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Can LST vaults dynamically adjust collateral requirements post‑slashing? Sophisticated DeFi lending protocols that act as "vaults" for LST collateral can and should implement dynamic risk parameters. Following a major slashing event, an on-chain risk oracle could signal increased systemic risk. In response, a lending protocol's governance or automated mechanism could dynamically increase the collateral factor (require more collateral for the same loan) or lower the LTV ratio for LSTs and LRTs. This would force a deleveraging of the system, protecting the protocol from insolvency. However, this is a double-edged sword, as it could also trigger immediate liquidations for highly leveraged positions that can't post more collateral, potentially accelerating a crash.

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