It was mentioned in the whitepaper that there is additive yield opportunity from ASVs and the cost of corruption be the sum of stake. But will this be considered as double counting? Considering that every layer above the ETH staked in underlying Ethereum is just a representative token of the underlying staked ETH
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I’m interpreting this as a question about how trust aggregation affects the security of a system.
There’s a very simple model that can provide some insight here. For every AVS making use of the pooled security, we can consider its Profit from Corruption and its Revenue Flow to Stakers. For simplicity, let’s assume that this revenue flow will directly increase the value of the pooled stake by the corresponding Discounted Cash Flow. Notice that the Profit from Corruption may be dependent on a number of different factors such as the amount of funds that can be withdrawn from a chain in a finite period of time, in the case of a forkable chain such as Ethereum.
For a given AVS, if (Profit from Corruption) < (Discounted Cash Flow), then adding that AVS to the pool will generally have a positive effect on security. On the other hand, if (Profit from Corruption) > (Discounted Cash Flow) then under the assumptions of the model adding the AVS to the pool could harm security.
I think it’s important to realize the Ethereum already aggregates trust across a large set of applications and likewise accumulates yield across all of these applications to the stakers. Ethereum gas prices/deflationary economics are calibrated so that the above constraint is generally satisfied.
These same dynamics can play out as EigenLayer extends the reach of pooled security from smart contract applications to AVS. The whitepaper also details a plan to provide a dashboard which can be used to monitor whether the joint security of the system is being maintained as new middlewares make use of pooled Ethereum stake.
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making the protocol more cheaper among layer 1 project is always the best strategy to make this project more acceptable among developer
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Lfg guuuyyysss keep work:grin:
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Lol i grab i don get mine
Funny thread… XDXDXD