Safety Module

What is a Safety Module?

The Nexus Safety Module is a mechanism designed to protect the protocol in case of a shortfall event. Users can stake ZBU in the Safety Module to act as a backstop, earning rewards in return. This helps to maintain the stability and security of the Nexus ecosystem.

What is Staking?

Staking consists of supplying supported tokens within the protocol Safety Module. The purpose of staking is to act as a mitigation tool in case of a shortfall event. As an incentive for this, Safety Module stakers will receive Safety Incentives.

What is the risk of Staking?

In the case of a shortfall event, Nexus Governance can initiate a transaction to utilize Safety Module funds up to the maximum slashing percentage to cover the deficit. The maximum slashing percentage for each staking token is determined by Nexus Governance, currently 30% for ZBU.

What is the incentive of Staking?

Stakers within the Safety Module receive incentives with assets and emission rates determined by Nexus Governance.

Current emission rates can be viewed as an annual percentage on the Nexus Market Interface.

How do I start Staking?

Staking can be performed through the Nexus Interface Safety Module section. Over the Safety Module section select 'stake', input the amount to stake and click on 'stake'. Then proceed to send 2 transactions to stake your ZBU:

1. Approve: This is a required transaction prior to the staking that allows the staking contract to move your ZBU tokens. This transaction won't be required if you perform additional staking actions unless you revoke the approval.

2. Stake ZBU: This transaction performs the action to stake ZBU tokens. When confirmed, your tokens will be staked in the Safety Module.

How do I stop Staking?

If you want to stop staking, head over to the Nexus Market Interface in the Safety Module section. Over the staking section select 'Unstake', input the amount and click on 'unstake'.

• If you did not activate the cooldown period, you will need to activate it. This consists of 1 transaction to activate the cooldown. When the cooldown period finishes, you will be able to unstake by following the next step.

• Unstake ZBU: This transaction performs the action to unstake ZBU tokens. When confirmed, your ZBU tokens will be back in your wallet!

After the cooldown period passes there is a 2-day window to unstake. If you do not unstake during that period you will need to activate the cooldown again.

What is a cooldown period?

The cooldown period is the time required prior to unstaking your tokens. You must start the cooldown period before you can unstake your tokens. You can start the cooldown period by going to the staking section, select 'unstake' and click on 'activate cooldown'. It will require one transaction to be sent.

The cooldown period is currently 1 day, but could be modified in the future by an Nexus Governance proposal.

IMPORTANT: After the cooldown period is complete, you have a 2-day window where you can unstake. If you do not unstake during that period, you will have to start the cooldown process over again.

Example:

• If the cooldown period was activated 1 days and 4 hours ago, you can unstake.

• If the cooldown period was activated 2 days and 2 hours ago, you can not unstake, and you will need to start the 1-day cooldown period again.

Can I stake more ZBU in the cooldown period?

You can stake more ZBU tokens in the Safety Module, but that would increase your cooldown period based on the amount received. Even if the amount received is big enough, it will reset your cooldown period requiring you to activate it again before you can unstake.

How do I claim my rewards?

You can claim your rewards at any time on the staking section by clicking on "Claim". The ZBU tokens from the reward will be in your connected wallet as soon as the transaction is confirmed.