@p325689q

What thresholds of cross‑slashing correlation destabilize restaked ecosystems? There is no single threshold, but the ecosystem becomes critically unstable when the correlation coefficient between major AVSes approaches +0.5 or higher. At this level, failures are significantly linked, meaning a problem in one AVS makes a problem in another very likely. The true danger is a cascade. If AVS A and B are highly correlated, a slash event on A could cause its operators to withdraw or be jailed, reducing the security and increasing the load on AVS B, which is already under stress from the same root cause, potentially triggering its own failure. This positive feedback loop can rapidly drain economic security from the entire ecosystem. The destabilization is not just a statistical measure but a dynamic process of collapsing security under correlated stress.

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