Submitted by: Chainza
Category: Delegator UX / Monitoring & Alerting
Budget request: $14,000
Timeline: 3 weeks (2 milestones)
Why This Matters Now
ELIP-016 (Redistribution Delay) will insert a 7-day buffer between a slashing event and redistribution. That’s the right protocol move. But the buffer only helps delegators who know the clock has started.
Today, there is no tool that surfaces this to delegators in real time. The EigenYields incident is the proof.
On March 29, 2026, EigenYields Yield AVS used redistributable slashing to redirect approximately $250M in delegated funds to its own vaults. A delegator lost access to 1.52 stETH. He found out on May 3 - 35 days after the slashing event - when he attempted a withdrawal and received 1 wei. The EigenLayer UI had shown his balance as “Withdrawable” with no warning of any kind.
This is not primarily an EigenYields problem. It is a visibility problem. The delegator had no real-time channel to learn that a slashing event had occurred against his operator. By the time he found out, redistribution had already completed. He explicitly asked at the end of his post: “What protections exist for delegators against this type of abuse?”
This proposal is a direct answer to that question.
As noted in the ELIP-016 motivation:
“A number of operators… have set their allocation delays to 0 days, a setting that allows for instantaneous risk profile changes. In addition, multiple public Operators that still have assets delegated to them have ceased operations, raising questions as to the status of their private keys.”
The threat scenario ELIP-016 addresses - compromised operator key, instantaneous allocation and redistribution - has zero user-facing mitigation tooling today. ELIP-016 will create a 7-day protocol window. Delegator Shield makes that window actionable.
The 7-Day Window Problem
| Today, without Delegator Shield | With Delegator Shield |
|---|---|
T+0: Slashing event occurs. No alert to delegator. SlashResolutionBlockSet emitted on-chain, nobody reads it. |
T+0: SlashResolutionBlockSet detected in real time. Delegator receives push alert: “Your operator was slashed. You have 7 days to act before redistribution.” |
| T+7: Redistribution window expires, funds move. | T+1–6: Delegator reviews position impact and decides whether to undelegate. |
| T+35: Delegator discovers the event when trying to withdraw. | T+7: Redistribution window expires — delegator already acted. |
Proposed Solution
We are proposing to build Delegator Shield - an open-source, real-time monitoring and alerting system that notifies EigenLayer delegators the moment their operator is slashed and gives them a live countdown of their action window before redistribution occurs.
Delegator Shield has three components:
1. Event Indexer + Alert Backend
A persistent service that monitors SlashResolutionBlockSet events on EigenLayer mainnet in real time. When a slashing event is detected, it cross-references the operator against registered delegators, computes exposure, and dispatches notifications via email, Telegram webhook, and open REST API.
2. Delegator Dashboard
A lightweight web app where delegators connect their wallet to see:
- All current delegations with live operator status
- Active slashing windows with countdown timers showing days remaining before redistribution
- Position impact: affected shares, USD estimate at current prices, and percentage of position
- Operator health summary: allocation delay setting, AVS exposure, and historical slashing record
3. Pre-Delegation Simulation
Risk simulation before committing to an operator. A user enters an operator address and stake amount and sees:
- Current allocation delay, including 0-day instant-risk operators
- Historical slashing exposure
- Simulated position impact: “If this operator is slashed by X%, you would lose $Y”
The simulation uses the getSlashResolutionBlock view function ELIP-016 introduces, plus on-chain allocation data, to give delegators a concrete risk picture before they commit.
Open-Source Commitment
All three components are open source under the MIT license. The event indexer will expose a public REST API (including webhooks) so any wallet or portfolio tracker can integrate slashing alerts without running its own infrastructure.
Why Chainza Can Build This
We are not approaching this as a generic monitoring problem. We have built every component of this system in a prior context and have the metrics to show for it.
Event-driven indexer: Our team built the event-driven RPC indexer at Velora, a DEX aggregator processing $50M+ in daily volume. The migration from RPC polling to event-based indexing reduced external API dependency by 80%. Delegator Shield’s slashing event monitor is architecturally identical: subscribe to SlashResolutionBlockSet, index against delegator positions, dispatch alerts. Danylo Kanievskyi designed that system and will lead this one.
Dashboard & simulation UI: Andrii Shymkiv built the Velora swap UI and embeddable SDK, handling $350K/month in frontend-driven volume, and led frontend delivery on ExtraWallet, a 21-chain non-custodial wallet with EVM transaction simulation. The pre-delegation simulation and countdown dashboard are a direct application of the same pattern: complex on-chain state rendered into concrete, actionable UI.
