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Safety Incentives

Safety Incentives are rewards distributed to participants who stake their assets in the HypurrFi Safety Module. These incentives serve as compensation for the risk taken by stakers, whose assets may be slashed to cover protocol deficits in the event of a shortfall.

The emission parameters, which dictate the rate of Safety Incentives, are voted on by governance. These parameters are allocated from the Protocol Treasury. Governance votes influence how much of the reserve or treasury is allocated to these incentives and how they are distributed over time. This decentralised decision-making process aligns incentives with the overall health and security of the ecosystem.

Safety Incentives accumulate over time and can be claimed at any point while tokens are staked or after un-staking from the safety module.

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Slashing Risks

When staking in the HypurrFi Safety Module, it’s important to be aware of the potential slashing risks. Slashing refers to the reduction of staked assets in the event of a shortfall event within HypurrFi. This mechanism is in place to protect the protocol by using a portion of staked assets to cover any deficits that may arise. While staking offers rewards through Safety Incentives, there is a risk that a portion of the staked assets could be slashed to contribute to the stability of HypurrFi.

The extent of slashing varies depending on the type of token staked:

  • stkUSDXL: Maximum slashing risk is up to 99% of the staked assets.

These risks are an essential consideration for anyone looking to participate in the Safety Module, as they reflect the potential loss of assets in exchange for helping to secure the protocol. The process of identifying and executing a slashing event is subject to Governance.

OracleContract Addresses