📝 We're releasing a report with Liquid Collective about Ethereum's correlation risk!

👀 Considering Ethereum staking? This is a MUST READ report! 

Read the full report here: docsend.com/view/p252rmha9xkpayq7

Scaling and decentralising Ethereum through the development and deployment of distributed validators.

🤔 Many stakers don't understand correlation penalties and centralisation risks in Ethereum. 

🚫 Ethereum severely penalises correlated slashing events, encouraging stakers, protocols, and operators to prioritise client diversity and decentralisation.

@vitalik.eth suggests that Ethereum's correlated slashing mechanism may not be fully achieving its objective, necessitating a more thorough investigation of correlation risk: ethresear.ch/t/supporting-decentralized-staking-through-more-anti-correlation-incentives/19116

📝 To help educate stakers, we are excited to announce our research report: “Ethereum’s Correlation Risks: Poorly Understood, but Always Present” which examines, for the first time, a holistic cross-section of today’s staking correlation risks, key mitigations, and how these dynamics may shift in the future.

It includes explorations of:  

🎯 Correlation penalties
🎯 Client diversity risks
🎯 Operator diversity risks
🎯 Geographic and cloud risks
🎯 Research and upcoming proposals
🎯 Vitalik's proposal

Read the full report here: docsend.com/view/p252rmha9xkpayq7

When you stake with a centralised protocol or provider (using a single client, geographic location, etc), you are more susceptible to penalties if that point of centralisation causes a slashing or offline event.

As the staking ecosystem develops, so does the discussion around correlation risks.