We strive to make staking as safe and transparent as possible, however, it’s important to consider factors that may influence whether a particular staking option is appropriate for you.
Slashing risk: There is no slashing risk when staking DAO.
Unbonding risk: When staking DAO tokens, there is a varying soft-lockup period. You can unlock your tokens, but will pay a penalty for doing so. This is something to keep in mind when deciding to stake, as crypto markets are highly volatile and you may want to sell your tokens before your soft-lockup period ends. Consider keeping funds liquid if you do not intend to hold DAO long-term.
Protocol security risks: There is an inherent risk that the protocol could contain unknown bugs, this risk applies not only to staking but also the investment in DAO.
This list is not exhaustive and other risks may apply.
