Asset Security
For enhanced SD Utility Pool asset security, the following measures are undertaken by Stader:
Node Operators deposit to be used as collateral Stader calculate the Health Factor for each node based on a collateral value, which is half of the Node Operator's ETH deposit (e.g., for a node with one validator, we will consider a collateral value of 2 ETH, even though the node operators deposits 4 ETH.)
Liquidation Threshold Additionally, we consider a liquidation threshold of 70%, i.e. the node will be liquidated if the utilization fees exceeds 70% of the collateral value. In case node operators attempt to exit without settling their utilized $SD, a portion of their ETH deposit will be locked until they clear their utilization fees.
External Audit SD Utility Pool has undergone a comprehensive audit and has been thoroughly evaluated for security and functionality by the highly renowned auditor SigmaPrime. Audit Report
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