One stake, multiple networks, one bad day everywhere at once
Nobody talks about this enough.
If your staked BTC can secure more than one Bitcoin Secured Network at the same time, that sounds efficient. Same capital, multiple security jobs. Great on paper.
But correlated risk works both ways.
One validator running poorly across several networks does not fail once. It fails everywhere it participates. Your $BTC is not exposed to one slashing condition anymore, it is exposed to however many networks that validator touches.
Efficiency and concentration are basically the same coin flipped over.
I am not saying this breaks the model. I am saying it changes what due diligence actually looks like for anyone staking through Babylon. You are no longer just evaluating one network's health. You are evaluating validator behavior across an entire portfolio of networks your BTC happens to be securing.
Most people staking will not check this. They will see yield, see self custody, and stake without mapping out validator exposure across networks.
Should shared security come with mandatory transparency on validator overlap, or is that asking too much from a system built to be simple for the end user
@BabylonLabs_io $BABY #baby
Nobody talks about this enough.
If your staked BTC can secure more than one Bitcoin Secured Network at the same time, that sounds efficient. Same capital, multiple security jobs. Great on paper.
But correlated risk works both ways.
One validator running poorly across several networks does not fail once. It fails everywhere it participates. Your $BTC is not exposed to one slashing condition anymore, it is exposed to however many networks that validator touches.
Efficiency and concentration are basically the same coin flipped over.
I am not saying this breaks the model. I am saying it changes what due diligence actually looks like for anyone staking through Babylon. You are no longer just evaluating one network's health. You are evaluating validator behavior across an entire portfolio of networks your BTC happens to be securing.
Most people staking will not check this. They will see yield, see self custody, and stake without mapping out validator exposure across networks.
Should shared security come with mandatory transparency on validator overlap, or is that asking too much from a system built to be simple for the end user
@BabylonLabs_io $BABY #baby
