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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 9 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 audited.

    • 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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