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Key Takeaways
Smart allocation to AVSs is crucial for security against cascading failures
AVSs need to provide a certain amount of rewards in ETH terms which is used to 'direct' where LRTs should allocate
Restaking risk combines: PoS risk (e.g. combinatorial nature, rewards, attackers) and DeFi risk (e.g. cascades). Analyzing via a single lens does not provide a complete picture of restaking risk.