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Safety Module
An overview of the Safety Staking Pool
2.50% of the initial token supply (25,000,000 ENT) will be distributed to users staking DYDX to a Safety pool for backstopping the system.
Objectives
  • Bootstrap a decentralized fund to be used in the case of insolvency or other issues with the protocol.
  • Incentivize ENT holders to govern correctly: ENT holders risk dilutive events as the ultimate backstop and act as the governors of risk in the system.
ENT staked in the Safety Module retains its proposing and voting rights, as well as delegation abilities.

Withdrawals

Stakers must request to withdraw funds at least 14 days (Blackout Window) before the end of the epoch in order to be able to withdraw funds after the end of that epoch. If stakers do not request to withdraw, their staked ENT is rolled over into the next epoch.

Risks

Staked ENT may be slashed as a result of a shortfall event. Slashing occurs at the discretion of ENT governance, and requires a governance vote to enact.
Like participants in any DeFi protocol, stakers in the Safety Module are exposed to smart contract risk if there is a vulnerability in the underlying smart contract code. All ENT & governance smart contracts have been audited and rigorously tested.
Last modified 2mo ago
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