The Reservoir carries dual functionality and is both Veno’s reward participation and insurance module. Users can lock VNO to receive CRO/ATOM rewards on Cronos or ETH rewards on zkSync Era here. Users can choose between lock durations of 3-months, 12-months, 48-months, and 96-months to lock their VNO. The longer the lock duration and/or larger the quantity locked, the larger proportion of rewards will be shared to the users.
On Cronos, Veno aims to provide a sustainable 50% share of validator rewards (in CRO) to VNO stakers in the Reservoir. The validator commission on CRO staking yield is 10%, and Veno does not take any additional commission on the staking yield. On zkSync Era, we provide 50% share of the commission on ETH rewards to VNO stakers in Reservoir.
In return, Reservoir VNO stakers also bear the risk of a slashing penalty that could cause a loss in users’ CRO; in such situations, Veno will draw down on any accrued rewards in CRO from its own treasury, and channel future rewards sharing of the Reservoir (if required) to repay affected users until the full damaged is covered.
Below shows the multiplier amount corresponding to different vaults: