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Product Docs
  • 👋Introduction
  • Overview
    • 💡What problem are we solving?
    • ✨Our Features
    • 💰What's in it for Rollups?
    • ⚡How are we different from Liquid Staking?
    • 🔐Risks & Risk Mitigation
  • Design Architecture
    • 🏹Nexus Network Design Document
  • Developer Docs
    • 📔Smart Contracts
      • Nexus Contract
      • Node Operator Contract
      • Nexus Bridge ETH
        • Different Nexus Bridge Architecture
      • Nexus Bridge DAI
      • Validator Execution Rewards
    • 🤖Backend Bot
    • 🚲Nexus Testnet
    • 🖥️Integration Guide
    • 💻Node Operators
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  1. Overview

Risks & Risk Mitigation

PreviousHow are we different from Liquid Staking?NextNexus Network Design Document

Last updated 10 months ago

There are two major risks that the Nexus Network team foresees in the product adoption -

  • Security concerns - The Nexus Network team takes security very carefully. It has built a minimal solution to reduce the security surface area -

    • The additions to the rollup bridge are minimal. They only add features for depositing to validators and claiming staking returns. The contracts have also been .

    • The flow of funds is non-custodial

    • Even if Nexus contracts get compromised, exploiters can not access any funds as funds are either in the bridge contract or staked on Ethereum

  • Slashing risks - The Nexus team has taken all necessary measures to reduce slashing risks and is working with the leading slashing insurance providers

  • Liquidity risks - Nexus Network allows rollups to set a customizable staking limit to allow for regular withdrawals. Also, optimistic liquidity bridges can provide liquidity to withdrawing users in the worst case scenario

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