Restaking Risks Overview

TODO: Complete Restaking Risk Framework

This document explains why restaking introduces unique risks and why EigenWatch exists.

Required Sections

• Slashing Risk Fundamentals

  • Traditional staking: single-purpose (block production)
  • Restaking: multi-purpose (multiple AVSs simultaneously)
  • Why slashing happens: malicious behavior, protocol bugs, operator faults
  • Slashing mechanics: full vs partial stake loss

• Operator Risk Dimensions

  • Technical Risk: Infrastructure quality, uptime, software bugs
  • Economic Risk: Rational operator behavior under slashing incentives
  • Governance Risk: AVS rule changes affecting operator obligations
  • Correlation Risk: Multiple AVSs requiring similar behavior (shared failure modes)

• Systemic Risk in EigenLayer

  • Concentration: What happens if top operators are correlated?
  • Cascade effects: One AVS slashing triggering others?
  • Market dynamics: How do stakers respond to slashing events?

• Why Monitoring Matters

  • Stakers need real-time visibility into operator health
  • AVSs need to detect & replace risky operators before slashing
  • Insurance protocols need data for risk pricing
  • Researchers need longitudinal data on ecosystem dynamics

Links & References

• Primary audience: Restakers, AVS developers, risk analysts
• Prerequisites: EigenLayer Primer
• Related docs:
  • Risk Scoring Methodology
  • Slashing Alerts

Status: NOT STARTED — Requires protocol expertise + research