Team on This Project
| Engineer | Role | Relevant background |
|---|---|---|
| Danylo Kanievskyi | Architecture, backend, event indexer | Velora lead; EthKyiv 2024 1st place, MEV detection |
| Andrii Shymkiv | Frontend dashboard, embeddable widget | Velora swap UI; embeddable SDK; $350K/month frontend |
GitHub profiles: Danylo · Andrii
Deliverables & Milestones
Milestone 1: Event Indexer + Alert Backend · Week 1 · $5,500
Deliverables:
- Production-ready event listener service subscribing to
SlashResolutionBlockSeton EigenLayer mainnet (and Sepolia testnet) - Delegator registration: wallet address → receive alerts when your operator is slashed
- Alert dispatch: email + Telegram webhook
- REST API:
GET /delegator/:address/slashing-windowsreturns all active windows affecting that address - Open-source repository, deployed and verifiable on mainnet
Verification: Committee can register a test address, trigger a slashing event on testnet, and confirm alert delivery within 2 minutes of block confirmation.
Milestone 2: Delegator Dashboard + SDK + Docs · Weeks 2–3 · $8,500
Deliverables:
- Web app, hosted and open source: connect wallet to see all delegations, operator status, and active slashing windows with countdown timers
- Position impact calculator: affected shares, USD estimate at current stETH price, and percentage of position
- Operator health panel: allocation delay, active AVS list, and slashing history
- Mobile-responsive; wallet connection via wagmi/viem
- Pre-delegation simulation UI: enter operator address + stake amount to see allocation delay, historical slashing exposure, and simulated position loss for configurable slashing percentages
- Integration documentation
- Open-source TypeScript SDK (
delegator-shield-sdk): wraps the alert API and simulation logic so wallets can embed slashing alerts with a few lines of code; published to npm
Verification: Committee can connect a test wallet with known delegations and verify that active slashing windows and countdowns reflect current on-chain state accurately. Committee can run the simulation against two test operators, one with 0-day allocation delay and one with 14-day delay and confirm outputs match on-chain state.
Budget
| Milestone | Scope | Amount |
|---|---|---|
| M1 | Event indexer + alert backend | $5,500 |
| M2 | Delegator dashboard + SDK + docs | $8,500 |
| Total | $14,000 |
Engineering cost breakdown: 2 engineers × ~0.75 FTE-months at a blended $18,600/FTE-month.
Payment in USDC or EIGEN, milestone-gated on committee verification of the deliverables above.
Ecosystem Benefit
ELIP-016 requires this tooling to be useful. The Redistribution Delay creates a 7-day window but provides no mechanism to inform delegators that the window has opened. A delegator with a 0-day allocation delay operator is no safer after ELIP-016 passes than before it, if no alert reaches them. Delegator Shield is the complement ELIP-016 needs to deliver on its intent.
Addresses documented community harm. The EigenYields incident is the first public, documented case of redistributable slashing causing delegator confusion and near-loss. The affected delegator explicitly asked what protections exist. This proposal is a concrete answer, shipped in 3 weeks.
Reusable by the ecosystem. The alert API and SDK are designed for integration, not just direct use. Any EigenLayer-aware wallet can call GET /delegator/:address/slashing-windows and surface slashing alerts to their users without running their own infrastructure. The pre-delegation simulation can be embedded in any staking UI.
Composable with future protocol primitives. The getSlashResolutionBlock view function ELIP-016 introduces is a core data primitive for this system. As EigenLayer adds future slashing-related primitives, the Delegator Shield indexer is the natural place to surface them to end users.
Open Questions for the Committee
- Notification channels: Email + Telegram are in scope for M1. Would the committee value in-app EigenLayer notification integration, or is the open REST API sufficient for that layer?
- Testnet staging: We plan to deploy M1 against Sepolia first and graduate to mainnet for committee verification. Does this staging approach work?
- Operator health data scope: The dashboard will show allocation delay and historical slashing data. Are there additional on-chain signals worth surfacing, such as AVS reward distribution history or operator set membership changes?
About Chainza
Chainza is a Web3 engineering team building production DeFi infrastructure since 2022. We are embedded as core engineers at Velora ($50M+ daily volume DEX aggregator), have built and shipped ExtraWallet (a 21-chain non-custodial wallet with isolated signing and EVM transaction simulation) as a client delivery, and are a selected Tier A operator for Safe’s Safenet Beta staking program (May 2026).
| Project / Profile | Link |
|---|---|
| Velora | https://app.velora.xyz |
| ExtraWallet | https://extrawallet.app |
| ExtraSafe Chat | https://extrasafe.chat |
| Danylo GitHub | https://github.com/KanievskyiDanylo |
| Andrii GitHub | https://github.com/andriy-shymkiv |
Happy to answer any technical questions or provide additional context on the indexer architecture.