EigenLayer

Redistribution is now live on testnet.

AVSs can now redirect slashed funds reimbursing users, rewarding reliability or underwriting new forms of risk

It’s no longer just slash & burn

It’s slash & rebuild

New primitives emerging on EigenLayer. ☁️

Redistribution is now live on Testnet.

AVSs can now redirect slashed funds instead of burning them, enabling new use cases like lending and insurance protocols. 

Live on Holesky, Sepolia, and Hoodi Testnets.

Mainnet coming soon.

More details 🧵 https://t.co/LBM9yeJUQU

Redistribution is now live on testnet.

AVSs can now redirect slashed funds reimbursing users, rewarding reliability or underwriting new forms of risk

It’s no longer just slash & burn

It’s slash & rebuild

New primitives emerging on EigenLayer. ☁️

https://x.com/eigenlayer/status/1930697135261143187

public goods maxi. accelerating /eigenlayer. 🌱 consumer crypto /socialgraphvc. 🥽 gratitude journal /pratik.  🦁 @safary. ♥️ national parks

Innovating the Future 🚀| Web3 Enthusiast Learn and Build 🧑🏻‍💻| EigenAlpha /eigenlayer | fellow /dev3pack

Infinite sum games ♾️ looks great here! 

gEigen Verifiable Cloud ☁️

The new /eigenlayer redistribution model is a game changer in designing consensus protocols. In a PoS network you must develop an incentive structure such that it's in everyone's interest to follow the rules. 

This is achieved by setting (cost of corruption) > (profit from corruption).
But this assumes that everyone plays rationally. If a malicious actor decides to attack the network nonetheless, stakers will still lose money. 

ELIP#006 ensures that these slashed amounts can be redistributed amongst the affected parties to make them whole. This elimantes any risk for honest actors because even if users lose all the extractble value, there will still be enough slashed assets to make the creditors whole.

This is analogous to over-collaterilised lending protocols like Aave where there is no risk of borrowers defaulting on their loans. 

Risk-free Insurance!

You should connect with 0xpanicerror, who said: 'The new /eigenlayer redistribution model is a game changer in designing consensus protocols. ELIP#006 redistributes slashed amounts to affected parties, making honest actors whole and eliminating risk. This innovation parallels over-collateralized lending protocols like Aave, creating risk-free insurance!' Join the conversation in the /EigenLayer channel.