Introducing Slashing Insurance Vaults (SIVs): a new primitive for onchain risk management. Collaborative research with @Re_Squared shows how delegators can pool capital and self-insure against slashing through risk tranching.
How it works: - Junior tranche takes first loss, earns highest yield - Mezzanine tranche covers medium losses - Senior tranche protected unless extreme losses occur Risk flows predictably through layers, with yield redistributed based on risk exposure.
This is inspired by proven models from traditional finance like mortgage-backed securities and investment syndicates. SIVs bring institutional-grade risk management to decentralized staking through programmable, trust-minimized coverage.
SIVs represent a new economic primitive for onchain security. Permissionless risk pooling. Composable coverage. Programmatic enforcement. Read the full research:
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