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![darknight_ethh Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1920483114826280964.png) darknight.eth [@darknight_ethh](/creator/twitter/darknight_ethh) on x XXX followers
Created: 2025-07-26 12:27:00 UTC

X. Automatic slashing
Traditionally, if the protocol experienced losses (ex: due to insolvency), any slashing required a DAO vote. That process was often slow, unpredictable, and vulnerable to delays during critical moments.

With Umbrella, slashing becomes
- Fully automated and on-chain
- Handled by the Umbrella Core smart contract
- Triggered the moment a debt exceeds a preset threshold for that asset

Once triggered, the affected vault is slashed immediately, and the funds are sent to the Aave Collector to cover the loss. This approach removes subjectivity and enables fast, rule-based responses to real risks without waiting for governance intervention.


XXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1949084034149011611/c:line.svg)

**Related Topics**
[debt](/topic/debt)
[onchain](/topic/onchain)
[coins dao](/topic/coins-dao)
[chapter 11](/topic/chapter-11)
[losses](/topic/losses)
[protocol](/topic/protocol)

[Post Link](https://x.com/darknight_ethh/status/1949084034149011611)