$LAYER DECENTRALIZED INSURANCE: THE AVS PERSPECTIVE ON RESTAKING
Purchasing a Decentralized Insurance Policy
From the perspective of an insurance broker, the relationship between an Actively Validated Service (AVS) and the Solayer ($LAYER ) protocol is best understood as the AVS **purchasing a decentralized insurance policy**. The "insured asset" is the integrity and security of the AVS's own network.
Premiums, Coverage, and The Cost of Trust
The "premium" for this insurance policy is the **yield** that the AVS pays out to the Solayer restakers who delegate their capital to secure it. The "coverage amount" of the policy is the **total dollar value of the staked $SOL ** that is securing the AVS, which represents the economic loss that would be incurred by validators in a slashing event. By creating this open market, @Solayer allows any new protocol to purchase a multi billion dollar security policy for a competitive premium, making the entire Solana ecosystem safer and more accessible for innovators. 🛡️