In Derivatives, How Does a “Basis Risk” Parallel the Challenge of the Nothing-at-Stake Problem?

Basis risk is the risk that the price of a hedged asset and the price of the hedging instrument (e.g. a futures contract) will not move perfectly in tandem. This imperfect correlation can lead to losses despite a hedge.

Similarly, the nothing-at-stake problem arises from a lack of perfect alignment: validators are not financially penalized for attesting to multiple chains, leading to a breakdown in consensus. Both risks stem from an imperfection in the core alignment mechanism.