — while also participating in governance through CPLQ, a fixed-supply governance token.

:::tip New here? Start with How It Works for a plain-language walkthrough, then The Two Tokens to understand cCNPY vs CPLQ. The Glossary defines every term. :::

Key Features​

  • Liquid Staking: Deposit CNPY, mint cCNPY at the current exchange rate. cCNPY represents your share of the pooled CNPY backing.
  • Reward Distribution: A 12% protocol fee on staking rewards is split across users (40%), the canoLiq DAO treasury (30%), validators (15%), and CPLQ buyback (15%).
  • CPLQ Governance Token: A fixed supply of 100M CPLQ distributed at genesis with cliff + linear vesting schedules. CPLQ holders stake for governance weight.
  • On-Chain Governance: All protocol parameters are tunable through proposals — fee splits, buyback mechanics, multisig membership, and more.
  • Buyback Mechanism: The protocol can buy back and burn CPLQ or distribute acquired CPLQ to stakers, governed by DAO vote.
  • Vote-Escrow: Lock staked CPLQ for 3–24 months to multiply voting weight (up to 4×) and boost buyback rewards.
  • Tiered Governance: Different decisions clear different bars — quorum, approval, and timelock scale with risk.
  • Self-Monitoring: A peak-TVL-targeted insurance reserve, autonomy-graduation metrics, and optional push-alert webhooks.

Architecture​

canoLiq runs as a Go plugin alongside the Canopy FSM (Finite State Machine). It communicates via length-prefixed protobuf messages over a Unix socket, implementing the standard CheckTx / DeliverTx lifecycle.

┌─────────────────────────────────────────────┐
│                  Canopy FSM                  │
│  ┌─────────┐  ┌──────────┐  ┌────────────┐  │
│  │Controller│→│   BFT    │→│  Consensus  │  │
│  └────┬────┘  └──────────┘  └──────┬─────┘  │
│       │                            │         │
│       └────────────┬───────────────┘         │
│                    │ Unix socket              │
└────────────────────┼─────────────────────────┘
                     │
┌────────────────────┼─────────────────────────┐
│          canoLiq Plugin                       │
│  ┌─────────┐  ┌──────────┐  ┌────────────┐  │
│  │ CheckTx │→│ DeliverTx │→│  EndBlock   │  │
│  └─────────┘  └──────────┘  └──────┬─────┘  │
│                                    │         │
│                          ┌─────────▼──────┐  │
│                          │  ProcessRewards│  │
│                          └────────────────┘  │
└─────────────────────────────────────────────┘

Feature Status​

AreaStatusWhat it covers
Liquid staking✅Deposit/redeem, cCNPY minting, exchange-rate accrual
Tokenomics✅12% fee split (40/30/15/15), CPLQ genesis + vesting
Governance✅CPLQ staking, proposals, voting, tally & execution
Tiered governance✅Per-action quorum / approval / timelock / voting period
Vote-escrow✅3–24 month lock tiers, up to 4× voting + reward boost
Buyback✅Burn or distribute-to-stakers, DAO-governed
Treasury✅Multisig + timelock spend above a threshold
TVL cap✅Optional, governance-tunable deposit ceiling
Insurance fund✅Peak-TVL-targeted reserve with auto-off skim
Autonomy graduation✅Five health metrics + eligibility tracking
HTTP query API✅Read-only snapshot-backed endpoints
Push alerts✅Optional webhooks for drain / concentration / TVL-drop