Slashing Mechanism

The framework's economic security is reinforced through a slashing design or program, where fraud proofs play a crucial role in identifying any transaction not proposed by the program. Adherence to a Value-of-Deposited-BTC to Value-of-Staked-SOL Ratio further contributes to the system's security considerations. Operating under the assumption of honesty, the framework requires a minimum of one honest verifier, with every node incentivized to submit a fraud proof (identifying unauthorized transactions) to the program, earning a percentage of the slashed funds as a reward. To ensure the integrity of operations signed by Zeus verifiers, a designated "challenge period" follows any such operation. This period encompasses actions such as locking and unlocking Bitcoin, Solana withdrawals, allocations, and minting or burning. The implementation of a recovery mode becomes pivotal for ensuring system liveness, achieved through the reduction of signing thresholds and the slashing of offline nodes. This multifaceted security model thus promotes the robustness and reliability of the overall framework.

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