SHER token is the governance token for the Sherlock protocol. The governance functions of the SHER token will increase over time as the protocol matures. In the short-term, SHER token will be used for added incentives to stakers in staking pools as well as for compensation to the security team.
Allowing staking into a staking pool with SHER tokens is not allowed for two reasons:
    As stakers in the staking pools, SHER holders will be biased to favor stakers' priorities over protocols' priorities which could hurt their objectivity in making good decisions for the Sherlock protocol as a whole.
    In the event of an exploit at one of our covered protocols, it's reasonable to assume SHER might drop in price. For this reason, SHER is not well-suited to being collateral in the staking pools.
Last modified 1mo ago
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