Veno Finance
  • Veno Finance
  • Introduction
  • Veno
    • Litepaper
    • Roadmap
    • Tokenomics
  • Protocol
    • Liquid CRO Staking
    • Liquid ATOM Staking
    • Liquid TIA Staking
    • Liquid ETH Staking
    • Reservoir
    • Fountain
      • Early Withdrawal
    • Veno Garden
    • CRO Liquidity Strategy
    • Staking APY
    • Dashboard
    • Fees & Rewards
    • VNO Buyback & Burn Program
    • Our Ecosystem
    • Drought Events
    • Security & Audits
    • Validator Nodes
  • User Guide
    • Liquid Staking
      • How to stake
      • How to unstake
      • How to use LCRO/LATOM on Ferro to earn rewards
      • How to claim tokens from NFT
    • Earning with Veno
      • How to earn with the Reservoir
      • How to earn with the Fountain
      • How to earn with Veno Garden
        • Ferro Garden
        • VVS Garden
        • Tectonic Garden
        • How to hire & fire helpers
    • Fountain - Early Withdrawal
      • How to withdraw early in Fountain?
      • How to claim Fountain Penalty Fees?
    • How to stake CRO to Veno on Crypto.com OnChain?
    • How to buy CRO with fiat
    • Learn with Veno
  • Additional
    • Team Wallets
    • Contract Addresses
    • Developers Resources
    • Risk Disclosure
    • Brand Guideline
    • Community
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  1. Protocol

Drought Events

To ensure reliability and security in Veno, our team has implemented a mechanism to help mitigate the impact of slashing penalties.

What is Slashing Penalty?

Slashing penalty occurs if a node encounters a double-signing fault; typically caused by an operational failure, where a backup node (with the same validator key) is enabled accidentally, and joins the network. Although it rarely happens, the impact of slashing penalties is huge because 5% of all staked CRO/ATOM within that node including unbonding users’ staked CRO/ATOM and the node itself will be depreciated. The impacted validator will also be blacklisted.

When a slashing penalty event happens, as known as the Drought Event, all protocol revenue allocated to the reservoir will be paused. Accrued treasury revenue and future protocol revenue will be used to repay LCRO/LATOM holders / unbonding users. Once the entire damage to users is paid out, this vault will resume its service as normal.

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Last updated 1 year ago