Insurance Pools

An AVS consumes the crypto-economic security of restaked tokens, and pays fees for its usage, which contributes to the yield earned by stakers. A portion of the fees could be directed into an insurance pool managed by a DAO with parameters in place to pay out stakers in the event of an unintended slashing condition. A similar concept exists within Binance, which manages a Secure Asset Fund for Users (SAFU) [SAFU] that commits a portion of trading fees into the SAFU for protecting users against vulnerabilities such as hacks where funds may be lost.

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