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Security for Redistributable Slashing

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Redistributable slashing increases the attack surface and potential impact of security vulnerabilities. AVSs must implement additional security measures beyond what would be required for burn-only slashing.

AVSs should only implement redistributable slashing if they can meet these enhanced security standards and have thoroughly evaluated the associated risks.

Monitoring and Incident Response​

Continuous Monitoring and Alerting:

  • Monitor all slashing events for unusual patterns or amounts.
  • Track redistributionRecipient address activity for unexpected activity.
  • Set up alerts for suspicious operator registration patterns.
  • Implement automated anomaly detection systems.

Emergency Procedures:

  • Maintain emergency pause mechanisms for critical vulnerabilities.
  • Establish clear incident response procedures.
  • Create secure communication channels for emergency coordination.
  • Plan for potential key compromise scenarios.

Smart Contract Integration​

Redistribution Recipient Design: When designing the redistributionRecipient contract:

  • Implement additional access controls and validation logic in the redistribution logic.
  • Add time delays for large fund movements.
  • Include governance mechanisms for fund distribution.
  • Maintain comprehensive audit trails and transparency.
  • Consider using a contract rather than an EOA for the redistributionRecipient.

Circuit Breakers and Limits:

  • Implement rate limiting on slashing frequency and amounts.
  • Set maximum slash amounts per time period.
  • Create automatic shutdown triggers for suspicious activity.
  • Maintain manual override capabilities for emergency situations.

Smart Contract Design:

  • Implement time delays for critical operations.
  • Use upgradeable contracts with governance-controlled upgrades.
  • Include emergency pause functionality.
  • Implement comprehensive access controls and role management.

Precision loss:

Governance and Fraud Prevention​

Veto Mechanisms:

  • Implement governance mechanisms where a committee can review proposed slashings.
  • Include meaningful delay periods between slash proposal and execution.
  • Allow for community veto of suspicious slashing events.
  • Maintain transparent logs of all slashing decisions and rationale.

Fraud Proofs and Verification:

  • Where possible, implement objective, onchain fraud proofs.
  • Create robust legibility around slashing conditions and individual events.
  • Enable community verification of slashing claims.
  • Implement dispute resolution mechanisms for contested slashes.

Technical Implementation Guidelines​

Testing and Auditing:

  • Conduct comprehensive security audits focusing on redistributable slashing.
  • Implement extensive testing including edge cases and attack scenarios.
  • Use formal verification where appropriate for critical components.
  • Regular security reviews and penetration testing.

Catastrophic Bug Mitigation​

AVSs should prepare for scenarios where critical bugs could enable unauthorized slashing:

Circuit Breakers:

  • Implement rate limiting on slashing amounts and frequency.
  • Set maximum slash amounts per time period.
  • Create automatic shutdown triggers for suspicious activity.
  • Maintain manual override capabilities for emergency situations.

Recovery Mechanisms:

  • Plan for potential fund recovery in case of bugs or exploits.
  • Consider insurance or compensation mechanisms.
  • Maintain transparency about security measures and incident response.
  • Establish clear communication channels with affected parties.