3 ms·
> I really think that all of this DeFi stuff is playing with fire. If these tools scale large enough, it's easy to imagine breaking the right link in the system
by spopejoy 6y ago
> I really think that all of this DeFi stuff is playing with fire. If these tools scale large enough, it's easy to imagine breaking the right link in the system at the right time to cause catastrophic failures.
We've already been through this with algorithmic trading in stocks: the flash crashes of 2010-12. Some were way bigger in terms of damage than the entire crypto market.
So yes "there will be blood" but you'll see all of the DEXs and other mechanisms eventually implement the same techniques that NASD and the stock market implemented to fight it: limits on price movement, kill switches (probably automated), market pauses etc.