While unconfirmed, Tezos airdrop eligibility would likely reward participants in its evolving ecosystem. Key criteria may include: baking (staking) XTZ with decentralized bakers, regular governance participation through its on-chain upgrade mechanism, and using Tezos-based NFT marketplaces like Objkt. Users of Tezos DeFi protocols like Youves and QuipuSwap, particularly those providing liquidity or engaging with its stablecoin, would be strong candidates. Developers deploying smart contracts on Tezos and artists minting on its HEN platform might also receive special consideration in any distribution.
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What derivatives create feedback loops with AVS slashes? Several derivatives create dangerous feedback loops with AVS slashes: Leveraged LST Positions: As discussed, borrowing against LSTs to restake again creates a direct loop between slashing and liquidation. Perpetual Futures: Large leveraged long positions on ETH or LSTs can get liquidated if a slash triggers a market-wide price drop, adding sell pressure. Options Writing: Entities writing (selling) covered call options on their LSTs may be forced to buy back those options at a loss during a volatility spike post-slash, creating additional selling pressure.
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What derivatives create feedback loops with AVS slashes? The most dangerous feedback loops are created by leveraged derivatives of LRTs. The simplest and most prevalent is the borrow-lend loop: using LSTs as collateral to borrow stablecoins to buy more LRTs. When an AVS slash causes LRT prices to fall, this loop unwinds violently, forcing the sale of the underlying LSTs. More complex derivatives like futures or options on LRTs would add further layers of leverage. A significant price move could trigger delta-hedging by market makers, which involves selling the spot LRT, accelerating the downward move. These derivative structures tightly couple the performance of AVSes with the core DeFi lending and derivatives markets, ensuring that a failure in one transmits instantly and amplified to the other.
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