Slashing & Ejection

Slashing in the Othentic Stack is designed to penalize malicious or faulty behavior from operators. The system executes actions such as slashing and ejection via the Attestation Center.

Overview

The Othentic Stack allows AVS developers to enforce the following penalty mechanisms:

  • Slashing: Deducting a percentage of allocated unique stake from misbehaving operators.

  • Ejection: Forcibly removing an operator from the network.

By default, all slashed funds are burnt. However, AVSs can enable redistribution to redirect these funds to specific parties—such as compensating affected users or incentivizing reliable Operators—based on application-specific logic.

Please note:

  • Ejection is permanent and irreversible. Ejected operators cannot rejoin the AVS

  • Slashing Modules Configuration can be paused or unpaused using SLASHING_FLOW .

AVS developers can use two penalty systems:

It's possible to use just one of the systems, both, or neither.

Read More

Minimum Slashable Stake

Minimum Slashable Stake is the minimum amount of stake an Operator must maintain in a specific staking contract to be considered active in an AVS.

By default, the minimum slashable stake for each staking contract is 0, effectively allowing all operators with non-zero stake in a supported staking contract to participate in consensus.

Once set, this value will affect the operator registration process. If an operator attempts to register to the AVS while not meeting the minimum amount of voting power in the specific staking contract, registration will fail.

This function is only callable by the AVS_GOVERNANCE_MULTISIG role.

Read More

Redistribution

Redistribution extends Slashing mechanism by allowing AVSs to define custom logic for handling slashed funds.

When an AVS is deployed on the Othentic Stack, a Redistribution Manager contract is deployed to manage and route slashed funds. It allows AVSs to plug in a custom Redistribution Logic contract that defines how these funds should be handled.

Slashing and Redistribution Flow

  • Operator Slashing

    • When an Operator is penalized under one of the slashing conditions, a corresponding slashing event is emitted.

    • On Layer 1, the following occurs:

      • OperatorSlashed event is emitted.

      • Slashing metadata is stored under a unique slashId.

      • Slashed funds are transferred to the escrow contract.

  • Funds Redistribution

    • If Redistribution Contract is set by the AVS, the funds are routed to the configured redistribution logic contract.

    • otherwise, the funds are burnt.

Read More

PreviousRewardsNextModules

Last updated