@0xpanicerror

The new /eigenlayer redistribution model is a game changer in designing consensus protocols. In a PoS network you must develop an incentive structure such that it's in everyone's interest to follow the rules. This is achieved by setting (cost of corruption) > (profit from corruption). But this assumes that everyone plays rationally. If a malicious actor decides to attack the network nonetheless, stakers will still lose money. ELIP#006 ensures that these slashed amounts can be redistributed amongst the affected parties to make them whole. This elimantes any risk for honest actors because even if users lose all the extractble value, there will still be enough slashed assets to make the creditors whole. This is analogous to over-collaterilised lending protocols like Aave where there is no risk of borrowers defaulting on their loans. Risk-free Insurance!

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