I like to adopt the ethos of not trying to solve problems that don’t yet exist.
I understand the problem that bond slashing attempts to solve, namely LPs abandoning a market. That said, I think it likely to be very rare that LPs would do that, as there will always be an arbitrage incentive to close out open interest, even if the prices offered by LPs are not good.
So, generally, I am in support of this until some markets exist that are riskier and sufficient axiety about LPs abandoning those markets is warranted.
On the other hand, there’s an open proposal / discussion about reducing the bond requirement by a factor of 20x, which gets us 95% of the way there anyhow. So with that in mind, do we need to do both right now?