ELIP-006: Redistributable Slashing

Protocol Council ELIPs
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Hello all! We are hard at work cooking on next improvements to slashing and operator sets. First up, Redistributable Slashing! Theres a lot to unpack here in relation to changing incentives for the system and new unlocks for AVSs!

Please chime off below and in Git here.

Executive Summary

Slashing is a key piece of EigenLayer’s vision; it enables enforcement of crypto-economic commitments made by Service builders to their consumers and users. When leveraging slashing on EigenLayer today, security funds are always burned or locked when penalizing Operators. This creates a challenge for builders of use-cases that involve lending, insurance, risk hedging, or, broadly, commitments with a need to compensate harmed parties or amortize risk.

Redistributable Slashing is a feature that gives Service Builders a means to not just burn, but repurpose slashed funds. Redistribution represents an expansion of the types of use-cases builders can launch on EigenLayer, by expanding the expressivity of slashing on the platform. A new type of Operator Set with strict configuration controls allows for specifying a redistribution recipient by the AVS that receives slashed funds. This new feature requires, and is shipped with, adjustments to the EigenLayer security model and stake guarantees for AVSs to support this new slashing paradigm.

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After reading through the ELIP a multitude of trustless solutions to lock down the redistribution path came to mind. From a repository of non-metamorphic contracts to maybe even a factory with a default redistribution contract implementation (meaning the redistribution would always target the staker list and an AVS-defined address, with different limits per address).

We could give takers much harder guarantees that their money is not being poorly spent. :folded_hands:

This seems like a cool problem to ideate around. :grinning_face_with_smiling_eyes: I’ll try to get some code started during free time.

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