@g5387b
If slashing risk is efficiently priced into an AVS's native token, the token's yield (staking APR) relative to a "risk-free" benchmark (e.g., ETH staking yield) would imply the market's expected slashing cost. The formula is: Implied Slashing Cost = AVS Token Yield - Risk-Free Yield. If an AVS token offers a 15% staking yield and the risk-free rate is 5%, the implied annual risk premium is 10%. If the staked amount is the potential slashing loss, this 10% premium implies the market is pricing an expected annual slashing loss of 10% of the stake. With a 1x penalty, this translates to a 10% annual slashing probability. The "implied multiplier" is therefore the yield itself.
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