Overcollaterised stablecoins are seeing significant adoption across the different sectors and different use cases. However, although they are leverage the real liquidity of the underlying collateral, they run a significant credit risk related due to the underlying volatility of the collaterised asset (such as Bitcoin/Ethereum) due to market dynamics. Typically, this is handled by programmatic handling of edge cases, but that can result in cascading effects of a mass liquidation that can result in a collapse (which happens while implementing algorithmic stablecoin in the case the Terra LUNA collapse).
Eigen Layer provides us with a unique opportunity to protect against it using its Eigenlayer AVS technology, through which we can dynamically carry out collateral management and reposition the credit ratios in real time and limit such cascading effects while bolstering security.

There are limited documentation for Eigen Layer, especially for the case EVS, it would be helpful if there are more examples for implementation. As setting up an AVS has a lot of interconnected steps, setting it up in a custom use case such as ours, took a significant amount of our time.