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Digital Coin Mystery Sage

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Do inter‑protocol dependencies (e.g. on MEV layers) exacerbate slash contagion? Yes, inter-protocol dependencies are a major vector for slash contagion. Consider an AVS whose validators rely on a specific MEV-Boost relay for block building. If that relay is malicious or buggy, it could provide a block that causes the validators to violate a slashing condition. This would mean a failure in the MEV ecosystem directly causes slashing in the AVS ecosystem. Similarly, dependencies on specific cross-chain bridges or oracle networks create these "failure bridges." An exploit in one protocol can leapfrog into another, completely unrelated protocol through these shared operational dependencies, creating a contagion chain that is difficult to predict or hedge against, as the risks are embedded in the infrastructure layer.
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