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Manual for Stakers

  • Collateral has an economic value (depending on your risk profile, e.g., ETH exists for around 9 years and is widely used as a financial instrument; virtual MEMCOIN exists for 1 hour, and the creator has 99% of the tokens); otherwise, you may lose money.

  • Vault Curator is trustworthy (its significance depends on your risk profile, e.g., a possible variant of the Curator: an honest, immutable, permissionless set of contracts); otherwise, it may burn/steal/lock all your deposited funds.

  • Burner is a trustworthy object (its significance depends on your risk profile); some possible variants of the Burner:

    • an honest, immutable, permissionless contract (its suitability depends on the Vault’s Collateral; e.g., it may be redundant for governance tokens)
    • just a dead address (its suitability depends on the Vault’s Collateral; e.g., it may not be suitable for LSTs, as third parties receiving the fees from managing the LSTs’ underlying tokens may have incentives to lock as many LSTs as possible for an infinite time)

  • The Vault’s Networks are trustworthy (its significance depends on your risk profile); otherwise, they may slash the whole stake delegated to them without an actual reason.

    • They provide Rewards that have a value (depending on your risk profile); otherwise, you may lose a potential profit because of locking your Collateral tokens.
    • They set trustworthy Resolvers (its significance depends on your risk profile); otherwise, a malicious/invalid slash may still be executed.

  • Vault Epoch Duration is meaningful (depending on your risk profile, e.g., not greater than one year); otherwise, your funds may be locked for a very long duration or even for an infinite time.

  • You are aware that new deposits into the Vault become slashable instantly, and, therefore, they may be slashed by already existing slashings while not being rewarded for that. Hence, your deposit actions should depend on your yield strategy and the Vaults’ states.