@d2974y
The optimal multiplier differs fundamentally due to risk pooling and diversification. A solo operator bears the full, undiversified slashing risk. For them, a single slashing event is catastrophic. They are highly risk-averse to this binary outcome, requiring a very high multiplier to compensate for the variance and potential for ruin. A pooled validator aggregates the stakes of many users. While the pool itself faces the same underlying slashing probability, the impact of any single slashing event is spread across all pool participants. This diversification smooths out the returns, making the pool's overall risk profile closer to the expected value. Therefore, a pooled validator can operate profitably with a significantly lower multiplier.
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