Nucleon Docs v1.0
  • Intro
  • About Nucleon
    • Overview
    • Liquid Staking
    • Tokenomics
    • Security
    • Governance
      • Proposal Outline
    • Fees
    • Risks
  • About Conflux Staking
    • About Conflux Network
    • About Conflux PoS
  • Getting Started
    • 1️⃣Choosing a Wallet
    • 2️⃣Connecting Your Wallet to eSpace
    • 3️⃣Getting CFX in Conflux eSpace
    • 4️⃣Bridging Your Tokens to Conflux eSpace
    • 5️⃣Adding Your Bridged Tokens to MetaMask
    • 6️⃣Connecting MetaMask to Nucleon
    • 7️⃣Using Your Ledger Hardware Wallet with Nucleon
  • User Guide
    • CFX Liquid Staking
      • Stake CFX
      • Unstake CFX
      • Claim CFX
    • Liquidity Pools
      • CFX/xCFX Liquidity Pool
        • Add CFX/xCFX Liquidity
        • Stake CFX/xCFX LP Tokens
        • Withdraw CFX/xCFX Liquidity
      • CFX/NUT Liquidity Pool
        • Add CFX/NUT Liquidity
        • Stake CFX/NUT LP Tokens
        • Withdraw CFX/NUT Liquidity
      • xCFX/NUT Liquidity Pool
        • Add xCFX/NUT Liquidity
        • Stake xCFX/NUT LP Tokens
        • Withdraw xCFX/NUT Liquidity
    • NUT Governance Token
      • Claim NUT Rewards
      • Buying NUT
      • Locking NUT
      • veNUT Management
      • Voting on Proposals
  • Quick Reference
    • Bridges to Conflux eSpace
    • Contract Addresses
  • WALLETS
    • Supported Wallets
    • Using Fluent
    • Using TokenPocket
  • Transferring Assets to Conflux eSpace
    • Overview
    • From Exchanges
      • Transferring eSpace CFX from Binance to MetaMask
      • Transferring eSpace CFX from OKX to MetaMask
      • Transferring eSpace CFX from KuCoin to MetaMask
      • Transferring eSpace CFX from Gate.io to MetaMask
    • From Conflux Core
      • Bridging Assets From Conflux Core with Fluent
    • From Other Networks
      • Bridging from BNB Chain with the eSpace Bridge
      • Bridging Assets from Ethereum with cBridge
      • Bridging Stablecoins with Meson
  • More
    • Readme
    • Downloads
    • Social Accounts & Communities
    • Business Partnerships
    • Fixing Stuck Pending Transactions in Your Wallet
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On this page
  • Smart contract security
  • Conflux PoS network - Technical risk
  • Slashing risk
  • xCFX price risk
  • xCFX minter role
  1. About Nucleon

Risks

There exist a number of potential risks when staking CFX using liquid staking protocols.

Smart contract security

There is an inherent risk that Nucleon could contain a smart contract vulnerability or bug. The Nucleon code is open-sourced, audited and covered by an extensive bug bounty program to minimise this risk.

Conflux PoS network - Technical risk

NUCLEON is built on Conflux and there is no guarantee that Conflux PoS network has been developed error-free. Any vulnerabilities inherent to Conflux PoS network brings with it slashing risk, as well as xCFX fluctuation risk.

Slashing risk

Conflux PoS validators risk staking penalties, with up to 100% of staked funds at risk if validators fail. To minimise this risk, NUCLEON stakes across multiple professional and reputable node operators with heterogeneous setups, with additional mitigation in the form of coverage that is paid from NUCLEON fees.

xCFX price risk

Users risk an exchange price of xCFX which is lower than inherent value due to withdrawal restrictions, making arbitrage and risk-free market-making impossible. The X DAO is driven to mitigate above risks and eliminate them entirely to the extent possible. Despite this, they may still exist and, as such, it is our duty to communicate with them.

xCFX minter role

xCFX is a type of token which is minted and burned by users completely. Users need to burn the token they owned only to get back the corresponding CFXs. Therefore, in Exchangeroom contract, a function called XCFX_burn() is needed to feed the objective.

After the XCFXupgradeable contract is deployed, Exchangeroom contract will be assigned as the only minter of xCFXs. Then the users can stake CFXs to exchange xCFXs in Exchangeroom. Exchangeroom will mint xCFX tokens for users. In order to withdraw, the users invoke XCFX_burn() function and Exchangeroom will burn xCFX tokens for users. Then users can withdraw their CFXs by calling getback_CFX() function.

In addition, in order to prevent the owner from abusing, we will assign the owner of xCFX token proxy to ZERO address once the contract runs normally. Therefore, no new minters are added to xCFX contract.

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Last updated 2 years ago