Sherlock V2
  • πŸ‘‹Intro to Sherlock
  • πŸ™‹FAQ
  • πŸ“šGlossary
  • ‼️Disclaimers
  • Audits
    • πŸ§‘β€πŸ’»Protocol Teams
      • How it Works for Protocols
      • Audit Timeline
      • Scheduling Process
      • Audit Preparation
      • Protocol Involvement During the Audit Process
      • Protocol Involvement Post-Audit
      • Rescheduling and Cancellations
      • Interim Updates and Upgrades
    • πŸ•΅οΈWatsons
      • Lead Senior Watson Selection Process
      • Fix Review Process
      • Contest Points
      • How to Score Issue Points in a Contest
      • Meeting the Payout Criteria
      • First Blood Pot
      • Leaderboard Points Example
      • FAQ
    • πŸ§‘β€βš–οΈJudging
      • Judging Conduct Guidelines
      • Criteria for Issue Validity
        • Criteria Changelog
      • Lead Judge
      • πŸ§‘β€βš–οΈCommunity Judging
      • Dedicated Judge
      • Discussion
      • Sherlock's Exclusive Judging Apprentice Program
    • 🀝Referral Program
  • Bug Bounties
    • 🌱Pre-Launch Bounty
    • πŸš€Post-Launch Bounty
      • πŸ“œPlatform Rules
      • βš–οΈDispute Resolution
  • Coverage
    • πŸ›‘οΈSherlock Shield
    • πŸ’°Stakers
      • Overview
      • Lockup Period
      • Payout Flow
      • Staking APY
    • πŸ§‘β€πŸ’»Protocol Teams
      • Getting Started
      • Coverage Premiums
      • Pricing
      • Composability and Coverage
      • Payout Flow
      • FAQ
    • πŸ“Claims
      • Claims Process
  • Tokens
    • SHER
    • Receipt NFTs
  • Governance
    • Roles
  • Developer
    • Overview
    • Stake Position Lifecycle
    • Claim Lifecycle
    • Protocol Lifecycle
    • SHER Distribution
    • Deployed Contracts
    • Contract Reference
    • Audits
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  1. Coverage
  2. Stakers

Overview

A staker deposits USDC into Sherlock's staking pool for a fixed term (6 months, 12 months etc.) and receives a market-leading APY in exchange for the risk of funds being used (up to 50%) to pay out a bug bounty submission or exploit at a covered protocol.

The APY for a staker is made up of 2 streams:

  1. Premiums from protocol customers

  2. Incentive rewards paid in SHER (Sherlock’s governance token)

In return for these streams, a staker’s funds are at risk of being partially liquidated (up to 50%) if a covered bug bounty payout or exploit payout occurs at a protocol covered by Sherlock (or possibly a protocol that the covered protocol depends on). Despite the risk, stakers are incentivized to stake because:

  1. They are paid a substantial APY for the risk

  2. They see the quality and incentive alignment of the audit process

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Last updated 1 year ago

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