Safety Module: How does slashing work?

AIP-7 is described as introducing the slashing to Safety Module, meaning it’s then possible for AAVE staked in there to be used to cover shortfall events, if I understand correctly. As I read through the AIP description here, its related discussion, as well as the contract code provided, it’s still unclear to me how such slashing would be performed in an actual event (in term of code and/or actions from Aave team), or how it would affect the stakers on an individual level.

Can someone please explain in more detail the mechanism of Safety Module slashing? Accompanying or relevant code would also be very helpful. Thank you.

1 Like