Intro to Slashing on EigenLayer: AVS Edition
EigenLayer's slashing on mainnet arrives April 17th, enabling AVSs to set custom conditions, manage operators through Operator Sets, and implement Unique Stake Allocation—creating stronger security guarantees with targeted accountability.
In December, Eigen Labs announced Slashing on Testnet. The launch of slashing on mainnet is a major milestone for the EigenLayer protocol.
As we continue to progress towards slashing on mainnet, coming April 17th, we want users to be prepared for this upgrade. This guidebook is for AVSs using slashing on mainnet.
AVSs and slashing on mainnet:
Here are a few key aspects of slashing that AVSs should understand as we approach the mainnet launch:
Managing Operators with Operator Sets
AVSs will manage their Operators using a new feature called Operator Sets. The AVS will set the conditions for the OperatorSets and any registration requirements. Operators may have to re-register with Operator Sets, but should communicate with the AVSs they are running (or considering running) to learn their specific requirements and registration flows.
Setting Custom Slashing Conditions
AVSs can set the slashing conditions that Operators comply with to support and run their AVSs. Conditions will be tied to specific Operator Sets, but sit outside of the EigenLayer protocol. AVSs can select these conditions based on their business needs, risk profile, and security requirements, but slashing conditions on Operator Sets are optional and can be added over time. Ultimately, the AVS decides and socializes conditions. Slashing benefits AVSs that have specific requirements or wish to incentivize certain Operator behavior.
Gradual, Opt-in Implementation of Slashing
Slashings will not begin overnight when the upgrade is live on the EigenLayer protocol. Operators will not automatically be opted into slashing with the AVSs they are currently running. They will choose whether the AVSs’ conditions are acceptable to them, and they can opt in.
Targeted Stake Slashing
AVSs can only slash the specific portion of stake Operators have designated against that specific AVS. This feature is called Unique Stake Allocation. Operators can designate specific amounts to multiple AVSs if they wish to. This isolates slashing risks and strengthens security guarantees for AVSs without exposing Operators to unnecessary risks from unrelated tasks.
Enhanced Cryptoeconomic Guarantees
Unique Stake is needed for AVSs to flexibly define their own slashing conditions with minimal impact to other ecosystem participants. Previously, many types of EigenLayer commitments lacked a mechanism at scale to provide the trustless guarantees we have with things like EVM execution or direct on-chain value transfer. EigenLayer expands the conditions in which underlying stake can be slashed when used to secure services. EigenLayer slashing expands the functional cryptoeconomic guarantees that AVSs can make to users; it can power entirely new classes of trustless work on-chain and novel services with cryptoeconomic commitments.
Why should AVSs be excited about slashing on mainnet?
This launch provides AVSs flexibility to set the conditions to reward Operators for meeting commitments and punish them if obligations aren’t met. This allows for more transparency in the ecosystem because AVSs can set clear expectations regarding the conditions they need Operators to meet. In turn, Operators can understand AVSs’ expectations, opt into the conditions, and be rewarded for running the services. Also, Operators now have transparency around penalties if they do not meet the conditions set by the AVS. Slashing is a significant step forward in the EigenLayer flywheel because this release marks a feature-complete protocol for AVSs to begin rewarding and enforcing commitments based on the needs of their service.