SECURITY MODULE
Holders of DUSD Machine Tokens can stake their assets in the Security Module to add more security to the strategy and earn additional incentives. In the case of a shortfall event, such as a loss in the Machine's strategy, your stake may be slashed to cover a shortfall, up to the maximum slashing limit, providing an additional layer of protection for the strategy. Learn more here.
About the Security Module
An insurance reserve that protects the protocol against losses from hacks, bad debt, or token depegs.
- Locking: Machine tokens can be locked in exchange for Security Tokens
- Rewards: Locked tokens earn boosted yields from protocol fee tokens
- Slashing: If a loss event occurs, which can be triggered by the Security Council, locked tokens may be burned to cover the shortfall
- Cooldown: A 7-day waiting period applies before withdrawing, preventing exits right before a loss event. Rewards are not earned during this period, and slashing can still occur
- Protection: A maximum slashing limit, of 99%, ensures a minimum balance is always retained
