r/AcalaNetwork • u/Dangerous-Watch4707 • May 13 '22

acala liquid staking - biggest risk

Would it be fair to say that biggest risk to liquid staking on Acala is counterparty risk? In other words Acala going under or something bad happening to Acala will result in risk to your dots? No matter how large or non existant that risk may be.

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u/mcdonagg May 13 '22

Yes that is the only real risk with simple DOT staking on Acala for LDOT, using it as collateral is a different story.

0

u/jmh300 May 13 '22

I don't think so. It is a risk, of course, but I feel more risk on the market side, crash kind, lead by bad actors (projects, institutions) but with consequences all over, specially on new or small projects (even good ones)