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Dan Elitzer

๐Ÿ‘ค Speaker
264 total appearances

Appearances Over Time

Podcast Appearances

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

And I think one of the things that you do is

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

the morpho markets at the base level, incredibly minimal, but then you need to think about, okay, let's be really clear about the oracle and how the oracle is being set up and used in that module.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

Okay, now let's look up at the vault and the curators there.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

You can't really rate limit or circuit break Morpho markets.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

That's just not part of it.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

But you can rate limit or circuit break around the vaults and how they reallocate between markets.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

You can make sure you don't have a lot of excess liquidity sitting there in markets waiting to be borrowed in the event of an exploit.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

So you can be sitting maybe in kind of wrapped treasuries or something like that in the meantime.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

There are all sorts of different things that you can do to

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

And I think that's what's going to be done is you don't want big monolithic pools where a lot of capital sits.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

That's monolithic lending pools.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

That's bridges.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

And to the extent that you want those things in the market, which I do think we do, there's a lot of demand for those for good reasons.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

We just need to layer additional protections on top of those so that you're still going to be exposed to a lot of different risks, but you can limit the damage should any of those risks come to fruition.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

I think that to me is also one of the big things here is that we need...

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

to make sure that if anything breaks, there's something else behind it to catch it.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

And I know that like, you know, Filax with your kind of credible layer, this is one of the things that you provide.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

And that I think there's a number of solutions that are starting to come out with this mindset to think about, okay,

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

we can trust the curators, we can trust the people who are choosing default settings and what are the different parameters we should have in lending markets, things like that.

Bankless
The $280M DeFi Exploit That Changes Crypto Forever | Dan Elitzer & Odysseus

Okay, how do we actually make sure that it's not just them saying they're going to do this or just doing it within a certain module on-chain?