Is VenomStake Safe?

|Liquid Staking
C+

Risk Grade: C+ (40/100)

VenomStake is rated as elevated risk — multiple novel mechanisms and notable interaction risks.

Moderate risk — standard liquid staking design, but very new chain and limited documentation increase uncertainty.

VenomStake is a liquid staking protocol on the Venom blockchain that lets you stake VENOM tokens while receiving a liquid token representing your staked position. With $20M in TVL, it offers standard staking rewards on a relatively new blockchain that launched its mainnet in March 2024. The protocol uses conventional liquid staking mechanics without novel design elements.

TVL

$18M

Mechanisms

5

Interactions

4

Value Grade

D

Key Risks for VenomStake Users

1.

Very new blockchain: Venom launched its mainnet in March 2024, making both the chain and VenomStake among the least battle-tested options in the liquid staking space. New chains are more likely to experience technical issues.

2.

Limited documentation: VenomStake's smart contract details, fee structure, and security audit information are not comprehensively documented publicly, making it harder to assess the protocol's safety.

3.

Small ecosystem: The Venom DeFi ecosystem is still developing, which means your liquid staking token may have limited utility beyond basic staking — reducing the main advantage of liquid staking over native staking.

Top Risk Factors

  • Venom blockchain launched mainnet in March 2024 with under 2 years of production operation, limiting battle-testing of both the chain and the staking protocol
  • Limited documentation for VenomStake itself — staking mechanics and smart contract details are not comprehensively documented publicly
  • Small DeFi ecosystem on Venom means limited composability and exit liquidity for liquid staking tokens
  • Dependency on Venom chain health — if the L0/L1 chain experiences issues, all staked assets and rewards are at risk

Risk Score Breakdown

VenomStake's highest risk area is Track Record (12/15). Here's how each dimension contributes to the overall 40/100 score:

Mechanism Novelty0/15
Interaction Severity4/20
Oracle Surface2/10
Documentation Gaps7/10
Track Record12/15
Scale Exposure5/10
Regulatory Risk3/10
Vitality Risk7/10

Read the Full VenomStake Risk Report

This protocol has 2 collapse scenarios. 1 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.

View Full Report →

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Ratings use Hindenrank's eight-dimension risk rubric. Lower score = lower risk. Grades range from A (safest) to F (riskiest). This is not financial advice.