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  • Imua
    • About
  • Manifesto
    • The Problems
    • The Principles
  • Architecture
    • Imua Design Principles
    • Imua Network
    • Imua Modules
    • Client Chain Bridges
      • Trustless Verification of Client Chain State
      • Handling Race Conditions between Imua and Client Chains
    • Client Chain Contracts
  • Concepts
    • Ecosystem
      • Re/stakers
      • Operators
      • Services (AVS)
        • Service Integration with Imua
        • Service Committee
        • Service Integration Details
    • restaked Proof-of-Stake (rPOS)
    • Multi-Token Restaking
    • Multi-Chain Restaking with Trustless Bridging
    • Voting Power
    • Price Oracle
    • Flexible Integration with AVS
    • Tribe Staking
  • Governance
  • Risk Management
    • Risk Analysis
      • Risk Modeling
      • Risk Parameters
      • Crypto-Economic Risk
      • Unintended Slashing
      • Black Swan Events
    • Risk Mitigation
      • Smart Contract Simplicity
      • Audits
      • Slashing Prevention
      • Slashing Vetos
      • Insurance Pools
      • Circuit Breakers
  • Components
    • Testnet
    • Oracle Module
      • Reaching Consensus on Asset Prices
      • Penalty
      • Implementation Detail
    • Smart Contracts
    • Explorer
    • Registry
  • Validator Setup
    • Prerequisites
    • Node Install
    • Compiling Binary from Source
    • Oracle Price Feeder
    • Running the Node
    • Snapshot
    • Register Option 1 (Bootstrap)
    • Register Option 2 (Post Network Launch)
    • Deposit Tokens
    • Delegating Tokens
    • Confirm Election Status
    • Faucets
    • Managing The Validator
    • Security Best Practices
    • Risks & Mitigation
    • Participation in Governance
    • FAQs & Resources
    • Testnet v7 to v8 upgrade
  • Testnet Upgrade to v1.1.1
  • AVS Setup
    • AVS Overview
    • Prerequisites
    • Building the AVS in Imua
    • Hello-World-AVS Example
    • Becoming AVS Operator
    • AVS Register and Deploy
    • AVS Task Example
    • Enhanced and Automated Edition of hello-avs integration guide&example
  • Whitepaper (2023)
    • .pdf
  • FAQ
    • What problems is Imua solving?
    • What are the main design trade-offs that had to be made with an omnichain design?
    • Does the omnichain design imply added trust assumptions (relative to a single-chain design)?
    • What concurrency-related challenges would you face with a different design?
    • How does Imua integrate with new chains?
    • Do specific chains prove unique challenges w.r.t. integration?
    • How is the cross-chain communication is achieved?
    • What are the known attack / censorship vectors here, if any?
    • Are the restaked tokens being pooled in a centralized account?
    • Who will run the validators in the Imua network?
    • Is Imua an AVS?
    • How does Imua address the risks of overloading L1 social consensus?
    • Does the Imua queuing system raise concerns around latency?
    • What are the main benefits of an omnichain design?
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  1. Risk Management
  2. Risk Analysis

Black Swan Events

In financial markets, contagion risk is generally triggered via black swan market events, which are prohibitively difficult to predict. During a black swan event, the market faces immense selling pressure against limited demand, causing the prices of tokens to drop in dramatic fashion. Despite the crypto market being only 15 years old, it has faced at least one black swan event with the COVID pandemic. If a black swan event were to occur again, then the restaking market would not be immune to its impact. Re/staking is a new primitive of crypto-economic security, which is derived from the strength of the market cap of each underlying blockchain that it serves. The higher the market cap, the stronger the crypto-economic security. A reduction in market cap would lower the crypto-economic security of the re/staking system.

Wherever possible, Imua attempts to utilize appropriate risk mitigation techniques and/or thoughtful design to prevent contagion risk. For example, by design, Imua is an omnichain restaking protocol, so it isn’t dependent on any individual blockchain or token to function. If an issue arises within one of the blockchains that Imua supports, then it would not effect the entirety of the Imua system. Instead, the risk would be isolated to that specific blockchain, and once the issue was resolved, then Imua would resume supporting it.

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Last updated 15 days ago