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Key Management for Redistributable Slashing

When implementing redistributable slashing, AVSs face significantly heightened security requirements. Unlike burn-only slashing where compromised keys result in destroyed funds, redistributable slashing allows attackers to steal funds directly.

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When using Redistribution, an attacker that gains access to AVS keys for the slasher and redistributionRecipient can drain the entirety of Operator and Staker allocated stake for a given Operator Set.

For information on AVS key types, refer to Keys.

Critical Key Categories​

Slashing Authority Keys:

  • Keys authorized to call slashOperator on the AllocationManager
  • Should be managed with the highest security standards
  • Consider using multi-signature wallets with threshold signatures
  • Implement geographic and organizational distribution of signers

Redistribution Recipient Keys:

  • Keys controlling the redistributionRecipient address specified during Operator Set creation
  • May receive slashed funds instantly upon calling clearBurnOrRedistributableShares
  • Should be secured with hardware security modules (HSMs) when possible
  • Consider using smart contract wallets rather than EOAs for enhanced security

Enhanced Key Management Practices​

Multi-Signature Implementation:

  • Use threshold signatures for all critical operations.
  • Distribute signing authority across multiple independent parties.
  • Implement different threshold requirements for different operation types.
  • Maintain offline backup signers in geographically distributed locations.

Access Control and Separation:

  • Separate slashing authority from other AVS administrative functions
  • Use different key sets for operational vs. governance functions
  • Implement role-based access controls with principle of least privilege
  • Regularly audit and rotate key assignments

Operational Security:

  • Store keys in dedicated hardware security modules (HSMs)
  • Implement comprehensive key rotation schedules
  • Maintain secure key backup and recovery procedures
  • Use air-gapped systems for key generation and critical operations