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Will incorporating Layer 2 participants into AVSs increase or mitigate Layer 1 validator slashing risks? This is a double-edged sword. Mitigation could occur if L2s, with their faster finality and different trust assumptions, are used as a "court of appeal" or a data availability layer for slashing disputes, adding a layer of scrutiny. However, the more likely outcome is an increase in risk. Incorporating L2s adds immense complexity and new dependencies. A consensus failure or a bug on an L2 could force L1 validators of an AVS to make an incorrect decision, leading to an L1 slash. It effectively imports the risk profile of the L2 onto the L1 validator set, creating a new vector for correlated failures across the layered scaling ecosystem.

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