⁷Slashing Mechanism and Oracle
Who establishes when an event should be covered?
SAFU's oracle and slashing mechanism (penalty system) ensure fair, decentralized insurance payouts when predefined conditions like depegs or insolvency are met.
For each coverage created, a respective policy defines the exact conditions that trigger a payout, whether it's a custodian failure (e.g., USDe from Ethena) or an on-chain depeg (e.g., Aave or Morpho LPs).
To ensure fairness,
@RealityEth @Kleros_io acts as an optimistic decentralized oracle, where jurors review claims based on these policies before approving any slashing events.
This includes necessary protection mechanisms and cooldown periods (examples are in the docs).
This represents a powerful use case for subjective oracles in the future of restaking—opening doors to new applications in the restaking landscape.