@g5387b

If slashing is priced into AVS tokens, what implied multiplier would markets expect? 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. The market is signaling that a 15% reward is necessary to compensate for the capital locked up and the perceived 10% chance of its total loss, dema

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